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U.S. Software Industry Analysis

UpdatedJul 12, 2026
DataAggregated Company Financials
Companies432
  • 7D-1.2%
  • 3M7.3%
  • 1Y-20.8%
  • YTD-15.2%

Over the last 7 days, the Software industry has dropped 1.2%, driven by Microsoft declining 1.4%. However, the industry is down 21% 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, 12 Jul 2026US$5.8tUS$699.4bUS$156.6b29.1x37.3x8.3x
Tue, 09 Jun 2026US$6.3tUS$692.7bUS$155.4b28.2x40.5x9.1x
Thu, 07 May 2026US$6.0tUS$682.4bUS$155.0b29.3x38.5x8.8x
Sat, 04 Apr 2026US$5.4tUS$668.3bUS$161.5b30x33.5x8.1x
Mon, 02 Mar 2026US$5.6tUS$664.9bUS$163.7b26.4x34.1x8.4x
Wed, 28 Jan 2026US$6.8tUS$649.2bUS$159.8b30.4x42.3x10.4x
Fri, 26 Dec 2025US$7.2tUS$645.4bUS$164.7b31.9x43.8x11.2x
Sun, 23 Nov 2025US$6.8tUS$640.4bUS$160.5b28.8x42.5x10.6x
Tue, 21 Oct 2025US$7.7tUS$621.4bUS$151.7b35.3x51x12.5x
Thu, 18 Sep 2025US$7.7tUS$620.9bUS$151.9b34.9x50.7x12.4x
Sat, 16 Aug 2025US$7.5tUS$614.4bUS$150.3b37.2x50.1x12.2x
Mon, 14 Jul 2025US$7.3tUS$598.9bUS$131.4b41.8x55.7x12.2x
Wed, 11 Jun 2025US$7.0tUS$595.8bUS$131.6b41.1x53x11.7x
Fri, 09 May 2025US$6.4tUS$590.3bUS$132.1b32.8x48.1x10.8x
Sun, 06 Apr 2025US$5.3tUS$581.3bUS$131.8b28.8x39.9x9.1x
Tue, 04 Mar 2025US$6.1tUS$580.6bUS$129.3b34.5x47.5x10.6x
Thu, 30 Jan 2025US$6.7tUS$576.9bUS$129.4b44.5x52.1x11.7x
Sat, 28 Dec 2024US$6.6tUS$569.1bUS$128.8b40.7x50.9x11.5x
Mon, 25 Nov 2024US$6.5tUS$567.3bUS$127.2b42.4x51.3x11.5x
Wed, 23 Oct 2024US$6.1tUS$551.7bUS$124.1b36x48.9x11x
Fri, 20 Sep 2024US$6.0tUS$552.4bUS$124.0b39x48.2x10.8x
Sun, 18 Aug 2024US$5.8tUS$548.8bUS$121.5b36x47.7x10.6x
Tue, 16 Jul 2024US$6.0tUS$530.6bUS$118.4b40.8x50.9x11.4x
Thu, 13 Jun 2024US$5.3tUS$477.8bUS$107.3b40.5x49.6x11.1x
Sat, 11 May 2024US$5.2tUS$474.3bUS$104.3b43.4x50x11x
Mon, 08 Apr 2024US$5.4tUS$466.0bUS$98.3b43.2x54.8x11.6x
Wed, 06 Mar 2024US$5.4tUS$468.7bUS$98.2b42.2x55.4x11.6x
Fri, 02 Feb 2024US$5.5tUS$496.4bUS$88.0b43.1x62.1x11x
Sun, 31 Dec 2023US$5.2tUS$486.1bUS$82.9b47.3x62.4x10.6x
Tue, 28 Nov 2023US$5.0tUS$482.6bUS$79.9b44.2x62.5x10.4x
Thu, 26 Oct 2023US$4.5tUS$483.9bUS$78.6b41.9x57.3x9.3x
Sat, 23 Sep 2023US$4.4tUS$480.7bUS$73.0b45.4x60.3x9.1x
Mon, 21 Aug 2023US$4.3tUS$474.4bUS$70.6b43.5x61.5x9.2x
Wed, 19 Jul 2023US$4.8tUS$460.7bUS$60.1b50x79.5x10.4x
Price to Earnings Ratio

