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U.S. Software Industry Analysis

UpdatedMay 11, 2026
DataAggregated Company Financials
Companies432
  • 7D3.2%
  • 3M4.8%
  • 1Y-6.0%
  • YTD-11.2%

In the last week, the Software industry is up 3.2%, with Oracle up 8.7%. Meanwhile, Palantir Technologies actually underperformed within the industry, shrinking 5.6% in the last week. In contrast, the industry has lost 6.0% in the last 12 months. 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
Mon, 11 May 2026US$6.1tUS$684.8bUS$156.1b27.5x39.1x8.9x
Wed, 08 Apr 2026US$5.4tUS$667.7bUS$161.4b30.1x33.5x8.1x
Fri, 06 Mar 2026US$5.8tUS$665.3bUS$160.8b26.9x36.2x8.8x
Sun, 01 Feb 2026US$6.2tUS$660.6bUS$174.1b28.2x35.4x9.3x
Tue, 30 Dec 2025US$7.2tUS$645.4bUS$164.7b31.5x43.5x11.1x
Thu, 27 Nov 2025US$6.9tUS$641.3bUS$161.2b29.2x43x10.8x
Sat, 25 Oct 2025US$7.8tUS$621.4bUS$151.9b33.3x51.4x12.6x
Mon, 22 Sep 2025US$7.9tUS$620.8bUS$151.7b36.3x52.2x12.8x
Wed, 20 Aug 2025US$7.5tUS$614.8bUS$150.1b36.5x50.2x12.2x
Fri, 18 Jul 2025US$7.4tUS$598.9bUS$131.3b43.5x56.6x12.4x
Sun, 15 Jun 2025US$7.0tUS$598.9bUS$130.9b41.1x53.7x11.7x
Tue, 13 May 2025US$6.5tUS$590.8bUS$131.0b33.4x49.8x11x
Thu, 10 Apr 2025US$5.2tUS$581.3bUS$131.9b29.8x39.5x9x
Sat, 08 Mar 2025US$6.0tUS$582.3bUS$129.6b32.4x46.3x10.3x
Mon, 03 Feb 2025US$6.5tUS$585.7bUS$132.4b41.2x48.9x11x
Wed, 01 Jan 2025US$6.4tUS$569.1bUS$128.9b40.1x49.8x11.3x
Fri, 29 Nov 2024US$6.5tUS$566.8bUS$127.5b42.1x51x11.5x
Sun, 27 Oct 2024US$6.1tUS$552.6bUS$124.3b36.4x49.3x11.1x
Tue, 24 Sep 2024US$6.1tUS$552.4bUS$124.0b38.8x49.1x11x
Thu, 22 Aug 2024US$5.9tUS$549.1bUS$121.6b36.9x48.3x10.7x
Sat, 20 Jul 2024US$5.9tUS$530.6bUS$118.4b41x49.5x11x
Mon, 17 Jun 2024US$5.8tUS$531.3bUS$118.1b39.5x49.2x10.9x
Wed, 15 May 2024US$5.2tUS$474.0bUS$104.5b44.4x50x11x
Fri, 12 Apr 2024US$5.4tUS$466.3bUS$98.4b42.1x54.5x11.5x
Sun, 10 Mar 2024US$5.3tUS$470.2bUS$98.5b46.9x54.2x11.3x
Tue, 06 Feb 2024US$5.3tUS$462.6bUS$89.3b44.9x59.1x11.4x
Thu, 04 Jan 2024US$5.0tUS$486.2bUS$82.8b46.8x60.6x10.3x
Sat, 02 Dec 2023US$5.1tUS$485.0bUS$82.0b46.6x61.9x10.5x
Mon, 30 Oct 2023US$4.4tUS$484.7bUS$78.9b41.7x55.8x9.1x
Wed, 27 Sep 2023US$4.3tUS$477.3bUS$73.2b44.6x59.1x9.1x
Fri, 25 Aug 2023US$4.4tUS$473.9bUS$70.8b42.9x62.1x9.3x
Sun, 23 Jul 2023US$4.6tUS$460.9bUS$60.2b48x76.7x10x
Tue, 20 Jun 2023US$4.5tUS$460.5bUS$62.3b46.8x72.7x9.8x
Thu, 18 May 2023US$4.1tUS$456.9bUS$61.0b39.9x66.9x8.9x
Price to Earnings Ratio

66.9x


Total Market Cap: US$4.1tTotal Earnings: US$61.0bTotal Revenue: US$456.9bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Software Industry Price to Earnings3Y Average 52.1x202420252026
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 39.1x which is lower than its 3-year average PE of 52.1x.
  • The 3-year average PS ratio of 10.7x is higher than the industry's current PS ratio of 8.9x.
Past Earnings Growth
  • The earnings for companies in the Software industry have grown 37% 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 Market2.25%
Tech6.67%
Software3.24%
Systems Software3.61%
Application Software2.40%
Industry PE
  • Investors are most optimistic about the Application Software industry which is trading above its 3-year average PE ratio of 34.7x.
    • Analysts are expecting annual earnings growth of 27.2%, 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.
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 10% 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
ORCL OracleUS$195.958.7%
+US$45.0b		24.6%PE34.8x
DDOG DatadogUS$200.1636.5%
+US$19.0b		76.5%PE525.2x
PANW Palo Alto NetworksUS$207.8812.6%
+US$18.9b		7.4%PE131.5x
FTNT FortinetUS$114.0727.8%
+US$18.2b		11.8%PE42.8x
CRWD CrowdStrike HoldingsUS$527.7712.5%
+US$14.9b		22.9%PS27.9x

Latest News

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7D
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Narrative Update • May 08

ORCL: AI Data Center Financing And Capacity Execution Will Drive Future Upside

Oracle's updated analyst price target edges slightly lower to $242.10 from $243.87, as analysts factor in modestly higher long term revenue growth and profit margins, along with a reduced future P/E multiple after a mix of recent target cuts, upgrades and reassessments following the fiscal Q3 report and subsequent share selloff. Analyst Commentary Recent Street research around Oracle clusters into two camps, with bullish analysts focusing on execution around cloud, AI and large revenue targets, and bearish analysts highlighting valuation reset, capital intensity and margin questions.
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Summary I see two main catalysts for AppLovin’s growth story: Axon’s June 2026 public self-service launch and the consumer/e-commerce segment scaling into a larger revenue driver. I am more encouraged about the first catalyst rather than the latter, mainly from a timing perspective. The second catalyst is consumer/e-commerce, which is growing faster than gaming but still represented only about 5% of Q1 sales by BofA’s estimate. Gaming remains the foundation today, with Q1 revenue up 59% YoY and 11% sequentially. That said, I want to see more, as I think this is already priced in. I remain cautious because I want to see clear evidence from the June self-service launch. If the upside is already showing in the Q2 results, I may upgrade my rating again. Until then, hold. Read the full article on Seeking Alpha
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