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

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 39.0x which is lower than its 3-year average PE of 52.2x. The 3-year average PS ratio of 10.7x is higher than the industry's current PS ratio of 8.9x.

Which industries have driven the changes within the U.S. Tech industry?

Investors are most optimistic about the Application Software industry which is trading above its 3-year average PE ratio of 33.9x. Analysts are expecting annual earnings growth of 26.6%, which is higher than its past year's earnings growth of 10.2% per year. Investors are most pessimistic about the Systems Software industry, which is trading below its 3-year average of 39.4x.

U.S. Software Industry Analysis

Date	Market Cap	Revenue	Earnings	PE	Absolute PE	PS
Sat, 09 May 2026	US$6.1t	US$684.8b	US$156.1b	27.5x	39x	8.9x
Mon, 06 Apr 2026	US$5.4t	US$668.3b	US$161.4b	30x	33.5x	8.1x
Wed, 04 Mar 2026	US$5.7t	US$665.0b	US$160.7b	26.4x	35.4x	8.5x
Fri, 30 Jan 2026	US$6.8t	US$661.5b	US$174.2b	28.8x	38.8x	10.2x
Sun, 28 Dec 2025	US$7.2t	US$645.4b	US$164.7b	31.7x	43.7x	11.2x
Tue, 25 Nov 2025	US$6.8t	US$640.4b	US$160.5b	30.4x	42.6x	10.7x
Thu, 23 Oct 2025	US$7.8t	US$621.4b	US$151.8b	34.3x	51.3x	12.5x
Sat, 20 Sep 2025	US$7.8t	US$620.8b	US$151.7b	35.3x	51.2x	12.5x
Mon, 18 Aug 2025	US$7.5t	US$614.4b	US$150.3b	35.7x	50.2x	12.3x
Wed, 16 Jul 2025	US$7.4t	US$598.9b	US$131.4b	43.1x	56.1x	12.3x
Fri, 13 Jun 2025	US$7.0t	US$598.6b	US$130.5b	41.3x	53.4x	11.6x
Sun, 11 May 2025	US$6.4t	US$590.8b	US$130.8b	33.7x	49.2x	10.9x
Tue, 08 Apr 2025	US$5.3t	US$581.3b	US$131.8b	28.7x	39.9x	9x
Thu, 06 Mar 2025	US$6.0t	US$582.0b	US$129.5b	34.9x	46.5x	10.4x
Sat, 01 Feb 2025	US$6.5t	US$585.7b	US$132.3b	41.2x	48.8x	11x
Mon, 30 Dec 2024	US$6.5t	US$569.1b	US$128.8b	40.7x	50.5x	11.4x
Wed, 27 Nov 2024	US$6.5t	US$566.0b	US$127.5b	42.3x	51.1x	11.5x
Fri, 25 Oct 2024	US$6.1t	US$552.5b	US$124.3b	37.2x	48.8x	11x
Sun, 22 Sep 2024	US$6.1t	US$552.4b	US$124.0b	38.8x	49.1x	11x
Tue, 20 Aug 2024	US$5.8t	US$548.8b	US$121.5b	36.3x	47.7x	10.6x
Thu, 18 Jul 2024	US$6.0t	US$530.6b	US$118.4b	41.5x	50.9x	11.4x
Sat, 15 Jun 2024	US$5.8t	US$530.8b	US$117.8b	39.8x	48.9x	10.9x
Mon, 13 May 2024	US$5.2t	US$474.3b	US$104.2b	43.4x	50.2x	11x
Wed, 10 Apr 2024	US$5.4t	US$466.0b	US$98.4b	43.4x	54.9x	11.6x
Fri, 08 Mar 2024	US$5.4t	US$470.0b	US$98.4b	44.7x	54.4x	11.4x
Sun, 04 Feb 2024	US$5.5t	US$497.2b	US$87.9b	46x	63x	11.1x
Tue, 02 Jan 2024	US$5.2t	US$486.1b	US$82.9b	47.3x	62.3x	10.6x
Thu, 30 Nov 2023	US$5.0t	US$483.6b	US$80.7b	45.4x	62.5x	10.4x
Sat, 28 Oct 2023	US$4.4t	US$484.7b	US$78.9b	41.7x	55.8x	9.1x
Mon, 25 Sep 2023	US$4.4t	US$477.4b	US$73.2b	45.4x	60x	9.2x
Wed, 23 Aug 2023	US$4.4t	US$473.8b	US$70.7b	43.8x	62.6x	9.3x
Fri, 21 Jul 2023	US$4.6t	US$460.7b	US$60.1b	48.5x	77.2x	10.1x
Sun, 18 Jun 2023	US$4.5t	US$460.5b	US$62.3b	46.8x	72.7x	9.8x
Tue, 16 May 2023	US$4.0t	US$456.9b	US$61.1b	39.9x	65.8x	8.8x


