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U.S. Application Software Industry Analysis

UpdatedApr 24, 2026
DataAggregated Company Financials
Companies365
  • 7D-1.1%
  • 3M-17.4%
  • 1Y-13.7%
  • YTDn/a

Over the last 7 days, the Application Software industry has dropped 1.1%, driven by Salesforce declining 4.4%. On the other hand Strategy is actually up 16%. The industry has fallen 14% in the last year. Earnings are forecast to grow by 26% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Fri, 24 Apr 2026US$1.8tUS$235.5bUS$15.4b31.4x116.4x7.6x
Sun, 22 Mar 2026US$1.7tUS$235.4bUS$20.6b30x84.9x7.4x
Tue, 17 Feb 2026US$1.7tUS$231.7bUS$23.7b25x71.2x7.3x
Thu, 15 Jan 2026US$2.2tUS$232.0bUS$34.2b30.9x64.8x9.5x
Sat, 13 Dec 2025US$2.3tUS$229.1bUS$39.1b30.6x60x10.3x
Mon, 10 Nov 2025US$2.3tUS$226.9bUS$35.9b30.6x63.7x10.1x
Wed, 08 Oct 2025US$2.4tUS$221.7bUS$31.8b35.2x75.5x10.8x
Fri, 05 Sep 2025US$2.3tUS$219.9bUS$31.4b35x72.4x10.3x
Sun, 03 Aug 2025US$2.3tUS$215.4bUS$27.3b45.1x83.6x10.6x
Tue, 01 Jul 2025US$2.2tUS$216.0bUS$16.9b42.1x129.7x10.1x
Thu, 29 May 2025US$2.2tUS$212.1bUS$17.4b35.5x123.7x10.2x
Sat, 26 Apr 2025US$1.9tUS$209.3bUS$21.5b32.1x89.5x9.2x
Mon, 24 Mar 2025US$2.0tUS$210.7bUS$20.8b29.3x93.9x9.3x
Wed, 19 Feb 2025US$2.3tUS$208.7bUS$19.6b42.7x118.7x11.2x
Fri, 17 Jan 2025US$2.1tUS$206.7bUS$20.4b41.7x102.2x10.1x
Sun, 15 Dec 2024US$2.2tUS$206.7bUS$19.9b43.9x111.1x10.7x
Tue, 12 Nov 2024US$2.1tUS$206.5bUS$15.9b41.4x129.8x10x
Thu, 10 Oct 2024US$1.8tUS$201.2bUS$19.0b35.9x94.7x8.9x
Sat, 07 Sep 2024US$1.7tUS$201.7bUS$18.6b34.3x90x8.3x
Mon, 05 Aug 2024US$1.6tUS$198.6bUS$17.3b38.2x93.4x8.1x
Wed, 03 Jul 2024US$1.7tUS$196.9bUS$16.5b41x105.2x8.8x
Fri, 31 May 2024US$1.6tUS$195.7bUS$15.9b39.2x97.8x7.9x
Sun, 28 Apr 2024US$1.7tUS$196.3bUS$11.7b44.9x143.4x8.6x
Tue, 26 Mar 2024US$1.8tUS$194.8bUS$11.0b48.6x162.3x9.2x
Thu, 22 Feb 2024US$1.7tUS$195.2bUS$5.9b51.9x295.5x8.9x
Sat, 20 Jan 2024US$1.8tUS$209.4bUS$1.9b49.3x963.1x8.7x
Mon, 18 Dec 2023US$1.8tUS$209.3bUS$2.6b49x699.1x8.6x
Wed, 15 Nov 2023US$1.6tUS$206.5b-US$23,729,640.0047.5x-67921.9x7.8x
Fri, 13 Oct 2023US$1.6tUS$203.9b-US$1,128,599,402.0048x-1415x7.8x
Sun, 10 Sep 2023US$1.6tUS$202.9b-US$1,903,111,445.0046.4x-856.3x8x
Tue, 08 Aug 2023US$1.6tUS$200.7b-US$5,949,445,843.0049.7x-266x7.9x
Thu, 06 Jul 2023US$1.5tUS$198.4b-US$7,828,410,545.0049.2x-195x7.7x
Sat, 03 Jun 2023US$1.5tUS$197.7b-US$6,332,544,726.0041.6x-232.6x7.5x
Mon, 01 May 2023US$1.4tUS$196.5b-US$4,351,299,840.0039.9x-312.6x6.9x
Price to Earnings Ratio

