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U.S. Application Software Industry Analysis

UpdatedApr 27, 2026
DataAggregated Company Financials
Companies364
  • 7D-1.1%
  • 3M-15.0%
  • 1Y-13.5%
  • YTDn/a

Over the last 7 days, the Application Software industry has dropped 1.1%, driven by AppLovin declining 6.1%. On the other hand Synopsys is actually up 11%. The industry has fallen 14% in the last year. As for the next few years, earnings are expected to grow by 26% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Mon, 27 Apr 2026US$1.7tUS$235.8bUS$15.6b32.3x110.6x7.3x
Wed, 25 Mar 2026US$1.8tUS$235.4bUS$20.6b29.7x87.1x7.6x
Fri, 20 Feb 2026US$1.7tUS$231.8bUS$23.0b23.8x73.6x7.3x
Sun, 18 Jan 2026US$2.1tUS$232.0bUS$34.2b30.2x61.6x9.1x
Tue, 16 Dec 2025US$2.3tUS$229.1bUS$39.1b30.4x59x10.1x
Thu, 13 Nov 2025US$2.3tUS$227.1bUS$35.3b30.9x65.5x10.2x
Sat, 11 Oct 2025US$2.4tUS$221.7bUS$31.8b34.5x75.2x10.8x
Mon, 08 Sep 2025US$2.3tUS$220.2bUS$31.4b35.5x72.3x10.3x
Wed, 06 Aug 2025US$2.3tUS$215.1bUS$28.2b41.3x82.1x10.7x
Fri, 04 Jul 2025US$2.3tUS$215.9bUS$17.1b45.1x132.2x10.4x
Sun, 01 Jun 2025US$2.1tUS$213.1bUS$17.6b36.1x122.1x10.1x
Tue, 29 Apr 2025US$2.0tUS$209.5bUS$21.4b30.5x91.5x9.4x
Thu, 27 Mar 2025US$2.0tUS$210.1bUS$21.3b28.2x95.3x9.6x
Sat, 22 Feb 2025US$2.2tUS$209.2bUS$20.1b39.1x107.5x10.3x
Mon, 20 Jan 2025US$2.1tUS$206.7bUS$20.4b41.5x103.8x10.2x
Wed, 18 Dec 2024US$2.2tUS$206.7bUS$19.9b43.4x112.7x10.8x
Fri, 15 Nov 2024US$2.1tUS$206.1bUS$19.2b42x111.2x10.4x
Sun, 13 Oct 2024US$1.8tUS$201.2bUS$19.0b38.5x96.7x9.1x
Tue, 10 Sep 2024US$1.7tUS$201.7bUS$18.6b35x91.6x8.4x
Thu, 08 Aug 2024US$1.6tUS$198.9bUS$17.5b37.2x91.4x8x
Sat, 06 Jul 2024US$1.7tUS$196.9bUS$16.5b40.9x106.1x8.9x
Mon, 03 Jun 2024US$1.6tUS$195.7bUS$15.9b40.7x99x8x
Wed, 01 May 2024US$1.6tUS$196.3bUS$11.5b43.7x142.6x8.3x
Fri, 29 Mar 2024US$1.8tUS$194.9bUS$11.1b47.1x160.2x9.1x
Sun, 25 Feb 2024US$1.8tUS$196.1bUS$6.5b48.9x273.9x9x
Tue, 23 Jan 2024US$1.8tUS$209.4bUS$1.9b49.1x979.5x8.8x
Thu, 21 Dec 2023US$1.8tUS$209.3bUS$2.6b47.1x711.2x8.7x
Sat, 18 Nov 2023US$1.7tUS$206.4bUS$50.2m48.1x32963.7x8x
Mon, 16 Oct 2023US$1.6tUS$203.9b-US$1,103,350,457.0048x-1420.4x7.7x
Wed, 13 Sep 2023US$1.6tUS$202.9b-US$1,865,219,782.0046.5x-880.4x8.1x
Fri, 11 Aug 2023US$1.5tUS$200.6b-US$4,382,119,472.0047.8x-352.6x7.7x
Sun, 09 Jul 2023US$1.5tUS$198.4b-US$7,829,755,439.0049.1x-192.6x7.6x
Tue, 06 Jun 2023US$1.5tUS$197.7b-US$6,332,478,752.0042.3x-232.8x7.5x
Thu, 04 May 2023US$1.3tUS$192.8b-US$5,919,912,075.0037.7x-216.7x6.7x
Price to Earnings Ratio

-216.7x


Total Market Cap: US$1.3tTotal Earnings: -US$5,919,912,075.00Total Revenue: US$192.8bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Application Software Industry Price to Earnings3Y Average 29.7x202420252026
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 111x which is higher than its 3-year average PE of 29.7x.
  • The 3-year average PS ratio of 9.0x is higher than the industry's current PS ratio of 7.3x.
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 Market0.33%
Tech3.01%
Software-0.32%
Application Software-1.09%
Systems Software0.0013%
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
SNPS SynopsysUS$500.828.6%
+US$7.6b		12.8%PE86.8x
CDNS Cadence Design SystemsUS$332.894.5%
+US$4.0b		16.5%PE82.9x
IREN IRENUS$50.643.9%
+US$638.0m		692.5%PE43.2x
MANH Manhattan AssociatesUS$142.356.4%
+US$493.9m		-18.4%PE38.9x
AIOS AIOS TechUS$8.33-29.4%
US$484.8m		-92.5%PS106.8x