US Market	2.14%
Tech	6.51%
Software	3.13%
Systems Software	3.53%
Application Software	2.20%

Company	Last Price	7D	1Y	Valuation
MSFT Microsoft	US$420.92	3.2% +US$97.6b	-3.9%	PE25x
ORCL Oracle	US$194.59	20.6% +US$95.5b	29.5%	PE34.6x
DDOG Datadog	US$188.73	42.8% +US$20.1b	72.8%	PE495.1x
APP AppLovin	US$498.87	11.8% +US$17.7b	46.9%	PE42.9x
FTNT Fortinet	US$107.97	28.1% +US$17.3b	10.5%	PE40.4x

Announcement • 23h

Cayosoft Launches Microsoft Migration Services

Cayosoft, the undisputed leader in Microsoft hybrid Active Directory (AD), Entra ID, and Microsoft 365 enterprise management, monitoring, and recovery, announced the launch of Cayosoft Microsoft Migration Services, a new offering purpose-built to help organizations modernize Active Directory, Entra ID, and Microsoft 365 with greater control, lower risk, and stronger long-term outcomes. Delivered in partnership with XMS Solutions, a long-time provider of migration and cybersecurity services, the offering combines expert migration delivery with Cayosoft’s management, monitoring, and recovery platform to enable full-lifecycle identity modernization. Cayosoft’s proven track record of helping customers—including the Department of War, the IRS, and AAA—modernize identity administration and recovery across hybrid Microsoft environments firmly repositions migration and consolidation–-often driven by mergers and acquisitions (M&As)—as a structured modernization milestone, enabling organizations to move beyond one-time project thinking toward a continuous, resilient operating model. The Microsoft Migration Service offering provides end-to-end migration services for Active Directory, Microsoft 365, Exchange, SharePoint, Teams, and related identity infrastructure, combining proven execution with pre- and post-migration capabilities. Migration is often treated as a standalone IT task, focused on speed and cutover timelines. In reality, identity systems sit at the center of authentication, access, and application trust—making migration one of the highest-risk phases of transformation. Rushed execution, prolonged coexistence, and fragmented tools often undermine modernization goals, leading to instability, security exposure, and operational inefficiency. This risk is amplified during mergers and acquisitions (M&As), when timelines are compressed and identity, access, and collaboration systems must be integrated quickly. Secure, predictable migrations require discipline, structure, and security—not shortcuts. By combining proven migration methodologies with Cayosoft’s platform, organizations reduce risk during change—including M&A driven consolidation—and ensure they are positioned for long-term success after migration is complete. Specifically, Cayosoft Microsoft Migration Services include: Pre-migration assessments that identify risks, dependencies, and readiness gaps across identity, collaboration, and infrastructure environments. Structured, phased migration execution designed to reduce disruption, shorten coexistence, and ensure predictable outcomes. Validation of data integrity, access control permissions, metadata, and version history across Microsoft 365 workloads. Post-migration monitoring, governance, and recovery capabilities to support long-term operational resilience. By integrating these capabilities into a single approach, organizations can modernize identity and collaboration platforms while reducing migration risk, simplifying hybrid environments, and strengthening security and compliance outcomes. Cayosoft Microsoft Migration Services is available starting May 2026.

