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U.S. Application Software Industry Analysis

UpdatedMay 06, 2026
DataAggregated Company Financials
Companies364
  • 7D5.0%
  • 3M6.6%
  • 1Y-12.3%
  • YTDn/a

Over the last 7 days, the Application Software industry has risen 5.0%, driven by gains in Strategy and AppLovin of 18% and 5.7%, respectively. In contrast, the industry has lost 12% in the last 12 months. As for the next few years, earnings are expected to grow by 26% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 07 May 2026US$1.8tUS$236.3bUS$15.2b33.5x117.1x7.5x
Sat, 04 Apr 2026US$1.7tUS$235.4bUS$20.0b33.9x83.8x7.1x
Mon, 02 Mar 2026US$1.7tUS$235.5bUS$23.2b26.5x74x7.3x
Wed, 28 Jan 2026US$2.1tUS$232.3bUS$34.2b29.8x61.4x9x
Fri, 26 Dec 2025US$2.3tUS$228.5bUS$39.1b30.7x60x10.3x
Sun, 23 Nov 2025US$2.1tUS$226.7bUS$37.3b26.8x55.4x9.1x
Tue, 21 Oct 2025US$2.4tUS$221.7bUS$31.8b34.2x74.4x10.7x
Thu, 18 Sep 2025US$2.3tUS$221.3bUS$31.9b34.6x72.9x10.5x
Sat, 16 Aug 2025US$2.3tUS$217.2bUS$30.2b37x76.1x10.6x
Mon, 14 Jul 2025US$2.2tUS$215.9bUS$17.1b43.5x129.3x10.2x
Wed, 11 Jun 2025US$2.2tUS$214.5bUS$17.7b41.3x125.2x10.3x
Fri, 09 May 2025US$2.0tUS$210.0bUS$17.7b31.5x113.9x9.6x
Sun, 06 Apr 2025US$1.7tUS$209.2bUS$21.4b27.8x78x8x
Tue, 04 Mar 2025US$2.0tUS$209.8bUS$19.4b34.6x105.3x9.7x
Thu, 30 Jan 2025US$2.2tUS$205.7bUS$20.3b45.6x108.9x10.8x
Sat, 28 Dec 2024US$2.2tUS$206.7bUS$19.9b41.1x109.5x10.5x
Mon, 25 Nov 2024US$2.2tUS$206.4bUS$19.2b42.4x114.1x10.6x
Wed, 23 Oct 2024US$1.8tUS$201.3bUS$19.0b35.8x96.6x9.1x
Fri, 20 Sep 2024US$1.7tUS$201.9bUS$18.9b38.9x91.1x8.5x
Sun, 18 Aug 2024US$1.7tUS$200.0bUS$17.2b34.8x100.5x8.7x
Tue, 16 Jul 2024US$1.7tUS$197.0bUS$16.8b40.8x103.7x8.8x
Thu, 13 Jun 2024US$1.6tUS$197.1bUS$16.1b40.6x99.7x8.2x
Sat, 11 May 2024US$1.7tUS$194.2bUS$13.8b45.9x121.2x8.6x
Mon, 08 Apr 2024US$1.7tUS$195.0bUS$11.3b45.3x154.3x8.9x
Wed, 06 Mar 2024US$1.9tUS$198.1bUS$11.2b45.9x165.2x9.4x
Fri, 02 Feb 2024US$1.9tUS$209.8bUS$2.2b48x863.9x8.9x
Sun, 31 Dec 2023US$1.8tUS$209.3bUS$2.6b49x693.6x8.7x
Tue, 28 Nov 2023US$1.7tUS$206.5bUS$206.7m47.1x8111.9x8.1x
Thu, 26 Oct 2023US$1.5tUS$204.1b-US$1,016,869,620.0043.9x-1458.8x7.3x
Sat, 23 Sep 2023US$1.5tUS$207.3b-US$1,848,637,302.0046x-833.9x7.4x
Mon, 21 Aug 2023US$1.5tUS$201.6b-US$3,923,860,486.0046.1x-386.4x7.5x
Wed, 19 Jul 2023US$1.6tUS$198.5b-US$8,148,525,123.0050x-200.5x8.2x
Fri, 16 Jun 2023US$1.5tUS$197.9b-US$6,105,428,961.0047.1x-247.6x7.6x
Sun, 14 May 2023US$1.3tUS$195.7b-US$6,837,962,041.0037.9x-192.2x6.7x
Price to Earnings Ratio

