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U.S. Application Software Industry Analysis

UpdatedMar 24, 2026
DataAggregated Company Financials
Companies352
  • 7D0.09%
  • 3M-23.3%
  • 1Y-13.0%
  • YTDn/a

Over the last 7 days, the Application Software industry has dropped 1.8%, driven by Palantir Technologies declining 1.3%. The industry has fallen 14% 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
Tue, 24 Mar 2026US$1.8tUS$235.4bUS$20.6b31.5x86.1x7.5x
Thu, 19 Feb 2026US$1.7tUS$231.5bUS$23.7b23.9x69.8x7.1x
Sat, 17 Jan 2026US$2.1tUS$232.0bUS$34.2b30.2x62.6x9.2x
Mon, 15 Dec 2025US$2.3tUS$229.1bUS$39.1b30.6x59x10.1x
Wed, 12 Nov 2025US$2.3tUS$227.1bUS$35.3b30.4x66.4x10.3x
Fri, 10 Oct 2025US$2.4tUS$221.7bUS$31.8b35.1x76.2x10.9x
Sun, 07 Sep 2025US$2.3tUS$220.2bUS$31.4b35.5x71.7x10.2x
Tue, 05 Aug 2025US$2.3tUS$214.7bUS$28.0b45.4x81.6x10.6x
Thu, 03 Jul 2025US$2.2tUS$215.9bUS$17.0b44.2x129.4x10.2x
Sat, 31 May 2025US$2.1tUS$213.1bUS$17.6b36.1x120.5x9.9x
Mon, 28 Apr 2025US$2.0tUS$209.3bUS$21.5b32.1x91x9.3x
Wed, 26 Mar 2025US$2.0tUS$210.7bUS$20.6b28.7x97.7x9.6x
Fri, 21 Feb 2025US$2.3tUS$209.1bUS$20.1b39.4x112.9x10.9x
Sun, 19 Jan 2025US$2.1tUS$206.7bUS$20.4b41.5x103.8x10.2x
Tue, 17 Dec 2024US$2.2tUS$206.6bUS$19.9b42.4x111x10.7x
Thu, 14 Nov 2024US$2.1tUS$206.7bUS$19.1b41.9x111.7x10.3x
Sat, 12 Oct 2024US$1.8tUS$201.2bUS$19.0b38.5x96.1x9.1x
Mon, 09 Sep 2024US$1.7tUS$201.7bUS$18.6b34.3x90x8.3x
Wed, 07 Aug 2024US$1.6tUS$198.7bUS$16.3b38.2x99.8x8.2x
Fri, 05 Jul 2024US$1.7tUS$196.9bUS$16.5b41.6x106.1x8.9x
Sun, 02 Jun 2024US$1.6tUS$195.7bUS$15.9b40.7x99.1x8x
Tue, 30 Apr 2024US$1.7tUS$196.3bUS$11.7b44.7x143.4x8.6x
Thu, 28 Mar 2024US$1.8tUS$194.8bUS$11.0b48.4x162.1x9.2x
Sat, 24 Feb 2024US$1.8tUS$196.0bUS$6.2b48.9x284.4x9x
Mon, 22 Jan 2024US$1.8tUS$209.4bUS$1.9b49.3x971.9x8.8x
Wed, 20 Dec 2023US$1.8tUS$209.3bUS$2.6b47.3x710.6x8.7x
Fri, 17 Nov 2023US$1.7tUS$206.4b-US$34,937,470.0046.9x-47449.4x8x
Sun, 15 Oct 2023US$1.6tUS$203.9b-US$1,127,544,113.0048x-1387.6x7.7x
Tue, 12 Sep 2023US$1.6tUS$202.9b-US$1,885,207,663.0046.7x-872x8.1x
Thu, 10 Aug 2023US$1.5tUS$200.8b-US$5,283,916,449.0047.3x-289.8x7.6x
Sat, 08 Jul 2023US$1.5tUS$198.4b-US$7,829,755,439.0049.1x-192.6x7.6x
Mon, 05 Jun 2023US$1.5tUS$197.7b-US$6,332,682,223.0041.6x-232.6x7.5x
Wed, 03 May 2023US$1.3tUS$192.8b-US$5,897,283,717.0038.2x-220.2x6.7x
Fri, 31 Mar 2023US$1.4tUS$196.8b-US$4,637,241,465.0043.2x-301.4x7.1x
Price to Earnings Ratio

-301.4x


Total Market Cap: US$1.4tTotal Earnings: -US$4,637,241,465.00Total Revenue: US$196.8bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Application Software Industry Price to Earnings3Y Average 17.7x202420252026
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 84.9x which is higher than its 3-year average PE of 17.4x.
  • The 3-year average PS ratio of 9.0x is higher than the industry's current PS ratio of 7.4x.
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-1.74%
Tech-1.56%
Software-2.43%
Application Software0.088%
Systems Software-3.56%
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$160.843.7%
+US$13.8b		66.7%PE236.7x
APP AppLovinUS$458.951.2%
+US$1.9b		35.1%PE45.1x
SNPS SynopsysUS$432.481.5%
+US$1.3b		-5.5%PE74.9x
DDOG DatadogUS$129.232.1%
+US$941.2m		17.3%PE424.4x
WDAY WorkdayUS$137.062.6%
+US$881.7m		-45.2%PE50.8x

