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U.S. Application Software Industry Analysis

UpdatedAug 21, 2026
DataAggregated Company Financials
Companies354
  • 7D-0.4%
  • 3M10.2%
  • 1Y-15.1%
  • YTDn/a

The Application Software is pretty flat in the last 7 days, but Strategy has stood out, gaining 21%. As for the longer term, the industry has declined 15% in the last year. 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
Sat, 22 Aug 2026US$1.8tUS$246.4b-US$20,255,761,700.6432.8x-89.5x7.4x
Mon, 20 Jul 2026US$1.7tUS$248.6bUS$6.8b31.4x248x6.8x
Wed, 17 Jun 2026US$1.7tUS$247.7bUS$6.9b27.3x246.1x6.9x
Fri, 15 May 2026US$1.7tUS$239.6bUS$6.5b28.5x263.6x7.2x
Sun, 12 Apr 2026US$1.5tUS$235.4bUS$19.9b32.6x77x6.5x
Tue, 10 Mar 2026US$1.9tUS$235.8bUS$20.2b27.3x91.9x7.9x
Thu, 05 Feb 2026US$1.8tUS$232.0bUS$34.6b25.7x52.2x7.8x
Sat, 03 Jan 2026US$2.3tUS$228.4bUS$39.0b29.8x57.9x9.9x
Mon, 01 Dec 2025US$2.2tUS$226.6bUS$38.0b28.5x57.1x9.6x
Wed, 29 Oct 2025US$2.4tUS$221.9bUS$32.0b31.8x76.3x11x
Fri, 26 Sep 2025US$2.4tUS$221.3bUS$31.9b35.2x75.5x10.9x
Sun, 24 Aug 2025US$2.3tUS$218.3bUS$30.7b33.6x74x10.4x
Tue, 22 Jul 2025US$2.3tUS$213.3bUS$16.5b45.4x138.3x10.7x
Thu, 19 Jun 2025US$2.2tUS$216.0bUS$16.8b40.5x129x10.1x
Sat, 17 May 2025US$2.2tUS$210.5bUS$17.1b33.4x127x10.3x
Mon, 14 Apr 2025US$1.8tUS$209.2bUS$21.4b26.9x83.5x8.5x
Wed, 12 Mar 2025US$1.9tUS$211.1bUS$19.7b30.6x93.9x8.8x
Fri, 07 Feb 2025US$2.3tUS$207.0bUS$20.2b43.9x111.7x10.9x
Sun, 05 Jan 2025US$2.1tUS$206.7bUS$20.1b40.6x106.9x10.4x
Tue, 03 Dec 2024US$2.2tUS$205.7bUS$19.6b42.4x111.1x10.6x
Thu, 31 Oct 2024US$1.9tUS$201.8bUS$19.1b36.8x98.6x9.3x
Sat, 28 Sep 2024US$1.8tUS$201.9bUS$18.9b38.7x94.2x8.8x
Mon, 26 Aug 2024US$1.8tUS$201.1bUS$17.3b36.8x101x8.7x
Wed, 24 Jul 2024US$1.7tUS$197.5bUS$16.8b41.9x103.5x8.8x
Fri, 21 Jun 2024US$1.7tUS$197.6bUS$16.4b40.7x100.9x8.4x
Sun, 19 May 2024US$1.7tUS$194.3bUS$14.1b45.4x122.4x8.9x
Tue, 16 Apr 2024US$1.7tUS$195.3bUS$11.3b45x151.1x8.8x
Thu, 14 Mar 2024US$1.8tUS$199.2bUS$11.4b49.8x162x9.3x
Sat, 10 Feb 2024US$1.8tUS$194.2bUS$5.0b48.9x364.7x9.4x
Mon, 08 Jan 2024US$1.7tUS$209.4bUS$2.6b47.7x671.8x8.2x
Wed, 06 Dec 2023US$1.7tUS$208.5bUS$2.0b48x877.7x8.3x
Fri, 03 Nov 2023US$1.5tUS$204.9b-US$380,443,557.0048.7x-3964.5x7.4x
Sun, 01 Oct 2023US$1.5tUS$203.9b-US$1,455,107,608.0045.8x-1061.4x7.6x
Tue, 29 Aug 2023US$1.6tUS$201.6b-US$3,374,323,336.0045.1x-462.7x7.7x
Price to Earnings Ratio

-462.7x


Total Market Cap: US$1.6tTotal Earnings: -US$3,374,323,336.00Total Revenue: US$201.6bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Application Software Industry Price to Earnings3Y Average 74.3x202420252026
Current Industry PE
  • Investors are pessimistic on the American Application Software industry, indicating that they anticipate long term growth rates will be lower than they have historically.
  • The 3-year average PS ratio of 8.9x is higher than the industry's current PS ratio of 7.4x.
Past Earnings Growth
  • The earnings for companies in the Application Software industry have deteriorated over the last three years.
  • Meanwhile revenues for these companies have grown 6.9% per year.
  • This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased, which has caused losses to expand.

