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

U.S. Application Software Industry Analysis

UpdatedMay 04, 2026
DataAggregated Company Financials
Companies363
  • 7D2.6%
  • 3M-1.9%
  • 1Y-14.9%
  • YTDn/a

In the last week, the Application Software industry is up 2.3%, with Salesforce leading the way with a 3.2% gain. In the past year, the industry is down 15%. 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
Mon, 04 May 2026US$1.8tUS$236.3bUS$15.3b33.3x115.9x7.5x
Wed, 01 Apr 2026US$1.6tUS$235.5bUS$20.4b30.4x80.1x6.9x
Fri, 27 Feb 2026US$1.7tUS$234.4bUS$22.3b26.3x76.4x7.3x
Sun, 25 Jan 2026US$2.1tUS$232.0bUS$34.2b29.6x61.1x9x
Tue, 23 Dec 2025US$2.3tUS$228.5bUS$39.1b30x59.8x10.2x
Thu, 20 Nov 2025US$2.1tUS$226.4bUS$36.7b26.9x58.2x9.4x
Sat, 18 Oct 2025US$2.3tUS$221.7bUS$31.8b33.2x73.2x10.5x
Mon, 15 Sep 2025US$2.3tUS$221.3bUS$31.9b34.7x72.5x10.5x
Wed, 13 Aug 2025US$2.3tUS$216.9bUS$32.9b36x70x10.6x
Fri, 11 Jul 2025US$2.3tUS$215.9bUS$17.1b44.9x133.6x10.6x
Sun, 08 Jun 2025US$2.2tUS$214.5bUS$17.7b41.1x124.8x10.3x
Tue, 06 May 2025US$2.0tUS$208.8bUS$16.8b32.1x121.3x9.8x
Thu, 03 Apr 2025US$1.9tUS$209.3bUS$21.4b30x87.3x8.9x
Sat, 01 Mar 2025US$2.0tUS$209.9bUS$19.2b34.9x105.4x9.7x
Mon, 27 Jan 2025US$2.2tUS$205.7bUS$20.3b42.9x106.4x10.5x
Wed, 25 Dec 2024US$2.2tUS$206.7bUS$19.9b41.5x109.7x10.6x
Fri, 22 Nov 2024US$2.1tUS$206.0bUS$19.3b41.5x110.4x10.3x
Sun, 20 Oct 2024US$1.8tUS$201.3bUS$19.0b37.6x96.6x9.1x
Tue, 17 Sep 2024US$1.7tUS$201.9bUS$18.9b38.9x91.9x8.6x
Thu, 15 Aug 2024US$1.7tUS$199.9bUS$17.2b34.9x97.8x8.4x
Sat, 13 Jul 2024US$1.7tUS$196.9bUS$16.8b40.8x102.7x8.7x
Mon, 10 Jun 2024US$1.6tUS$197.0bUS$16.1b40.2x100.1x8.2x
Wed, 08 May 2024US$1.7tUS$197.1bUS$12.3b45.9x137.1x8.5x
Fri, 05 Apr 2024US$1.7tUS$195.0bUS$11.3b45.5x154.5x9x
Sun, 03 Mar 2024US$1.9tUS$198.0bUS$11.1b47.6x167.7x9.4x
Tue, 30 Jan 2024US$1.8tUS$209.5bUS$2.0b51.7x917.2x8.8x
Thu, 28 Dec 2023US$1.8tUS$209.4bUS$2.5b47.4x720.3x8.8x
Sat, 25 Nov 2023US$1.7tUS$206.5bUS$206.3m48x8128.8x8.1x
Mon, 23 Oct 2023US$1.5tUS$203.9b-US$1,106,410,735.0044x-1377x7.5x
Wed, 20 Sep 2023US$1.6tUS$206.7b-US$1,837,724,039.0048x-866.8x7.7x
Fri, 18 Aug 2023US$1.5tUS$201.0b-US$3,978,300,764.0045.2x-386.1x7.6x
Sun, 16 Jul 2023US$1.6tUS$198.5b-US$8,148,007,980.0048.3x-196.4x8.1x
Tue, 13 Jun 2023US$1.5tUS$197.9b-US$6,129,907,051.0044.2x-245.5x7.6x
Thu, 11 May 2023US$1.3tUS$195.4b-US$6,920,915,978.0037.8x-191.9x6.8x
Price to Earnings Ratio

-191.9x


Total Market Cap: US$1.3tTotal Earnings: -US$6,920,915,978.00Total Revenue: US$195.4bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Application Software Industry Price to Earnings3Y Average 32.2x202420252026
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 116x which is higher than its 3-year average PE of 31.9x.
  • 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 6.6% 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 Market0.91%
Tech0.52%
Software-0.45%
Application Software2.64%
Systems Software-1.71%
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
ADBE AdobeUS$250.714.8%
+US$4.6b		-34.2%PE14.1x
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

Latest News

CIFR
US$17.04
Cipher Digital
7D
-6.4%
1Y
439.2%
TEAM
US$88.88
Atlassian
7D
24.2%
1Y
-57.4%
IDCC
US$290.50
InterDigital
7D
-21.2%
1Y
37.7%
TYL
US$335.50
Tyler Technologies
7D
-0.6%
1Y
-38.9%

Tyler Technologies: Encouraging Recovery In Bookings (Rating Upgrade)

May 03
ADBE
US$250.71
Adobe
7D
4.8%
1Y
-34.2%
CRM
US$183.82
Salesforce
7D
3.2%
1Y
-33.2%

CRM: Debt Sale For Buybacks And AI Fears Will Shape Outlook

The analyst fair value estimate for Salesforce has been adjusted from $190 to $194. This reflects updated views on revenue growth, profit margins, and valuation multiples following a wave of Street research that recalibrated price targets around mixed core performance and a growing focus on Agentforce and broader AI adoption.
CORZ
US$20.35
Core Scientific
7D
-3.6%
1Y
132.6%

CORZ: AI Hosting Shift And Power Expansion Are Expected To Drive Upside

Analysts have raised their average price target for Core Scientific by about $0.20, citing updated modeling that reflects refined fair value estimates, revised profit margin and revenue growth assumptions, and recent research highlighting power capacity additions, AI hosting expansion and an active lease pipeline. Analyst Commentary Recent research on Core Scientific has leaned positive, with several bullish analysts adjusting price targets higher and pointing to execution on growth initiatives, particularly in high performance computing and AI hosting.
DDOG
US$140.53
Datadog
7D
8.5%
1Y
33.8%
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.
SNPS
US$489.02
Synopsys
7D
-1.9%
1Y
2.4%
CLSK
US$12.17
CleanSpark
7D
-4.6%
1Y
38.1%

CLSK: Preferred Payout Structure Will Support Future Cash Flow Upside

Analysts have trimmed CleanSpark's average price target slightly, with the fair value estimate moving from about $19.38 to $19.21. This reflects recent target cuts of around $3 to $9 as they factor in updated assumptions on discount rates, revenue growth and profit margins.
PONY
US$9.89
Pony AI
7D
-7.5%
1Y
-4.9%
MSTR
US$177.17
Strategy
7D
4.7%
1Y
-54.2%

Selling The Furniture To Pay The Rent: The Unsustainable Reality Of Strategy, Inc. Preferred

Apr 25
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%