Investing IdeasBrowse All StocksMarkets
Have your own idea? Try our Stock Screener
Header cover image

U.S. Application Software Industry Analysis

UpdatedJan 07, 2026
DataAggregated Company Financials
Companies363
  • 7D-1.6%
  • 3M-7.9%
  • 1Y7.0%
  • YTDn/a

Over the last 7 days, the Application Software industry has dropped 1.6%, driven by AppLovin declining 11%. In contrast, Synopsys has gained 7.2%. This takes the industry's 12 month performance to a gain of 7.0%. 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
Thu, 08 Jan 2026US$2.2tUS$232.0bUS$39.4b31.2x56.9x9.6x
Sat, 06 Dec 2025US$2.3tUS$227.7bUS$38.6b29.5x59.1x10x
Mon, 03 Nov 2025US$2.4tUS$224.4bUS$35.0b34.6x69.6x10.9x
Wed, 01 Oct 2025US$2.4tUS$221.3bUS$31.9b34.9x76.2x11x
Fri, 29 Aug 2025US$2.3tUS$218.4bUS$30.7b34.6x73.8x10.4x
Sun, 27 Jul 2025US$2.3tUS$213.6bUS$16.5b48x140.1x10.8x
Tue, 24 Jun 2025US$2.2tUS$216.0bUS$16.9b41.2x129.7x10.1x
Thu, 22 May 2025US$2.2tUS$210.8bUS$17.1b35.9x127x10.3x
Sat, 19 Apr 2025US$1.8tUS$209.2bUS$21.4b31.4x83.5x8.5x
Mon, 17 Mar 2025US$1.9tUS$210.8bUS$20.8b27.6x91.9x9.1x
Wed, 12 Feb 2025US$2.3tUS$206.8bUS$20.6b43x110.3x11x
Fri, 10 Jan 2025US$2.1tUS$206.7bUS$20.1b41.1x103.8x10.1x
Sun, 08 Dec 2024US$2.3tUS$205.4bUS$19.9b43.6x115.4x11.2x
Tue, 05 Nov 2024US$1.9tUS$201.7bUS$18.6b37.5x99.7x9.2x
Thu, 03 Oct 2024US$1.8tUS$201.2bUS$19.0b38.1x93.4x8.8x
Sat, 31 Aug 2024US$1.7tUS$202.1bUS$17.6b38.4x98.7x8.6x
Mon, 29 Jul 2024US$1.7tUS$197.4bUS$16.9b40.8x101.4x8.7x
Wed, 26 Jun 2024US$1.7tUS$197.6bUS$16.4b39.9x101.5x8.4x
Fri, 24 May 2024US$1.7tUS$194.6bUS$14.4b42.6x119.8x8.9x
Sun, 21 Apr 2024US$1.6tUS$195.6bUS$11.3b43.4x143.4x8.3x
Tue, 19 Mar 2024US$1.8tUS$195.7bUS$10.8b48.3x162.9x9x
Thu, 15 Feb 2024US$1.8tUS$194.5bUS$5.2b51.4x337.3x9x
Sat, 13 Jan 2024US$1.8tUS$209.4bUS$1.9b49x951.6x8.6x
Mon, 11 Dec 2023US$1.7tUS$208.8bUS$2.2b51.6x783.5x8.3x
Wed, 08 Nov 2023US$1.6tUS$205.9b-US$117,960,389.0043.7x-13152.4x7.5x
Fri, 06 Oct 2023US$1.5tUS$203.9b-US$1,432,746,075.0045.9x-1067.3x7.5x
Sun, 03 Sep 2023US$1.6tUS$202.7b-US$2,124,565,098.0045.6x-772.5x8.1x
Tue, 01 Aug 2023US$1.6tUS$199.2b-US$7,736,698,639.0048x-212.1x8.2x
Thu, 29 Jun 2023US$1.5tUS$198.3b-US$5,983,799,713.0043.2x-253.1x7.6x
Sat, 27 May 2023US$1.4tUS$197.0b-US$6,717,479,766.0040.2x-213.4x7.3x
Mon, 24 Apr 2023US$1.4tUS$196.8b-US$4,464,765,133.0041.2x-311.6x7.1x
Wed, 22 Mar 2023US$1.4tUS$196.8b-US$5,447,727,601.0041.9x-250.6x6.9x
Fri, 17 Feb 2023US$1.4tUS$194.3b-US$5,400,602,948.0042.7x-251.5x7x
Sun, 15 Jan 2023US$1.2tUS$193.1b-US$5,461,867,645.0039.9x-226.9x6.4x
Price to Earnings Ratio

