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U.S. Software Industry Analysis

UpdatedDec 12, 2025
DataAggregated Company Financials
Companies424
  • 7D0.7%
  • 3M-6.2%
  • 1Y5.7%
  • YTD12.4%

In the last week, the Software industry is up 1.3%, with Palantir Technologies leading the way, up 5.4%. In the same time, Oracle was down 7.2%. This means that the industry has gained 5.5% over the past year. 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
Fri, 12 Dec 2025US$7.2tUS$645.3bUS$165.5b32.7x43.8x11.2x
Sun, 09 Nov 2025US$7.4tUS$640.0bUS$159.1b33.5x46.5x11.6x
Tue, 07 Oct 2025US$7.8tUS$621.4bUS$151.8b36.1x51.2x12.5x
Thu, 04 Sep 2025US$7.3tUS$616.8bUS$150.8b36.6x48.7x11.9x
Sat, 02 Aug 2025US$7.7tUS$611.0bUS$147.0b39.7x52.6x12.7x
Mon, 30 Jun 2025US$7.2tUS$599.0bUS$131.2b42x55.1x12.1x
Wed, 28 May 2025US$6.6tUS$593.0bUS$131.7b36.4x50.2x11.2x
Fri, 25 Apr 2025US$5.6tUS$581.1bUS$131.9b31.4x42.5x9.7x
Sun, 23 Mar 2025US$5.9tUS$582.8bUS$131.2b29.5x45.2x10.2x
Tue, 18 Feb 2025US$6.6tUS$588.2bUS$130.3b42.1x50.6x11.2x
Thu, 16 Jan 2025US$6.2tUS$569.1bUS$129.3b40x48.2x11x
Sat, 14 Dec 2024US$6.8tUS$568.6bUS$128.6b41.7x52.8x11.9x
Mon, 11 Nov 2024US$6.4tUS$567.0bUS$127.1b40.6x50.4x11.3x
Wed, 09 Oct 2024US$5.9tUS$551.7bUS$124.1b39.5x47.4x10.7x
Fri, 06 Sep 2024US$5.7tUS$551.1bUS$122.2b37.5x46.7x10.3x
Sun, 04 Aug 2024US$5.5tUS$541.8bUS$120.2b38.2x45.8x10.2x
Tue, 02 Jul 2024US$6.0tUS$531.0bUS$118.1b41x50.5x11.2x
Thu, 30 May 2024US$5.3tUS$475.0bUS$105.6b40.3x50.6x11.3x
Sat, 27 Apr 2024US$5.2tUS$476.7bUS$102.7b43.9x50.4x10.9x
Mon, 25 Mar 2024US$5.5tUS$465.8bUS$98.0b45x55.8x11.7x
Wed, 21 Feb 2024US$5.3tUS$465.3bUS$90.9b45.1x57.9x11.3x
Fri, 19 Jan 2024US$5.3tUS$486.2bUS$82.1b45.7x64.6x10.9x
Sun, 17 Dec 2023US$5.1tUS$486.1bUS$82.9b47.3x61.6x10.5x
Tue, 14 Nov 2023US$4.8tUS$482.1bUS$79.1b44.9x61x10x
Thu, 12 Oct 2023US$4.6tUS$477.3bUS$73.7b45.3x62.3x9.6x
Sat, 09 Sep 2023US$4.6tUS$476.3bUS$73.0b44.8x63.2x9.7x
Mon, 07 Aug 2023US$4.5tUS$473.0bUS$68.4b47.4x65.9x9.5x
Wed, 05 Jul 2023US$4.5tUS$460.7bUS$60.4b47.8x74.3x9.7x
Fri, 02 Jun 2023US$4.4tUS$459.3bUS$61.9b42.1x70.5x9.5x
Sun, 30 Apr 2023US$4.0tUS$457.3bUS$62.5b42.2x64.2x8.8x
Tue, 28 Mar 2023US$3.8tUS$453.7bUS$59.8b42.9x63.4x8.4x
Thu, 23 Feb 2023US$3.5tUS$437.7bUS$58.0b43x60.8x8x
Sat, 21 Jan 2023US$3.4tUS$434.5bUS$60.2b42.3x55.7x7.7x
Mon, 19 Dec 2022US$3.3tUS$434.3bUS$60.3b41.9x55x7.6x
Price to Earnings Ratio

