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U.S. Application Software Industry Analysis

UpdatedFeb 06, 2026
DataAggregated Company Financials
Companies357
  • 7D-15.6%
  • 3M-28.4%
  • 1Y-28.4%
  • YTDn/a

Over the last 7 days, the Application Software industry has dropped 16%, driven by a pullback from AppLovin of 34%. Overall the industry is down 28% in 12 months. As for the next few years, earnings are expected to grow by 23% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Fri, 06 Feb 2026US$1.7tUS$232.2bUS$34.7b24.9x50.2x7.5x
Sun, 04 Jan 2026US$2.2tUS$228.4bUS$39.0b29.8x55.9x9.5x
Tue, 02 Dec 2025US$2.2tUS$226.6bUS$38.0b29.3x57.1x9.6x
Thu, 30 Oct 2025US$2.4tUS$222.5bUS$31.8b30.7x76.1x10.9x
Sat, 27 Sep 2025US$2.4tUS$221.3bUS$31.9b35.2x74.7x10.8x
Mon, 25 Aug 2025US$2.3tUS$218.3bUS$30.7b33.6x74x10.4x
Wed, 23 Jul 2025US$2.3tUS$213.6bUS$16.5b45.5x136.8x10.6x
Fri, 20 Jun 2025US$2.2tUS$216.0bUS$16.9b40.5x128.7x10x
Sun, 18 May 2025US$2.2tUS$210.5bUS$17.1b36.7x128x10.4x
Tue, 15 Apr 2025US$1.8tUS$209.2bUS$21.4b27x83.5x8.5x
Thu, 13 Mar 2025US$1.9tUS$210.9bUS$20.0b27.7x94.2x8.9x
Sat, 08 Feb 2025US$2.3tUS$206.8bUS$20.6b44.6x109.5x10.9x
Mon, 06 Jan 2025US$2.1tUS$206.7bUS$20.1b40.6x106.9x10.4x
Wed, 04 Dec 2024US$2.2tUS$205.7bUS$19.6b42.5x111.2x10.6x
Fri, 01 Nov 2024US$1.8tUS$201.8bUS$18.7b37.2x98.1x9.1x
Sun, 29 Sep 2024US$1.8tUS$201.9bUS$18.9b38.7x94.2x8.8x
Tue, 27 Aug 2024US$1.8tUS$201.1bUS$17.3b36.8x101.2x8.7x
Thu, 25 Jul 2024US$1.7tUS$197.5bUS$16.8b40.2x103.4x8.8x
Sat, 22 Jun 2024US$1.7tUS$197.6bUS$16.4b40.8x101.4x8.4x
Mon, 20 May 2024US$1.7tUS$194.3bUS$14.1b45.4x122.4x8.9x
Wed, 17 Apr 2024US$1.7tUS$195.4bUS$11.3b43.8x146.7x8.5x
Fri, 15 Mar 2024US$1.8tUS$199.2bUS$11.5b50.8x159.7x9.2x
Sun, 11 Feb 2024US$1.8tUS$194.2bUS$5.0b48.9x364.7x9.4x
Tue, 09 Jan 2024US$1.7tUS$209.4bUS$2.6b48.3x671.8x8.2x
Thu, 07 Dec 2023US$1.7tUS$208.6bUS$2.0b48x846.8x8.2x
Sat, 04 Nov 2023US$1.6tUS$205.8b-US$83,063,122.0043.4x-18767.7x7.6x
Mon, 02 Oct 2023US$1.5tUS$203.9b-US$1,433,785,913.0045.8x-1077.2x7.6x
Wed, 30 Aug 2023US$1.6tUS$201.6b-US$3,389,376,717.0045.6x-471.6x7.9x
Fri, 28 Jul 2023US$1.6tUS$199.0b-US$8,012,498,935.0047.9x-199.1x8x
Sun, 25 Jun 2023US$1.5tUS$198.3b-US$5,986,735,380.0042.9x-248x7.5x
Tue, 23 May 2023US$1.4tUS$196.3b-US$6,995,146,255.0039.2x-200.6x7.2x
Thu, 20 Apr 2023US$1.4tUS$196.7b-US$4,536,093,228.0041.8x-308.3x7.1x
Sat, 18 Mar 2023US$1.3tUS$196.8b-US$5,592,043,178.0043.9x-239.5x6.8x
Mon, 13 Feb 2023US$1.3tUS$193.9b-US$5,600,130,898.0039.9x-239.1x6.9x
Price to Earnings Ratio