Industry Comparison

How does U.S. Application Software compare with similar industries?

US Market-2.09%
Tech-3.71%
Software-3.49%
Application Software-0.44%
Systems Software-4.56%
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$179.943.4%
+US$14.2b		13.4%PE143.3x
CRM SalesforceUS$209.176.6%
+US$10.6b		-15.8%PE21.4x
MSTR StrategyUS$119.2528.2%
+US$10.1b		-66.7%PS91.9x
INTU IntuitUS$367.006.2%
+US$5.8b		-44.6%PE21.9x
ADBE AdobeUS$275.304.3%
+US$4.5b		-24.0%PE15.1x

Latest News

BILL
US$47.82
BILL Holdings
7D
-3.9%
1Y
13.1%
Narrative Update • Aug 20

BILL: AI Shift And Margin Expansion Will Drive Future Upside

Analysts have lifted the implied fair value for BILL Holdings from about $53.77 to roughly $56.81. This reflects updated price targets in the $54 to $60 range as they weigh softer core revenue growth expectations against improved profitability and a lower discount rate in their models.
MSTR
US$119.25
Strategy
7D
28.2%
1Y
-66.7%
Seeking Alpha • Aug 20

Strategy Doubles Down On Its Aggressive Defense Of 12.6% Yielding STRC

Summary Strategy has aggressively defended its STRC preferreds, restoring prices close to the $100 per share redemption anchor after a deep 25% discount in June. STRC now offers a 13.6% dividend yield, about 900 basis points above the 10-year Treasury, reflecting its unique risk profile. MSTR’s $63 billion liquidity wall, from USD reserves and BTC holdings, underpins ongoing STRC repurchases and dividend stability. I maintain a Hold rating on STRC on the back of its high yield and the recent defensive actions. The security is speculative, and liabilities are material. Read the full article on Seeking Alpha
BMNR
US$22.83
Bitmine Immersion Technologies
7D
26.3%
1Y
-57.3%
DDOG
US$235.62
Datadog
7D
-7.8%
1Y
79.6%
Narrative Update • Aug 19

DDOG: AI Workload Concentration Will Eventually Undermine Lofty Share Pricing

Datadog's analyst price target framework has shifted higher, with fair value moving from about $194.05 to $223.41 as analysts incorporate recent Q2 results, broad price target resets toward the $280 to $320 range, and updated assumptions for slightly lower growth and margins, paired with a higher future P/E of about 305x. Analyst Commentary Street research on Datadog has been active around the latest Q2 results, with many firms revisiting their models and price targets in light of recent performance metrics, guidance and valuation.
AUR
US$6.24
Aurora Innovation
7D
-10.7%
1Y
3.7%
Seeking Alpha • Aug 19

Aurora Innovation: Scaling Too Slow

Summary Aurora Innovation faces intensifying competition amid slow scaling, with only 200 autonomous trucks targeted by end-2026. AUR's transition from TaaS to DaaS will boost margins but reduce per-truck revenue in 2027. The $14B market cap appears stretched given projected revenue ramp, ongoing dilution, and high cash burn through at least 2028. I remain neutral, seeing the stock range-bound ($4–$8) due to premium valuation, execution risks, and lack of compelling upside catalysts. Read the full article on Seeking Alpha
PLTR
US$179.94
Palantir Technologies
7D
3.4%
1Y
13.4%
Narrative Update • Aug 19

PLTR: Record AI Wins Will Likely Struggle To Justify Lofty Expectations

Palantir Technologies' fair value estimate has been raised by analysts from $96.21 to $99.77. The change reflects updated assumptions for slightly higher revenue growth, a modestly higher discount rate, resilient profit margins and Street research that highlights what analysts describe as exceptional recent results, stronger U.S. commercial momentum and expanding AI partnerships.
INTU
US$367.00
Intuit
7D
6.2%
1Y
-44.6%
Narrative Update • Aug 18

