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U.S. Application Software Industry Analysis

UpdatedJan 13, 2026
DataAggregated Company Financials
Companies364
  • 7D0.5%
  • 3M-4.9%
  • 1Y9.4%
  • YTDn/a

The Application Software industry is up 1.7% in the last week, with Palantir Technologies up 3.1%. Meanwhile, Datadog actually underperformed within the industry, shrinking 5.3% in the last week. In the last 12 months, the industry was up 9.5%. Earnings are forecast to grow by 24% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Tue, 13 Jan 2026US$2.3tUS$232.0bUS$39.4b31.4x57.8x9.8x
Thu, 11 Dec 2025US$2.3tUS$227.8bUS$38.8b30.1x60.6x10.3x
Sat, 08 Nov 2025US$2.3tUS$226.7bUS$35.4b31.5x64.2x10x
Mon, 06 Oct 2025US$2.4tUS$221.7bUS$31.8b34.9x75.2x10.8x
Wed, 03 Sep 2025US$2.3tUS$218.8bUS$30.9b35.1x74.4x10.5x
Fri, 01 Aug 2025US$2.4tUS$215.1bUS$16.9b46.5x140.7x11.1x
Sun, 29 Jun 2025US$2.2tUS$216.0bUS$16.9b41.9x129.6x10.1x
Tue, 27 May 2025US$2.1tUS$212.1bUS$17.5b35.7x121.1x10x
Thu, 24 Apr 2025US$1.8tUS$209.2bUS$21.5b31.7x84.4x8.7x
Sat, 22 Mar 2025US$1.9tUS$210.7bUS$20.8b29.3x93.2x9.2x
Mon, 17 Feb 2025US$2.3tUS$208.7bUS$20.0b43.9x116.7x11.2x
Wed, 15 Jan 2025US$2.1tUS$206.6bUS$20.4b40.3x100.6x9.9x
Fri, 13 Dec 2024US$2.3tUS$206.1bUS$19.7b44x114.7x10.9x
Sun, 10 Nov 2024US$2.1tUS$206.5bUS$19.3b40.6x106.7x10x
Tue, 08 Oct 2024US$1.8tUS$201.2bUS$19.0b38.3x94.3x8.9x
Thu, 05 Sep 2024US$1.7tUS$201.4bUS$17.6b38.4x96.5x8.5x
Sat, 03 Aug 2024US$1.7tUS$198.6bUS$17.3b38.2x97.2x8.5x
Mon, 01 Jul 2024US$1.7tUS$197.3bUS$16.4b41.2x105.2x8.8x
Wed, 29 May 2024US$1.7tUS$195.7bUS$14.9b40.3x112.4x8.6x
Fri, 26 Apr 2024US$1.7tUS$195.7bUS$11.4b44.2x146.6x8.5x
Sun, 24 Mar 2024US$1.8tUS$194.8bUS$11.0b48.8x162.5x9.2x
Tue, 20 Feb 2024US$1.8tUS$195.1bUS$5.9b54.4x300.3x9.1x
Thu, 18 Jan 2024US$1.8tUS$209.4bUS$1.9b48.8x947.6x8.5x
Sat, 16 Dec 2023US$1.8tUS$209.3bUS$2.6b49x701.1x8.6x
Mon, 13 Nov 2023US$1.6tUS$206.5b-US$83,709,901.0046.3x-19265.2x7.8x
Wed, 11 Oct 2023US$1.6tUS$203.9b-US$1,462,671,083.0047.4x-1086.3x7.8x
Fri, 08 Sep 2023US$1.6tUS$202.7b-US$2,010,218,146.0046.5x-814.1x8.1x
Sun, 06 Aug 2023US$1.6tUS$200.7b-US$5,949,846,858.0049.5x-264.9x7.9x
Tue, 04 Jul 2023US$1.5tUS$198.4b-US$7,830,002,193.0048.4x-194.8x7.7x
Thu, 01 Jun 2023US$1.5tUS$196.7b-US$6,605,103,158.0040.5x-220.2x7.4x
Sat, 29 Apr 2023US$1.4tUS$196.6b-US$4,369,514,811.0039.9x-311.3x6.9x
Mon, 27 Mar 2023US$1.4tUS$196.8b-US$5,430,124,020.0042.1x-250.1x6.9x
Wed, 22 Feb 2023US$1.3tUS$194.2b-US$5,274,920,960.0042x-249x6.8x
Fri, 20 Jan 2023US$1.2tUS$193.1b-US$5,451,315,601.0040x-223.1x6.3x
Price to Earnings Ratio

