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U.S. Software Industry Analysis

UpdatedMay 23, 2026
DataAggregated Company Financials
Companies438
  • 7D0.7%
  • 3M11.9%
  • 1Y-6.6%
  • YTD-9.5%

Over the last 7 days, the Software industry has remained flat, although notably CrowdStrike Holdings gained 12%. Unfortunately though, the industry is down 6.6% over the past 12 months. 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, 23 May 2026US$6.2tUS$687.1bUS$155.3b28.4x39.7x9x
Mon, 20 Apr 2026US$5.9tUS$668.1bUS$157.3b29.7x37.7x8.9x
Wed, 18 Mar 2026US$5.8tUS$669.4bUS$161.5b29.4x35.8x8.6x
Fri, 13 Feb 2026US$5.7tUS$660.0bUS$163.5b26.7x34.7x8.6x
Sun, 11 Jan 2026US$7.1tUS$648.9bUS$165.0b32.7x42.8x10.9x
Tue, 09 Dec 2025US$7.3tUS$641.9bUS$162.0b32x45.1x11.4x
Thu, 06 Nov 2025US$7.6tUS$637.6bUS$159.0b35.2x48x12x
Sat, 04 Oct 2025US$7.8tUS$621.4bUS$151.8b35.7x51.6x12.6x
Mon, 01 Sep 2025US$7.4tUS$616.6bUS$150.8b35.9x49x12x
Wed, 30 Jul 2025US$7.6tUS$597.5bUS$130.9b46.9x57.8x12.7x
Fri, 27 Jun 2025US$7.2tUS$599.0bUS$131.1b42x55x12x
Sun, 25 May 2025US$6.6tUS$593.0bUS$131.7b35.3x50.3x11.2x
Tue, 22 Apr 2025US$5.5tUS$580.5bUS$131.7b29.7x41.7x9.4x
Thu, 20 Mar 2025US$5.9tUS$582.8bUS$131.2b29x44.6x10x
Sat, 15 Feb 2025US$6.6tUS$588.2bUS$130.3b42.1x50.6x11.2x
Mon, 13 Jan 2025US$6.3tUS$569.1bUS$129.3b38.8x48.3x11x
Wed, 11 Dec 2024US$6.8tUS$567.9bUS$128.8b43.1x52.8x12x
Fri, 08 Nov 2024US$6.3tUS$563.0bUS$127.1b40.6x49.2x11.1x
Sun, 06 Oct 2024US$6.0tUS$551.7bUS$124.1b38.8x48.1x10.8x
Tue, 03 Sep 2024US$5.8tUS$550.8bUS$122.1b38.9x47.8x10.6x
Thu, 01 Aug 2024US$5.7tUS$540.7bUS$120.1b40.4x47.6x10.6x
Sat, 29 Jun 2024US$6.0tUS$531.0bUS$118.1b40.5x50.7x11.3x
Mon, 27 May 2024US$5.4tUS$475.8bUS$105.8b42.2x50.8x11.3x
Wed, 24 Apr 2024US$5.2tUS$466.5bUS$98.4b42.4x52.6x11.1x
Fri, 22 Mar 2024US$5.4tUS$465.8bUS$98.0b45.4x55.6x11.7x
Sun, 18 Feb 2024US$5.3tUS$465.3bUS$90.9b42.7x58.3x11.4x
Tue, 16 Jan 2024US$5.3tUS$486.2bUS$82.2b46.2x64.1x10.8x
Thu, 14 Dec 2023US$5.1tUS$485.6bUS$82.5b49.3x61.9x10.5x
Sat, 11 Nov 2023US$4.7tUS$482.1bUS$79.1b44.3x59.8x9.8x
Mon, 09 Oct 2023US$4.5tUS$477.3bUS$73.4b45.1x61.5x9.5x
Wed, 06 Sep 2023US$4.6tUS$475.8bUS$72.6b44.8x63.9x9.8x
Fri, 04 Aug 2023US$4.5tUS$466.9bUS$66.7b45.6x66.9x9.5x
Sun, 02 Jul 2023US$4.5tUS$460.6bUS$62.2b45.3x72.4x9.8x
Tue, 30 May 2023US$4.3tUS$458.5bUS$61.6b42.1x70.2x9.4x
Price to Earnings Ratio

70.2x


Total Market Cap: US$4.3tTotal Earnings: US$61.6bTotal Revenue: US$458.5bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Software Industry Price to Earnings3Y Average 51.8x202420252026
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 39.7x which is lower than its 3-year average PE of 51.8x.
  • The 3-year average PS ratio of 10.7x is higher than the industry's current PS ratio of 9.0x.
Past Earnings Growth
  • The earnings for companies in the Software industry have grown 36% 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 Market1.01%
Tech1.55%
Software0.68%
Application Software0.85%
Systems Software0.61%
Industry PE
  • Investors are most optimistic about the Application Software industry which is trading above its 3-year average PE ratio of 39.9x.
    • Analysts are expecting annual earnings growth of 27.5%, which is higher than its past year's earnings growth of 9.5% per year.
  • Investors are most pessimistic about the Systems Software industry, which is trading below its 3-year average of 39.3x.
Forecasted Growth
  • Analysts are most optimistic on the Application Software industry, expecting annual earnings growth of 27% over the next 5 years.
  • This is better than its past earnings growth rate of 9.5% per year.
  • In contrast, the Systems Software industry is expected to see its earnings grow by 17% 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
CRWD CrowdStrike HoldingsUS$663.4611.7%
+US$17.7b		45.6%PS35.1x
PANW Palo Alto NetworksUS$260.587.3%
+US$14.4b		39.5%PE164.9x
FTNT FortinetUS$133.939.1%
+US$8.2b		29.8%PE50.2x
NOW ServiceNowUS$102.137.4%
+US$7.3b		-49.2%PE59.9x
CDNS Cadence Design SystemsUS$373.597.6%
+US$7.3b		18.4%PE88x

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