-239.1x


Total Market Cap: US$1.3tTotal Earnings: -US$5,600,130,898.00Total Revenue: US$193.9bTotal 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 50.2x which is higher than its 3-year average PE of 3.9x.
  • The 3-year average PS ratio of 8.9x 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 Market-2.98%
Tech-6.82%
Software-12.23%
Application Software-15.62%
Systems Software-10.69%
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
IDCC InterDigitalUS$345.054.3%
+US$363.5m		62.9%PE17.9x
EGHT 8x8US$2.7366.5%
+US$153.0m		-3.9%PS0.5x
HKD AMTD DigitalUS$1.5213.4%
+US$56.6m		-52.5%PE13.1x
PTC PTCUS$153.940.3%
+US$54.7m		-10.3%PE22.4x
CCSI Consensus Cloud SolutionsUS$22.907.2%
+US$29.3m		-17.4%PE5.3x

Latest News

IDCC
US$345.05
InterDigital
7D
4.3%
1Y
62.9%
PTC
US$153.94
PTC
7D
0.3%
1Y
-10.3%
MSTR
US$106.99
Strategy
7D
-25.3%
1Y
-67.1%
FATN
US$1.85
FatPipe
7D
3.9%
1Y
n/a

FatPipe, Inc. (NASDAQ:FATN) Shares Fly 26% But Investors Aren't Buying For Growth

Feb 05
FatPipe, Inc. (NASDAQ:FATN) Shares Fly 26% But Investors Aren't Buying For Growth
CDNS
US$270.14
Cadence Design Systems
7D
-10.7%
1Y
-10.8%
EGHT
US$2.73
8x8
7D
66.5%
1Y
-3.9%

EGHT: Future Revenue Guidance Will Likely Prove Too Optimistic

Analysts have raised their fair value estimate for 8x8 from $1.50 to $2.00, citing updated assumptions regarding revenue growth, discount rate, profit margins, and future P/E expectations. What's in the News 8x8 issued earnings guidance for the fourth quarter of fiscal 2026, with expected total revenue between US$178.5 million and US$183.5 million.
CRM
US$189.97
Salesforce
7D
-11.3%
1Y
-42.6%
ADBE
US$269.39
Adobe
7D
-7.6%
1Y
-38.1%

ADBE: AI Transition And Semrush Deal Will Reshape Future Cash Flows

Analysts have trimmed their fair value estimate for Adobe slightly, to about $576 per share. They cite a wave of recent downgrades and reduced price targets that reflect concerns about limited near term upside, competitive pressure in creative tools, and uncertainty over how much the current AI transition will benefit the business.
SNPS
US$410.44
Synopsys
7D
-14.5%
1Y
-23.0%
PLTR
US$130.01
Palantir Technologies
7D
-14.4%
1Y
16.8%
INTU
US$434.91
Intuit
7D
-13.5%
1Y
-26.3%
APP
US$375.23
AppLovin
7D
-34.1%
1Y
-1.4%

APP: Ongoing Buybacks And Rich Margins Will Likely Keep Shares Rangebound

Analysts now see lower upside for AppLovin, trimming their price expectations from about US$544.25 to roughly US$530.78, citing updated assumptions around discount rates, revenue growth, profit margins, and future P/E levels. What's in the News AppLovin issued earnings guidance for the fourth quarter of 2025, with expected revenue in a range of US$1,570m to US$1,600m.
OOMA
US$11.64
Ooma
7D
0.2%
1Y
-21.5%
HKD
US$1.52
AMTD Digital
7D
13.4%
1Y
-52.5%
CCSI
US$22.90
Consensus Cloud Solutions
7D
7.2%
1Y
-17.4%
MTC
US$3.12
MMTec
7D
13.0%
1Y
113.7%