By Aijaz Alam
How much revenue does the US software industry make?
US software publishers earned $177.0 billion in revenue in the second quarter of 2026, seasonally adjusted, up 14.7% from a year earlier, according to the Census Bureau's Quarterly Services Survey (preliminary estimate). Data processing, hosting and related services firms earned $124.1 billion, up 20.3%.
- $177.0BRevenue of US software publishers, 2Q 2026Census QSS, seasonally adjusted, preliminary estimate
- 14.7%Growth from 2Q 2025Census QSS; 3.8% from 1Q 2026
- $349.4BSoftware publisher revenue, first half of 2026Not seasonally adjusted; up 14.5%
- 20.3%Revenue growth, data processing and hosting$124.1B in 2Q 2026, Census QSS
The numbers
The full breakdown
Revenue of US software and related industries, 2Q 2026
| Industry (2017 NAICS) | Revenue, 2Q 2026 | Change from 2Q 2025 | Change from 1Q 2026 | Coefficient of variation |
|---|---|---|---|---|
| Software publishers (5112) | $177.0B | 14.7% | 3.8% | 5.3% |
| Data processing, hosting and related services (518) | $124.1B | 20.3% | 5.5% | 7.3% |
| Other information services (519) | $135.0B | 18.9% | 5.3% | 5.0% |
| Computer systems design and related services (5415) | $194.9B | 3.3% | 0.5% | 8.2% |
| Publishing industries, except internet (511) | $199.3B | 13.1% | 3.4% | 5.0% |
| Information sector (51) | $704.4B | 9.9% | 2.7% | 2.8% |
Census Quarterly Services Survey, release of 9 Sep 2026, Table 1a (seasonally adjusted, not adjusted for price changes) and Table 2a (coefficient of variation of the 2Q 2026 level). 2Q 2026 is a preliminary estimate. Software publishers are part of publishing industries (511), which are part of the information sector (51).
Revenue in the first half of the year, 2026 and 2025
| Industry (2017 NAICS) | First half 2026 | First half 2025 | Change |
|---|---|---|---|
| Software publishers (5112) | $349.4B | $305.2B | 14.5% |
| Data processing, hosting and related services (518) | $239.2B | $201.1B | 19.0% |
| Other information services (519) | $258.8B | $219.7B | 17.8% |
| Computer systems design and related services (5415) | $387.9B | $369.7B | 4.9% |
| Information sector (51) | $1,374.8B | $1,253.4B | 9.7% |
Census QSS Table 1c, year to date, not seasonally adjusted. 2026 is preliminary.
Over time
Quarterly revenue of US software publishers and related industries, 1Q 2025 to 2Q 2026
| Quarter | Software publishers | Data processing and hosting | Computer systems design |
|---|---|---|---|
| 1Q 2025 | $149.6B | $100.1B | $181.8B |
| 2Q 2025 | $154.2B | $103.2B | $188.6B |
| 3Q 2025 | $160.0B | $107.2B | $191.9B |
| 4Q 2025 | $164.9B | $111.5B | $192.1B |
| 1Q 2026 | $170.5B | $117.6B | $193.9B |
| 2Q 2026 (preliminary) | $177.0B | $124.1B | $194.9B |
Census QSS Table 1a, release of 9 Sep 2026, seasonally adjusted, rounded from millions of dollars. 1Q 2025 to 1Q 2026 are revised estimates. Census expects to revise the not seasonally adjusted estimates with benchmark data from the November 2026 advance release for 3Q 2026 onward, so these values may change.
