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U.S. Software Industry Analysis

UpdatedMay 26, 2026
DataAggregated Company Financials
Companies438
  • 7D0.3%
  • 3M14.8%
  • 1Y-6.6%
  • YTD-9.5%

Over the last 7 days, the Software industry has remained flat, although notably Oracle gained 5.9%. As for the longer term, the industry has declined 6.6% in the last year. 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
Wed, 27 May 2026US$6.2tUS$687.1bUS$155.3b28.4x40x9x
Fri, 24 Apr 2026US$6.1tUS$668.5bUS$157.0b30x39.1x9.2x
Sun, 22 Mar 2026US$5.6tUS$668.3bUS$162.0b29.4x34.4x8.3x
Tue, 17 Feb 2026US$5.7tUS$660.4bUS$164.0b26.4x34.7x8.6x
Thu, 15 Jan 2026US$6.9tUS$648.9bUS$159.8b31.8x42.9x10.6x
Sat, 13 Dec 2025US$7.2tUS$645.9bUS$164.8b32.9x43.7x11.1x
Mon, 10 Nov 2025US$7.4tUS$640.0bUS$159.1b33.1x46.5x11.6x
Wed, 08 Oct 2025US$7.9tUS$621.4bUS$151.8b35.6x52.1x12.7x
Fri, 05 Sep 2025US$7.3tUS$617.8bUS$151.3b35x48.5x11.9x
Sun, 03 Aug 2025US$7.6tUS$611.0bUS$146.9b39.7x51.4x12.4x
Tue, 01 Jul 2025US$7.2tUS$599.0bUS$131.2b42.2x55.1x12.1x
Thu, 29 May 2025US$6.8tUS$593.0bUS$131.7b36.5x51.4x11.4x
Sat, 26 Apr 2025US$5.9tUS$581.1bUS$131.9b32x44.4x10.1x
Mon, 24 Mar 2025US$5.9tUS$582.8bUS$131.2b29.5x45.2x10.2x
Wed, 19 Feb 2025US$6.6tUS$588.2bUS$130.0b42.2x50.8x11.2x
Fri, 17 Jan 2025US$6.4tUS$569.2bUS$129.3b40.1x49.3x11.2x
Sun, 15 Dec 2024US$6.7tUS$569.1bUS$128.8b41.7x52.3x11.8x
Tue, 12 Nov 2024US$6.4tUS$567.0bUS$123.7b41.4x51.8x11.3x
Thu, 10 Oct 2024US$6.0tUS$551.7bUS$124.1b38.1x48.2x10.8x
Sat, 07 Sep 2024US$5.6tUS$551.3bUS$123.1b34.9x45.6x10.2x
Mon, 05 Aug 2024US$5.5tUS$541.8bUS$120.2b38.2x45.8x10.1x
Wed, 03 Jul 2024US$6.0tUS$530.5bUS$118.1b40.8x51.2x11.4x
Fri, 31 May 2024US$5.1tUS$476.0bUS$106.9b39.1x47.6x10.7x
Sun, 28 Apr 2024US$5.2tUS$476.7bUS$102.7b43.9x50.4x10.9x
Tue, 26 Mar 2024US$5.5tUS$465.8bUS$98.0b45.1x55.8x11.7x
Thu, 22 Feb 2024US$5.2tUS$465.6bUS$92.5b43.6x56.5x11.2x
Sat, 20 Jan 2024US$5.3tUS$486.2bUS$82.1b46.4x64.9x11x
Mon, 18 Dec 2023US$5.1tUS$486.1bUS$82.9b47.3x61.6x10.5x
Wed, 15 Nov 2023US$4.8tUS$482.2bUS$79.6b45.1x60.7x10x
Fri, 13 Oct 2023US$4.6tUS$477.3bUS$73.7b45.1x62.3x9.6x
Sun, 10 Sep 2023US$4.6tUS$476.3bUS$72.9b44.8x63.6x9.7x
Tue, 08 Aug 2023US$4.5tUS$473.0bUS$68.4b48.4x66.2x9.6x
Thu, 06 Jul 2023US$4.5tUS$460.7bUS$60.4b47.7x74.4x9.8x
Sat, 03 Jun 2023US$4.4tUS$459.8bUS$62.0b42.6x70.9x9.6x
Price to Earnings Ratio

70.9x


Total Market Cap: US$4.4tTotal Earnings: US$62.0bTotal Revenue: US$459.8bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Software Industry Price to Earnings3Y Average 51.7x202420252026
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 40.0x which is lower than its 3-year average PE of 51.7x.
  • The 3-year average PS ratio of 10.7x is higher than the industry's current PS ratio of 9.0x.
Past Earnings Growth
  • The earnings for companies in the Software industry have grown 36% 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 Market1.21%
Tech2.70%
Software0.26%
Systems Software0.32%
Application Software0.11%
Industry PE
  • Investors are most optimistic about the Application Software industry which is trading above its 3-year average PE ratio of 41.2x.
    • Analysts are expecting annual earnings growth of 27.3%, which is higher than its past year's earnings growth of 9.5% per year.
  • Investors are most pessimistic about the Systems Software industry, which is trading below its 3-year average of 39.3x.
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 9.5% 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
ORCL OracleUS$192.085.9%
+US$30.5b		18.6%PE34.1x
PANW Palo Alto NetworksUS$260.588.5%
+US$16.6b		39.0%PE164.9x
CRWD CrowdStrike HoldingsUS$663.467.6%
+US$11.9b		40.5%PS35.1x
CDNS Cadence Design SystemsUS$373.5910.5%
+US$9.8b		15.6%PE88x
MSFT MicrosoftUS$418.570.3%
+US$8.5b		-9.1%PE24.8x