-223.1x


Total Market Cap: US$1.2tTotal Earnings: -US$5,451,315,601.00Total Revenue: US$193.1bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Application Software Industry Price to Earnings3Y Average -2.6x202420252026
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 57.5x which is higher than its 3-year average PE of -2.8x.
  • The industry is trading close to its 3-year average PS ratio of 8.9x.
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 6.3% 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 Market0.88%
Tech0.12%
Software0.52%
Application Software0.48%
Systems Software0.55%
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
APP AppLovinUS$658.656.7%
+US$14.0b		105.1%PE76.3x
SNPS SynopsysUS$533.424.8%
+US$4.7b		8.8%PE76.4x
CDNS Cadence Design SystemsUS$325.513.5%
+US$3.0b		10.6%PE83.5x
CRM SalesforceUS$259.401.2%
+US$2.9b		-18.7%PE33.7x
IREN IRENUS$50.339.6%
+US$1.5b		358.8%PE31.6x

Latest News

PLTR
US$179.41
Palantir Technologies
7D
-0.2%
1Y
172.2%
WDAY
US$207.91
Workday
7D
-1.1%
1Y
-15.5%

WDAY: AI And Midsize Cloud Expansion Will Strengthen Long Term Confidence

Analysts made only a small trim to their Workday fair value estimate to about $275 per share, reflecting a mix of slightly lower and higher price targets across the Street as they weigh solid recent results against questions on growth durability, the role of M&A in cRPO, and the trajectory of AI driven demand. Analyst Commentary Street research around Workday clusters around a tight range of price targets, with most firms making modest adjustments rather than wholesale changes.
DDOG
US$126.57
Datadog
7D
-7.7%
1Y
-9.0%
INTU
US$635.44
Intuit
7D
-1.8%
1Y
1.9%

INTU: OpenAI Deal And Tax Shifts Will Support Future AI Agents

Analysts have trimmed their fair value estimate for Intuit by about US$6 to roughly US$797 per share. This reflects slightly lower long term revenue growth and P/E assumptions, even as recent research highlights mixed views on near term tax momentum, Credit Karma upside, and the OpenAI partnership.
ADSK
US$277.89
Autodesk
7D
-5.2%
1Y
-3.1%

ADSK: AI And Execution Will Support Multi Year Outperformance Versus Core Industries

Analysts have made a slight adjustment to the Autodesk fair value estimate to about $365.71 per share. The change reflects recent price target increases on the Street, renewed confidence in execution and AI and go to market plans, and expectations that the company can grow several points faster than its core industries over the next few years.
ZETA
US$24.28
Zeta Global Holdings
7D
12.0%
1Y
41.4%

Revenues Not Telling The Story For Zeta Global Holdings Corp. (NYSE:ZETA) After Shares Rise 25%

Jan 10
Revenues Not Telling The Story For Zeta Global Holdings Corp. (NYSE:ZETA) After Shares Rise 25%
CDNS
US$325.51
Cadence Design Systems
7D
3.5%
1Y
10.6%
CRM
US$259.40
Salesforce
7D
1.2%
1Y
-18.7%

CRM: Mixed Ratings Set Stage For Future AI Monetization Reappraisal

Narrative Update on Salesforce The analyst price target for Salesforce has shifted modestly, with fair value moving from about US$430.00 to roughly US$435.32. Analysts are factoring in updated expectations for revenue growth, profitability, and future P/E in the context of mixed sentiment, including Salesforce being replaced on one firm's conviction list and a recent downgrade to Market Perform with a US$264 price target.
IREN
US$50.33
IREN
7D
9.6%
1Y
358.8%
SNPS
US$533.42
Synopsys
7D
4.8%
1Y
8.8%

SNPS: AI Alliance And NVIDIA Stake Will Reframe Earnings And Legal Risks

Analysts have raised their price target for Synopsys to reflect updated assumptions around a slightly lower discount rate, modestly adjusted revenue growth, a higher projected profit margin of 15.55%, and a revised future P/E of 91.08x. Taken together, these factors point to a recalibrated risk and earnings profile for the stock.
APP
US$658.65
AppLovin
7D
6.7%
1Y
105.1%
QBTS
US$28.80
D-Wave Quantum
7D
-6.0%
1Y
652.0%
ADBE
US$327.65
Adobe
7D
-2.5%
1Y
-20.6%

ADBE: Future AI And Marketing Deals Will Reshape Cash Flow Profile

Narrative Update on Adobe Analysts have revised their Adobe fair value estimate from $605.00 to about $585.69. This reflects slightly lower revenue growth and profit margin assumptions, a somewhat higher discount rate, and a partially offsetting increase in the future P/E input in their models.
TEAM
US$146.44
Atlassian
7D
-7.5%
1Y
-40.6%

TEAM: Cloud Partnership Progress And Share Repurchases Will Shape Balanced Long-Term Outlook

Analysts have reduced their fair value estimate for Atlassian from $178.00 to $167.44. The revision reflects updated views on its revenue growth assumptions, profit margin outlook, discount rate and future P/E expectations.
MSTR
US$162.23
Strategy
7D
2.7%
1Y
-52.6%
AUR
US$4.76
Aurora Innovation
7D
8.2%
1Y
-25.7%