Why sources differ
Same question, different answers
| Number | When | Who measured | Why it differs |
|---|---|---|---|
| $177.0B | 2Q 2026 | Census QSS, seasonally adjusted | US employer firms classed as software publishers (NAICS 5112); preliminary estimate. |
| $178.4B | 2Q 2026 | Census QSS, not seasonally adjusted | The same firms and quarter before seasonal adjustment. |
| $349.4B | First half 2026 | Census QSS, not seasonally adjusted | Software publishers' revenue for January to June, up 14.5% on the first half of 2025. |
| $124.1B | 2Q 2026 | Census QSS (NAICS 518) | Data processing, hosting and related services, a separate industry in the same survey. |
| $1.46 trillion | 2026 forecast | Gartner (Oct 2026) | Worldwide spending on software by buyers in all countries; a forecast, not revenue of US firms. |
The $177.0 billion is one industry in one survey, and other figures for software revenue measure different things. It is the seasonally adjusted revenue of US employer firms classed as software publishers (2017 NAICS 5112) in the Census Bureau's Quarterly Services Survey. Before seasonal adjustment the same quarter was $178.4 billion, and the first half of 2026 came to $349.4 billion. Firms are classed by their main activity, so software sold by companies classed in data processing and hosting ($124.1 billion in the quarter) or computer systems design ($194.9 billion) is not in the software publisher figure, while a software publisher's other revenue is. Gartner's $1.46 trillion for 2026 is a forecast of worldwide spending on software by buyers in every country, not revenue earned by US firms, so the two cannot be compared directly. When you quote the Census number, say that it is quarterly, seasonally adjusted and a preliminary estimate.
What it means
How to use these numbers
US software publishers took in $177.0 billion in the second quarter of 2026, roughly $700 billion a year at that pace, and revenue was 14.7% higher than a year earlier. Growth has been steady: revenue rose every quarter from $149.6 billion in early 2025, by about 3% to 4% a quarter.
The fastest growth is next door. Data processing, hosting and related services grew 20.3% to $124.1 billion, and other information services grew 18.9%. Computer systems design and related services grew only 3.3%, so over the year growth was much faster at software publishers and hosting firms than at computer systems design firms.
These are revenues of US employer firms, classed by their main activity and not adjusted for price changes. The latest quarter is a preliminary estimate with a coefficient of variation of 5.3%, so small moves from one quarter to the next can be noise, and Census says that from its November 2026 advance release for 3Q 2026 it expects to revise the not seasonally adjusted estimates to reflect historical corrections and the 2023 and 2024 Annual Integrated Economic Survey (benchmarking), so past quarters may change. Quote the figure as quarterly revenue, seasonally adjusted, with its quarter.
Method and sources
How it was measured
Method
- Publisher
- US Census Bureau, Quarterly Services Survey (QSS), release of 9 September 2026 (qss-current.xlsx, Tables 1a, 1c and 2a)
- Sample
- A quarterly survey of US employer firms in selected service industries; estimates cover taxable and tax-exempt firms
- Definition
- Total revenue of firms classed as software publishers (2017 NAICS 5112) by their main activity, in millions of dollars. Seasonally adjusted figures are not adjusted for price changes.
- Released
- 9 September 2026: preliminary estimate for 2Q 2026 (p); earlier quarters revised (r)
- Checked at source
- 31 October 2026: qss-current.xlsx (Tables 1a, 1c, 2a), the release text (qss-current.pdf) and the Census services page; Gartner press release of 21 October 2026
- Next release
- 19 November 2026 (the advance release for 3Q 2026), from which Census expects not seasonally adjusted estimates to be revised to reflect historical corrections and the 2023 and 2024 Annual Integrated Economic Survey
- Last changed
- 31 Oct 2026
- Data files
- CSV · JSON (stable links)
Sources
- Quarterly Services Survey, US Census Bureau Official data
- Gartner newsroom, Gartner, Inc. Research
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FAQ
More questions people ask
Does the Census count SaaS revenue separately?
No. The Quarterly Services Survey has no SaaS line. SaaS companies are counted in whichever industry matches their main activity, such as software publishers or data processing and hosting.
How fast is US software revenue growing?
Software publishers' revenue rose 14.7% from 2Q 2025 to 2Q 2026 and 3.8% from the first quarter, seasonally adjusted. Data processing and hosting grew faster, 20.3% over the year.
How reliable is the quarterly estimate?
The 2Q 2026 level has a coefficient of variation of 5.3% and the yearly change a standard error of 1.5 percentage points (Census Table 2a). It is a preliminary estimate and will be revised.
Is this the size of the software market?
Not of the worldwide market. It is revenue of US software publishers only. Gartner forecasts worldwide software spending of about $1.46 trillion in 2026, a different measure.
Every number on this page was checked at its original source (US Census Bureau, Gartner, Inc.). Free to cite with a link to this page.