Announcement • 23h

Fortinet Inc Expands Fortigate G Series to Secure Ai from the Data Center to Modern Enterprise Edges

Fortinet Inc. announced new additions to its FortiGate G series portfolio, designed to help organizations secure and scale modern enterprise networks. The FortiGate 3500G and FortiGate 400G deliver high-performance security that keeps pace with growing encrypted traffic, AI-driven workloads, and distributed environments, enabling organizations to strengthen protection, maintain performance, and simplify operations across hybrid infrastructures. Powered by Fortinet’s NP7 and SP5 processors and the FortiOS operating system, the new series combines advanced threat protection, integrated intelligence, and hardware-enforced security. With encrypted traffic, east-west data flows, and AI-driven threats accelerating, traditional firewall architectures are reaching their limits, forcing organizations to choose between performance and security. The FortiGate G series eliminates that trade-off with a unified platform built on Fortinet’s custom ASIC acceleration, delivering predictable, high-performance security, integrated threat intelligence, and consistent operations across hybrid environments. FortiGate 3500G and 400G extend Fortinet’s AI-driven Security Fabric with native shadow AI detection, providing real-time visibility into unsanctioned usage across AI applications while enforcing controls to protect sensitive data. FortiGuard AI-Powered Security Services apply continuously updated intelligence and machine learning to identify and prioritize threats and automate protection, with FortiOS 8.0 expanding visibility through MCP and agent-to-agent traffic inspection for deeper control over AI data flows and access. The FortiGate 3500G series is built for the next era of data center scale and performance, where AI workloads, east-west traffic growth, and zero-trust requirements are redefining how infrastructure operates. Designed for this shift, the 3500G delivers 400Gb connectivity, advanced ASIC acceleration, and significant performance gains to secure high-density environments without introducing bottlenecks or requiring architectural redesign. It also addresses a growing gap in the market: trust in the security infrastructure itself. With hardware-level validation, secure firmware enforcement, and system-level transparency, the platform enables organizations to move from assumed trust to verified trust. By tightly integrating security enforcement with SOC operations and maintaining familiar form factors, the FortiGate 3500G enables organizations to scale critical infrastructure, simplify operations, and deploy high-performance security with confidence. Extending these capabilities to the enterprise edge, the FortiGate 400G series modernizes the mid-range firewall segment by bringing G-series performance, architecture, and operational consistency to distributed environments. As applications span data centers, cloud, and edge, and encrypted and east-west traffic continue to surge, many legacy firewalls struggle to maintain performance when advanced security services are enabled, creating trade-offs between protection and efficiency. The FortiGate 400G eliminates compromises with consistent, hardware-accelerated performance, integrated threat intelligence, and a platform designed to support high-density traffic and segmentation-driven security without added complexity. With a simplified upgrade path from existing FortiGate deployments and consistent interfaces across the portfolio, the 400G enables organizations to modernize their network edge, standardize operations, and scale security with predictable performance and minimal disruption. Specification? FortiGate Security 3500G? Compute Rating? Firewall Throughput 595.0? 3.4x? IPsec VPN Throughput 163.0? 2.2x? Threat Protection 105.0? 1.4x? Concurrent Sessions? 179M? 6.9x? Power Consumption?? FortiGate Energy Efficiency Watts/Gbps Firewall Throughput? 1.6? 6.1x? Watts/Gbps IPsec VPN Throughput? 6.0? 4.4x? Specification? FortiGate Security 400G? Compute Rating? Firewall Throughput 164.0? 5.7x? IPsec VPN Throughput 55.0? 3.4x? Threat Protection (Gbps)? 13.0? 1.7x? Concurrent Sessions? 28M? 13.7x? Power Consumption? FortiGate 400G? Energy Efficiency? Watts/Gbps Firewall Throughput? 1.7? 6.3x? Watts/Gbps IPsec VPN Throughput 5.1? 4x? Threat protection performance is measured with firewall, IPS, application control and malware protection, and logging enabled. The numbers for competitive solutions are based on publicly available sources. Variations in testing methodologies and performance metrics may exist across different vendors. All power consumption values are taken from external data sheets and hardware system guides using maximum power consumption. Together, these additions reinforce Fortinet’s platform-driven approach, anchored by a single operating system, centralized management, and AI-driven threat intelligence and security capabilities. By integrating FortiOS, FortiManager, FortiAnalyzer, and FortiGuard Labs intelligence into a unified Security Fabric, Fortinet enables organizations to reduce tool sprawl, improve visibility, and accelerate threat detection and response while lowering total cost of ownership.

U.S. Software Industry Analysis

Industry Valuation and Performance

Industry Trends

Top Stock Gainers and Losers

Latest News

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Full year 2025 earnings released: EPS: US$0.04 (vs US$1.25 loss in FY 2024)

Palo Alto Networks Q3 Results to Reveal CyberArk Impact and Investor Reactions

New major risk - Revenue and earnings growth