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U.S. Application Software Industry Analysis

UpdatedApr 05, 2026
DataAggregated Company Financials
Companies356
  • 7D3.4%
  • 3M-24.4%
  • 1Y-2.4%
  • YTDn/a

In the last week, the Application Software industry is up 3.4%, with Palantir Technologies up 3.8%. Overall in the last year, the industry is flat. Earnings are forecast to grow by 25% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sun, 05 Apr 2026US$1.7tUS$235.4bUS$19.9b33.9x84.3x7.1x
Tue, 03 Mar 2026US$1.7tUS$235.5bUS$23.2b26.5x74x7.3x
Thu, 29 Jan 2026US$2.1tUS$232.3bUS$34.2b29.6x60.2x8.9x
Sat, 27 Dec 2025US$2.3tUS$228.5bUS$39.1b30x60x10.3x
Mon, 24 Nov 2025US$2.1tUS$226.7bUS$37.3b26.8x55.4x9.1x
Wed, 22 Oct 2025US$2.4tUS$222.0bUS$31.9b32.7x74.3x10.7x
Fri, 19 Sep 2025US$2.3tUS$221.2bUS$31.7b35.2x73.7x10.6x
Sun, 17 Aug 2025US$2.3tUS$217.2bUS$30.2b35.3x76.5x10.6x
Tue, 15 Jul 2025US$2.2tUS$215.9bUS$17.1b44.3x129.5x10.2x
Thu, 12 Jun 2025US$2.2tUS$212.6bUS$17.6b41x123.7x10.3x
Sat, 10 May 2025US$2.1tUS$210.4bUS$16.5b33.1x125.8x9.9x
Mon, 07 Apr 2025US$1.7tUS$209.2bUS$21.4b27.8x78x8x
Wed, 05 Mar 2025US$2.0tUS$209.8bUS$19.4b34.2x103.9x9.6x
Fri, 31 Jan 2025US$2.2tUS$206.0bUS$20.7b43.2x105.4x10.6x
Sun, 29 Dec 2024US$2.1tUS$206.7bUS$19.9b41.1x107.7x10.4x
Tue, 26 Nov 2024US$2.2tUS$205.1bUS$19.5b42.2x112.1x10.7x
Thu, 24 Oct 2024US$1.8tUS$201.5bUS$19.1b37x95.9x9.1x
Sat, 21 Sep 2024US$1.8tUS$201.9bUS$18.9b37.7x93.8x8.8x
Mon, 19 Aug 2024US$1.7tUS$200.0bUS$17.2b34.8x100.5x8.7x
Wed, 17 Jul 2024US$1.8tUS$197.0bUS$16.8b42x104.9x8.9x
Fri, 14 Jun 2024US$1.6tUS$197.1bUS$16.2b40.3x99.2x8.1x
Sun, 12 May 2024US$1.7tUS$194.2bUS$13.8b45.9x121.7x8.6x
Tue, 09 Apr 2024US$1.7tUS$195.0bUS$11.3b45.2x154.3x8.9x
Thu, 07 Mar 2024US$1.8tUS$199.1bUS$11.3b48x157.2x8.9x
Sat, 03 Feb 2024US$1.9tUS$210.6bUS$2.0b52.2x922.1x8.9x
Mon, 01 Jan 2024US$1.8tUS$209.3bUS$2.6b49x691.6x8.7x
Wed, 29 Nov 2023US$1.7tUS$206.6bUS$424.7m48.3x3942.7x8.1x
Fri, 27 Oct 2023US$1.5tUS$204.4b-US$856,409,061.0043x-1724.3x7.2x
Sun, 24 Sep 2023US$1.5tUS$204.0b-US$1,611,626,208.0046x-954.2x7.5x
Tue, 22 Aug 2023US$1.5tUS$200.9b-US$3,898,412,513.0045.2x-388.9x7.5x
Thu, 20 Jul 2023US$1.6tUS$198.5b-US$8,148,544,340.0049.5x-201.5x8.3x
Sat, 17 Jun 2023US$1.5tUS$198.4b-US$5,987,926,432.0046.8x-255.1x7.7x
Mon, 15 May 2023US$1.3tUS$195.7b-US$6,837,962,041.0037.9x-192.2x6.7x
Wed, 12 Apr 2023US$1.4tUS$196.7b-US$4,541,869,725.0043.5x-302.8x7x
Price to Earnings Ratio

