Direct Answer
140 SEC filers are classified under the Standard Industrial Classification code that describes the database 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
Database software companies sell systems that store, query and manage data for applications, delivered as licenses or cloud services. Workloads are sticky, and growth follows data volume and application development. The first numbers to compare across companies here are annual recurring revenue, cloud consumption growth and net retention.
Key Industry Metrics
- Annual recurring revenue: Annualized value of license and cloud subscription contracts. It shows how much revenue repeats, and growth reflects migration of existing databases and new application development.
- Cloud consumption growth: Growth in usage-based billing for hosted databases. It shows real workloads growing, though customers can optimize and cut consumption, so it moves faster than contracts.
- Net retention: Spending from existing customers versus a year earlier. Above 100% shows workloads growing and moving onto the vendor's cloud, which is sticky because databases are costly to replace.
- Gross margin: Revenue left after hosting and support. Cloud database services run on rented capacity, so a shift from licenses to cloud tends to lower margin even as revenue grows.
- Customer count: The number of paying organizations. Growth shows reach, but database revenue concentrates in large accounts, so read it with spend per customer.
Primary Macro Drivers
- Cloud migration of databases: Companies moving databases to managed cloud versions drive cloud consumption growth and recurring revenue.
- AI and vector workloads: New AI applications need vector search and fast data access, adding workloads and expanding usage per customer.
- Application development: Every new application needs somewhere to store data, so software development activity feeds new database workloads and customer count.
- Multi-cloud adoption: Running data across several clouds favors independent vendors over a single cloud provider's service, supporting net retention.
Major Risks
- Hyperscaler competition: Cloud providers bundle their own databases at low incremental price, which can pull away workloads; watch cloud consumption growth and net retention.
- Open-source alternatives: Community versions and low-cost alternatives limit what vendors can charge; watch the conversion of free users to paid and pricing commentary.
- Consumption optimization: Customers reviewing bills may cut instances or move workloads to cheaper tiers, reducing usage-based revenue; watch cloud consumption growth and net retention.
- Pricing: Competition and customer negotiation can push prices down at renewal, narrowing gross margin; watch revenue per customer and renewal commentary.
Industry Characteristics
| Characteristic | Profile |
|---|---|
| Cyclicality | Mixed |
| Capital Intensity | Low |
| Regulatory Intensity | Low |
| Industry Maturity | Growth |
| Geographic Importance | U.S. / Global |
Database 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 Database 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 Database Software industry?
Key performance indicators for the Database Software industry include: Annual recurring revenue, Cloud consumption growth, Net retention, Gross margin, Customer count. Which matter most depends on the company's model, so compare them across several companies rather than relying on one.
How cyclical is the Database Software industry?
The Database 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 Database Software industry?
The primary risks for Database Software companies include: Hyperscaler competition, Open-source alternatives, Consumption optimization, Pricing. Investors should assess each company's exposure to these factors and its track record of navigating them.