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U.S. Application Software Industry Analysis

UpdatedMay 02, 2026
DataAggregated Company Financials
Companies363
  • 7D2.2%
  • 3M-4.7%
  • 1Y-14.6%
  • YTDn/a

Over the last 7 days, the Application Software industry has remained flat, although notably Salesforce gained 3.2%. As for the longer term, the industry has declined 16% in the last year. As for the next few years, earnings are expected to grow by 25% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sat, 02 May 2026US$1.7tUS$236.3bUS$15.2b33.3x112.2x7.2x
Mon, 30 Mar 2026US$1.6tUS$235.4bUS$20.5b30.3x79x6.9x
Wed, 25 Feb 2026US$1.6tUS$231.9bUS$22.3b24.1x72x6.9x
Fri, 23 Jan 2026US$2.0tUS$232.0bUS$34.2b29.6x59.9x8.8x
Sun, 21 Dec 2025US$2.3tUS$228.5bUS$39.1b29.7x59.7x10.2x
Tue, 18 Nov 2025US$2.2tUS$227.7bUS$36.7b27.9x60.4x9.7x
Thu, 16 Oct 2025US$2.4tUS$221.7bUS$31.8b33.8x74.3x10.7x
Sat, 13 Sep 2025US$2.3tUS$221.3bUS$31.9b34.7x72.4x10.4x
Mon, 11 Aug 2025US$2.3tUS$216.9bUS$29.8b37.4x78.5x10.8x
Wed, 09 Jul 2025US$2.3tUS$215.9bUS$17.1b45.7x132.2x10.5x
Fri, 06 Jun 2025US$2.2tUS$214.4bUS$17.6b39.5x123.4x10.1x
Sun, 04 May 2025US$2.0tUS$208.8bUS$16.8b32.2x121.4x9.8x
Tue, 01 Apr 2025US$1.9tUS$210.1bUS$20.3b28.2x92x8.9x
Thu, 27 Feb 2025US$2.1tUS$210.3bUS$18.8b36.5x110.2x9.9x
Sat, 25 Jan 2025US$2.2tUS$205.7bUS$20.3b42.9x106.9x10.6x
Mon, 23 Dec 2024US$2.2tUS$206.7bUS$19.9b42.2x109.3x10.5x
Wed, 20 Nov 2024US$2.1tUS$206.1bUS$19.3b40.9x107.3x10x
Fri, 18 Oct 2024US$1.8tUS$201.3bUS$19.0b39.5x96x9.1x
Sun, 15 Sep 2024US$1.7tUS$201.9bUS$18.9b38.8x91.9x8.6x
Tue, 13 Aug 2024US$1.7tUS$199.8bUS$17.2b33.7x96.6x8.3x
Thu, 11 Jul 2024US$1.7tUS$196.9bUS$16.5b40.4x104.5x8.8x
Sat, 08 Jun 2024US$1.6tUS$197.0bUS$16.1b40.2x100.5x8.2x
Mon, 06 May 2024US$1.7tUS$196.7bUS$12.0b44.9x139.9x8.5x
Wed, 03 Apr 2024US$1.8tUS$195.0bUS$11.3b46.6x156.7x9.1x
Fri, 01 Mar 2024US$1.8tUS$201.7bUS$11.1b46.7x163.7x9x
Sun, 28 Jan 2024US$1.8tUS$209.5bUS$2.0b50.6x917.3x8.8x
Tue, 26 Dec 2023US$1.8tUS$209.3bUS$2.6b47.4x714.3x8.7x
Thu, 23 Nov 2023US$1.7tUS$206.4bUS$135.3m48x12412.8x8.1x
Sat, 21 Oct 2023US$1.5tUS$203.9b-US$1,106,410,735.0044x-1377x7.5x
Mon, 18 Sep 2023US$1.6tUS$206.7b-US$1,838,599,882.0047.1x-865x7.7x
Wed, 16 Aug 2023US$1.5tUS$200.7b-US$4,105,598,049.0045.9x-376.9x7.7x
Fri, 14 Jul 2023US$1.6tUS$198.5b-US$8,145,418,591.0049.4x-197.6x8.1x
Sun, 11 Jun 2023US$1.5tUS$197.9b-US$6,128,086,296.0042.8x-241.3x7.5x
Tue, 09 May 2023US$1.3tUS$194.6b-US$6,597,593,159.0037.1x-197.2x6.7x
Price to Earnings Ratio

