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U.S. Application Software Industry Analysis

UpdatedMay 12, 2026
DataAggregated Company Financials
Companies365
  • 7D-0.7%
  • 3M2.9%
  • 1Y-17.4%
  • YTDn/a

Over the last 7 days, the Application Software industry has risen 2.4%, driven by gains from Datadog of 38%. In the same time, Palantir Technologies was down 6.3%. However, the industry is down 14% over the past year. As for the next few years, earnings are expected to grow by 27% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Tue, 12 May 2026US$1.8tUS$239.4bUS$7.7b27.8x235.7x7.6x
Thu, 09 Apr 2026US$1.7tUS$235.4bUS$19.8b33.1x84.5x7.1x
Sat, 07 Mar 2026US$1.9tUS$235.8bUS$20.3b27x91.5x7.9x
Mon, 02 Feb 2026US$1.9tUS$231.4bUS$34.1b27.8x55.6x8.2x
Wed, 31 Dec 2025US$2.3tUS$228.5bUS$39.1b29.8x58.6x10x
Fri, 28 Nov 2025US$2.1tUS$226.6bUS$38.0b28.1x56.4x9.5x
Sun, 26 Oct 2025US$2.4tUS$221.7bUS$31.9b32.6x75.5x10.9x
Tue, 23 Sep 2025US$2.4tUS$221.2bUS$31.7b35.7x76.9x11x
Thu, 21 Aug 2025US$2.2tUS$217.3bUS$30.1b35.8x74.5x10.3x
Sat, 19 Jul 2025US$2.3tUS$213.3bUS$16.5b45.7x137.7x10.6x
Mon, 16 Jun 2025US$2.2tUS$216.0bUS$16.6b40.8x130x10x
Wed, 14 May 2025US$2.1tUS$210.4bUS$16.6b31.9x128.4x10.1x
Fri, 11 Apr 2025US$1.8tUS$209.2bUS$21.5b27.6x85.8x8.8x
Sun, 09 Mar 2025US$2.0tUS$211.1bUS$19.7b32.4x99.8x9.3x
Tue, 04 Feb 2025US$2.2tUS$206.5bUS$20.8b42.3x105.5x10.6x
Thu, 02 Jan 2025US$2.1tUS$206.7bUS$20.0b40.4x104.6x10.1x
Sat, 30 Nov 2024US$2.2tUS$205.7bUS$19.6b42.4x111.1x10.6x
Mon, 28 Oct 2024US$1.8tUS$201.6bUS$19.1b36.1x96.2x9.1x
Wed, 25 Sep 2024US$1.8tUS$201.9bUS$18.9b38.3x93.7x8.8x
Fri, 23 Aug 2024US$1.8tUS$200.3bUS$17.4b35.7x101.5x8.8x
Sun, 21 Jul 2024US$1.7tUS$197.0bUS$16.8b41.4x101.9x8.7x
Tue, 18 Jun 2024US$1.6tUS$197.6bUS$16.4b40.4x99.7x8.3x
Thu, 16 May 2024US$1.7tUS$194.2bUS$13.7b47.3x122.7x8.7x
Sat, 13 Apr 2024US$1.7tUS$195.3bUS$11.3b45.3x154x8.9x
Mon, 11 Mar 2024US$1.8tUS$199.3bUS$11.3b49.9x161.1x9.2x
Wed, 07 Feb 2024US$1.7tUS$192.8bUS$4.5b51.8x384.5x9.1x
Fri, 05 Jan 2024US$1.7tUS$209.4bUS$2.6b47.8x674.3x8.2x
Sun, 03 Dec 2023US$1.8tUS$208.5bUS$2.0b48x888x8.4x
Tue, 31 Oct 2023US$1.5tUS$204.5b-US$797,873,855.0043.7x-1862.6x7.3x
Thu, 28 Sep 2023US$1.5tUS$204.0b-US$1,607,613,643.0045.5x-950.4x7.5x
Sat, 26 Aug 2023US$1.6tUS$201.6b-US$3,370,816,815.0045.1x-463.2x7.7x
Mon, 24 Jul 2023US$1.6tUS$198.7b-US$8,012,906,561.0048x-199.9x8.1x
Wed, 21 Jun 2023US$1.5tUS$198.4b-US$5,985,871,790.0043.7x-254x7.7x
Fri, 19 May 2023US$1.4tUS$195.9b-US$6,937,146,829.0038.4x-200.8x7.1x
Price to Earnings Ratio