Latest News

DDOG
US$129.23
Datadog
7D
2.1%
1Y
17.3%

DDOG: Enterprise AI Adoption Will Support Shares Despite Observability Budget Pressures

Analysts have reduced their Datadog fair value estimate from about $208 to $182, reflecting a series of lower price targets that incorporate more cautious assumptions on revenue growth and profit margins, even as some still highlight potential benefits from enterprise AI trends and agentic app monitoring. Analyst Commentary Recent research on Datadog reflects a split view, with some focusing on AI driven upside for observability and others resetting expectations through lower price targets and more cautious assumptions.
SNPS
US$432.48
Synopsys
7D
1.5%
1Y
-5.5%

SNPS: Early Ansys Synergies Are Expected To Define 2026 Transition

Analyst price targets for Synopsys have reset lower, moving from a prior high of around $550 down into a $430 to $480 range, as analysts factor in slower electronic design automation momentum, a more muted near term outlook for the IP business, and limited visibility on profitability upside from the Ansys integration, despite management reiterating synergy goals and longer term plans. Analyst Commentary Recent research highlights that the debate around Synopsys now centers on how quickly the Ansys deal can add to earnings, how resilient the core electronic design automation and IP businesses will be through a transition period, and how much investors should pay for the stock given these moving parts.
CRM
US$195.18
Salesforce
7D
-1.6%
1Y
-31.7%

CRM: AI Execution Debt-Funded Buybacks And AI Fears Will Shape Risk Balance

Analysts have kept the fair value estimate for Salesforce steady at $190, while slightly adjusting assumptions such as discount rate, revenue growth, profit margin, and future P/E to reflect mixed Q4 trends, widespread price target cuts across the Street, and increasing focus on the potential of Agentforce and AI driven offerings, alongside softer near term organic growth expectations. Analyst Commentary Street research around the latest Q4 report has turned more cautious, even as many firms still see potential in Salesforce's AI and Agentforce roadmap.
WDAY
US$137.06
Workday
7D
2.6%
1Y
-45.2%
IDCC
US$311.46
InterDigital
7D
-13.1%
1Y
40.6%

IDCC: LG And Sony Licensing Will Support Higher Margins And Cash Generation

Analysts have maintained their InterDigital fair value estimate at $488.00, making only minor tweaks to inputs after the LG deal and an updated 2026 outlook led to modestly adjusted assumptions for revenue growth, margins, and future P/E. Analyst Commentary Bullish analysts view the LG agreement and refreshed 2026 outlook as supportive of InterDigital’s existing fair value framework, rather than a reason to overhaul it.
YOU
US$53.46
Clear Secure
7D
14.4%
1Y
101.7%
SAIL
US$12.54
SailPoint
7D
-16.8%
1Y
-40.9%
FICO
US$1,063.33
Fair Isaac
7D
-8.5%
1Y
-44.0%

Fair Isaac Corporation (FICO): A Tale of Two Segments Amid a Market Correction

Fair Isaac Corporation (FICO) has long been the "gold standard" of the credit world, but the narrative on March 19, 2026, is one of intense volatility. The stock closed the session at $1,114.27 USD , enduring a sharp 7.43% decline in a single day.
MSTR
US$138.20
Strategy
7D
-6.3%
1Y
-58.8%
ADBE
US$247.64
Adobe
7D
-2.6%
1Y
-38.6%

ADBE: CEO Transition Will Intensify AI Monetization Uncertainty And Multiple Compression

Analysts have reduced the Adobe price target to $220 from $271.93, reflecting softer revenue growth assumptions, a lower future P/E outlook, and heightened uncertainty around the CEO transition and the pace of AI driven monetization. Analyst Commentary Recent research on Adobe shows a clear tilt toward caution, with multiple price target cuts and rating downgrades clustering around the latest fiscal Q1 report and the CEO transition announcement.
PLTR
US$160.84
Palantir Technologies
7D
3.7%
1Y
66.7%

My take on Palantir

For me, the story behind this company is the following. I read Alex Carpe's book, The Philosopher in the Valley, and I loved how structured and driven he was.
APP
US$458.95
AppLovin
7D
1.2%
1Y
35.1%

APP: Share Repurchases And Margin Outlook Will Drive Future Upside

Analysts now see higher upside for AppLovin, lifting the fair value estimate from $650.00 to $860.00 as they factor in updated assumptions for revenue growth, profit margins, and future P/E levels. What's in the News AppLovin completed a buyback tranche between October 1, 2025 and December 31, 2025, repurchasing 660,000 shares for $409.49 million, equal to 0.19% of its shares under the existing program (Key Developments).
IOT
US$33.20
Samsara
7D
1.9%
1Y
-21.1%

IOT: Future Returns Will Reflect AI Safety Data Moat In Fleet Operations

Analysts have adjusted the Samsara fair value estimate down from $48.93 to $44.17, reflecting a mix of higher and lower Street price targets as they weigh strong recurring revenue trends, large customer momentum, and AI-related opportunities against updated growth and margin assumptions. Analyst Commentary Street research around Samsara reflects a blend of optimism on growth execution and recurring revenue, alongside some valuation and competitive caution that has led to mixed price target revisions.
ZM
US$77.95
Zoom Communications
7D
4.0%
1Y
-0.3%
FIG
US$23.20
Figma
7D
-14.6%
1Y
n/a
BMNR
US$21.27
Bitmine Immersion Technologies
7D
-9.1%
1Y
126.5%