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U.S. Software Industry Analysis

UpdatedMay 01, 2026
DataAggregated Company Financials
Companies430
  • 7D-2.6%
  • 3M-6.1%
  • 1Y-9.8%
  • YTD-16.3%

Over the last 7 days, the Software industry has dropped 2.6%, driven by Microsoft declining 2.5%. Overall the industry is down 9.8% in 12 months. Earnings are forecast to grow by 19% annually.

Industry Valuation and Performance

Has the U.S. Software Industry valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sat, 02 May 2026US$5.8tUS$680.4bUS$163.2b28.8x35.3x8.5x
Mon, 30 Mar 2026US$5.2tUS$668.4bUS$161.9b28.2x32x7.7x
Wed, 25 Feb 2026US$5.4tUS$661.1bUS$162.9b24.2x33x8.1x
Fri, 23 Jan 2026US$6.5tUS$649.0bUS$159.9b30.5x40.8x10x
Sun, 21 Dec 2025US$7.2tUS$645.4bUS$164.7b32.4x43.6x11.1x
Tue, 18 Nov 2025US$7.4tUS$641.1bUS$159.9b30.8x46x11.5x
Thu, 16 Oct 2025US$7.8tUS$621.4bUS$151.7b34.9x51.2x12.5x
Sat, 13 Sep 2025US$7.7tUS$620.9bUS$151.9b34.9x50.6x12.4x
Mon, 11 Aug 2025US$7.6tUS$614.0bUS$150.0b37.7x50.5x12.3x
Wed, 09 Jul 2025US$7.4tUS$598.9bUS$131.3b43.8x56.2x12.3x
Fri, 06 Jun 2025US$6.8tUS$595.6bUS$131.6b39.5x52x11.5x
Sun, 04 May 2025US$6.4tUS$589.0bUS$131.0b33.5x48.9x10.9x
Tue, 01 Apr 2025US$5.7tUS$582.3bUS$130.7b29.3x43.7x9.8x
Thu, 27 Feb 2025US$6.2tUS$581.2bUS$128.6b35.2x48.1x10.6x
Sat, 25 Jan 2025US$6.7tUS$568.2bUS$129.2b42.3x52.1x11.8x
Mon, 23 Dec 2024US$6.6tUS$569.1bUS$128.8b40.8x51.1x11.6x
Wed, 20 Nov 2024US$6.3tUS$566.7bUS$127.1b41x50x11.2x
Fri, 18 Oct 2024US$6.0tUS$551.7bUS$124.1b39.5x48.7x10.9x
Sun, 15 Sep 2024US$6.0tUS$552.4bUS$124.0b38.8x48.2x10.8x
Tue, 13 Aug 2024US$5.6tUS$548.6bUS$121.5b34.3x46.1x10.2x
Thu, 11 Jul 2024US$6.0tUS$530.5bUS$118.1b40.3x51.1x11.4x
Sat, 08 Jun 2024US$5.2tUS$477.7bUS$107.3b39.9x48.9x11x
Mon, 06 May 2024US$5.2tUS$476.8bUS$103.2b42.3x50.1x10.8x
Wed, 03 Apr 2024US$5.4tUS$466.0bUS$98.3b44x55.1x11.6x
Fri, 01 Mar 2024US$5.4tUS$472.1bUS$98.1b43.9x54.6x11.3x
Sun, 28 Jan 2024US$5.4tUS$486.8bUS$82.4b47.4x66.1x11.2x
Tue, 26 Dec 2023US$5.2tUS$486.1bUS$82.9b44.5x62.4x10.6x
Thu, 23 Nov 2023US$5.0tUS$482.4bUS$79.9b44.9x62.4x10.3x
Sat, 21 Oct 2023US$4.4tUS$477.3bUS$73.7b42x60.3x9.3x
Mon, 18 Sep 2023US$4.6tUS$480.1bUS$73.0b45.2x62.5x9.5x
Wed, 16 Aug 2023US$4.4tUS$473.1bUS$70.2b45.1x63.1x9.4x
Fri, 14 Jul 2023US$4.6tUS$460.7bUS$60.1b49.4x76.8x10x
Sun, 11 Jun 2023US$4.3tUS$460.1bUS$62.1b43.1x69.8x9.4x
Tue, 09 May 2023US$4.0tUS$455.5bUS$60.6b38.1x65.5x8.7x
Price to Earnings Ratio