-200.8x


Total Market Cap: US$1.4tTotal Earnings: -US$6,937,146,829.00Total Revenue: US$195.9bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Application Software Industry Price to Earnings3Y Average 35.1x202420252026
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 231x which is higher than its 3-year average PE of 35.1x.
  • The 3-year average PS ratio of 9.0x is higher than the industry's current PS ratio of 7.6x.
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 Market2.58%
Tech7.51%
Software1.45%
Application Software-0.67%
Systems Software2.38%
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$202.3237.9%
+US$19.8b		78.4%PE530.8x
MSTR StrategyUS$195.946.6%
+US$4.7b		-51.6%PS140.2x
CDNS Cadence Design SystemsUS$364.204.2%
+US$4.1b		16.8%PE85.8x
SNPS SynopsysUS$516.193.8%
+US$3.6b		2.1%PE89.5x
IREN IRENUS$55.1511.5%
+US$3.3b		634.4%PE124.7x

Latest News

IREN
US$55.15
IREN
7D
11.5%
1Y
634.4%
RIOT
US$25.34
Riot Platforms
7D
35.7%
1Y
191.3%
MSTR
US$195.94
Strategy
7D
6.6%
1Y
-51.6%
Seeking Alpha • 3h

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$516.19
Synopsys
7D
3.8%
1Y
2.1%
Seeking Alpha • 4h

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
CRCL
US$131.76
Circle Internet Group
7D
10.2%
1Y
n/a
Seeking Alpha • 6h

Circle Q1: Good, But Not Enough To Buy (Rating Upgrade)

Summary Circle is upgraded from sell to hold after Q1 results, reflecting a reassessment of valuation and business model resilience. Q1 delivered mixed results: earnings beat expectations but revenue missed, with USDC circulation growth decelerating from 72% YoY to 28% YoY. RLDC margin rose 41%, and ARC Token fundraising signals potential for CRCL to diversify beyond interest rate spreads and stablecoin commoditization. With a revised fair value of $132 versus a $125 share price, the 5.6% upside is insufficient for a buy, justifying a hold rating. Read the full article on Seeking Alpha
HUT
US$102.19
Hut 8
7D
30.9%
1Y
558.4%
ADBE
US$246.15
Adobe
7D
-3.1%
1Y
-37.8%
HUBS
US$191.34
HubSpot
7D
-22.7%
1Y
-71.1%
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...
PLTR
US$136.89
Palantir Technologies
7D
-6.3%
1Y
15.6%
INTU
US$393.29
Intuit
7D
-3.4%
1Y
-40.6%
ROP
US$328.80
Roper Technologies
7D
-7.4%
1Y
-42.9%
DDOG
US$202.32
Datadog
7D
37.9%
1Y
78.4%
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.
WDAY
US$121.42
Workday
7D
-5.1%
1Y
-54.5%
Narrative Update • May 08

WDAY: Returning Leader And AI Focus Will Define Post Guidance Reset Phase

Workday's analyst price targets have been reset materially lower, with several firms cutting objectives by $40 to over $100 per share, as analysts factor in slower growth expectations, a shift toward heavier AI investment, leadership changes, and softer margin guidance following recent Q4 results and updated long term outlooks. Analyst Commentary Street research on Workday has turned more cautious overall, with many price targets reset lower and several ratings moved to Neutral or Hold.
CRM
US$177.49
Salesforce
7D
-4.3%
1Y
-38.5%
ADSK
US$236.07
Autodesk
7D
-4.6%
1Y
-19.5%
CDNS
US$364.20
Cadence Design Systems
7D
4.2%
1Y
16.8%