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U.S. Application Software Industry Analysis

UpdatedAug 20, 2026
DataAggregated Company Financials
Companies353
  • 7D2.9%
  • 3M11.7%
  • 1Y-14.7%
  • YTDn/a

Over the last 7 days, the Application Software industry has remained flat, although notably Salesforce gained 6.6%. As for the longer term, the industry has declined 17% in the last year. Looking forward, earnings are forecast to grow by 28% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 20 Aug 2026US$1.8tUS$246.3b-US$20,133,320,101.1133.4x-87.6x7.2x
Sat, 18 Jul 2026US$1.7tUS$248.6bUS$6.8b31.4x252.4x6.9x
Mon, 15 Jun 2026US$1.7tUS$247.7bUS$6.9b27.8x241.6x6.8x
Wed, 13 May 2026US$1.8tUS$239.4bUS$6.6b28.2x273.7x7.5x
Fri, 10 Apr 2026US$1.6tUS$235.4bUS$19.8b32.4x81x6.8x
Sun, 08 Mar 2026US$1.9tUS$235.8bUS$20.2b27x91.9x7.9x
Tue, 03 Feb 2026US$1.9tUS$231.4bUS$34.1b27.1x55.6x8.2x
Thu, 01 Jan 2026US$2.3tUS$228.5bUS$39.1b29.6x58.5x10x
Sat, 29 Nov 2025US$2.2tUS$226.6bUS$38.0b28.5x57.1x9.6x
Mon, 27 Oct 2025US$2.4tUS$221.7bUS$31.9b32.6x75.5x10.9x
Wed, 24 Sep 2025US$2.4tUS$221.2bUS$31.7b35.2x77x11x
Fri, 22 Aug 2025US$2.2tUS$217.3bUS$30.1b35.2x74.4x10.3x
Sun, 20 Jul 2025US$2.3tUS$213.3bUS$16.5b45.7x138.2x10.7x
Tue, 17 Jun 2025US$2.2tUS$216.0bUS$16.6b41.2x130.1x10x
Thu, 15 May 2025US$2.2tUS$210.4bUS$16.7b32.8x130.2x10.3x
Sat, 12 Apr 2025US$1.8tUS$209.2bUS$21.4b26.9x82.8x8.5x
Mon, 10 Mar 2025US$2.0tUS$211.1bUS$19.7b32.4x99.8x9.3x
Wed, 05 Feb 2025US$2.2tUS$206.7bUS$20.8b42.7x105.4x10.6x
Fri, 03 Jan 2025US$2.1tUS$206.7bUS$20.0b40.7x104.6x10.1x
Sun, 01 Dec 2024US$2.2tUS$205.7bUS$19.6b42.4x111.1x10.6x
Tue, 29 Oct 2024US$1.8tUS$201.6bUS$19.1b38.2x96.1x9.1x
Thu, 26 Sep 2024US$1.8tUS$201.9bUS$18.9b37.8x94.2x8.8x
Sat, 24 Aug 2024US$1.7tUS$201.1bUS$17.3b36.8x100.4x8.7x
Mon, 22 Jul 2024US$1.7tUS$197.0bUS$16.8b41.4x101.8x8.7x
Wed, 19 Jun 2024US$1.6tUS$197.6bUS$16.4b40.9x100.4x8.3x
Fri, 17 May 2024US$1.7tUS$194.2bUS$14.0b45.1x123x8.9x
Sun, 14 Apr 2024US$1.7tUS$195.3bUS$11.3b45.3x154x8.9x
Tue, 12 Mar 2024US$1.8tUS$199.3bUS$11.3b49x161.2x9.2x
Thu, 08 Feb 2024US$1.8tUS$193.9bUS$4.8b51x363.7x9x
Sat, 06 Jan 2024US$1.7tUS$209.4bUS$2.6b47.7x674.2x8.2x
Mon, 04 Dec 2023US$1.8tUS$208.5bUS$2.0b48x888x8.4x
Wed, 01 Nov 2023US$1.5tUS$204.5b-US$795,421,591.0044.1x-1889.7x7.4x
Fri, 29 Sep 2023US$1.5tUS$204.0b-US$1,607,618,794.0045.6x-956.2x7.5x
Sun, 27 Aug 2023US$1.6tUS$201.6b-US$3,374,323,336.0045.1x-462.7x7.7x
Price to Earnings Ratio

