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U.S. Software Industry Analysis

UpdatedApr 30, 2026
DataAggregated Company Financials
Companies431
  • 7D-0.7%
  • 3M-4.2%
  • 1Y-6.3%
  • YTD-14.3%

The Software industry has been flat over the last week, but Oracle has lost 13%. Unfortunately though, the industry is down 6.3% over the past 12 months. Looking forward, earnings are forecast to grow by 19% annually.

Industry Valuation and Performance

Has the U.S. Software Industry valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 30 Apr 2026US$5.9tUS$667.5bUS$157.2b29.1x37.5x8.8x
Sat, 28 Mar 2026US$5.3tUS$668.4bUS$162.3b27.3x32.9x8x
Mon, 23 Feb 2026US$5.6tUS$661.0bUS$163.6b25.4x34.2x8.5x
Wed, 21 Jan 2026US$6.7tUS$648.9bUS$159.8b30.9x41.7x10.3x
Fri, 19 Dec 2025US$7.0tUS$645.4bUS$164.7b31.2x42.3x10.8x
Sun, 16 Nov 2025US$7.4tUS$641.0bUS$159.9b31.2x46x11.5x
Tue, 14 Oct 2025US$7.7tUS$621.4bUS$151.7b35.4x50.7x12.4x
Thu, 11 Sep 2025US$7.5tUS$621.2bUS$151.2b35.5x49.3x12x
Sat, 09 Aug 2025US$7.6tUS$613.9bUS$149.3b38.1x50.7x12.3x
Mon, 07 Jul 2025US$7.4tUS$598.9bUS$131.3b43x56.4x12.4x
Wed, 04 Jun 2025US$6.8tUS$593.5bUS$131.7b37.8x51.6x11.4x
Fri, 02 May 2025US$6.0tUS$588.6bUS$135.8b32.1x44.2x10.2x
Sun, 30 Mar 2025US$5.7tUS$582.3bUS$130.7b29.4x43.7x9.8x
Tue, 25 Feb 2025US$6.4tUS$580.0bUS$129.9b37.8x49x11x
Thu, 23 Jan 2025US$6.5tUS$568.2bUS$129.2b42.2x50.3x11.4x
Sat, 21 Dec 2024US$6.5tUS$569.1bUS$128.8b40.8x50.6x11.5x
Mon, 18 Nov 2024US$6.3tUS$566.6bUS$127.1b41.4x49.9x11.2x
Wed, 16 Oct 2024US$6.1tUS$551.7bUS$124.1b38.5x48.9x11x
Fri, 13 Sep 2024US$5.9tUS$552.2bUS$123.6b36.7x47.7x10.7x
Sun, 11 Aug 2024US$5.6tUS$548.6bUS$121.5b34.7x46.1x10.2x
Tue, 09 Jul 2024US$6.2tUS$530.5bUS$118.1b40.5x52.3x11.6x
Thu, 06 Jun 2024US$5.1tUS$476.3bUS$107.0b40.1x47.8x10.7x
Sat, 04 May 2024US$5.1tUS$476.8bUS$103.2b42.5x49.8x10.8x
Mon, 01 Apr 2024US$5.4tUS$465.9bUS$98.3b45.3x54.9x11.6x
Wed, 28 Feb 2024US$5.3tUS$466.6bUS$95.1b43.6x56.1x11.4x
Fri, 26 Jan 2024US$5.4tUS$486.7bUS$82.4b44.9x65.9x11.2x
Sun, 24 Dec 2023US$5.2tUS$486.1bUS$82.9b44.5x62.4x10.6x
Tue, 21 Nov 2023US$4.9tUS$482.4bUS$79.9b45.3x61.5x10.2x
Thu, 19 Oct 2023US$4.5tUS$477.3bUS$73.7b42.5x61.5x9.5x
Sat, 16 Sep 2023US$4.6tUS$479.6bUS$72.7b45.6x63.7x9.7x
Mon, 14 Aug 2023US$4.4tUS$473.0bUS$70.1b45.7x63x9.3x
Wed, 12 Jul 2023US$4.5tUS$460.7bUS$60.1b49.2x74.8x9.8x
Fri, 09 Jun 2023US$4.3tUS$460.0bUS$62.1b42.5x69.3x9.4x
Sun, 07 May 2023US$4.0tUS$455.5bUS$60.6b38.1x65.6x8.7x
Price to Earnings Ratio

