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U.S. Application Software Industry Analysis

UpdatedJan 23, 2026
DataAggregated Company Financials
Companies363
  • 7D-3.5%
  • 3M-15.5%
  • 1Y-6.4%
  • YTDn/a

Over the last 7 days, the Application Software industry has dropped 3.5%, driven by declines in AppLovin and Palantir Technologies of 14% and 6.3%, respectively. On the other hand Datadog is actually up 8.6%. However, the industry is down 6.4% over the past year. Looking forward, earnings are forecast to grow by 24% annually.

Industry Valuation and Performance

Has the U.S. Application Software Industry valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sat, 24 Jan 2026US$2.0tUS$232.0bUS$34.2b29.6x59.9x8.8x
Mon, 22 Dec 2025US$2.3tUS$228.5bUS$39.1b29.7x59.7x10.2x
Wed, 19 Nov 2025US$2.2tUS$226.0bUS$36.7b27.7x58.7x9.5x
Fri, 17 Oct 2025US$2.3tUS$221.7bUS$31.8b33.4x73.9x10.6x
Sun, 14 Sep 2025US$2.3tUS$221.1bUS$31.8b34.9x72.7x10.4x
Tue, 12 Aug 2025US$2.3tUS$216.9bUS$32.8b36.4x71.2x10.8x
Thu, 10 Jul 2025US$2.3tUS$215.9bUS$17.1b45.8x133x10.5x
Sat, 07 Jun 2025US$2.2tUS$214.5bUS$17.6b41.1x122.9x10.1x
Mon, 05 May 2025US$2.0tUS$208.8bUS$16.8b32.2x121.4x9.8x
Wed, 02 Apr 2025US$1.8tUS$209.3bUS$21.4b29.7x86.1x8.8x
Fri, 28 Feb 2025US$2.1tUS$209.7bUS$19.4b34.9x107.1x9.9x
Sun, 26 Jan 2025US$2.2tUS$205.7bUS$20.3b42.9x106.4x10.5x
Tue, 24 Dec 2024US$2.2tUS$206.7bUS$19.9b41.5x109.3x10.5x
Thu, 21 Nov 2024US$2.1tUS$206.1bUS$19.3b40.9x109.1x10.2x
Sat, 19 Oct 2024US$1.8tUS$201.3bUS$19.0b37.6x95.9x9.1x
Mon, 16 Sep 2024US$1.7tUS$201.9bUS$18.9b38.8x91.9x8.6x
Wed, 14 Aug 2024US$1.6tUS$199.9bUS$17.2b34.5x95.7x8.3x
Fri, 12 Jul 2024US$1.7tUS$196.9bUS$16.8b40.6x102.5x8.7x
Sun, 09 Jun 2024US$1.6tUS$197.0bUS$16.1b40.2x100.2x8.2x
Tue, 07 May 2024US$1.7tUS$196.7bUS$12.0b45.3x141.6x8.6x
Thu, 04 Apr 2024US$1.7tUS$195.0bUS$11.2b46.4x155.4x9x
Sat, 02 Mar 2024US$1.8tUS$198.0bUS$11.0b47.5x166.7x9.3x
Mon, 29 Jan 2024US$1.8tUS$209.5bUS$2.0b50.6x917.3x8.8x
Wed, 27 Dec 2023US$1.8tUS$209.3bUS$2.6b47.4x714.4x8.7x
Fri, 24 Nov 2023US$1.7tUS$206.5bUS$178.3m47.2x9401.2x8.1x
Sun, 22 Oct 2023US$1.5tUS$203.9b-US$1,106,410,735.0044x-1377x7.5x
Tue, 19 Sep 2023US$1.6tUS$206.7b-US$1,838,547,021.0047.4x-868x7.7x
Thu, 17 Aug 2023US$1.5tUS$200.7b-US$4,091,591,983.0045.8x-375.4x7.7x
Sat, 15 Jul 2023US$1.6tUS$198.4b-US$8,145,405,565.0048.3x-196.5x8.1x
Mon, 12 Jun 2023US$1.5tUS$197.9b-US$6,128,086,296.0042.8x-241x7.5x
Wed, 10 May 2023US$1.3tUS$194.8b-US$6,527,401,045.0036.9x-200.7x6.7x
Fri, 07 Apr 2023US$1.4tUS$196.9b-US$4,687,118,847.0043x-294.2x7x
Sun, 05 Mar 2023US$1.4tUS$196.6b-US$5,537,483,530.0045.2x-246.2x6.9x
Tue, 31 Jan 2023US$1.3tUS$192.7b-US$5,505,579,578.0041.4x-236.5x6.8x
Price to Earnings Ratio

-236.5x


Total Market Cap: US$1.3tTotal Earnings: -US$5,505,579,578.00Total Revenue: US$192.7bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Application Software Industry Price to Earnings3Y Average 0.3x202420252026
Current Industry PE
  • Investors are optimistic on the American Application Software industry, and appear confident in long term growth rates.
  • The industry is trading at a PE ratio of 59.9x which is higher than its 3-year average PE of 0.063x.
  • The industry is trading close to its 3-year average PS ratio of 8.9x.
Past Earnings Growth
  • Total earnings for the Application Software industry have gone up over the last three years, and the industry is now profitable. Revenues have grown 6.4% per year.
  • This means that more sales are being generated by the industry overall, and subsequently profits are increasing too.