55x


Total Market Cap: US$3.3tTotal Earnings: US$60.3bTotal Revenue: US$434.3bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Software Industry Price to Earnings3Y Average 55.2x202320242025
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 44.7x which is lower than its 3-year average PE of 55.2x.
  • The industry is trading close to its 3-year average PS ratio of 10.5x.
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 Market0.71%
Tech1.10%
Software0.66%
Application Software3.36%
Systems Software-0.59%
Industry PE
  • Investors are most optimistic about the Application Software industry which is trading above its 3-year average PE ratio.
    • Analysts are expecting annual earnings growth of 25.1%, which is lower than the prior year's growth of 33.2% per year.
  • Investors are most pessimistic about the Systems Software industry, which is trading close to its 3-year average of 40.0x.
Forecasted Growth
  • Analysts are most optimistic on the Application Software industry, expecting annual earnings growth of 25% over the next 5 years.
  • However this is lower than its past earnings growth rate of 33% 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
PLTR Palantir TechnologiesUS$187.545.4%
+US$22.9b		156.2%PE408.1x
MSFT MicrosoftUS$483.470.5%
+US$19.5b		7.5%PE34.3x
CRM SalesforceUS$262.356.0%
+US$14.0b		-26.7%PE34x
APP AppLovinUS$716.984.9%
+US$11.2b		119.8%PE83.1x
ADBE AdobeUS$350.436.6%
+US$9.1b		-26.2%PE20.6x

Latest News

MSFT
US$483.47
Microsoft
7D
0.5%
1Y
7.5%
ADBE
US$350.43
Adobe
7D
6.6%
1Y
-26.2%
ORCL
US$198.85
Oracle
7D
-7.2%
1Y
13.4%
IREN
US$43.94
IREN
7D
-5.4%
1Y
227.2%
MSTR
US$183.30
Strategy
7D
-1.5%
1Y
-53.3%
CRM
US$262.35
Salesforce
7D
6.0%
1Y
-26.7%
RBRK
US$87.08
Rubrik
7D
23.6%
1Y
17.4%
DDOG
US$149.90
Datadog
7D
-2.0%
1Y
-4.4%
FTNT
US$82.47
Fortinet
7D
-3.2%
1Y
-16.4%

FTNT: Firewall Cycle, AI Initiatives And Lawsuit Will Shape Stock Path

Analysts have modestly reduced their price target on Fortinet to about $87 per share. This reflects more cautious views on the stock's risk profile and future earnings multiples, despite solid recent revenue and margin performance.
NOW
US$867.49
ServiceNow
7D
3.4%
1Y
-24.5%
PLTR
US$187.54
Palantir Technologies
7D
5.4%
1Y
156.2%
APP
US$716.98
AppLovin
7D
4.9%
1Y
119.8%

APP: Expanded Share Repurchases Will Drive Future Bullish Momentum

Analysts have modestly raised their price target on AppLovin by about 1 percent to approximately 728.25 dollars, citing slightly stronger expected revenue growth, marginally improved profit margins, and a still elevated but easing future earnings multiple. What's in the News AppLovin expanded its share repurchase activity, completing the buyback of 76.6 million shares, or about 21.4% of shares outstanding, for roughly 4.18 billion dollars, including 1.19 million shares repurchased in the latest quarter for 510.29 million dollars (company buyback update).
NBIS
US$94.28
Nebius Group
7D
-8.3%
1Y
200.9%
PANW
US$190.36
Palo Alto Networks
7D
-2.7%
1Y
-4.9%

Increases to Palo Alto Networks, Inc.'s (NASDAQ:PANW) CEO Compensation Might Cool off for now

Dec 02
Increases to Palo Alto Networks, Inc.'s (NASDAQ:PANW) CEO Compensation Might Cool off for now
ADSK
US$300.93
Autodesk
7D
-1.6%
1Y
-2.7%

ADSK: Future Operating Margin Expansion Will Drive Shares Higher This Cycle

Autodesk's average analyst price target has increased modestly to approximately $373. This reflects analyst optimism around improving revenue growth, expanded profit margins, and consistent execution in recent quarters.
INTU
US$676.01
Intuit
7D
2.0%
1Y
0.6%

INTU: OpenAI Partnership Will Expand Distribution Reach and Drive Upside Momentum

Intuit’s analyst price target has decreased slightly, moving from $807.12 to $805.22, as analysts balance improved Credit Karma prospects and new partnerships with OpenAI with modest adjustments to forecasts. Analyst Commentary Analysts have offered a variety of perspectives on Intuit’s outlook, drawing from recent developments in partnerships and Credit Karma performance.