65.6x


Total Market Cap: US$4.0tTotal Earnings: US$60.6bTotal Revenue: US$455.5bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Software Industry Price to Earnings3Y Average 52.4x202420252026
Current Industry PE
  • Investors are pessimistic on the American Software industry, indicating that they anticipate long term growth rates will be lower than they have historically.
  • The industry is trading at a PE ratio of 37.5x which is lower than its 3-year average PE of 52.4x.
  • The 3-year average PS ratio of 10.7x is higher than the industry's current PS ratio of 8.8x.
Past Earnings Growth
  • The earnings for companies in the Software industry have grown 37% per year over the last three years.
  • Revenues for these companies have grown 14% per year.
  • This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.

Industry Trends

Which industries have driven the changes within the U.S. Tech industry?

US Market-0.18%
Tech0.70%
Software-0.67%
Systems Software-0.23%
Application Software-1.72%
Industry PE
  • Investors are most optimistic about the Application Software industry which is trading above its 3-year average PE ratio of 30.9x.
    • Analysts are expecting annual earnings growth of 25.6%, which is higher than its past year's earnings growth of 17.2% per year.
  • Investors are most pessimistic about the Systems Software industry, which is trading below its 3-year average of 39.5x.
Forecasted Growth
  • Analysts are most optimistic on the Application Software industry, expecting annual earnings growth of 26% over the next 5 years.
  • This is better than its past earnings growth rate of 17% per year.
  • In contrast, the Systems Software industry is expected to see its earnings grow by 16% per year over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

CompanyLast Price7D1YValuation
MSFT MicrosoftUS$424.462.1%
+US$64.7b		-0.2%PE26.4x
PANW Palo Alto NetworksUS$181.544.8%
+US$6.8b		-2.5%PE114.9x
SNPS SynopsysUS$481.225.3%
+US$4.7b		4.8%PE83.4x
CDNS Cadence Design SystemsUS$329.955.0%
+US$4.3b		10.1%PE77.8x
INTU IntuitUS$395.083.1%
+US$3.3b		-36.6%PE25.2x

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CDNS
US$329.95
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7D
5.0%
1Y
10.1%

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Nebius Group
7D
-9.6%
1Y
521.2%

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SNPS
US$481.22
Synopsys
7D
5.3%
1Y
4.8%
PLTR
US$137.97
Palantir Technologies
7D
-2.5%
1Y
18.7%
PANW
US$181.54
Palo Alto Networks
7D
4.8%
1Y
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PANW: AI Security Enforcement And CEO Share Buying Will Drive Repricing

The analyst price target for Palo Alto Networks has been adjusted slightly higher to $206.14, with analysts pointing to fresh bullish coverage, CEO share purchases, and views that recent AI related cybersecurity volatility and multiple compression have pushed expectations to more conservative levels. Analyst Commentary Recent Street research on Palo Alto Networks reflects active debate around how to value the business after sector wide volatility tied to AI and cybersecurity headlines.
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4.8%
1Y
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INTU
US$395.08
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7D
3.1%
1Y
-36.6%

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FTNT
US$86.11
Fortinet
7D
4.0%
1Y
-17.4%

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Analysts have nudged their fair value estimate for Fortinet to $89.00, reflecting a blend of tempered revenue growth expectations, a slightly higher assumed discount rate, and modestly stronger margin and P/E assumptions that align with the recent mix of target hikes and a few cautious downgrades across the Street. Analyst Commentary Recent research on Fortinet presents a mixed picture, with several firms adjusting price targets and ratings around concerns on hardware exposure, execution, and the broader cybersecurity sector reaction to AI developments, while others point to what they view as attractive entry points and constructive setups into earnings.