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U.S. Software Industry Analysis

UpdatedMar 29, 2026
DataAggregated Company Financials
Companies424
  • 7D-7.1%
  • 3M-27.6%
  • 1Y-10.2%
  • YTD-24.9%

Over the last 7 days, the Software industry has dropped 7.1%, driven by Microsoft declining 6.6%. Meanwhile, Braze actually outperformed within the industry, gaining 25% in the last week. The industry has fallen 10% in the last year. Looking forward, earnings are forecast to grow by 18% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sun, 29 Mar 2026US$5.2tUS$668.4bUS$161.9b28.2x32x7.7x
Tue, 24 Feb 2026US$5.5tUS$661.0bUS$163.6b24.3x33.6x8.3x
Thu, 22 Jan 2026US$6.6tUS$649.0bUS$159.9b30.1x41x10.1x
Sat, 20 Dec 2025US$7.1tUS$645.4bUS$164.7b32.4x42.9x11x
Mon, 17 Nov 2025US$7.4tUS$641.0bUS$159.9b31.2x46x11.5x
Wed, 15 Oct 2025US$7.8tUS$621.4bUS$151.7b34.9x51.6x12.6x
Fri, 12 Sep 2025US$7.6tUS$620.6bUS$151.7b35.2x50.3x12.3x
Sun, 10 Aug 2025US$7.6tUS$613.9bUS$150.0b37.7x50.5x12.3x
Tue, 08 Jul 2025US$7.4tUS$598.9bUS$131.3b43.4x56.4x12.4x
Thu, 05 Jun 2025US$6.8tUS$595.7bUS$131.6b37.2x51.9x11.5x
Sat, 03 May 2025US$6.3tUS$589.0bUS$131.0b33.5x48.3x10.7x
Mon, 31 Mar 2025US$5.7tUS$582.3bUS$130.7b29.5x43.7x9.8x
Wed, 26 Feb 2025US$6.3tUS$580.0bUS$129.5b36.6x48.6x10.8x
Fri, 24 Jan 2025US$6.7tUS$568.2bUS$129.2b42.6x51.9x11.8x
Sun, 22 Dec 2024US$6.6tUS$569.1bUS$128.8b40.8x51.1x11.6x
Tue, 19 Nov 2024US$6.3tUS$566.6bUS$127.1b40.9x49.9x11.2x
Thu, 17 Oct 2024US$6.0tUS$551.7bUS$124.1b38.7x48.7x11x
Sat, 14 Sep 2024US$6.0tUS$552.4bUS$124.0b38.6x48x10.8x
Mon, 12 Aug 2024US$5.6tUS$548.6bUS$121.5b34.7x46.1x10.2x
Wed, 10 Jul 2024US$6.1tUS$530.5bUS$118.1b40.1x52x11.6x
Fri, 07 Jun 2024US$5.2tUS$476.6bUS$107.1b40.2x48.8x11x
Sun, 05 May 2024US$5.2tUS$476.8bUS$103.2b42.3x50.1x10.8x
Tue, 02 Apr 2024US$5.4tUS$465.9bUS$98.3b45.2x54.9x11.6x
Thu, 29 Feb 2024US$5.3tUS$466.6bUS$95.1b42.8x56.1x11.4x
Sat, 27 Jan 2024US$5.5tUS$486.8bUS$82.4b47.4x66.2x11.2x
Mon, 25 Dec 2023US$5.2tUS$486.1bUS$82.9b44.5x62.4x10.6x
Wed, 22 Nov 2023US$4.9tUS$482.4bUS$79.9b45.4x61.5x10.2x
Fri, 20 Oct 2023US$4.5tUS$477.3bUS$73.7b42.5x61.4x9.5x
Sun, 17 Sep 2023US$4.6tUS$480.1bUS$73.0b45.2x62.5x9.5x
Tue, 15 Aug 2023US$4.5tUS$473.1bUS$70.1b45.3x63.7x9.4x
Thu, 13 Jul 2023US$4.5tUS$460.7bUS$60.1b49.2x75.5x9.9x
Sat, 10 Jun 2023US$4.3tUS$460.1bUS$62.1b43.1x69.8x9.4x
Mon, 08 May 2023US$4.0tUS$455.5bUS$60.6b38.1x65.6x8.7x
Wed, 05 Apr 2023US$3.9tUS$453.7bUS$60.6b44x64.9x8.7x
Price to Earnings Ratio

64.9x


Total Market Cap: US$3.9tTotal Earnings: US$60.6bTotal Revenue: US$453.7bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Software Industry Price to Earnings3Y Average 53.2x202420252026
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 32.0x which is lower than its 3-year average PE of 53.2x.
  • The 3-year average PS ratio of 10.7x is higher than the industry's current PS ratio of 7.7x.
Past Earnings Growth
  • The earnings for companies in the Software industry have grown 39% 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-1.89%
Tech-3.47%
Software-7.12%
Systems Software-6.97%
Application Software-7.44%
Industry PE
  • Investors are most optimistic about the Application Software industry which is trading above its 3-year average PE ratio of 19.2x.
    • Analysts are expecting annual earnings growth of 24.9%, which is higher than its past year's earnings growth of 18.3% per year.
  • Investors are most pessimistic about the Systems Software industry, which is trading below its 3-year average of 39.9x.
Forecasted Growth
  • Analysts are most optimistic on the Application Software industry, expecting annual earnings growth of 25% over the next 5 years.
  • This is better than its past earnings growth rate of 18% 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
BRZE BrazeUS$23.0025.5%
+US$543.7m		-38.7%PS3.5x
U Unity SoftwareUS$19.455.8%
+US$524.0m		-5.3%PS4.6x
ZM Zoom CommunicationsUS$77.711.4%
+US$324.1m		3.8%PE12.1x
EVCM EverCommerceUS$11.369.8%
+US$179.3m		12.3%PE110.8x
NXTT Next Technology HoldingUS$2.2010.0%
+US$158.0m		-96.4%PE0.6x

