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U.S. Application Software Industry Analysis

UpdatedMay 14, 2026
DataAggregated Company Financials
Companies364
  • 7D-2.9%
  • 3M6.5%
  • 1Y-22.5%
  • YTDn/a

Over the last 7 days, the Application Software industry has dropped 1.4%, driven by Salesforce declining 8.4%. On the other hand Datadog is actually up 37%. However, the industry is down 20% over the past 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, 14 May 2026US$1.8tUS$239.3bUS$6.6b28.2x266.9x7.4x
Sat, 11 Apr 2026US$1.6tUS$235.4bUS$19.8b32.7x78.8x6.6x
Mon, 09 Mar 2026US$1.9tUS$235.8bUS$20.2b27x91.9x7.9x
Wed, 04 Feb 2026US$1.9tUS$232.0bUS$34.6b25.6x54.3x8.1x
Fri, 02 Jan 2026US$2.3tUS$228.4bUS$39.0b30.5x57.9x9.9x
Sun, 30 Nov 2025US$2.2tUS$226.6bUS$38.0b28.5x57.1x9.6x
Tue, 28 Oct 2025US$2.4tUS$221.7bUS$31.9b32.7x75.9x10.9x
Thu, 25 Sep 2025US$2.4tUS$221.2bUS$31.7b35.3x76.4x11x
Sat, 23 Aug 2025US$2.2tUS$218.3bUS$30.7b33.6x72.5x10.2x
Mon, 21 Jul 2025US$2.3tUS$213.3bUS$16.5b45.7x138.2x10.7x
Wed, 18 Jun 2025US$2.2tUS$216.0bUS$16.8b40.4x130.8x10.2x
Fri, 16 May 2025US$2.2tUS$210.5bUS$17.2b31.4x126.6x10.3x
Sun, 13 Apr 2025US$1.8tUS$209.2bUS$21.4b26.9x83.5x8.5x
Tue, 11 Mar 2025US$1.9tUS$211.1bUS$19.7b32.6x98.7x9.2x
Thu, 06 Feb 2025US$2.3tUS$206.8bUS$20.9b45.3x108.1x10.9x
Sat, 04 Jan 2025US$2.1tUS$206.7bUS$20.1b40.6x104.7x10.2x
Mon, 02 Dec 2024US$2.2tUS$205.7bUS$19.6b42.4x111.1x10.6x
Wed, 30 Oct 2024US$1.8tUS$201.8bUS$19.1b37.9x96.8x9.1x
Fri, 27 Sep 2024US$1.8tUS$201.9bUS$18.9b38.3x93.9x8.8x
Sun, 25 Aug 2024US$1.8tUS$201.1bUS$17.3b36.8x101x8.7x
Tue, 23 Jul 2024US$1.7tUS$197.0bUS$16.8b41.1x101.9x8.7x
Thu, 20 Jun 2024US$1.7tUS$197.6bUS$16.4b40.9x100.7x8.4x
Sat, 18 May 2024US$1.7tUS$194.4bUS$14.0b45.4x122.9x8.8x
Mon, 15 Apr 2024US$1.7tUS$195.4bUS$11.3b45.5x151.5x8.8x
Wed, 13 Mar 2024US$1.8tUS$199.3bUS$11.4b50.1x160.8x9.2x
Fri, 09 Feb 2024US$1.8tUS$194.0bUS$4.8b50.9x366.7x9.1x
Sun, 07 Jan 2024US$1.7tUS$209.4bUS$2.6b47.7x673.4x8.2x
Tue, 05 Dec 2023US$1.8tUS$208.5bUS$2.0b48x888.1x8.4x
Thu, 02 Nov 2023US$1.5tUS$204.5b-US$752,085,684.0044.1x-1998.7x7.3x
Sat, 30 Sep 2023US$1.5tUS$204.0b-US$1,627,556,608.0045.8x-944.5x7.5x
Mon, 28 Aug 2023US$1.6tUS$201.6b-US$3,374,323,336.0045.1x-462.7x7.7x
Wed, 26 Jul 2023US$1.6tUS$198.8b-US$7,982,744,847.0047.9x-201.2x8.1x
Fri, 23 Jun 2023US$1.5tUS$198.4b-US$5,985,832,357.0042.9x-249.1x7.5x
Sun, 21 May 2023US$1.4tUS$196.3b-US$6,996,900,452.0038.4x-198.7x7.1x
Price to Earnings Ratio

-198.7x


Total Market Cap: US$1.4tTotal Earnings: -US$6,996,900,452.00Total Revenue: US$196.3bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Application Software Industry Price to Earnings3Y Average 35.9x202420252026
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 274x which is higher than its 3-year average PE of 35.5x.
  • 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 6.9% 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 Market0.55%
Tech3.17%
Software-0.74%
Application Software-2.85%
Systems Software0.17%
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
DDOG DatadogUS$205.3142.9%
+US$21.9b		72.4%PE538.7x
AUR Aurora InnovationUS$8.4015.5%
+US$2.2b		22.4%PS4118.5x
CRCL Circle Internet GroupUS$126.573.9%
+US$1.9b		n/aPS11x
SNPS SynopsysUS$509.281.0%
+US$931.0m		-1.6%PE88.3x
RIOT Riot PlatformsUS$24.925.1%
+US$461.3m		179.7%PS14.4x

