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U.S. Software Industry Analysis

UpdatedAug 11, 2026
DataAggregated Company Financials
Companies423
  • 7D6.4%
  • 3M19.1%
  • 1Y-6.8%
  • YTD4.3%

In the last week, the Software industry is up 6.4%, with Microsoft leading the way, up 3.8%. During this same period, the Nebius Group underperformed, falling 13%. In the past year, the industry is down 6.8%. 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
Tue, 11 Aug 2026US$6.9tUS$711.4bUS$142.7b31.5x48x9.6x
Thu, 09 Jul 2026US$5.9tUS$699.4bUS$156.4b28.9x37.8x8.5x
Sat, 06 Jun 2026US$6.5tUS$692.7bUS$155.4b28.4x42.1x9.4x
Mon, 04 May 2026US$5.9tUS$681.1bUS$162.7b30.3x36.3x8.7x
Wed, 01 Apr 2026US$5.3tUS$668.4bUS$161.9b29.4x32.8x7.9x
Fri, 27 Feb 2026US$5.6tUS$663.6bUS$162.8b26x34.5x8.5x
Sun, 25 Jan 2026US$6.7tUS$649.0bUS$159.9b30.8x41.9x10.3x
Tue, 23 Dec 2025US$7.2tUS$645.4bUS$164.7b32.3x43.5x11.1x
Thu, 20 Nov 2025US$7.1tUS$639.8bUS$160.0b29.2x44.6x11.2x
Sat, 18 Oct 2025US$7.8tUS$621.4bUS$151.7b34.9x51.1x12.5x
Mon, 15 Sep 2025US$7.6tUS$620.9bUS$151.9b34.9x50.2x12.3x
Wed, 13 Aug 2025US$7.5tUS$614.1bUS$153.0b36.3x49.3x12.3x
Fri, 11 Jul 2025US$7.5tUS$598.9bUS$131.3b40.8x56.8x12.4x
Sun, 08 Jun 2025US$6.9tUS$595.8bUS$131.6b40.1x52.8x11.7x
Tue, 06 May 2025US$6.4tUS$589.0bUS$131.0b33.5x48.9x10.9x
Thu, 03 Apr 2025US$5.7tUS$581.5bUS$131.8b30.3x43.6x9.9x
Sat, 01 Mar 2025US$6.1tUS$580.7bUS$129.1b34.5x47.4x10.5x
Mon, 27 Jan 2025US$6.7tUS$568.2bUS$129.2b42.3x51.7x11.8x
Wed, 25 Dec 2024US$6.6tUS$569.1bUS$128.8b41.2x51.4x11.6x
Fri, 22 Nov 2024US$6.4tUS$566.9bUS$127.2b41.5x50.5x11.3x
Sun, 20 Oct 2024US$6.1tUS$551.7bUS$124.1b37.6x48.9x11x
Tue, 17 Sep 2024US$6.0tUS$552.4bUS$124.0b38.9x48.2x10.8x
Thu, 15 Aug 2024US$5.7tUS$548.8bUS$121.5b35.2x46.8x10.4x
Sat, 13 Jul 2024US$6.0tUS$530.5bUS$118.4b40.7x50.7x11.3x
Mon, 10 Jun 2024US$5.2tUS$477.7bUS$107.2b39.9x48.8x11x
Wed, 08 May 2024US$5.2tUS$477.1bUS$103.5b44.2x50.2x10.9x
Fri, 05 Apr 2024US$5.4tUS$465.9bUS$98.4b43.2x54.4x11.5x
Sun, 03 Mar 2024US$5.5tUS$468.6bUS$98.1b42.9x55.6x11.6x
Tue, 30 Jan 2024US$5.4tUS$486.8bUS$82.4b48x66.1x11.2x
Thu, 28 Dec 2023US$5.2tUS$486.1bUS$82.9b46.5x62.5x10.6x
Sat, 25 Nov 2023US$5.0tUS$482.6bUS$79.9b46.4x62.4x10.3x
Mon, 23 Oct 2023US$4.4tUS$477.3bUS$73.7b42x60.3x9.3x
Wed, 20 Sep 2023US$4.5tUS$480.1bUS$73.0b45.5x62.3x9.5x
Fri, 18 Aug 2023US$4.4tUS$473.4bUS$70.3b43.5x62.6x9.3x
Price to Earnings Ratio

62.6x


Total Market Cap: US$4.4tTotal Earnings: US$70.3bTotal Revenue: US$473.4bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Software Industry Price to Earnings3Y Average 49.4x202420252026
Current Industry PE
  • Investors are relatively neutral on the American Software industry at the moment, indicating that they anticipate long term growth rates to remain steady.
  • The industry is trading close to its 3-year average PE ratio of 49.4x.
  • The industry is trading close to its 3-year average PS ratio of 10.6x.
Past Earnings Growth
  • The earnings for companies in the Software industry have grown 27% 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 Market2.22%
Tech4.05%
Software6.38%
Application Software11.51%
Systems Software4.70%
Industry PE
  • Investors are most optimistic about the Systems Software industry even though it's trading below its 3-year average PE ratio of 38.3x.
    • Analysts are expecting annual earnings growth of 17.5%, which is lower than the prior year's growth of 21.2% per year.
Forecasted Growth
  • Analysts are most optimistic on the Application Software industry, expecting annual earnings growth of 27% over the next 5 years.
  • This is roughly in line with its past earnings growth rate.
  • 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
MSFT MicrosoftUS$506.063.8%
+US$136.7b		-3.0%PE28.1x
PLTR Palantir TechnologiesUS$175.2339.5%
+US$119.9b		-4.1%PE139.6x
PANW Palo Alto NetworksUS$385.0410.9%
+US$30.9b		129.0%PE372.3x
ORCL OracleUS$151.056.5%
+US$26.5b		-40.2%PE25.6x
CRWD CrowdStrike HoldingsUS$225.1611.2%
+US$23.0b		111.2%PS45x

Latest News

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Summary Datadog remains a standout software stock, outperforming peers and benefiting from the AI-driven infrastructure boom. DDOG's usage-based pricing, especially through expanded AI credits and the Bits AI platform, drives robust net revenue retention above 120%. Despite strong Q2 results and raised revenue guidance, DDOG shares have dipped over 10%, creating a tactical buying opportunity. I reiterate my buy conviction on DDOG, citing relentless growth, strong upsell trends, and premium valuation justified by execution. Read the full article on Seeking Alpha
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TEAM
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Atlassian
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1Y
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NBIS
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Nebius Group
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HUBS
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HubSpot
7D
-10.0%
1Y
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Narrative Update • Aug 06

HUBS: AI Pivot And Longer Sales Cycles Set Up Future Upside

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CrowdStrike Holdings
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ORCL
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Oracle
7D
6.5%
1Y
-40.2%
Narrative Update • Aug 05

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Core Scientific
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Cadence Design Systems
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