Latest News

MSFT
US$356.77
Microsoft
7D
-6.6%
1Y
-5.8%
APP
US$381.20
AppLovin
7D
-13.8%
1Y
40.0%
U
US$19.45
Unity Software
7D
5.8%
1Y
-5.3%

U: The Great Pivot Toward AI-Powered Monetization

Unity Software Inc. (U) is currently undergoing one of the most significant strategic overhauls in its history, attempting to shed its image as a struggling "growth-at-all-costs" firm.
NXTT
US$2.20
Next Technology Holding
7D
10.0%
1Y
-96.4%
ZM
US$77.71
Zoom Communications
7D
1.4%
1Y
3.8%
FROG
US$43.34
JFrog
7D
2.5%
1Y
35.4%
ADEA
US$24.19
Adeia
7D
4.2%
1Y
82.6%
BRZE
US$23.00
Braze
7D
25.5%
1Y
-38.7%
PANW
US$147.02
Palo Alto Networks
7D
-9.8%
1Y
-14.9%

PANW: AI Security Platform And Geopolitical Role Will Drive Future Repricing

Analysts made a slight downward adjustment to the price target for Palo Alto Networks, trimming fair value estimates by about $0.41 to $207.75 as they balanced a wave of reduced targets from multiple firms with ongoing views that the company remains exposed to key cybersecurity and AI related demand drivers. Analyst Commentary Recent research on Palo Alto Networks reflects a split view, with many price targets moving lower while ratings often remain positive.
INTU
US$416.44
Intuit
7D
-8.6%
1Y
-30.5%

INTU: AI Partnerships And Embedded Agents Will Support Future Product Usage

The analyst price target for Intuit has been raised slightly to $610.16 from $605.52, as analysts highlight resilient QuickBooks and TurboTax franchises, perceived overstatements of AI disruption risk, and continued AI driven product traction. These factors support modestly higher revenue growth and profit margin assumptions, alongside a slightly lower future P/E multiple.
ORCL
US$139.66
Oracle
7D
-6.7%
1Y
-0.9%

ORCL: AI Data Center Spending And Margins Will Shape Cash Generation

Oracle's analyst fair value estimate has moved from about $193.08 to $155.00 as analysts factor in lower profit margin assumptions along with stronger modeled revenue growth and generally supportive post earnings research. Analyst Commentary Street research around Oracle following the fiscal Q3 report reflects a mix of renewed confidence in the business trajectory and recalibration of expectations.
ATEN
US$22.34
A10 Networks
7D
4.1%
1Y
33.5%

ATEN: AI Use Cases And 2027 2028 Goals Will Support Repricing

Analysts have lifted their A10 Networks fair value estimate from $24.33 to $24.50, pointing to updated long term targets and perceived benefits from AI related use cases as key supports for the higher price expectations. Analyst Commentary Bullish Takeaways Bullish analysts see the higher fair value estimates and price targets, now clustered in the low to high $20s, as support for a more constructive view on A10 Networks' risk and reward profile.
EVCM
US$11.36
EverCommerce
7D
9.8%
1Y
12.3%

EVCM: Mixed Q4 Outlook And AI Tools Will Shape Balanced Near-Term Prospects

EverCommerce's analyst-implied fair value has been revised down from about $12.39 to $10.93, as analysts weigh mixed Q4 results, a more cautious outlook for growth and margins, and recent shifts in ratings and price targets across the Street. Analyst Commentary Recent Street commentary around EverCommerce highlights a split view, with some focusing on cash generation and execution, while others concentrate on growth constraints, payments exposure, and valuation risk.
CRM
US$179.31
Salesforce
7D
-8.2%
1Y
-33.6%

CRM: AI Execution Debt-Funded Buybacks And AI Fears Will Shape Risk Balance

Analysts have kept the fair value estimate for Salesforce steady at $190, while slightly adjusting assumptions such as discount rate, revenue growth, profit margin, and future P/E to reflect mixed Q4 trends, widespread price target cuts across the Street, and increasing focus on the potential of Agentforce and AI driven offerings, alongside softer near term organic growth expectations. Analyst Commentary Street research around the latest Q4 report has turned more cautious, even as many firms still see potential in Salesforce's AI and Agentforce roadmap.
PLTR
US$143.06
Palantir Technologies
7D
-5.1%
1Y
66.6%

My take on Palantir

For me, the story behind this company is the following. I read Alex Carpe's book, The Philosopher in the Valley, and I loved how structured and driven he was.
NOW
US$99.41
ServiceNow
7D
-9.9%
1Y
-37.7%

NOW: AI Platform Adoption And Buybacks Will Drive Long Term Upside

Analysts have trimmed their fair value estimate for ServiceNow to $130.18 from $133.26, citing slightly higher discount rate assumptions, along with modest adjustments to revenue growth, profit margin, and future P/E expectations. What's in the News ServiceNow issued guidance for GAAP subscription revenue of US$3,650 million to US$3,655 million for Q1 2026 and US$15,530 million to US$15,570 million for full year 2026, giving investors a concrete view of management’s current revenue expectations (Corporate guidance).