79.5x


Total Market Cap: US$4.8tTotal Earnings: US$60.1bTotal Revenue: US$460.7bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Software Industry Price to Earnings3Y Average 50.3x202420252026
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 37.3x which is lower than its 3-year average PE of 50.3x.
  • The 3-year average PS ratio of 10.6x is higher than the industry's current PS ratio of 8.3x.
Past Earnings Growth
  • The earnings for companies in the Software industry have grown 38% per year over the last three years.
  • Revenues for these companies have grown 15% 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 Market0.81%
Tech3.15%
Software-1.21%
Application Software-0.53%
Systems Software-1.49%
Industry PE
  • Investors are most optimistic about the Application Software industry which is trading above its 3-year average PE ratio of 62.1x.
    • Analysts are expecting annual earnings growth of 26.6%, which is higher than its past year's earnings growth of 11.5% per year.
  • Investors are most pessimistic about the Systems Software industry, which is trading below its 3-year average of 38.7x.
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 11% 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
CDNS Cadence Design SystemsUS$384.173.0%
+US$3.0b		19.8%PE90.5x
SNPS SynopsysUS$445.501.9%
+US$1.6b		-20.3%PE110.3x
ADBE AdobeUS$223.641.8%
+US$1.6b		-38.5%PE12.3x
NOW ServiceNowUS$107.711.3%
+US$1.4b		-42.6%PE63.2x
TEAM AtlassianUS$88.866.0%
+US$1.3b		-52.5%PS3.6x

Latest News

ORCL
US$140.64
Oracle
7D
0.3%
1Y
-39.0%
Seeking Alpha • 20h

Oracle: Sell Before The Debt Comes Due

Summary Oracle remains a sell as aggressive $70B annual data center spending outpaces revenue growth, straining the balance sheet. CapEx surged 162% to $55.7B in FY26, driving free cash flow to negative $23.7B and gross margin down five points. Over half of ORCL's $638B backlog depends on OpenAI, whose IPO delay to 2027 heightens customer concentration risk. Despite strong cloud growth and bullish Street sentiment, intrinsic value is estimated at $113.97—about 20% below the current price. Read the full article on Seeking Alpha
PLTR
US$126.79
Palantir Technologies
7D
-1.9%
1Y
-10.8%
MSFT
US$385.10
Microsoft
7D
-1.4%
1Y
-23.5%
CDNS
US$384.17
Cadence Design Systems
7D
3.0%
1Y
19.8%
CRM
US$163.32
Salesforce
7D
-1.7%
1Y
-36.7%
Seeking Alpha • Jul 10

Salesforce: A Strong Business Model That Delivers - A Value Equation Forensic Deep Dive

Summary Salesforce (CRM) trades at a depressed ~11x trailing FCF multiple, with a forward multiple of ~9.6x, reflecting SaaS-pocalypse fears and AI disruption concerns. CRM executed a massive $24.8B debt-funded buyback, reducing share count by over 10% in Q1 FY2027, signaling management conviction in undervaluation. Base-case annualized return is ~14% assuming no multiple change, with scenario analysis showing limited downside and upside potential of ~49% if multiples revert. AI is reinforcing, not eroding, CRM’s moat; platform integration, high switching costs, and innovation leadership underpin a robust, defensible business model. Read the full article on Seeking Alpha
NOW
US$107.71
ServiceNow
7D
1.3%
1Y
-42.6%
MSTR
US$94.64
Strategy
7D
-6.1%
1Y
-78.2%
APP
US$506.98
AppLovin
7D
-3.8%
1Y
51.3%
CRWD
US$187.18
CrowdStrike Holdings
7D
-3.5%
1Y
56.5%
Seeking Alpha • Jul 09

