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U.S. Application Software Industry Analysis

UpdatedApr 22, 2026
DataAggregated Company Financials
Companies362
  • 7D8.2%
  • 3M-12.5%
  • 1Y-3.2%
  • YTDn/a

The Application Software industry is up 8.2% in the last week, with Palantir Technologies up 7.6%. In the past year, the industry is down 3.2%. Looking forward, earnings are forecast to grow by 26% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Wed, 22 Apr 2026US$1.8tUS$235.5bUS$15.5b32.6x113.9x7.5x
Fri, 20 Mar 2026US$1.8tUS$236.5bUS$25.3b30.7x69.9x7.5x
Sun, 15 Feb 2026US$1.7tUS$231.7bUS$23.7b25x71.2x7.3x
Tue, 13 Jan 2026US$2.3tUS$232.0bUS$39.4b31.4x57.8x9.8x
Thu, 11 Dec 2025US$2.3tUS$227.8bUS$38.8b30.1x60.6x10.3x
Sat, 08 Nov 2025US$2.3tUS$226.7bUS$35.4b31.5x64.2x10x
Mon, 06 Oct 2025US$2.4tUS$221.7bUS$31.8b34.9x75.2x10.8x
Wed, 03 Sep 2025US$2.3tUS$218.8bUS$30.9b35.1x74.4x10.5x
Fri, 01 Aug 2025US$2.4tUS$215.1bUS$16.9b46.5x140.7x11.1x
Sun, 29 Jun 2025US$2.2tUS$216.0bUS$16.9b41.9x129.6x10.1x
Tue, 27 May 2025US$2.1tUS$212.1bUS$17.5b35.7x121.1x10x
Thu, 24 Apr 2025US$1.8tUS$209.2bUS$21.5b31.7x84.4x8.7x
Sat, 22 Mar 2025US$1.9tUS$210.7bUS$20.8b29.3x93.2x9.2x
Mon, 17 Feb 2025US$2.3tUS$208.7bUS$20.0b43.9x116.7x11.2x
Wed, 15 Jan 2025US$2.1tUS$206.6bUS$20.4b40.3x100.6x9.9x
Fri, 13 Dec 2024US$2.3tUS$206.1bUS$19.7b44x114.7x10.9x
Sun, 10 Nov 2024US$2.1tUS$206.5bUS$19.3b40.6x106.7x10x
Tue, 08 Oct 2024US$1.8tUS$201.2bUS$19.0b38.3x94.3x8.9x
Thu, 05 Sep 2024US$1.7tUS$201.4bUS$17.6b38.4x96.5x8.5x
Sat, 03 Aug 2024US$1.7tUS$198.6bUS$17.3b38.2x97.2x8.5x
Mon, 01 Jul 2024US$1.7tUS$197.3bUS$16.4b41.2x105.2x8.8x
Wed, 29 May 2024US$1.7tUS$195.7bUS$14.9b40.3x112.4x8.6x
Fri, 26 Apr 2024US$1.7tUS$195.7bUS$11.4b44.2x146.6x8.5x
Sun, 24 Mar 2024US$1.8tUS$194.8bUS$11.0b48.8x162.5x9.2x
Tue, 20 Feb 2024US$1.8tUS$195.1bUS$5.9b54.4x300.3x9.1x
Thu, 18 Jan 2024US$1.8tUS$209.4bUS$1.9b48.8x947.6x8.5x
Sat, 16 Dec 2023US$1.8tUS$209.3bUS$2.6b49x701.1x8.6x
Mon, 13 Nov 2023US$1.6tUS$206.5b-US$83,709,901.0046.3x-19265.2x7.8x
Wed, 11 Oct 2023US$1.6tUS$203.9b-US$1,462,671,083.0047.4x-1086.3x7.8x
Fri, 08 Sep 2023US$1.6tUS$202.7b-US$2,010,218,146.0046.5x-814.1x8.1x
Sun, 06 Aug 2023US$1.6tUS$200.7b-US$5,949,846,858.0049.5x-264.9x7.9x
Tue, 04 Jul 2023US$1.5tUS$198.4b-US$7,830,002,193.0048.4x-194.8x7.7x
Thu, 01 Jun 2023US$1.5tUS$196.7b-US$6,605,103,158.0040.5x-220.2x7.4x
Sat, 29 Apr 2023US$1.4tUS$196.6b-US$4,369,514,811.0039.9x-311.3x6.9x
Price to Earnings Ratio

