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Japanese (NIKKEI) IT Industry Analysis

UpdatedFeb 08, 2026
DataAggregated Company Financials
Companies216
  • 7D-10.0%
  • 3M-13.0%
  • 1Y9.7%
  • YTD-15.3%

Over the last 7 days, the IT industry has dropped 10.0%, driven by a pullback from NEC of 17%. In contrast, ExaWizards has gained 19%. In the past year, the industry has gained 9.7%. As for the next few years, earnings are expected to grow by 7.4% per annum.

Industry Valuation and Performance

Has the Japanese IT Industry valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sun, 08 Feb 2026JP¥26.9tJP¥15.8tJP¥1.3t16.2x21.1x1.7x
Tue, 06 Jan 2026JP¥31.9tJP¥15.4tJP¥1.2t17.5x26.6x2.1x
Thu, 04 Dec 2025JP¥32.1tJP¥15.4tJP¥1.2t17.2x26.8x2.1x
Sat, 01 Nov 2025JP¥31.6tJP¥15.5tJP¥1.2t17.3x26.9x2x
Mon, 29 Sep 2025JP¥35.0tJP¥19.9tJP¥1.2t18.4x29.5x1.8x
Wed, 27 Aug 2025JP¥34.8tJP¥19.9tJP¥1.2t17.2x29.4x1.8x
Fri, 25 Jul 2025JP¥27.6tJP¥15.0tJP¥980.9b17.5x28.1x1.8x
Sun, 22 Jun 2025JP¥28.2tJP¥15.0tJP¥979.4b17.1x28.8x1.9x
Tue, 20 May 2025JP¥32.6tJP¥19.6tJP¥1.1t17.8x29.2x1.7x
Thu, 17 Apr 2025JP¥27.3tJP¥19.5tJP¥1.2t16x22.1x1.4x
Sat, 15 Mar 2025JP¥28.8tJP¥20.0tJP¥1.3t16.8x22.8x1.4x
Mon, 10 Feb 2025JP¥29.9tJP¥20.0tJP¥1.3t17.8x23.9x1.5x
Wed, 08 Jan 2025JP¥28.3tJP¥19.8tJP¥1.1t17.7x25.2x1.4x
Fri, 06 Dec 2024JP¥28.2tJP¥19.8tJP¥1.1t17.9x25.1x1.4x
Sun, 03 Nov 2024JP¥26.3tJP¥19.7tJP¥1.1t17.2x23.5x1.3x
Tue, 01 Oct 2024JP¥27.9tJP¥19.7tJP¥1.1t17.9x24.8x1.4x
Thu, 29 Aug 2024JP¥26.2tJP¥19.7tJP¥1.1t17.7x23.1x1.3x
Sat, 27 Jul 2024JP¥25.7tJP¥19.6tJP¥1.1t18.2x22.5x1.3x
Mon, 24 Jun 2024JP¥24.5tJP¥19.5tJP¥1.1t17.4x21.8x1.3x
Wed, 22 May 2024JP¥24.1tJP¥19.5tJP¥1.1t17.9x21.5x1.2x
Fri, 19 Apr 2024JP¥24.2tJP¥19.2tJP¥965.5b18.4x25x1.3x
Sun, 17 Mar 2024JP¥25.0tJP¥19.2tJP¥964.4b19.4x25.9x1.3x
Tue, 13 Feb 2024JP¥23.7tJP¥19.2tJP¥956.8b18.3x24.7x1.2x
Thu, 11 Jan 2024JP¥24.7tJP¥19.6tJP¥1.0t18.5x23.8x1.3x
Sat, 09 Dec 2023JP¥23.4tJP¥19.6tJP¥1.0t18x22.6x1.2x
Mon, 06 Nov 2023JP¥22.6tJP¥19.0tJP¥1.0t17.6x22.2x1.2x
Wed, 04 Oct 2023JP¥22.8tJP¥18.8tJP¥1.0t18.3x22.3x1.2x
Fri, 01 Sep 2023JP¥23.4tJP¥18.8tJP¥1.0t19.3x23x1.2x
Sun, 30 Jul 2023JP¥22.5tJP¥18.4tJP¥1.0t19x22x1.2x
Tue, 27 Jun 2023JP¥22.5tJP¥18.2tJP¥1.0t18.9x22x1.2x
Thu, 25 May 2023JP¥22.2tJP¥18.2tJP¥1.0t18.2x21.7x1.2x
Sat, 22 Apr 2023JP¥20.6tJP¥17.5tJP¥978.7b17.8x21.1x1.2x
Mon, 20 Mar 2023JP¥20.0tJP¥17.4tJP¥980.0b17.5x20.4x1.1x
Wed, 15 Feb 2023JP¥22.1tJP¥18.3tJP¥1.1t17.7x20.9x1.2x
Price to Earnings Ratio

20.9x


Total Market Cap: JP¥22.1tTotal Earnings: JP¥1.1tTotal Revenue: JP¥18.3tTotal Market Cap vs Earnings and Revenue0%0%0%
Japanese IT Industry Price to Earnings3Y Average 24.3x202420252026
Current Industry PE
  • Investors are pessimistic on the Japanese IT industry, indicating that they anticipate long term growth rates will be lower than they have historically.
  • The industry is trading at a PE ratio of 21.1x which is lower than its 3-year average PE of 24.3x.
  • The 3-year average PS ratio of 1.4x is lower than the industry's current PS ratio of 1.7x.
Past Earnings Growth
  • The earnings for companies in the IT industry have grown 6.6% per year over the last three years.
  • Meanwhile revenues for these companies have declined 4.8% per year.
  • This means that less sales are being generated overall, but since cost of doing business is lower, profits have been increasing.