Industry Comparison

How does U.S. Application Software compare with similar industries?

US Market-0.28%
Tech-1.23%
Software-2.70%
Application Software-3.46%
Systems Software-2.35%
Industry PEThere are no additional sub-industries under this industry.
Forecasted GrowthThere are no additional sub-industries under this industry.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

CompanyLast Price7D1YValuation
DDOG DatadogUS$131.258.6%
+US$3.6b		-6.4%PE431.1x
TEAM AtlassianUS$128.448.3%
+US$2.6b		-51.5%PS6.2x
ADSK AutodeskUS$269.772.9%
+US$1.6b		-10.4%PE51.4x
ADBE AdobeUS$299.731.2%
+US$1.5b		-31.2%PE17.3x
ZM Zoom CommunicationsUS$84.653.8%
+US$926.8m		5.8%PE15.7x

Latest News

IREN
US$52.26
IREN
7D
-9.6%
1Y
292.3%
IDCC
US$330.12
InterDigital
7D
6.3%
1Y
89.0%

IDCC: Streaming And Licensing Execution Will Drive Upside To Elevated Expectations

Narrative update on InterDigital Analysts have lifted their fair value estimate for InterDigital from US$260 to US$425, citing recent price target increases, Q3 performance commentary, and views that the company is better positioned to capture opportunities across its licensing and streaming verticals. Analyst Commentary Recent research points to a constructive view on InterDigital, with attention on how recent deals and licensing progress might feed into medium term expectations.
AUR
US$4.88
Aurora Innovation
7D
6.8%
1Y
-29.9%
ADBE
US$299.73
Adobe
7D
1.2%
1Y
-31.2%

ADBE: Future AI And Semrush Deal Will Reshape Cash Flow Profile

Analysts have reduced their Adobe fair value estimate by about US$7 to roughly US$578, citing a lower future P/E assumption and recent price target cuts that reflect concerns about near term growth momentum and competitive pressures. Analyst Commentary Recent Street research on Adobe has tilted more cautious, with several firms cutting ratings and price targets as they reassess expectations around AI driven growth, competitive intensity and near term execution.
DDOG
US$131.25
Datadog
7D
8.6%
1Y
-6.4%
APP
US$521.94
AppLovin
7D
-14.0%
1Y
44.0%

APP: Heavy Buybacks And Lofty Margins Will Likely Cap Future Upside

Analysts have nudged their fair value estimate for AppLovin to $544.25, a modest move from $538.97. The change reflects refreshed assumptions around revenue growth, profit margins, discount rate and future P/E multiples.
INTU
US$547.69
Intuit
7D
0.4%
1Y
-8.4%

Intuit: Why Tax Complexity Keeps Compounding the Long-Term Opportunity

At first glance, Intuit (NASDAQ: INTU) can look like a mature software company operating in a slow-moving space. Tax filing, bookkeeping, and payroll aren’t exactly growth buzzwords.
NTNX
US$42.98
Nutanix
7D
-11.7%
1Y
-34.0%

NTNX: Future VMware Displacements And AI Workloads Will Support Long-Term Outperformance

Our updated analyst price target for Nutanix moves modestly lower to reflect a reduced fair value estimate of about $67.85, as analysts factor in recent price target cuts, a slight increase in the discount rate, and a lower assumed future P/E multiple following softer guidance and reduced visibility into top line growth. Analyst Commentary Recent Street research on Nutanix reflects a split view, with some analysts focusing on execution risks and reduced visibility, while others still see an appealing long term growth story tied to infrastructure trends and AI related workloads.
TEAM
US$128.44
Atlassian
7D
8.3%
1Y
-51.5%

TEAM: AWS Partnership And Margin Expansion Will Drive Long Term Upside

Analysts have trimmed their price target for Atlassian from $371.17 to $353.51, citing updated assumptions on discount rate, revenue growth, profit margins and future P/E expectations. Analyst Commentary Bullish analysts are framing the latest price target adjustment for Atlassian as a recalibration of assumptions rather than a change in the long term thesis.
TRMB
US$71.48
Trimble
7D
-9.0%
1Y
-7.8%

TRMB: Industrial Tech Tailwinds And Software Shift Will Drive Future Upside

Analysts have nudged their fair value estimate for Trimble higher, from US$98.50 to US$99.75. Recent research highlights supportive trends in industrial technology end markets, including data centers, factory and warehouse automation, electronics, test and measurement, and semiconductors.
FIG
US$28.42
Figma
7D
-10.1%
1Y
n/a
ZM
US$84.65
Zoom Communications
7D
3.8%
1Y
5.8%
MSTR
US$160.98
Strategy
7D
-5.8%
1Y
-56.9%
CRM
US$228.09
Salesforce
7D
-2.3%
1Y
-31.8%
PLTR
US$165.90
Palantir Technologies
7D
-6.3%
1Y
110.1%
ADSK
US$269.77
Autodesk
7D
2.9%
1Y
-10.4%

ADSK: AI And Execution Will Support Multi Year Outperformance Versus Core Industries

Analysts have made a slight adjustment to the Autodesk fair value estimate to about $365.71 per share. The change reflects recent price target increases on the Street, renewed confidence in execution and AI and go to market plans, and expectations that the company can grow several points faster than its core industries over the next few years.