Investing IdeasBrowse All StocksMarkets
Have your own idea? Try our Stock Screener
Header cover image

U.S. Software Industry Analysis

UpdatedNov 14, 2025
DataAggregated Company Financials
Companies420
  • 7D-1.6%
  • 3M-3.9%
  • 1Y11.5%
  • YTD13.3%

Over the last 7 days, the Software industry has dropped 1.6%, driven by Oracle declining 11%. In the past year, the industry has gained 11%. Looking forward, earnings are forecast to grow by 20% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sat, 15 Nov 2025US$7.5tUS$640.9bUS$158.9b31.5x47x11.7x
Mon, 13 Oct 2025US$7.7tUS$621.4bUS$151.7b34.8x50.7x12.4x
Wed, 10 Sep 2025US$7.4tUS$618.2bUS$151.4b36.2x49.1x12x
Fri, 08 Aug 2025US$7.7tUS$612.0bUS$149.1b37.6x51.4x12.5x
Sun, 06 Jul 2025US$7.4tUS$598.9bUS$131.3b43x56.4x12.4x
Tue, 03 Jun 2025US$6.8tUS$593.5bUS$131.7b35.5x51.3x11.4x
Thu, 01 May 2025US$6.0tUS$581.7bUS$131.6b31.7x45.4x10.3x
Sat, 29 Mar 2025US$5.9tUS$582.3bUS$130.7b29.3x45x10.1x
Mon, 24 Feb 2025US$6.4tUS$580.0bUS$129.9b38.2x49x11x
Wed, 22 Jan 2025US$6.4tUS$569.2bUS$129.3b41.3x49.8x11.3x
Fri, 20 Dec 2024US$6.5tUS$569.1bUS$128.8b40.6x50.6x11.5x
Sun, 17 Nov 2024US$6.3tUS$566.6bUS$127.1b41.4x49.9x11.2x
Tue, 15 Oct 2024US$6.1tUS$551.7bUS$124.1b40.4x48.9x11x
Thu, 12 Sep 2024US$5.9tUS$552.2bUS$123.6b37.4x47.7x10.7x
Sat, 10 Aug 2024US$5.5tUS$548.4bUS$121.8b35x45.5x10.1x
Mon, 08 Jul 2024US$6.2tUS$530.5bUS$118.1b40.9x52.3x11.6x
Wed, 05 Jun 2024US$5.1tUS$476.3bUS$107.0b40.1x47.6x10.7x
Fri, 03 May 2024US$5.0tUS$476.5bUS$103.0b41.9x48.8x10.5x
Sun, 31 Mar 2024US$5.4tUS$465.9bUS$98.3b46x55x11.6x
Tue, 27 Feb 2024US$5.3tUS$466.3bUS$93.2b43.7x57.2x11.4x
Thu, 25 Jan 2024US$5.4tUS$486.2bUS$82.2b44.5x65.8x11.1x
Sat, 23 Dec 2023US$5.2tUS$486.1bUS$82.9b44.5x62.4x10.6x
Mon, 20 Nov 2023US$4.9tUS$482.4bUS$79.8b45.3x61.5x10.2x
Wed, 18 Oct 2023US$4.6tUS$477.3bUS$73.7b43.3x62.1x9.6x
Fri, 15 Sep 2023US$4.6tUS$479.6bUS$72.7b45.6x63.7x9.7x
Sun, 13 Aug 2023US$4.4tUS$473.0bUS$70.1b45.8x63x9.3x
Tue, 11 Jul 2023US$4.5tUS$460.7bUS$60.4b47.8x73.9x9.7x
Thu, 08 Jun 2023US$4.4tUS$459.9bUS$62.0b42.2x71.1x9.6x
Sat, 06 May 2023US$4.0tUS$455.5bUS$60.6b38.1x65.6x8.7x
Mon, 03 Apr 2023US$4.0tUS$453.7bUS$60.6b44.4x65.5x8.7x
Wed, 01 Mar 2023US$3.5tUS$440.1bUS$58.9b42.3x59.1x7.9x
Fri, 27 Jan 2023US$3.5tUS$436.2bUS$58.0b42.4x59.8x8x
Sun, 25 Dec 2022US$3.2tUS$434.3bUS$60.3b41.7x53.7x7.5x
Tue, 22 Nov 2022US$3.3tUS$430.3bUS$62.3b44.6x52.8x7.7x
Price to Earnings Ratio