-226.9x


Total Market Cap: US$1.2tTotal Earnings: -US$5,461,867,645.00Total Revenue: US$193.1bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Application Software Industry Price to Earnings3Y Average -3.9x202420252026
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 56.9x which is higher than its 3-year average PE of -4.1x.
  • 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 6.3% 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 Market1.04%
Tech-0.10%
Software-1.73%
Application Software-1.58%
Systems Software-1.80%
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
SNPS SynopsysUS$508.777.2%
+US$6.6b		4.3%PE72.9x
PLTR Palantir TechnologiesUS$179.711.1%
+US$4.7b		163.4%PE391x
IREN IRENUS$45.9119.9%
+US$2.5b		303.4%PE28.8x
BMNR Bitmine Immersion TechnologiesUS$32.3316.6%
+US$2.0b		432.1%PE42x
QBTS D-Wave QuantumUS$31.2719.1%
+US$1.8b		227.4%PS453.5x

Latest News

FICO
US$1,599.96
Fair Isaac
7D
-8.4%
1Y
-17.3%
QBTS
US$31.27
D-Wave Quantum
7D
19.1%
1Y
227.4%
PLTR
US$179.71
Palantir Technologies
7D
1.1%
1Y
163.4%
SNPS
US$508.77
Synopsys
7D
7.2%
1Y
4.3%
INTU
US$647.20
Intuit
7D
-3.4%
1Y
5.2%
APP
US$617.24
AppLovin
7D
-11.0%
1Y
87.0%

APP: Rich Buybacks And Margin Assumptions Will Likely Overstretch Future Returns

Analysts have lifted their price target on AppLovin from US$318.43 to US$538.97, citing updated assumptions around revenue growth, profit margins and future P/E. They now view these assumptions as more supportive of a higher fair value range.
IREN
US$45.91
IREN
7D
19.9%
1Y
303.4%

IREN: Hyperscaler AI Cloud Deals Will Drive Future Power-Backed Infrastructure Expansion

Narrative Update on IREN The analyst price target for IREN has edged higher to $83.00, as analysts factor in a slightly higher revenue growth outlook, a modestly lower discount rate, and a richer future P/E, even while trimming profit margin assumptions in light of mixed views on AI cloud execution risk and the validation from recent hyperscaler related deals. Analyst Commentary Recent research on IREN highlights a wide spread of views, with some analysts leaning into the AI cloud opportunity and others focusing on execution and financing risks.
BMNR
US$32.33
Bitmine Immersion Technologies
7D
16.6%
1Y
432.1%
GWRE
US$187.98
Guidewire Software
7D
-7.2%
1Y
9.9%

GWRE: Cloud Momentum And Seasonality Will Shape A Balanced Near Term Outlook

Analysts have modestly lowered their price target on Guidewire Software, trimming fair value estimates by about $24 to approximately $242 per share. They cite solid cloud momentum but limited near term upside to consensus forecasts due to seasonality and valuation constraints.
WDAY
US$210.30
Workday
7D
-3.1%
1Y
-15.8%
ADSK
US$293.17
Autodesk
7D
-2.1%
1Y
0.8%

Shareholders Should Be Pleased With Autodesk, Inc.'s (NASDAQ:ADSK) Price

Jan 02
Shareholders Should Be Pleased With Autodesk, Inc.'s (NASDAQ:ADSK) Price
CRCL
US$84.85
Circle Internet Group
7D
6.2%
1Y
n/a
HUT
US$58.35
Hut 8
7D
26.1%
1Y
134.8%

HUT: AI Power Pipeline Euphoria Will Likely Outrun Real Contract Execution

Analysts have lifted their consolidated price target on Hut 8 from about $24 to roughly $37.43 per share, citing the company’s expanding high performance computing pipeline, improving profitability assumptions, and enhanced valuation support from sector wide AI infrastructure demand. Analyst Commentary Recent Street research has turned increasingly constructive on Hut 8, with multiple firms sharply lifting price targets to a range of about $60 to $65 while reiterating positive ratings.
ADBE
US$335.99
Adobe
7D
-4.7%
1Y
-20.5%

ADBE: Rising AI Costs Will Pressure Margins And Drive Multiple Compression

Analysts have reduced their fair value estimate for Adobe from $380.00 to about $271.93 per share, citing expectations for slightly slower revenue growth, lower long term profit margins, and a more conservative valuation multiple. Analyst Commentary Bearish analysts have become more vocal on Adobe, pointing to a combination of moderating growth expectations and tighter competitive dynamics across creative, document, and marketing workflows.
CRM
US$262.90
Salesforce
7D
-1.1%
1Y
-19.1%

CRM: Expanding AI Customer Engagement Will Drive Durable Long Term Shareholder Value

Analysts have inched up their Salesforce price target, with fair value rising roughly $3 to about $330 per share, as modestly stronger long term revenue growth assumptions and a slightly lower discount rate more than offset a marginally softer profit margin outlook amid shifting competitive dynamics in customer engagement and AI driven marketing tools. Analyst Commentary Analyst sentiment on Salesforce remains mixed as the competitive backdrop in customer engagement and AI driven marketing tools evolves rapidly, leading to both upward and downward adjustments to growth and execution assumptions embedded in valuation models.
PONY
US$17.34
Pony AI
7D
18.4%
1Y
13.6%