-462.7x


Total Market Cap: US$1.6tTotal Earnings: -US$3,374,323,336.00Total Revenue: US$201.6bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Application Software Industry Price to Earnings3Y Average 73.7x202420252026
Current Industry PE
  • Investors are pessimistic on the American Application Software industry, indicating that they anticipate long term growth rates will be lower than they have historically.
  • The 3-year average PS ratio of 8.9x is higher than the industry's current PS ratio of 7.1x.
Past Earnings Growth
  • The earnings for companies in the Application Software industry have deteriorated over the last three years.
  • Meanwhile revenues for these companies have grown 6.9% per year.
  • This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased, which has caused losses to expand.

Industry Comparison

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

US Market-0.79%
Tech-2.73%
Software-1.39%
Application Software2.87%
Systems Software-2.82%
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
CRM SalesforceUS$206.096.6%
+US$10.5b		-16.4%PE21x
PLTR Palantir TechnologiesUS$175.192.4%
+US$10.0b		12.3%PE139.6x
INTU IntuitUS$362.478.3%
+US$7.6b		-48.2%PE21.6x
WDAY WorkdayUS$198.4213.2%
+US$5.7b		-12.8%PE57.9x
ADBE AdobeUS$272.475.3%
+US$5.5b		-22.9%PE15x

Latest News

WDAY
US$198.42
Workday
7D
13.2%
1Y
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CLBT
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Cellebrite DI
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-26.3%
1Y
-27.4%
BSP
US$41.46
Bending Spoons
7D
-15.4%
1Y
n/a
MSTR
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Strategy
7D
9.9%
1Y
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AUR
US$6.20
Aurora Innovation
7D
-9.8%
1Y
7.4%
Seeking Alpha • 21h

Aurora Innovation: Scaling Too Slow

Summary Aurora Innovation faces intensifying competition amid slow scaling, with only 200 autonomous trucks targeted by end-2026. AUR's transition from TaaS to DaaS will boost margins but reduce per-truck revenue in 2027. The $14B market cap appears stretched given projected revenue ramp, ongoing dilution, and high cash burn through at least 2028. I remain neutral, seeing the stock range-bound ($4–$8) due to premium valuation, execution risks, and lack of compelling upside catalysts. Read the full article on Seeking Alpha
DDOG
US$233.52
Datadog
7D
-3.1%
1Y
81.8%
PLTR
US$175.19
Palantir Technologies
7D
2.4%
1Y
12.3%
Narrative Update • Aug 19

PLTR: Record AI Wins Will Likely Struggle To Justify Lofty Expectations

Palantir Technologies' fair value estimate has been raised by analysts from $96.21 to $99.77. The change reflects updated assumptions for slightly higher revenue growth, a modestly higher discount rate, resilient profit margins and Street research that highlights what analysts describe as exceptional recent results, stronger U.S. commercial momentum and expanding AI partnerships.
INTU
US$362.47
Intuit
7D
8.3%
1Y
-48.2%
Narrative Update • Aug 18

INTU: AI Restructuring And Workforce Reset Will Support Future Multiple Re Rating

Intuit's analyst price target has shifted lower, with the fair value estimate moving from $488.17 to $449.20 as analysts build in slightly more conservative assumptions around growth, margins, and future P/E multiples in advance of potential guidance resets into fiscal 2027. Analyst Commentary Recent Street commentary on Intuit highlights a split view on the stock.
SNPS
US$401.24
Synopsys
7D
-2.7%
1Y
-33.3%
TEAM
US$174.23
Atlassian
7D
12.2%
1Y
4.6%
ADBE
US$272.47
Adobe
7D
5.3%
1Y
-22.9%
Seeking Alpha • Aug 17

