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U.S. Software Industry Analysis

UpdatedJan 28, 2026
DataAggregated Company Financials
Companies433
  • 7D3.4%
  • 3M-15.6%
  • 1Y-0.6%
  • YTD-2.0%

Over the last 7 days, the Software industry has risen 3.4%, driven by gains from Microsoft of 5.7%. The industry has been flat over the past 12 months despite the gain this week. 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
Wed, 28 Jan 2026US$6.8tUS$649.2bUS$159.8b30.4x42.3x10.4x
Fri, 26 Dec 2025US$7.2tUS$645.4bUS$164.7b31.9x43.8x11.2x
Sun, 23 Nov 2025US$6.8tUS$640.4bUS$160.5b28.8x42.5x10.6x
Tue, 21 Oct 2025US$7.7tUS$621.4bUS$151.7b35.3x51x12.5x
Thu, 18 Sep 2025US$7.7tUS$620.9bUS$151.9b34.9x50.7x12.4x
Sat, 16 Aug 2025US$7.5tUS$614.4bUS$150.3b37.2x50.1x12.2x
Mon, 14 Jul 2025US$7.3tUS$598.9bUS$131.4b41.8x55.7x12.2x
Wed, 11 Jun 2025US$7.0tUS$595.8bUS$131.6b41.1x53x11.7x
Fri, 09 May 2025US$6.4tUS$590.3bUS$132.1b32.8x48.1x10.8x
Sun, 06 Apr 2025US$5.3tUS$581.3bUS$131.8b28.8x39.9x9.1x
Tue, 04 Mar 2025US$6.1tUS$580.6bUS$129.3b34.5x47.5x10.6x
Thu, 30 Jan 2025US$6.7tUS$576.9bUS$129.4b44.5x52.1x11.7x
Sat, 28 Dec 2024US$6.6tUS$569.1bUS$128.8b40.7x50.9x11.5x
Mon, 25 Nov 2024US$6.5tUS$567.3bUS$127.2b42.4x51.3x11.5x
Wed, 23 Oct 2024US$6.1tUS$551.7bUS$124.1b36x48.9x11x
Fri, 20 Sep 2024US$6.0tUS$552.4bUS$124.0b39x48.2x10.8x
Sun, 18 Aug 2024US$5.8tUS$548.8bUS$121.5b36x47.7x10.6x
Tue, 16 Jul 2024US$6.0tUS$530.6bUS$118.4b40.8x50.9x11.4x
Thu, 13 Jun 2024US$5.3tUS$477.8bUS$107.3b40.5x49.6x11.1x
Sat, 11 May 2024US$5.2tUS$474.3bUS$104.3b43.4x50x11x
Mon, 08 Apr 2024US$5.4tUS$466.0bUS$98.3b43.2x54.8x11.6x
Wed, 06 Mar 2024US$5.4tUS$468.7bUS$98.2b42.2x55.4x11.6x
Fri, 02 Feb 2024US$5.5tUS$496.4bUS$88.0b43.1x62.1x11x
Sun, 31 Dec 2023US$5.2tUS$486.1bUS$82.9b47.3x62.4x10.6x
Tue, 28 Nov 2023US$5.0tUS$482.6bUS$79.9b44.2x62.5x10.4x
Thu, 26 Oct 2023US$4.5tUS$483.9bUS$78.6b41.9x57.3x9.3x
Sat, 23 Sep 2023US$4.4tUS$480.7bUS$73.0b45.4x60.3x9.1x
Mon, 21 Aug 2023US$4.3tUS$474.4bUS$70.6b43.5x61.5x9.2x
Wed, 19 Jul 2023US$4.8tUS$460.7bUS$60.1b50x79.5x10.4x
Fri, 16 Jun 2023US$4.5tUS$460.1bUS$62.2b46.9x71.9x9.7x
Sun, 14 May 2023US$4.0tUS$456.8bUS$61.1b39.2x65.4x8.7x
Tue, 11 Apr 2023US$3.9tUS$453.6bUS$60.5b43.4x64.8x8.6x
Thu, 09 Mar 2023US$3.6tUS$453.2bUS$59.6b43.2x60.7x8x
Sat, 04 Feb 2023US$3.6tUS$435.9bUS$57.8b44.8x62.5x8.3x
Price to Earnings Ratio

62.5x


Total Market Cap: US$3.6tTotal Earnings: US$57.8bTotal Revenue: US$435.9bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Software Industry Price to Earnings3Y Average 54.7x202420252026
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 42.3x which is lower than its 3-year average PE of 54.7x.
  • The industry is trading close to its 3-year average PS ratio of 10.6x.
Past Earnings Growth
  • The earnings for companies in the Software industry have grown 40% 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 Market2.04%
Tech3.55%
Software3.39%
Systems Software4.41%
Application Software1.19%
Industry PE
  • Investors are most optimistic about the Application Software industry which is trading above its 3-year average PE ratio of 1.4x.
    • Analysts are expecting annual earnings growth of 24.1%, which is lower than the prior year's growth of 41.1% per year.
  • Investors are most pessimistic about the Systems Software industry, which is trading close to its 3-year average of 40.2x.
Forecasted Growth
  • Analysts are most optimistic on the Application Software industry, expecting annual earnings growth of 24% over the next 5 years.
  • However this is lower than its past earnings growth rate of 41% per year.
  • 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$480.585.7%
+US$193.7b		7.5%PE34x
CRWD CrowdStrike HoldingsUS$476.667.7%
+US$8.6b		16.6%PS26.3x
CRM SalesforceUS$228.533.8%
+US$7.9b		-36.5%PE29.7x
DDOG DatadogUS$138.2118.1%
+US$7.4b		-9.0%PE453.9x
NOW ServiceNowUS$131.805.1%
+US$6.6b		-43.7%PE79x

Latest News

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