Latest News

CRCL
US$126.57
Circle Internet Group
7D
3.9%
1Y
n/a
CRM
US$165.84
Salesforce
7D
-8.5%
1Y
-43.0%
INTU
US$371.71
Intuit
7D
-4.3%
1Y
-43.1%
Seeking Alpha • May 12

Intuit: SaaSpocalypse Creating An Opportunity To Buy For The Long Run (Rating Upgrade)

Summary Intuit Inc. has achieved strong revenue growth (14% 3-year CAGR) and significant margin expansion, despite a 29% share price decline. INTU's core products, TurboTax and QuickBooks, maintain a resilient moat through regulatory complexity, proprietary data, and AI integration, making them hard to displace. The market's negative sentiment from the 'SaaSpocalypse' and AI disruption fears appear overdone; INTU's fundamentals and adaptability remain robust. I assign INTU a buy rating, seeing a 55% discount to fair value ($615/share), but acknowledge the potential for continued short-term downside pressure. Read the full article on Seeking Alpha
RIOT
US$24.92
Riot Platforms
7D
5.1%
1Y
179.7%
AUR
US$8.40
Aurora Innovation
7D
15.5%
1Y
22.4%
MSTR
US$178.03
Strategy
7D
-4.7%
1Y
-57.3%
Seeking Alpha • May 12

Strategy: Rare Asymmetric Bet In A Stretched Market (Rating Upgrade)

Summary Strategy's four perpetual preferred shares (STRF, STRK, STRD, STRC) represent a genuine pivot toward a "Bitcoin bank" model, finally justifying a long-term mNAV premium. Demand for the preferred suite has been exceptional — STRC alone was 5x oversubscribed, raising $2.5 billion, proving strong institutional appetite. Bitcoin and MSTR have both lagged the recent equity bull run, creating a rare asymmetric entry point relative to historical mNAV levels. My price target is $480–$500, based on a re-rating to the ~2.80x mNAV premium last seen in January 2025, with Bitcoin roughly flat. The key risk is that Strategy's growing financial obligations mean a prolonged Bitcoin decline could trigger a liquidation event. MSTR is a BTC bull thesis only. Read the full article on Seeking Alpha
SNPS
US$509.28
Synopsys
7D
1.0%
1Y
-1.6%
Seeking Alpha • May 12

Synopsys: Ansys Integration Has Reinforced The Quality Growth Story

Summary Synopsys (SNPS) has positioned itself as a dominant EDA software provider, further strengthened by the Ansys acquisition and structural AI tailwinds. The Ansys deal expands SNPS's TAM by 63% to $31B, enabling integrated chip-to-system simulation and reinforcing its competitive moat. Despite a forward P/E of ~35.8, SNPS's compounding EPS growth, high margins, and visible catalysts justify a long-term Quality Growth thesis. Risks include IP segment underperformance, $10B debt from Ansys, and geopolitical exposure, but SNPS's earnings power and resilience remain compelling. Read the full article on Seeking Alpha
ADBE
US$236.07
Adobe
7D
-5.6%
1Y
-40.9%
HUBS
US$179.00
HubSpot
7D
-23.9%
1Y
-73.3%
Analysis Article • May 11

US$296: That's What Analysts Think HubSpot, Inc. (NYSE:HUBS) Is Worth After Its Latest Results

There's been a major selloff in HubSpot, Inc. ( NYSE:HUBS ) shares in the week since it released its first-quarter...
BILL
US$39.96
BILL Holdings
7D
7.8%
1Y
-16.8%
PLTR
US$130.05
Palantir Technologies
7D
-2.8%
1Y
-0.1%
ROP
US$316.25
Roper Technologies
7D
-9.7%
1Y
-44.1%
DDOG
US$205.31
Datadog
7D
42.9%
1Y
72.4%
Narrative Update • May 10

DDOG: AI Observability And Anthropic Demand Will Support Richer Future Multiple

Analysts have raised the implied fair value estimate for Datadog stock by about $27 to $268, citing a wave of higher price targets from firms that point to stronger product traction and a willingness to accept a richer future P/E multiple, even with slightly more cautious assumptions on revenue growth and profit margins. Analyst Commentary Bullish analysts have been active around Datadog in recent research, with a cluster of higher price targets and fresh coverage that points to renewed confidence in the company’s execution and long term opportunity.
APP
US$453.53
AppLovin
7D
-3.3%
1Y
20.4%
Seeking Alpha • May 08

AppLovin: Growth Story Has A Patience Problem (Downgrade)

Summary I see two main catalysts for AppLovin’s growth story: Axon’s June 2026 public self-service launch and the consumer/e-commerce segment scaling into a larger revenue driver. I am more encouraged about the first catalyst rather than the latter, mainly from a timing perspective. The second catalyst is consumer/e-commerce, which is growing faster than gaming but still represented only about 5% of Q1 sales by BofA’s estimate. Gaming remains the foundation today, with Q1 revenue up 59% YoY and 11% sequentially. That said, I want to see more, as I think this is already priced in. I remain cautious because I want to see clear evidence from the June self-service launch. If the upside is already showing in the Q2 results, I may upgrade my rating again. Until then, hold. Read the full article on Seeking Alpha
NTNX
US$44.50
Nutanix
7D
3.2%
1Y
-45.6%
NN
US$21.03
NextNav
7D
8.8%
1Y
58.2%