-192.2x


Total Market Cap: US$1.3tTotal Earnings: -US$6,837,962,041.00Total Revenue: US$195.7bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Application Software Industry Price to Earnings3Y Average 33.1x202420252026
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 117x which is higher than its 3-year average PE of 33.1x.
  • The 3-year average PS ratio of 9.0x is higher than the industry's current PS ratio of 7.5x.
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 6.5% 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 Market1.81%
Tech3.08%
Software1.13%
Application Software4.96%
Systems Software-0.43%
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
MSTR StrategyUS$186.8218.1%
+US$10.1b		-52.4%PS132.8x
APP AppLovinUS$468.835.7%
+US$8.5b		54.5%PE45.9x
CDNS Cadence Design SystemsUS$354.907.6%
+US$6.8b		15.1%PE83.6x
CRCL Circle Internet GroupUS$121.8027.5%
+US$6.4b		n/aPS10.8x
IREN IRENUS$60.9842.3%
+US$6.0b		828.2%PE52x

Latest News

MSTR
US$186.82
Strategy
7D
18.1%
1Y
-52.4%
PLTR
US$133.79
Palantir Technologies
7D
-3.0%
1Y
21.1%
KVYO
US$15.81
Klaviyo
7D
-20.5%
1Y
-53.0%
TRMB
US$63.42
Trimble
7D
-4.3%
1Y
-4.3%
CRCL
US$121.80
Circle Internet Group
7D
27.5%
1Y
n/a
IREN
US$60.98
IREN
7D
42.3%
1Y
828.2%
HUT
US$108.94
Hut 8
7D
53.4%
1Y
760.5%
SNPS
US$504.42
Synopsys
7D
4.8%
1Y
5.0%

SNPS: Early Ansys Synergies And Activist Pressure Will Shape Transition Year

Analysts have made a slight upward adjustment to the Synopsys fair value estimate to about $535, citing steady assumptions on growth and profitability alongside mixed Street research that highlights earlier than planned Ansys cost synergies, tempered expectations for electronic design automation and IP growth in a self described transition year, and a reset in several price targets, including $480 and $430. Analyst Commentary Recent research paints a mixed picture around Synopsys, with the stock seen as entering a transition phase where execution on integration and product demand will be key drivers for how the current valuation holds up.
AUR
US$7.27
Aurora Innovation
7D
42.8%
1Y
-0.5%
TYL
US$320.65
Tyler Technologies
7D
-9.9%
1Y
-42.5%
CDNS
US$354.90
Cadence Design Systems
7D
7.6%
1Y
15.1%
INTU
US$388.55
Intuit
7D
-1.7%
1Y
-39.4%
IDCC
US$278.00
InterDigital
7D
-21.2%
1Y
30.8%
ROP
US$350.26
Roper Technologies
7D
-1.6%
1Y
-39.0%

ROP: Software Cash Flows And Buybacks Will Support Post Reset Re Rating

Roper Technologies' updated fair value estimate has moved from $461.25 to $453.75 as analysts factor in a slightly higher discount rate, modestly adjusted revenue growth and profit margin assumptions, and a lower future P/E, while recent Street research includes several price target increases and one reduction. Analyst Commentary Street research on Roper Technologies has been active, with several bullish price target changes and one reduction, reflecting different views on how the company may execute against expectations and how its valuation stacks up against those assumptions.
APP
US$468.83
AppLovin
7D
5.7%
1Y
54.5%

APP: Share Repurchases Will Support Future Upside At Current Pricing

Analysts now see AppLovin's fair value holding at $860, with a slightly lower discount rate, a modestly higher revenue growth outlook near 40%, a stable profit margin around 72%, and a marginally lower future P/E closer to 34. Together, these factors support a steady price target narrative rather than a major reset.
GWRE
US$131.09
Guidewire Software
7D
-5.8%
1Y
-38.5%

GWRE: AI Overhang And Software Repricing Will Shape Cloud Transition Outlook

The analyst price target for Guidewire has been trimmed by about $4 to reflect a lower assumed future P/E multiple, even as analysts highlight solid results, resilient ARR trends and sector wide software multiple compression as the main drivers of recent target resets around $175 to $250. Analyst Commentary Recent research points to a split view on Guidewire Software, with several firms trimming price targets while still pointing to solid execution and resilient annual recurring revenue trends.