Adobe: Even If It Wins With AI, The Market May Take Years To Forgive

Summary Rating downgraded to Strong Sell, even after ADBE's 30% rebound from its $192 low, because the core AI-disruption thesis remains unchanged. Q2 FY2026 results beat expectations, but full-year ARR growth guidance stayed flat at 10.2%. The freemium strategy is boosting user numbers but not revenue. Market sentiment can lag fundamentals for years—as shown by Microsoft, which took 16 years to recover its share price despite strong underlying growth. Read the full article on Seeking Alpha
WULF
US$15.50
TeraWulf
7D
-9.8%
1Y
67.0%
Narrative Update • Aug 17

WULF: Long Duration AI Leases And Power Assets Will Drive Returns

Analysts have trimmed their price target for TeraWulf from about $30 to $25, reflecting a blend of slightly softer margin and P/E assumptions while still highlighting progress in leasing revenue, long term AI data center contracts, and the perceived resilience of its power and colocation pipeline. Analyst Commentary Recent Street research on TeraWulf shows active engagement from multiple firms, with a mix of higher and lower price targets and a consistent focus on the company’s AI data center transition, lease pipeline, and power development portfolio.
HUT
US$82.08
Hut 8
7D
-9.6%
1Y
267.9%
Seeking Alpha • Aug 17

Hut 8: Contract Extensions And A Better Entry Point

Summary Hut 8 Corp (HUT) upgraded to Buy after expanding its Beacon Point contract, potentially with NVIDIA, doubling installed capacity to 704 MW and backlog to $26.6B. HUT's transformation from crypto mining to AI data center hosting is accelerating, with major long-term contracts and secured energy supply supporting the investment thesis. Despite Q2 operational challenges and continued reliance on BTC mining, HUT's revenue rose 81% YoY; technical signals and multiple compression present an attractive entry point. Execution risk remains high, but I see current price weakness as a buying opportunity, expecting market recognition of HUT's AI infrastructure contracts in coming quarters. Read the full article on Seeking Alpha
CRM
US$206.09
Salesforce
7D
6.6%
1Y
-16.4%
Seeking Alpha • Aug 14

Salesforce: Ride The Buyback Boost

Summary Salesforce, Inc. offers a compelling dip-buying opportunity as SaaS sector sentiment rebounds and private equity eyes peers like Workday. CRM trades at just 14x forward EPS, presenting relative value versus Workday, which is attracting buyout interest at a higher multiple. Massive $27.1 billion share buybacks and a 23% net buyback yield, position CRM for significant EPS growth, despite increased debt. With FQ2 guidance for 10–11% revenue growth and robust free cash flow, the stock remains attractive below all-time highs amid AI-driven enterprise demand. Read the full article on Seeking Alpha
FICO
US$1,161.59
Fair Isaac
7D
11.2%
1Y
-13.6%
Narrative Update • Aug 14

FICO: Mortgage And Regulatory Headwinds Will Pressure Future Pricing Power

Analysts have trimmed their price targets on Fair Isaac, and the updated fair value estimate has shifted from about $897 to roughly $1,005 as they factor in slightly higher discount rates, more conservative revenue growth and profit margin assumptions, and modestly lower future P/E expectations. Analyst Commentary Recent Street research on Fair Isaac points to a more cautious tone, even as many firms still highlight longer term opportunities tied to pricing power, software growth and potential catalysts around the 10T score and direct licensing program.
CDNS
US$314.98
Cadence Design Systems
7D
-2.5%
1Y
-8.8%
Narrative Update • Aug 13

CDNS: Agentic AI Design Tools And Digital Twins Will Drive Future Upside

Cadence Design Systems' updated analyst price target moved modestly higher, supported by analysts who point to solid Q2 execution, raised guidance, and long term AI related demand drivers, even as questions remain around valuation at roughly a 63x 2027 P/E and the timing of AI monetization. Analyst Commentary Analysts are broadly positive on Cadence Design Systems after Q2, with many lifting price targets and pointing to a mix of AI exposure, strong core electronic design automation demand, and a growing backlog, while a minority remains more measured given the current P/E and open questions on AI monetization and margins.