CrowdStrike Is Riding The Perfect Wave, But The Market Already Knows

Summary CrowdStrike stands at the forefront of cybersecurity as AI-driven threats and agent adoption accelerate, driving heightened demand for its platform. CRWD’s land-and-expand strategy, high net retention (115% in 2026), and expanding RPO ($9B, +38% YoY) reinforce its competitive moat and indispensability. Despite leading innovation with AI Detection and Response (AIDR) and AgentWorks, CRWD trades at a steep premium (PE Non-GAAP 188x, EV/Sales 38x) versus peers. I recommend a Hold: while CRWD is well-positioned for AI security growth, its valuation is at least 5x higher than competitors with similarly promising prospects. Read the full article on Seeking Alpha
PANW
US$325.91
Palo Alto Networks
7D
-6.4%
1Y
73.9%
NTNX
US$54.79
Nutanix
7D
6.8%
1Y
-24.3%
Narrative Update • Jul 08

NTNX: Supply Constraints And 2027 Renewal Risks Will Pressure Future Upside

Nutanix's updated analyst price target moves from $53.00 to about $43.25, reflecting analysts' mixed take that strong bookings, term-license momentum, and VMware migration wins are being balanced against supply chain constraints, duration-driven upside, and concerns about softer renewal trends into 2027. Analyst Commentary Recent Street research on Nutanix points to a split view, with several firms lifting price targets while others highlight execution and growth risks that could affect how investors think about valuation and the durability of current trends.
ADBE
US$223.64
Adobe
7D
1.8%
1Y
-38.5%
Seeking Alpha • Jul 08

Adobe: Market Overreaction Creates A Highly Asymmetric Risk-Reward Opportunity

Summary Due to AI fears, Adobe's current valuation multiple is just an 11.6x P/E ratio. The company does not have to deliver superb results to achieve multiple expansion. Adobe continues to deliver low double-digit revenue growth with a solid LTM GAAP operating margin of 36%. The current low valuation gives extra space for fueling EPS growth driven by aggressive share repurchases. Read the full article on Seeking Alpha
BSP
US$32.91
Bending Spoons
7D
-8.4%
1Y
n/a
Seeking Alpha • Jul 08

Bending Spoons: I Wouldn't Pay A Tech Multiple For This PE Play

Summary I think Bending Spoons S.p.A. operates like a tech-focused private equity fund, acquiring and restructuring distressed digital businesses, rather than a "traditional" tech company. Bending Spoon doesn't have a strong, integrated ecosystem of apps/platforms that can benefit from scale. It focuses on acquiring "cheap" businesses and optimizing their operations. BSP's growth is heavily reliant on M&A, with management allocating nearly $1B in IPO proceeds to future acquisitions and lacking clear organic growth guidance. Valuation hinges on M&A execution, which remains uncertain given the company's limited size. My DCF scenarios yield a wide price target range ($6–$122), reflecting high uncertainty and risk. I assign BSP a Hold rating, given the market's indecision on whether the company merits tech-like multiples or should be valued as a financial operator. Read the full article on Seeking Alpha
SNPS
US$445.50
Synopsys
7D
1.9%
1Y
-20.3%
NBIS
US$219.65
Nebius Group
7D
1.9%
1Y
395.8%
TEAM
US$88.86
Atlassian
7D
6.0%
1Y
-52.5%
Narrative Update • Jul 02

TEAM: AI And Cloud Workflow Engine Progress Will Drive Long Term Returns

Atlassian's analyst price target has been trimmed by about $5 to $140, as analysts recalibrate their models for slightly lower revenue growth assumptions, a higher discount rate, improved profit margin forecasts, and a more moderate future P/E outlook. Analyst Commentary Analysts covering Atlassian are reassessing the stock with a focus on how updated assumptions around growth, margins, and valuation feed into the revised US$140 price target.