Latest News

MSFT
US$418.57
Microsoft
7D
0.3%
1Y
-9.1%
Seeking Alpha • 6h

Microsoft: The $190B AI Infrastructure Trap Implies 20% Downside

Summary Microsoft faces significant risks from rising CapEx, AI competition, and margin compression, making current share prices unattractive for new investment. A thorough analysis of these risks, including their likelihood and impact, helps determine the true value of MSFT. Record CapEx—projected at $190 billion by 2026—risks an 'infrastructure trap,' with rapid asset obsolescence, declining ROIC, and potential overbuilding reminiscent of the Cisco scenario. I maintain a 'Sell' rating on MSFT, targeting a 20% correction to the $300–$350 range before considering long-term positions. Read the full article on Seeking Alpha
ORCL
US$192.08
Oracle
7D
5.9%
1Y
18.6%
Seeking Alpha • 9h

Oracle: The Easy Short Is Gone (Rating Upgrade)

Summary Oracle faces unresolved structural issues, notably uncertainty around RPO backlog convertibility and a deteriorating balance sheet, despite a significant stock price correction. AI server gross margins remain well below corporate averages, but recent guidance targets 30-40% over time; near-term margins reached 33%, exceeding the 30% target. Massive workforce reduction and $2.1B restructuring aim to offset negative FCF and rising debt, but credit risk persists with gross debt now above $100B. I upgrade ORCL to Hold, as valuation has compressed, but execution on margin expansion and capital structure improvement remain critical for upside. Read the full article on Seeking Alpha
CRWD
US$663.46
CrowdStrike Holdings
7D
7.6%
1Y
40.5%
Seeking Alpha • 12h

CrowdStrike Is Back To Its Overvalued Status (Earnings Preview)

Summary CrowdStrike Holdings has surged nearly 50% month-to-date, driven by renewed enthusiasm for its AI security positioning. Despite strong Q4 results: $1.9B ARR (+45% YoY), improving profitability, and rapid Falcon Flex growth—CRWD appears priced to perfection. Consensus expects Q1 revenues of $1.36B (+23.5% YoY) and adjusted EPS of $1.07 (+46.2% YoY), but valuation leaves little margin of safety. I maintain a Hold rating, citing high expectations, potential 'sell the news' risk, and limited upside at current multiples. Read the full article on Seeking Alpha
NBIS
US$214.77
Nebius Group
7D
8.6%
1Y
439.4%
CDNS
US$373.59
Cadence Design Systems
7D
10.5%
1Y
15.6%
INTU
US$319.94
Intuit
7D
-20.0%
1Y
-57.5%
PANW
US$260.58
Palo Alto Networks
7D
8.5%
1Y
39.0%
FTNT
US$133.93
Fortinet
7D
4.9%
1Y
27.9%
WDAY
US$128.14
Workday
7D
-0.9%
1Y
-46.5%
SNPS
US$524.74
Synopsys
7D
6.3%
1Y
2.5%
HUBS
US$201.97
HubSpot
7D
-3.0%
1Y
-67.2%
MSTR
US$159.89
Strategy
7D
-2.9%
1Y
-57.0%
Seeking Alpha • May 21

Strategy's Operating Business Is A Liability, Not An Asset

Summary Since starting on Seeking Alpha I've covered Strategy five times, each time rating it sell or strong sell. The overwhelming majority of my sell ratings were successful, being followed by large price declines in MSTR stock. My most recent MSTR sell rating was a rare exception. It was followed by a slight uptick in the stock's price. That's probably because Bitcoin has increased in price. However, Strategy's indebtedness and dilution have both worsened since my last article published. Additionally, Strategy's operating business is losing increasing amounts of money over time, making it more of a liability than an asset to its shareholders. Read the full article on Seeking Alpha
ADSK
US$240.99
Autodesk
7D
-1.3%
1Y
-19.8%
Seeking Alpha • May 21

Autodesk: Primed To Monetize The Elastic Demand For Engineering Optimization

Summary Autodesk is a market leader with an entrenched user base, high profitability, and a robust moat reinforced by industry standards and educational adoption. AI integration is a tailwind, not a threat; embedded AI features drive productivity, and the elastic demand for engineering optimization supports revenue growth rather than seat reduction. Flexible token-based pricing and targeted initiatives for solopreneurs and micro firms expand Autodesk's addressable market and defend against low-cost, AI-native competitors. I maintain a buy rating on ADSK, expecting upcoming earnings to demonstrate AI-driven growth and resolve the current AI anxiety weighing on the stock. Read the full article on Seeking Alpha
TYL
US$313.25
Tyler Technologies
7D
-2.9%
1Y
-45.6%
ADBE
US$244.76
Adobe
7D
-4.0%
1Y
-40.8%
Narrative Update • May 18

ADBE: CEO Transition Will Increase Risk Around AI Subscription Monetization

Analysts have reduced their average price target on Adobe by $70 to $220 per share, citing CEO transition uncertainty, slower annual recurring revenue trends, and rising competitive pressures from AI driven offerings as key reasons for the reset. Analyst Commentary Recent research on Adobe highlights a shift toward more cautious views as multiple bearish analysts reduce price targets and, in some cases, downgrade ratings.
NTNX
US$47.12
Nutanix
7D
-2.4%
1Y
-40.4%