-197.2x


Total Market Cap: US$1.3tTotal Earnings: -US$6,597,593,159.00Total Revenue: US$194.6bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Application Software Industry Price to Earnings3Y Average 31.6x202420252026
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 108x which is higher than its 3-year average PE of 31.6x.
  • The 3-year average PS ratio of 9.0x is higher than the industry's current PS ratio of 7.2x.
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 6.6% 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 Market0.80%
Tech0.098%
Software-0.59%
Application Software2.18%
Systems Software-1.70%
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$183.823.2%
+US$4.6b		-33.2%PE20.2x
TEAM AtlassianUS$88.8824.2%
+US$4.6b		-57.4%PS3.8x
DDOG DatadogUS$140.538.5%
+US$4.2b		33.8%PE464.3x
APP AppLovinUS$460.002.6%
+US$3.9b		49.6%PE45.1x
ZM Zoom CommunicationsUS$103.4412.4%
+US$3.4b		32.2%PE16x

Latest News

DDOG
US$140.53
Datadog
7D
8.5%
1Y
33.8%
IDCC
US$290.50
InterDigital
7D
-21.2%
1Y
37.7%
PLTR
US$144.07
Palantir Technologies
7D
0.7%
1Y
15.9%

Palantir: Caution Before Earnings Is Advised

May 01
TYL
US$335.50
Tyler Technologies
7D
-1.9%
1Y
-39.0%
CRM
US$183.82
Salesforce
7D
3.2%
1Y
-33.2%

Salesforce: A+ Rated Bonds With 6.6% Yield Beat Oracle's 7.4%

Apr 30
CIFR
US$17.04
Cipher Digital
7D
-6.4%
1Y
439.2%

CIFR: Long Duration AI Leases Are Expected To Reprice Future Earnings Profile

Analysts have raised their fair value estimate for Cipher Digital to $45.06 from $43.92, citing updated assumptions around profitability, a lower discount rate, and recent Street price target changes that highlight lease-driven earnings potential alongside differing views on future mining economics. Analyst Commentary Recent Street research on Cipher Digital shows a mix of target changes, but the underlying commentary often points to earnings potential tied to its lease model and existing site footprint.
IREN
US$45.66
IREN
7D
-9.8%
1Y
599.2%

IREN: AI Data Center Expansion And GPU Deployment Will Drive Future Upside

Analysts have adjusted their price targets for IREN to reflect a roughly $6 lower fair value, along with updated assumptions for the discount rate, revenue growth, profit margin, and a significantly lower future P/E, incorporating recent mixed target changes and a neutral initiation. Analyst Commentary Recent research points to a mixed but informative picture for IREN, with some analysts trimming expectations and others seeing room for upside at current levels.
APP
US$460.00
AppLovin
7D
2.6%
1Y
49.6%

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.
CDNS
US$340.94
Cadence Design Systems
7D
2.4%
1Y
10.6%

CDNS: AI Partnerships And Software Multiples Will Shape Forward Returns

The analyst price target for Cadence Design Systems has been raised by $4.31 to $316.06. Analysts cite recent target revisions across the Street that balance higher long term earnings estimates with a more conservative P/E multiple amid software sector volatility and AI related demand expectations.
SNPS
US$489.02
Synopsys
7D
-2.4%
1Y
3.5%
TEAM
US$88.88
Atlassian
7D
24.2%
1Y
-57.4%

TEAM: AI Integration With Cloud Partners Will Drive Stronger Long Term Returns

Analysts have reduced their price target for Atlassian to reflect an updated fair value estimate of about $145.54, down from roughly $165.22. This adjustment is based on slightly revised assumptions for the discount rate, revenue growth, profit margin and future P/E.
PEGA
US$36.20
Pegasystems
7D
-3.0%
1Y
-21.4%
CORZ
US$20.35
Core Scientific
7D
-2.5%
1Y
132.8%
PONY
US$9.89
Pony AI
7D
-7.5%
1Y
-4.9%
ZM
US$103.44
Zoom Communications
7D
12.4%
1Y
32.2%

ZM: AI Integration And Anthropic Stake Are Expected To Support Steady Outlook

Analysts have made only modest adjustments to Zoom Communications' price targets, with figures now ranging from about $74 to $115, as they factor in recent Q4 execution, the Claude Cowork launch, and the potential impact of the Anthropic investment on future growth drivers and margins. Analyst Commentary Recent research on Zoom Communications reflects a split view, with some analysts focusing on AI driven upside and execution, while others question how the company stacks up against faster growing software peers.
AUR
US$6.13
Aurora Innovation
7D
24.8%
1Y
-24.7%