-302.8x


Total Market Cap: US$1.4tTotal Earnings: -US$4,541,869,725.00Total Revenue: US$196.7bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Application Software Industry Price to Earnings3Y Average 21.7x202420252026
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 84.3x which is higher than its 3-year average PE of 21.7x.
  • The 3-year average PS ratio of 9.0x is higher than the industry's current PS ratio of 7.1x.
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 Market3.46%
Tech4.66%
Software4.49%
Application Software3.37%
Systems Software4.99%
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$148.463.8%
+US$12.9b		100.6%PE218.5x
CRM SalesforceUS$187.184.4%
+US$7.3b		-22.3%PE23.2x
ADBE AdobeUS$242.923.4%
+US$3.3b		-30.4%PE13.6x
SNPS SynopsysUS$395.954.1%
+US$3.0b		2.0%PE68.6x
DDOG DatadogUS$120.365.1%
+US$2.1b		36.9%PE395.3x

Latest News

FUFU
US$1.71
BitFuFu
7D
-9.5%
1Y
-59.4%

FUFU: Stronger Margins And Bitcoin Output Will Support Higher Future P/E

BitFuFu's updated analyst price target has been reduced by $2.50, reflecting a lower fair value estimate and higher discount rate. This comes even as analysts factor in weaker revenue expectations alongside a stronger projected profit margin and a less extreme future P/E assumption.
CRM
US$187.18
Salesforce
7D
4.4%
1Y
-22.3%
PLTR
US$148.46
Palantir Technologies
7D
3.8%
1Y
100.6%
WDAY
US$132.26
Workday
7D
6.5%
1Y
-39.1%

Workday: SaaSpocalypse Selloff Creates A Golden Opportunity

Apr 02
CRCL
US$90.26
Circle Internet Group
7D
-3.6%
1Y
n/a
DDOG
US$120.36
Datadog
7D
5.1%
1Y
36.9%
BSY
US$34.60
Bentley Systems
7D
-0.5%
1Y
-10.5%
ADBE
US$242.92
Adobe
7D
3.4%
1Y
-30.4%

ADBE: Generative AI Monetization And Freemium User Growth Will Drive Future Revenue

Adobe's updated fair value estimate has been reduced from about $408 to roughly $328 as analysts factor in a lower future P/E, softer growth assumptions, and fresh uncertainty tied to the CEO transition and AI-driven shifts in its core businesses. Analyst Commentary Recent research on Adobe reflects a clear reset in expectations, with many firms cutting price targets and adjusting ratings to reflect CEO transition risk, AI related disruption, and softer growth metrics such as net new annual recurring revenue.
FICO
US$1,089.76
Fair Isaac
7D
7.8%
1Y
-34.9%

FICO: Mortgage License Push Will Face Cheaper Score Rivals And Buyback Support

Analysts have reduced Fair Isaac's implied value from about $1,490 to roughly $1,120 per share. This reflects lower Street price targets in response to new competitive pressure from low-priced VantageScore offerings and recent research caution on FICO's mortgage and pricing outlook.
CIFR
US$12.82
Cipher Digital
7D
-6.7%
1Y
510.5%

CIFR: Long Duration Hyperscale Leases Will Drive Post Mining Data Center Earnings

Analysts have nudged Cipher Digital's fair value estimate slightly higher to $27.10, while trimming Street price targets such as $22 to $20 and $34 to $32 as they factor in lower hash prices, higher spending, an anticipated exit from bitcoin mining in 2027, and a heavier tilt toward long duration lease revenues. Analyst Commentary Street research on Cipher Digital paints a mixed picture, with some analysts leaning into the long term lease story while others focus on execution risk around the pivot away from bitcoin mining.
IREN
US$34.77
IREN
7D
-0.9%
1Y
485.4%

IREN: Microsoft AI Contract Will Drive Transformative Data Center Expansion

The Street's blended 12 month price target for IREN has shifted modestly lower to about $76 from roughly $79, as analysts balance Macquarie's $25 cut with fresh Buy upgrades and a higher $80 target tied to IREN's large AI contract with Microsoft and a sizeable data center growth pipeline. Analyst Commentary Recent Street research on IREN shows a mix of optimism around growth optionality and caution around execution and valuation, which is feeding into the wide range of price targets and rating changes.
CDNS
US$278.72
Cadence Design Systems
7D
2.6%
1Y
19.7%

CDNS: AI Software Demand And NVIDIA Partnership Will Drive Shares Higher

Analysts have trimmed the blended price target on Cadence Design Systems by about $12 to reflect lower applied P/E multiples amid broader software volatility, even as they highlight solid Q4 results, raised long term EPS estimates, and ongoing AI related demand as key supports for the updated outlook. Analyst Commentary Recent research points to a mixed but generally constructive view on Cadence Design Systems, with analysts adjusting price targets to account for software sector volatility while still pointing to execution on earnings and demand as support for the equity story.
ALOY
US$9.19
REalloys
7D
-7.9%
1Y
216.9%
SNPS
US$395.95
Synopsys
7D
4.1%
1Y
2.0%
MSTR
US$119.83
Strategy
7D
-4.9%
1Y
-59.2%
NN
US$16.55
NextNav
7D
-7.4%
1Y
39.2%