65.5x


Total Market Cap: US$4.0tTotal Earnings: US$60.6bTotal Revenue: US$455.5bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Software Industry Price to Earnings3Y Average 52.3x202420252026
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 35.3x which is lower than its 3-year average PE of 52.4x.
  • The 3-year average PS ratio of 10.7x is higher than the industry's current PS ratio of 8.5x.
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 Market0.59%
Tech-0.62%
Software-2.58%
Application Software0.71%
Systems Software-3.90%
Industry PE
  • Investors are most optimistic about the Application Software industry which is trading above its 3-year average PE ratio of 31.2x.
    • Analysts are expecting annual earnings growth of 25.4%, which is higher than its past year's earnings growth of 15.2% per year.
  • Investors are most pessimistic about the Systems Software industry, which is trading below its 3-year average of 39.5x.
Forecasted Growth
  • Analysts are most optimistic on the Application Software industry, expecting annual earnings growth of 25% over the next 5 years.
  • This is better than its past earnings growth rate of 15% per year.
  • 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
CRM SalesforceUS$183.823.2%
+US$4.6b		-33.2%PE20.2x
TEAM AtlassianUS$88.8824.2%
+US$4.6b		-57.4%PS3.8x
DDOG DatadogUS$140.538.5%
+US$4.2b		33.8%PE464.3x
APP AppLovinUS$460.002.6%
+US$3.9b		49.6%PE45.1x
ZM Zoom CommunicationsUS$103.4412.4%
+US$3.4b		32.2%PE16x

Latest News

DDOG
US$140.53
Datadog
7D
8.5%
1Y
33.8%
CHKP
US$114.51
Check Point Software Technologies
7D
-15.0%
1Y
-47.4%
DLB
US$57.46
Dolby Laboratories
7D
-10.3%
1Y
-23.3%
IDCC
US$290.50
InterDigital
7D
-21.2%
1Y
37.7%
PLTR
US$144.07
Palantir Technologies
7D
0.7%
1Y
15.9%

Palantir: Caution Before Earnings Is Advised

May 01
CRM
US$183.82
Salesforce
7D
3.2%
1Y
-33.2%

Salesforce: A+ Rated Bonds With 6.6% Yield Beat Oracle's 7.4%

Apr 30
MSFT
US$414.20
Microsoft
7D
-2.5%
1Y
-4.8%

AI Infrastructure And Enterprise Agents Will Reshape Long Term Earnings Power

Catalysts About Microsoft Microsoft is a global technology company that offers cloud services, productivity software, AI platforms, business applications, security products and consumer services. What are the underlying business or industry changes driving this perspective?
CIFR
US$17.04
Cipher Digital
7D
-6.4%
1Y
439.2%

CIFR: Long Duration AI Leases Are Expected To Reprice Future Earnings Profile

Analysts have raised their fair value estimate for Cipher Digital to $45.06 from $43.92, citing updated assumptions around profitability, a lower discount rate, and recent Street price target changes that highlight lease-driven earnings potential alongside differing views on future mining economics. Analyst Commentary Recent Street research on Cipher Digital shows a mix of target changes, but the underlying commentary often points to earnings potential tied to its lease model and existing site footprint.
ORCL
US$171.83
Oracle
7D
-0.8%
1Y
14.0%

Oracle's AI Future: Undervalued Infrastructure

Apr 30
IREN
US$45.66
IREN
7D
-9.8%
1Y
599.2%

IREN: AI Data Center Expansion And GPU Deployment Will Drive Future Upside

Analysts have adjusted their price targets for IREN to reflect a roughly $6 lower fair value, along with updated assumptions for the discount rate, revenue growth, profit margin, and a significantly lower future P/E, incorporating recent mixed target changes and a neutral initiation. Analyst Commentary Recent research points to a mixed but informative picture for IREN, with some analysts trimming expectations and others seeing room for upside at current levels.
APP
US$460.00
AppLovin
7D
2.6%
1Y
49.6%

APP: Share Repurchases Will Support Future Upside At Current Pricing

Analysts now see AppLovin's fair value holding at $860, with a slightly lower discount rate, a modestly higher revenue growth outlook near 40%, a stable profit margin around 72%, and a marginally lower future P/E closer to 34. Together, these factors support a steady price target narrative rather than a major reset.
CDNS
US$340.94
Cadence Design Systems
7D
2.4%
1Y
10.6%

CDNS: AI Partnerships And Software Multiples Will Shape Forward Returns

The analyst price target for Cadence Design Systems has been raised by $4.31 to $316.06. Analysts cite recent target revisions across the Street that balance higher long term earnings estimates with a more conservative P/E multiple amid software sector volatility and AI related demand expectations.
SNPS
US$489.02
Synopsys
7D
-2.4%
1Y
3.5%
TEAM
US$88.88
Atlassian
7D
24.2%
1Y
-57.4%

TEAM: AI Integration With Cloud Partners Will Drive Stronger Long Term Returns

Analysts have reduced their price target for Atlassian to reflect an updated fair value estimate of about $145.54, down from roughly $165.22. This adjustment is based on slightly revised assumptions for the discount rate, revenue growth, profit margin and future P/E.
ZM
US$103.44
Zoom Communications
7D
12.4%
1Y
32.2%

ZM: AI Integration And Anthropic Stake Are Expected To Support Steady Outlook

Analysts have made only modest adjustments to Zoom Communications' price targets, with figures now ranging from about $74 to $115, as they factor in recent Q4 execution, the Claude Cowork launch, and the potential impact of the Anthropic investment on future growth drivers and margins. Analyst Commentary Recent research on Zoom Communications reflects a split view, with some analysts focusing on AI driven upside and execution, while others question how the company stacks up against faster growing software peers.
AUR
US$6.13
Aurora Innovation
7D
24.8%
1Y
-24.7%