-311.3x


Total Market Cap: US$1.4tTotal Earnings: -US$4,369,514,811.00Total Revenue: US$196.6bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Application Software Industry Price to Earnings3Y Average 27.8x202420252026
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 114x which is higher than its 3-year average PE of 27.8x.
  • 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 6.2% 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 Market1.31%
Tech4.29%
Software8.38%
Application Software8.18%
Systems Software8.46%
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
PLTR Palantir TechnologiesUS$152.627.4%
+US$25.0b		51.4%PE224.6x
MSTR StrategyUS$179.3625.0%
+US$12.4b		-48.1%PS130.1x
CDNS Cadence Design SystemsUS$331.619.0%
+US$7.6b		24.9%PE82.6x
SNPS SynopsysUS$477.268.9%
+US$7.4b		13.0%PE82.7x
APP AppLovinUS$483.714.1%
+US$5.9b		91.7%PE47.4x

Latest News

PLTR
US$152.62
Palantir Technologies
7D
7.4%
1Y
51.4%
PEGA
US$37.48
Pegasystems
7D
-12.3%
1Y
-15.3%
ADBE
US$255.94
Adobe
7D
4.6%
1Y
-27.3%
MSTR
US$179.36
Strategy
7D
25.0%
1Y
-48.1%
DDOG
US$132.14
Datadog
7D
9.2%
1Y
39.7%

DDOG: AI Observability And Anthropic Tie Ins Will Drive Multiple Re Rating

Datadog's updated price target edges slightly lower, reflecting a broad wave of target cuts from multiple firms as analysts factor in modest adjustments to discount rates and P/E assumptions, while still citing supportive views on revenue growth, profit margins, AI observability demand, and recent upgrades and initiations. Analyst Commentary Street research on Datadog has leaned more cautious on price targets recently, but there is still a visible group of bullish analysts highlighting product strength, AI observability exposure, and execution on growth initiatives.
SNPS
US$477.26
Synopsys
7D
8.9%
1Y
13.0%

SNPS: Early Ansys Synergies And Activist Pressure Are Expected To Unlock Value

Analysts have trimmed their price targets on Synopsys, with the model fair value easing by about $4 to $533.52 as they factor in slower electronic design automation momentum, a "transition year" around the Ansys integration, and less clarity on near term profitability despite earlier than planned cost synergies. Analyst Commentary Recent research highlights a mixed setup for Synopsys as you think about valuation, integration execution, and growth visibility around both electronic design automation and design IP.
CRM
US$189.80
Salesforce
7D
6.9%
1Y
-24.2%

CRM: Debt-Funded Buybacks Will Support AI Execution And Margin Discipline

The analyst price target for Salesforce has been reduced by about $50 to reflect slightly lower modeled fair value, a higher discount rate, more conservative assumptions on revenue growth and profit margins, and a trimmed future P/E multiple, in line with a broad set of recent price target cuts that cite softer organic growth, sector multiple compression, and a wait for clearer payoff from Agentforce-driven AI products. Analyst Commentary Street research around Salesforce has shifted toward tighter valuation assumptions, but it also highlights a set of execution and product drivers that bullish analysts see as underappreciated.
CDNS
US$331.61
Cadence Design Systems
7D
9.0%
1Y
24.9%
CRCL
US$104.36
Circle Internet Group
7D
-1.1%
1Y
n/a
FICO
US$970.17
Fair Isaac
7D
-5.9%
1Y
-49.6%
FIG
US$19.17
Figma
7D
-5.8%
1Y
n/a

Figma: Is It Finally Time? Partially (Rating Upgrade)

Apr 16
AUR
US$5.17
Aurora Innovation
7D
-2.5%
1Y
-19.8%
APP
US$483.71
AppLovin
7D
4.1%
1Y
91.7%

APP: Ongoing Buybacks And Strong 2026 Guidance Will Support Further Upside

Analysts have trimmed their average price target for AppLovin slightly, by about $5 per share. This reflects updated assumptions around fair value, discount rate, revenue growth, profit margin, and future P/E that remain broadly consistent with prior views.
MTC
US$6.35
MMTec
7D
-29.9%
1Y
433.6%
INTU
US$408.68
Intuit
7D
4.9%
1Y
-31.4%
ALOY
US$9.39
REalloys
7D
-26.7%
1Y
195.3%