Industry Trends

Which industries have driven the changes within the Japanese Tech industry?

JP Market3.36%
Tech-2.82%
IT-9.95%
Data Processing Services-1.12%
Internet Services and Infrastructure-5.57%
IT Consulting-10.08%
Industry PE
  • Investors are most optimistic about the Internet Services and Infrastructure industry even though it's trading below its 3-year average PE ratio of 41.3x.
    • Analysts are expecting annual earnings growth of 18.9%, which is lower than the prior year's growth of 21.1% per year.
  • Investors are most pessimistic about the Data Processing Services industry, which is trading below its 3-year average of 17.4x.
Forecasted Growth
  • Analysts are most optimistic on the Internet Services and Infrastructure industry, expecting annual earnings growth of 19% over the next 5 years.
  • This is roughly in line with its past earnings growth rate.
  • In contrast, the IT Consulting industry is expected to see its earnings grow by 7.1% per year over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

CompanyLast Price7D1YValuation
4259 ExaWizardsJP¥854.0019.3%
+JP¥11.7b		66.8%PS6.9x
3778 SAKURA InternetJP¥2.84k7.0%
+JP¥7.4b		-41.4%PE153x
9719 SCSKJP¥5.68k0.3%
+JP¥5.9b		59.0%PE27.1x
3636 Mitsubishi Research InstituteJP¥5.20k7.2%
+JP¥5.5b		10.2%PE10.2x
7595 ARGO GRAPHICSJP¥1.48k3.1%
+JP¥3.1b		19.0%PE5.6x

Latest News

3636
JP¥5,200.00
Mitsubishi Research Institute
7D
7.2%
1Y
10.2%
2349
JP¥2,444.00
Nippon Information Development
7D
5.4%
1Y
-0.4%
2315
JP¥101.00
CAICA DIGITAL
7D
-1.0%
1Y
74.1%
3778
JP¥2,843.00
SAKURA Internet
7D
7.0%
1Y
-41.4%
6701
JP¥4,311.00
NEC
7D
-17.3%
1Y
39.0%

6701: Cloud Partnerships And Earnings Outlook Will Support A Higher Share Price

Analysts have modestly adjusted their price target for NEC to $5,000. This reflects small tweaks to assumptions for fair value, discount rate, revenue growth, profit margin and future P/E multiples.
4259
JP¥854.00
ExaWizards
7D
19.3%
1Y
66.8%

ExaWizards Inc.'s (TSE:4259) 31% Jump Shows Its Popularity With Investors

Feb 05
ExaWizards Inc.'s (TSE:4259) 31% Jump Shows Its Popularity With Investors
4307
JP¥4,222.00
Nomura Research Institute
7D
-10.2%
1Y
-21.4%

4307: Financial Platform Services Will Support Future Upside As Industrial IT Recovers

Analysts have trimmed their fair value estimate for Nomura Research Institute slightly to ¥6,563 from ¥6,596, reflecting small adjustments to inputs such as the discount rate, revenue growth assumptions, profit margin, and future P/E expectations. Valuation Changes Fair Value Estimate: trimmed slightly to ¥6,563 from ¥6,596.
8056
JP¥4,700.00
BIPROGY
7D
-8.3%
1Y
7.7%
6702
JP¥3,913.00
Fujitsu
7D
-8.6%
1Y
30.8%
9449
JP¥3,550.00
GMO internet group
7D
-7.8%
1Y
26.0%

9449: Buybacks And Alliance Plans Will Guide A Measured Outlook

Analysts have kept their fair value estimate for GMO Internet Group unchanged at ¥4,062.50 while modestly adjusting inputs such as the discount rate and assumed future P/E. This reflects updated views on the stock's risk profile rather than a shift in their headline price target.
3626
JP¥3,454.00
TIS
7D
-23.2%
1Y
-8.1%
4684
JP¥3,801.00
OBICLtd
7D
-11.5%
1Y
-18.1%
9742
JP¥1,958.00
INES
7D
4.4%
1Y
9.8%
7595
JP¥1,484.00
ARGO GRAPHICS
7D
3.1%
1Y
19.0%
9719
JP¥5,683.00
SCSK
7D
0.3%
1Y
59.0%
4812
JP¥2,105.00
Dentsu Soken
7D
-13.6%
1Y
1.7%