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U.S. Software Industry Analysis

UpdatedJan 11, 2026
DataAggregated Company Financials
Companies433
  • 7D1.9%
  • 3M-10.4%
  • 1Y11.8%
  • YTD1.9%

Over the last 7 days, the Software industry has risen 1.9%, driven by gains from Microsoft of 1.3%. This means that the industry has gained 11% 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
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
Thu, 27 Apr 2023US$3.9tUS$457.3bUS$62.2b42.1x62.8x8.5x
Sat, 25 Mar 2023US$3.8tUS$453.7bUS$59.8b42.3x63.9x8.4x
Mon, 20 Feb 2023US$3.6tUS$437.4bUS$58.1b42.9x61.7x8.2x
Wed, 18 Jan 2023US$3.3tUS$434.5bUS$60.2b40.1x55.4x7.7x
Price to Earnings Ratio

55.4x


Total Market Cap: US$3.3tTotal Earnings: US$60.2bTotal Revenue: US$434.5bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Software Industry Price to Earnings3Y Average 54.9x202420252026
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 42.5x which is lower than its 3-year average PE of 54.9x.
  • 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 Market1.88%
Tech0.22%
Software1.93%
Application Software2.96%
Systems Software1.45%
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 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 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
MSFT MicrosoftUS$479.281.3%
+US$47.1b		14.4%PE34x
PLTR Palantir TechnologiesUS$177.495.7%
+US$23.0b		163.9%PE386.2x
APP AppLovinUS$647.724.8%
+US$9.9b		103.4%PE75.1x
SNPS SynopsysUS$525.189.3%
+US$8.6b		6.6%PE75.2x
ORCL OracleUS$198.521.4%
+US$8.1b		28.5%PE37x

Latest News

DDOG
US$125.49
Datadog
7D
-6.2%
1Y
-10.6%
ORCL
US$198.52
Oracle
7D
1.4%
1Y
28.5%
INTU
US$646.90
Intuit
7D
2.8%
1Y
3.8%
RBRK
US$70.56
Rubrik
7D
-6.5%
1Y
11.2%
BMNR
US$30.06
Bitmine Immersion Technologies
7D
-3.6%
1Y
403.8%
CRM
US$259.94
Salesforce
7D
2.5%
1Y
-18.2%

CRM: Mixed Ratings Set Stage For Future AI Monetization Reappraisal

Narrative Update on Salesforce The analyst price target for Salesforce has shifted modestly, with fair value moving from about US$430.00 to roughly US$435.32. Analysts are factoring in updated expectations for revenue growth, profitability, and future P/E in the context of mixed sentiment, including Salesforce being replaced on one firm's conviction list and a recent downgrade to Market Perform with a US$264 price target.
PANW
US$189.02
Palo Alto Networks
7D
5.4%
1Y
9.0%

PANW: AI Security And M&A Integration Will Drive Future Share Gains

Narrative Update: Palo Alto Networks Price Target Shift Analysts have nudged their fair value estimate for Palo Alto Networks to US$227.60 from US$224.53. This reflects slightly adjusted assumptions around discount rate, growth, margins, and future P/E in light of mixed research views that balance concerns on decelerating sales and acquisition pricing with continued interest in the company's role in security, observability, and AI driven opportunities.
MSFT
US$479.28
Microsoft
7D
1.3%
1Y
14.4%
SNPS
US$525.18
Synopsys
7D
9.3%
1Y
6.6%

SNPS: AI Alliance And NVIDIA Stake Will Reframe Earnings And Legal Risks

Analysts have raised their price target for Synopsys to reflect updated assumptions around a slightly lower discount rate, modestly adjusted revenue growth, a higher projected profit margin of 15.55%, and a revised future P/E of 91.08x. Taken together, these factors point to a recalibrated risk and earnings profile for the stock.
APP
US$647.72
AppLovin
7D
4.8%
1Y
103.4%
ZS
US$216.73
Zscaler
7D
-1.7%
1Y
14.1%

ZS: Zero Trust And AI Security Momentum Will Drive Long Term Upside

Analysts have nudged our Zscaler fair value estimate higher to about US$389 from US$385, reflecting a blend of slightly softer modeled revenue growth, modestly better margin expectations, and updated price targets that balance mixed ARR disclosure with continued confidence in emerging product traction and long term Zero Trust and AI security demand. Analyst Commentary Street research around the latest quarter paints a largely constructive picture, with price targets moving in both directions but commentary skewing toward confidence in Zscaler's execution on growth initiatives, especially in Zero Trust, AI Security, and Data Security offerings.
NOW
US$141.80
ServiceNow
7D
-3.8%
1Y
-30.8%
PLTR
US$177.49
Palantir Technologies
7D
5.7%
1Y
163.9%
HUBS
US$371.56
HubSpot
7D
-2.8%
1Y
-47.2%

HUBS: AI And Multi Hub Adoption Will Support Long Term Upside

Analysts trimmed their HubSpot price targets by roughly $100 to $200 across much of the Street, reflecting a mix of caution on near term growth expectations and AI related competitive risks, along with continued recognition of solid execution and long term AI opportunities. Analyst Commentary Bullish and bearish analysts are split on HubSpot, with most trimming price targets but taking very different views on how much recent results and AI trends affect the long term story, valuation, and growth profile.
TEAM
US$146.42
Atlassian
7D
-5.4%
1Y
-39.6%

TEAM: Cloud Partnership Progress And Share Repurchases Will Shape Balanced Long-Term Outlook

Analysts have reduced their fair value estimate for Atlassian from $178.00 to $167.44. The revision reflects updated views on its revenue growth assumptions, profit margin outlook, discount rate and future P/E expectations.
ADSK
US$276.02
Autodesk
7D
-3.7%
1Y
-3.1%

Shareholders Should Be Pleased With Autodesk, Inc.'s (NASDAQ:ADSK) Price

Jan 02
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