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U.S. Software Industry Analysis

UpdatedFeb 07, 2026
DataAggregated Company Financials
Companies429
  • 7D-8.0%
  • 3M-23.7%
  • 1Y-13.6%
  • YTD-18.1%

Over the last 7 days, the Software industry has dropped 8.0%, driven by a pullback from Microsoft of 6.8%. In contrast, InterDigital has gained 14%. However, the industry is down 14% over the past year. 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
Sat, 07 Feb 2026US$5.5tUS$662.4bUS$162.0b26.9x34.1x8.3x
Mon, 05 Jan 2026US$6.9tUS$645.3bUS$164.7b31.7x41.9x10.7x
Wed, 03 Dec 2025US$7.1tUS$640.4bUS$161.2b32x44.1x11.1x
Fri, 31 Oct 2025US$7.9tUS$636.2bUS$154.8b34.1x50.8x12.4x
Sun, 28 Sep 2025US$7.7tUS$620.9bUS$151.9b36x51x12.5x
Tue, 26 Aug 2025US$7.4tUS$615.8bUS$150.8b35x48.9x12x
Thu, 24 Jul 2025US$7.5tUS$596.6bUS$130.8b42.8x57x12.5x
Sat, 21 Jun 2025US$7.1tUS$599.0bUS$131.1b40.7x53.9x11.8x
Mon, 19 May 2025US$6.7tUS$591.1bUS$131.4b36x51.3x11.4x
Wed, 16 Apr 2025US$5.7tUS$581.3bUS$131.8b29.6x43.1x9.8x
Fri, 14 Mar 2025US$5.8tUS$582.4bUS$131.4b28.3x44.2x10x
Sun, 09 Feb 2025US$6.5tUS$586.2bUS$132.4b43.2x49.1x11.1x
Tue, 07 Jan 2025US$6.4tUS$569.1bUS$129.0b40.4x49.9x11.3x
Thu, 05 Dec 2024US$6.6tUS$566.6bUS$127.8b43.1x51.7x11.7x
Sat, 02 Nov 2024US$5.9tUS$562.2bUS$126.3b39.5x47x10.6x
Mon, 30 Sep 2024US$6.0tUS$552.4bUS$124.0b38.7x48.6x10.9x
Wed, 28 Aug 2024US$5.8tUS$550.2bUS$121.7b37.3x47.6x10.5x
Fri, 26 Jul 2024US$5.7tUS$532.0bUS$117.7b40.3x48.6x10.8x
Sun, 23 Jun 2024US$5.9tUS$531.3bUS$118.0b40.6x50.1x11.1x
Tue, 21 May 2024US$5.3tUS$474.3bUS$104.9b45.6x51x11.3x
Thu, 18 Apr 2024US$5.2tUS$466.7bUS$98.4b40.7x52.6x11.1x
Sat, 16 Mar 2024US$5.5tUS$471.0bUS$98.1b45.8x55.9x11.6x
Mon, 12 Feb 2024US$5.5tUS$464.2bUS$90.0b42.7x61.1x11.8x
Wed, 10 Jan 2024US$5.1tUS$486.2bUS$82.8b45.6x61.9x10.5x
Fri, 08 Dec 2023US$5.0tUS$485.4bUS$82.4b46.1x60.6x10.3x
Sun, 05 Nov 2023US$4.7tUS$481.2bUS$79.0b43.3x58.9x9.7x
Tue, 03 Oct 2023US$4.4tUS$477.3bUS$73.4b44.5x59.9x9.2x
Thu, 31 Aug 2023US$4.6tUS$474.5bUS$71.2b44.7x64.2x9.6x
Sat, 29 Jul 2023US$4.6tUS$466.1bUS$64.9b47.7x70.3x9.8x
Mon, 26 Jun 2023US$4.4tUS$460.6bUS$62.3b44x70.9x9.6x
Wed, 24 May 2023US$4.1tUS$457.4bUS$60.9b39.9x67.7x9x
Fri, 21 Apr 2023US$3.9tUS$453.6bUS$60.5b42.6x64.4x8.6x
Sun, 19 Mar 2023US$3.8tUS$453.6bUS$59.7b42.2x63.6x8.4x
Tue, 14 Feb 2023US$3.7tUS$437.0bUS$57.8b42.5x64x8.5x
Price to Earnings Ratio

64x


Total Market Cap: US$3.7tTotal Earnings: US$57.8bTotal Revenue: US$437.0bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Software Industry Price to Earnings3Y Average 54.5x202420252026
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 34.1x which is lower than its 3-year average PE of 54.5x.
  • The 3-year average PS ratio of 10.7x is higher than the industry's current PS ratio of 8.3x.
Past Earnings Growth
  • The earnings for companies in the Software industry have grown 41% per year over the last three years.
  • Revenues for these companies have grown 15% 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-0.12%
Tech-1.48%
Software-8.03%
Systems Software-7.75%
Application Software-8.67%
Industry PE
  • Investors are most optimistic about the Application Software industry which is trading above its 3-year average PE ratio of 4.2x.
    • Analysts are expecting annual earnings growth of 22.9%, which is higher than its past year's earnings growth of 20.3% per year.
  • Investors are most pessimistic about the Systems Software industry, which is trading below its 3-year average of 40.2x.
Forecasted Growth
  • Analysts are most optimistic on the Application Software industry, expecting annual earnings growth of 23% 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 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
IDCC InterDigitalUS$371.0813.7%
+US$1.1b		81.6%PE23.4x
FTNT FortinetUS$82.761.8%
+US$1.1b		-23.1%PE33.2x
BILL BILL HoldingsUS$48.9413.4%
+US$577.9m		-21.2%PS3.2x
WULF TeraWulfUS$14.296.9%
+US$385.2m		184.1%PS35.7x
NTNX NutanixUS$40.262.4%
+US$251.5m		-42.9%PE49.4x

Latest News

APP
US$406.72
AppLovin
7D
-14.0%
1Y
8.3%
BILL
US$48.94
BILL Holdings
7D
13.4%
1Y
-21.2%
FTNT
US$82.76
Fortinet
7D
1.8%
1Y
-23.1%
IDCC
US$371.08
InterDigital
7D
13.7%
1Y
81.6%
PATH
US$12.89
UiPath
7D
2.4%
1Y
-7.7%

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CRM
US$191.35
Salesforce
7D
-9.9%
1Y
-41.3%

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Feb 06
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NTNX
US$40.26
Nutanix
7D
2.4%
1Y
-42.9%

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Feb 06
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PLTR
US$135.90
Palantir Technologies
7D
-7.3%
1Y
22.6%

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Feb 06
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WULF
US$14.29
TeraWulf
7D
6.9%
1Y
184.1%

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PONY
US$14.31
Pony AI
7D
3.1%
1Y
2.2%
MSFT
US$401.14
Microsoft
7D
-6.8%
1Y
-2.1%
PANW
US$159.32
Palo Alto Networks
7D
-10.0%
1Y
-17.9%
NOW
US$100.74
ServiceNow
7D
-13.9%
1Y
-50.0%

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ORCL
US$142.82
Oracle
7D
-13.2%
1Y
-18.1%
INTU
US$443.77
Intuit
7D
-11.1%
1Y
-23.3%
NBIS
US$86.10
Nebius Group
7D
1.1%
1Y
125.8%

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