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U.S. Application Software Industry Analysis

UpdatedJan 12, 2026
DataAggregated Company Financials
Companies364
  • 7D1.7%
  • 3M-5.6%
  • 1Y9.5%
  • YTDn/a

In the last week, the Application Software industry is up 3.0%, with Palantir Technologies up 5.7%. In the same time, Datadog was down 6.2%. This means that the industry has gained 9.1% over the past year. Looking forward, 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
Mon, 12 Jan 2026US$2.3tUS$232.0bUS$39.4b31.1x57.5x9.8x
Wed, 10 Dec 2025US$2.3tUS$227.8bUS$37.9b29.1x61.4x10.2x
Fri, 07 Nov 2025US$2.3tUS$226.4bUS$35.6b30.5x65.8x10.3x
Sun, 05 Oct 2025US$2.4tUS$221.7bUS$31.8b34.9x75.2x10.8x
Tue, 02 Sep 2025US$2.3tUS$218.8bUS$30.9b35.1x74.2x10.5x
Thu, 31 Jul 2025US$2.3tUS$214.7bUS$16.8b47.5x139.2x10.9x
Sat, 28 Jun 2025US$2.2tUS$216.0bUS$16.9b41.9x131.9x10.3x
Mon, 26 May 2025US$2.1tUS$212.1bUS$17.5b35.7x121.1x10x
Wed, 23 Apr 2025US$1.7tUS$209.0bUS$21.4b29.8x81x8.3x
Fri, 21 Mar 2025US$1.9tUS$210.7bUS$20.8b28.4x93.1x9.2x
Sun, 16 Feb 2025US$2.3tUS$208.7bUS$20.0b43.9x116.7x11.2x
Tue, 14 Jan 2025US$2.0tUS$206.6bUS$20.4b40.5x100.1x9.9x
Thu, 12 Dec 2024US$2.2tUS$206.1bUS$19.7b44.8x112.5x10.7x
Sat, 09 Nov 2024US$2.0tUS$206.9bUS$19.2b40.6x106.1x9.9x
Mon, 07 Oct 2024US$1.8tUS$201.2bUS$19.0b38.8x94.2x8.9x
Wed, 04 Sep 2024US$1.7tUS$201.4bUS$17.6b38.1x98.9x8.7x
Fri, 02 Aug 2024US$1.7tUS$198.2bUS$17.3b39.7x99.3x8.7x
Sun, 30 Jun 2024US$1.7tUS$197.3bUS$16.4b41.2x105.2x8.8x
Tue, 28 May 2024US$1.7tUS$195.7bUS$14.9b41.4x112.5x8.6x
Thu, 25 Apr 2024US$1.7tUS$195.7bUS$11.3b44.5x147.8x8.6x
Sat, 23 Mar 2024US$1.8tUS$194.8bUS$11.0b48.8x162.8x9.2x
Mon, 19 Feb 2024US$1.8tUS$195.1bUS$5.9b54.4x300.3x9.1x
Wed, 17 Jan 2024US$1.8tUS$209.4bUS$1.9b49x951.3x8.6x
Fri, 15 Dec 2023US$1.8tUS$209.3bUS$2.6b50.7x703.4x8.6x
Sun, 12 Nov 2023US$1.6tUS$206.5b-US$87,213,637.0046.3x-18404.9x7.8x
Tue, 10 Oct 2023US$1.6tUS$203.9b-US$1,457,422,521.0047.1x-1083.7x7.7x
Thu, 07 Sep 2023US$1.6tUS$202.7b-US$2,069,932,362.0045.2x-793.2x8.1x
Sat, 05 Aug 2023US$1.6tUS$200.7b-US$5,949,846,858.0049.5x-264.9x7.9x
Mon, 03 Jul 2023US$1.5tUS$198.4b-US$5,989,240,473.0045.3x-254.6x7.7x
Wed, 31 May 2023US$1.4tUS$196.9b-US$6,611,512,867.0040.3x-218.8x7.3x
Fri, 28 Apr 2023US$1.4tUS$197.1b-US$4,689,492,967.0039.9x-290x6.9x
Sun, 26 Mar 2023US$1.4tUS$196.8b-US$5,430,124,020.0042.1x-249.9x6.9x
Tue, 21 Feb 2023US$1.3tUS$194.2b-US$5,274,921,438.0042.5x-254.6x6.9x
Thu, 19 Jan 2023US$1.2tUS$193.1b-US$5,456,238,325.0039.9x-225.2x6.4x
Price to Earnings Ratio