52.8x


Total Market Cap: US$3.3tTotal Earnings: US$62.3bTotal Revenue: US$430.3bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Software Industry Price to Earnings3Y Average 55.5x202320242025
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 47.0x which is lower than its 3-year average PE of 55.5x.
  • The 3-year average PS ratio of 10.4x is lower than the industry's current PS ratio of 11.7x.
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-0.23%
Tech-1.42%
Software-1.58%
Systems Software-0.86%
Application Software-3.18%
Industry PE
  • Investors are most optimistic about the Application Software industry which is trading above its 3-year average PE ratio.
    • Analysts expect its future annual earnings growth (25.1%) to be largely in line with prior year's earnings growth.
  • Investors are most pessimistic about the Systems Software industry, which is trading close to its 3-year average of 39.8x.
Forecasted Growth
  • Analysts are most optimistic on the Application Software industry, expecting annual earnings growth of 25% over the next 5 years.
  • This is roughly in line with its past earnings growth rate.
  • In contrast, the Systems Software industry is expected to see its earnings grow by 18% 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$503.291.2%
+US$46.0b		17.9%PE35.7x
ADBE AdobeUS$333.601.9%
+US$2.6b		-37.0%PE20.1x
FROG JFrogUS$59.5826.1%
+US$1.4b		89.2%PS13.8x
CRM SalesforceUS$240.430.5%
+US$1.1b		-27.5%PE34.4x
FICO Fair IsaacUS$1.74k3.7%
+US$987.7m		-25.2%PE63.2x

Latest News

CRM
US$240.43
Salesforce
7D
0.5%
1Y
-27.5%
FROG
US$59.58
JFrog
7D
26.1%
1Y
89.2%
MSTR
US$208.54
Strategy
7D
-12.1%
1Y
-36.4%
CLBT
US$19.28
Cellebrite DI
7D
25.2%
1Y
8.9%
CWAN
US$19.08
Clearwater Analytics Holdings
7D
20.1%
1Y
-37.3%
CRCL
US$82.34
Circle Internet Group
7D
-17.7%
1Y
n/a
IREN
US$48.65
IREN
7D
-27.3%
1Y
371.0%
MSFT
US$503.29
Microsoft
7D
1.2%
1Y
17.9%
NBIS
US$88.63
Nebius Group
7D
-19.0%
1Y
389.9%
FICO
US$1,737.27
Fair Isaac
7D
3.7%
1Y
-25.2%
PLTR
US$172.14
Palantir Technologies
7D
-1.7%
1Y
190.9%
PANW
US$204.77
Palo Alto Networks
7D
-3.1%
1Y
3.8%
GEN
US$26.72
Gen Digital
7D
5.0%
1Y
-11.1%

Gen Digital (NASDAQ:GEN) Has Affirmed Its Dividend Of $0.125

Nov 10
Gen Digital (NASDAQ:GEN) Has Affirmed Its Dividend Of $0.125
APP
US$556.15
AppLovin
7D
-10.5%
1Y
95.5%
ORCL
US$217.57
Oracle
7D
-10.8%
1Y
16.3%

ORCL: Accelerating AI Cloud Demand Will Drive Upside Through Major Multi-Year Contracts

Oracle's analyst price target saw a modest increase, rising by $10 to $360. Analysts pointed to continued strength in AI infrastructure demand and the company’s ability to accelerate earnings growth through fiscal 2028.
ADBE
US$333.60
Adobe
7D
1.9%
1Y
-37.0%