Direct Answer
140 SEC filers are classified under the Standard Industrial Classification code that describes the analytics software industry, and their latest annual reports show $630.2 billion of combined revenue and a median operating margin of -5.5%. Investors should still evaluate its revenue model, industry-specific KPIs, valuation framework and the risks that can change the group's economics.
Industry Overview
Analytics software companies sell tools that collect, model and visualize data so businesses can make decisions, delivered as subscriptions or platforms. Revenue follows data volume and the number of users and workloads. The first numbers to compare across companies here are annual recurring revenue, net revenue retention and customer count.
Key Industry Metrics
- Annual recurring revenue: Annualized value of subscription contracts. It shows scale and how much revenue repeats, and growth depends on data volumes and the number of users and workloads.
- Net revenue retention: Spending from existing customers compared with a year earlier. Above 100% means customers are adding users and workloads, and below 100% means cutbacks, such as tool consolidation.
- Customer count: The number of organizations paying for the product. Growth shows reach, but with usage-based pricing the quality of customers matters, so pair it with spend per customer.
- Gross margin: Revenue left after hosting, data processing and support. Analytics runs on large data volumes, so margin shows how efficiently the vendor serves heavy usage on rented cloud capacity.
- Free cash flow margin: Cash from operations after investment as a share of revenue. It indicates how much of growth becomes cash, which matters for companies that previously traded profit for growth.
Primary Macro Drivers
- Enterprise data spending: Companies budget for tools that turn data into decisions, so overall data spending drives annual recurring revenue and customer count.
- Cloud migration: Data moving to the cloud raises the volume and variety of data available to analyze, supporting usage-based revenue and net retention.
- AI and machine-learning workloads: Training and running models requires data preparation and analysis, adding workloads and premium tiers that raise revenue per customer.
- Competition from cloud providers: Cloud providers sell their own analytics tools at low incremental price, which can slow independent vendors; watch win rates and net retention.
Major Risks
- Customer cost optimization: Customers reviewing usage bills cut workloads or move to cheaper tiers, trimming usage-based revenue; watch net retention and commentary on consumption.
- Competition from hyperscalers: Cloud platforms bundle similar tools with storage and compute, pressuring prices and new customer growth; watch net retention and discounting.
- Pricing pressure: Rivals and buyer negotiation push prices down at renewal, narrowing gross margin; watch revenue per customer and discounting commentary.
- Product commoditization: As features spread across tools, buyers see less difference and switch more easily; watch customer count, retention and mix of premium tiers.
Industry Characteristics
| Characteristic | Profile |
|---|---|
| Cyclicality | Mixed |
| Capital Intensity | Low |
| Regulatory Intensity | Low |
| Industry Maturity | Growth |
| Geographic Importance | U.S. / Global |
Analytics Software Filers in the SEC Record
140 companies with annual reports in the dataset are classified by the SEC in the Standard Industrial Classification code 7372. Their latest fiscal years end between 2024 and 2026, and together they reported $630.2 billion of revenue. Median revenue growth over the prior year was 13.5%. Median operating margin was -5.5% and median net margin -2.3%. Median total liabilities were 44% of total assets, and 65 of 140 reported a profit in their latest year.
| Company | Revenue | Growth | Operating margin | Net margin | Year |
|---|---|---|---|---|---|
| Microsoft Corp | $281.7 billion | 14.9% | 45.6% | 36.1% | FY 2025 |
| Oracle Corp | $67.4 billion | 17.3% | 30.6% | 25.2% | FY 2026 |
| Salesforce, Inc. | $41.5 billion | 9.6% | 20.1% | 18.0% | FY 2026 |
| Block, Inc. | $24.2 billion | 0.3% | 7.1% | 5.4% | FY 2025 |
| Adobe Inc. | $23.8 billion | 10.5% | 36.6% | 30.0% | FY 2025 |
| Intuit Inc. | $18.8 billion | 15.6% | 26.1% | 20.5% | FY 2025 |
| Servicenow, Inc. | $13.3 billion | 20.9% | 13.7% | 13.2% | FY 2025 |
| Shopify Inc. | $11.6 billion | 30.1% | 12.7% | 10.7% | FY 2025 |
The 8 largest of 140 by revenue. Source: each company's own annual report as filed with the SEC (XBRL data), figures in U.S. dollars. A company's SIC code reflects its main business as the SEC records it, so it can differ from how an index provider or analyst classifies the company, and a diversified group appears under only one code.
Where to Go Next
The Analytics Software guide describes how the industry earns money, what to measure and what can go wrong. To see how it compares, read the neighbouring industries in the same sector, then apply the same checks to a specific company.
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Frequently Asked Questions
What are the main KPIs for the Analytics Software industry?
Key performance indicators for the Analytics Software industry include: Annual recurring revenue, Net revenue retention, Customer count, Gross margin, Free cash flow margin. Which matter most depends on the company's model, so compare them across several companies rather than relying on one.
How cyclical is the Analytics Software industry?
The Analytics Software industry exhibits mixed cyclicality characteristics. Some segments move with the broader economy while others maintain more stable demand, making stock selection within the group particularly important.
What are the biggest risks in the Analytics Software industry?
The primary risks for Analytics Software companies include: Customer cost optimization, Competition from hyperscalers, Pricing pressure, Product commoditization. Investors should assess each company's exposure to these factors and its track record of navigating them.