-312.6x


Total Market Cap: US$1.4tTotal Earnings: -US$4,351,299,840.00Total Revenue: US$196.5bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Application Software Industry Price to Earnings3Y Average 28.6x202420252026
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 116x which is higher than its 3-year average PE of 28.6x.
  • 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 6.2% 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 Market0.69%
Tech1.96%
Software-1.08%
Application Software-1.11%
Systems Software-1.07%
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
MSTR StrategyUS$172.4715.8%
+US$8.1b		-50.8%PS125.1x
SNPS SynopsysUS$456.853.6%
+US$3.0b		4.1%PE79.2x
CDNS Cadence Design SystemsUS$314.332.4%
+US$2.0b		11.6%PE78.3x
DDOG DatadogUS$127.863.6%
+US$1.6b		28.4%PE419.9x
IREN IRENUS$52.029.1%
+US$1.4b		725.7%PE44.4x

Latest News

ADBE
US$238.98
Adobe
7D
-3.7%
1Y
-33.8%
FICO
US$979.76
Fair Isaac
7D
-8.4%
1Y
-49.4%

VantageScore 4.0 And AI Fundamentally Threaten Fair Isaac

Apr 23
PLTR
US$141.57
Palantir Technologies
7D
-0.8%
1Y
31.4%

Palantir: AI No Longer A Differentiator

Apr 23
WDAY
US$114.67
Workday
7D
-8.2%
1Y
-51.6%

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.
CIFR
US$18.69
Cipher Digital
7D
7.8%
1Y
523.0%
ZM
US$90.01
Zoom Communications
7D
3.8%
1Y
19.2%

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$52.02
IREN
7D
9.1%
1Y
725.7%

IREN: Hyperscaler Ambitions Vs. $6 Billion Dilution Risk

Apr 21
MSTR
US$172.47
Strategy
7D
15.8%
1Y
-50.8%
DDOG
US$127.86
Datadog
7D
3.6%
1Y
28.4%

DDOG: AI Observability And Anthropic Tie Ins Will Drive Multiple Re Rating

Datadog's updated price target edges slightly lower, reflecting a broad wave of target cuts from multiple firms as analysts factor in modest adjustments to discount rates and P/E assumptions, while still citing supportive views on revenue growth, profit margins, AI observability demand, and recent upgrades and initiations. Analyst Commentary Street research on Datadog has leaned more cautious on price targets recently, but there is still a visible group of bullish analysts highlighting product strength, AI observability exposure, and execution on growth initiatives.
SNPS
US$456.85
Synopsys
7D
3.6%
1Y
4.1%

SNPS: Early Ansys Synergies And Activist Pressure Are Expected To Unlock Value

Analysts have trimmed their price targets on Synopsys, with the model fair value easing by about $4 to $533.52 as they factor in slower electronic design automation momentum, a "transition year" around the Ansys integration, and less clarity on near term profitability despite earlier than planned cost synergies. Analyst Commentary Recent research highlights a mixed setup for Synopsys as you think about valuation, integration execution, and growth visibility around both electronic design automation and design IP.
ADSK
US$231.98
Autodesk
7D
-4.6%
1Y
-14.6%

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.
CRM
US$173.30
Salesforce
7D
-4.4%
1Y
-34.5%

CRM: Debt-Funded Buybacks Will Support AI Execution And Margin Discipline

The analyst price target for Salesforce has been reduced by about $50 to reflect slightly lower modeled fair value, a higher discount rate, more conservative assumptions on revenue growth and profit margins, and a trimmed future P/E multiple, in line with a broad set of recent price target cuts that cite softer organic growth, sector multiple compression, and a wait for clearer payoff from Agentforce-driven AI products. Analyst Commentary Street research around Salesforce has shifted toward tighter valuation assumptions, but it also highlights a set of execution and product drivers that bullish analysts see as underappreciated.
CDNS
US$314.33
Cadence Design Systems
7D
2.4%
1Y
11.6%
HUT
US$78.77
Hut 8
7D
11.1%
1Y
510.6%

HUT: River Bend Execution And AI Capacity Are Expected To Reprice Infrastructure

Hut 8's analyst fair value estimate has moved from $85.00 to about $110.72. Analysts point to higher price targets across firms that reference progress on River Bend, growing contracted AI infrastructure capacity, and the company's high performance computing and Bitcoin related assets as key supports for this reset.
CRCL
US$100.01
Circle Internet Group
7D
-6.9%
1Y
n/a
APP
US$454.17
AppLovin
7D
-2.6%
1Y
69.5%

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.