-225.2x


Total Market Cap: US$1.2tTotal Earnings: -US$5,456,238,325.00Total Revenue: US$193.1bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Application Software Industry Price to Earnings3Y Average -2.8x202420252026
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 -3.1x.
  • 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 Market1.24%
Tech0.016%
Software1.62%
Application Software1.73%
Systems Software1.56%
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$177.495.7%
+US$23.0b		163.9%PE386.2x
APP AppLovinUS$647.724.8%
+US$9.9b		103.4%PE75.1x
SNPS SynopsysUS$525.189.3%
+US$8.6b		6.6%PE75.2x
CRM SalesforceUS$259.942.5%
+US$5.9b		-18.2%PE33.7x
INTU IntuitUS$646.902.8%
+US$4.9b		3.8%PE43.7x

Latest News

DDOG
US$125.49
Datadog
7D
-6.1%
1Y
-9.1%
INTU
US$646.90
Intuit
7D
2.8%
1Y
3.8%

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$276.02
Autodesk
7D
-3.7%
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$24.40
Zeta Global Holdings
7D
22.6%
1Y
40.8%

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$327.31
Cadence Design Systems
7D
5.4%
1Y
9.5%
BMNR
US$30.06
Bitmine Immersion Technologies
7D
-3.6%
1Y
403.8%
CRM
US$259.94
Salesforce
7D
2.5%
1Y
-18.2%

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.
SNPS
US$525.18
Synopsys
7D
9.3%
1Y
6.6%

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$647.72
AppLovin
7D
4.8%
1Y
103.4%
IDCC
US$309.09
InterDigital
7D
-5.3%
1Y
66.8%

IDCC: Streaming Execution Risk Will Define Sustainability Of Elevated Expectations

Analysts have raised their fair value estimate for InterDigital from US$220 to US$260, citing a higher price target, a Q3 beat with Q4 annual recurring revenue guidance described as in line, and growing confidence that the company is bringing together its three verticals to pursue a large streaming opportunity. Analyst Commentary Recent research points to higher fair value assumptions for InterDigital, with a raised price target reflecting confidence in the Q3 performance, Q4 annual recurring revenue guidance described as in line, and the potential in the streaming opportunity across its three verticals.
PLTR
US$177.49
Palantir Technologies
7D
5.7%
1Y
163.9%
HUBS
US$371.56
HubSpot
7D
-2.8%
1Y
-47.2%

HUBS: AI And Multi Hub Adoption Will Support Long Term Upside

Analysts trimmed their HubSpot price targets by roughly $100 to $200 across much of the Street, reflecting a mix of caution on near term growth expectations and AI related competitive risks, along with continued recognition of solid execution and long term AI opportunities. Analyst Commentary Bullish and bearish analysts are split on HubSpot, with most trimming price targets but taking very different views on how much recent results and AI trends affect the long term story, valuation, and growth profile.
TEAM
US$146.42
Atlassian
7D
-5.4%
1Y
-39.6%

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.
DGNX
US$3.08
Diginex
7D
-33.8%
1Y
n/a
MSTR
US$157.33
Strategy
7D
-4.5%
1Y
-52.1%
AUR
US$4.79
Aurora Innovation
7D
23.8%
1Y
-31.5%