Latest News

CRCL
US$99.66
Circle Internet Group
7D
-6.3%
1Y
n/a

Circle: High Upside As Arc Payments Scale

Apr 27
APPF
US$169.29
AppFolio
7D
6.7%
1Y
-16.0%
CORZ
US$20.88
Core Scientific
7D
5.1%
1Y
153.4%
MANH
US$142.35
Manhattan Associates
7D
6.4%
1Y
-18.4%

MANH: Buybacks And Supply Chain Software Demand Will Support Long Term Upside

Analysts have nudged Manhattan Associates' blended price target slightly lower to reflect revised revenue growth, discount rate, profit margin, and P/E assumptions, following a series of modest price target cuts of up to $40, along with smaller $3 upward revisions. Analyst Commentary Recent Street research points to a mixed but generally constructive tone around Manhattan Associates, with several bullish analysts making modest upward adjustments to price targets despite broader recalibrations elsewhere.
INTU
US$395.95
Intuit
7D
-2.2%
1Y
-36.0%

Intuit Has Fallen Too Far (Rating Upgrade)

Apr 25
SNPS
US$500.82
Synopsys
7D
8.6%
1Y
12.8%

Synopsys (SNPS): Advanced AI Chip Designs and Ansys Integration Will Drive Continued Market Leadership

Synopsys (SNPS) , the premier architect of the electronic design automation (EDA) world and a linchpin of the global semiconductor ecosystem, enters the trading session on Friday, April 24, 2026 , with the market’s gaze fixed on its upcoming Q2 2026 earnings release estimated for Wednesday, May 27, after market close. The company is currently navigating a transformational "Silicon-to-Systems" pivot, having just integrated the $35 billion acquisition of Ansys into its core digital design flow.
CDNS
US$332.89
Cadence Design Systems
7D
4.5%
1Y
16.5%

Cadence Design Systems (CDNS): The Silicon-to-Systems AI Inflection

Cadence Design Systems (CDNS) , the premier architect of computational software for semiconductor and systems design, enters the final trading hours of Friday, April 24, 2026 , as it prepares for its Q1 2026 earnings release scheduled for Monday, April 27, 2026. The company sits at a critical juncture in the "Silicon-to-Systems" era, having just expanded its strategic alliances with NVIDIA and Google Cloud to integrate Gemini LLMs and Cadence’s ChipStack AI Super Agent into its cloud-native platforms.
CRM
US$178.16
Salesforce
7D
-4.4%
1Y
-32.9%

The Right Play On Salesforce

Apr 24
AIOS
US$8.33
AIOS Tech
7D
-29.4%
1Y
-92.5%
FICO
US$1,004.72
Fair Isaac
7D
-5.5%
1Y
-48.3%

VantageScore 4.0 And AI Fundamentally Threaten Fair Isaac

Apr 23
PLTR
US$143.09
Palantir Technologies
7D
-1.9%
1Y
24.8%

Palantir: AI No Longer A Differentiator

Apr 23
WDAY
US$119.76
Workday
7D
-6.4%
1Y
-50.1%

WDAY: Returning Leader And AI Investments Will Reshape Post Guidance Reset Phase

Analysts have trimmed the Workday fair value estimate by about $2 to $179.22, citing a broad reset in price targets as they weigh slower sales trends, softer guidance, increased AI investment, and leadership changes against updated profit margin and P/E assumptions. Analyst Commentary Recent Street research on Workday reflects a wide reset in expectations, with price targets moving lower across almost all firms and ratings now spread across Buy or Overweight, Neutral or Hold, and In Line or Market Perform.
ZM
US$92.03
Zoom Communications
7D
1.6%
1Y
20.8%

ZM: AI Integration And Anthropic Stake Are Expected To Support Steady Outlook

Analysts have made only modest adjustments to Zoom Communications' price targets, with figures now ranging from about $74 to $115, as they factor in recent Q4 execution, the Claude Cowork launch, and the potential impact of the Anthropic investment on future growth drivers and margins. Analyst Commentary Recent research on Zoom Communications reflects a split view, with some analysts focusing on AI driven upside and execution, while others question how the company stacks up against faster growing software peers.
IREN
US$50.64
IREN
7D
3.9%
1Y
692.5%

IREN: Hyperscaler Ambitions Vs. $6 Billion Dilution Risk

Apr 21
ADSK
US$237.44
Autodesk
7D
-3.2%
1Y
-12.5%

Autodesk Could Reach $330–$378 Over the Next Five Years

Autodesk (ADSK) has a credible path to $330–$378 over the next five years because it remains the dominant software platform for architecture, engineering, construction, and product design, with a strong shift toward subscriptions and recurring revenue. That transition gives earnings higher visibility and improves capital efficiency, which can support a premium valuation if growth continues.
APP
US$448.29
AppLovin
7D
-8.7%
1Y
57.3%

APP: Ongoing Buybacks And Strong 2026 Guidance Will Support Further Upside

Analysts have trimmed their average price target for AppLovin slightly, by about $5 per share. This reflects updated assumptions around fair value, discount rate, revenue growth, profit margin, and future P/E that remain broadly consistent with prior views.