INTU: AI Restructuring And Workforce Reset Will Support Future Multiple Re Rating

Intuit's analyst price target has shifted lower, with the fair value estimate moving from $488.17 to $449.20 as analysts build in slightly more conservative assumptions around growth, margins, and future P/E multiples in advance of potential guidance resets into fiscal 2027. Analyst Commentary Recent Street commentary on Intuit highlights a split view on the stock.
SNPS
US$397.87
Synopsys
7D
-5.6%
1Y
-34.4%
TEAM
US$171.81
Atlassian
7D
5.9%
1Y
0.6%
CIFR
US$15.77
Cipher Digital
7D
-11.7%
1Y
147.1%
Narrative Update • Aug 18

CIFR: ERCOT Batch Zero Outcome Will Shape AI Lease Ramp

Analysts have trimmed their fair value estimate for Cipher Digital to $22.00 from $23.00 as they factor in a slightly higher discount rate, softer projected revenue growth and profit margins, and a higher assumed future P/E multiple in light of recent price target reductions across the Street. Analyst Commentary Recent Street commentary on Cipher Digital reflects a mix of optimism around high performance computing and AI colocation potential alongside fresh concerns about regulatory uncertainty, execution risk on its development pipeline, and how much of the story is already reflected in the stock price.
ADBE
US$275.30
Adobe
7D
4.3%
1Y
-24.0%
Seeking Alpha • Aug 17

Adobe: Even If It Wins With AI, The Market May Take Years To Forgive

Summary Rating downgraded to Strong Sell, even after ADBE's 30% rebound from its $192 low, because the core AI-disruption thesis remains unchanged. Q2 FY2026 results beat expectations, but full-year ARR growth guidance stayed flat at 10.2%. The freemium strategy is boosting user numbers but not revenue. Market sentiment can lag fundamentals for years—as shown by Microsoft, which took 16 years to recover its share price despite strong underlying growth. Read the full article on Seeking Alpha
WULF
US$15.64
TeraWulf
7D
-10.0%
1Y
70.7%
Narrative Update • Aug 17

WULF: Long Duration AI Leases And Power Assets Will Drive Returns

Analysts have trimmed their price target for TeraWulf from about $30 to $25, reflecting a blend of slightly softer margin and P/E assumptions while still highlighting progress in leasing revenue, long term AI data center contracts, and the perceived resilience of its power and colocation pipeline. Analyst Commentary Recent Street research on TeraWulf shows active engagement from multiple firms, with a mix of higher and lower price targets and a consistent focus on the company’s AI data center transition, lease pipeline, and power development portfolio.
CRM
US$209.17
Salesforce
7D
6.6%
1Y
-15.8%
Seeking Alpha • Aug 14

Salesforce: Ride The Buyback Boost

Summary Salesforce, Inc. offers a compelling dip-buying opportunity as SaaS sector sentiment rebounds and private equity eyes peers like Workday. CRM trades at just 14x forward EPS, presenting relative value versus Workday, which is attracting buyout interest at a higher multiple. Massive $27.1 billion share buybacks and a 23% net buyback yield, position CRM for significant EPS growth, despite increased debt. With FQ2 guidance for 10–11% revenue growth and robust free cash flow, the stock remains attractive below all-time highs amid AI-driven enterprise demand. Read the full article on Seeking Alpha
IREN
US$41.88
IREN
7D
-4.9%
1Y
95.4%
CRCL
US$87.98
Circle Internet Group
7D
22.9%
1Y
-34.8%
CDNS
US$319.02
Cadence Design Systems
7D
-1.8%
1Y
-8.8%
Narrative Update • Aug 13

CDNS: Agentic AI Design Tools And Digital Twins Will Drive Future Upside

Cadence Design Systems' updated analyst price target moved modestly higher, supported by analysts who point to solid Q2 execution, raised guidance, and long term AI related demand drivers, even as questions remain around valuation at roughly a 63x 2027 P/E and the timing of AI monetization. Analyst Commentary Analysts are broadly positive on Cadence Design Systems after Q2, with many lifting price targets and pointing to a mix of AI exposure, strong core electronic design automation demand, and a growing backlog, while a minority remains more measured given the current P/E and open questions on AI monetization and margins.