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Japanese (NIKKEI) IT Industry Analysis

UpdatedMay 22, 2026
DataAggregated Company Financials
Companies220
  • 7D2.9%
  • 3M1.3%
  • 1Y-5.3%
  • YTD-20.5%

The IT is pretty flat in the last 7 days, but Nomura Research Institute has stood out, gaining 12%. Unfortunately though, the industry is down 4.9% over the past 12 months. Looking forward, earnings are forecast to grow by 11% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Fri, 22 May 2026JP¥23.7tJP¥15.2tJP¥1.1t14.7x20.8x1.6x
Sun, 19 Apr 2026JP¥25.4tJP¥15.1tJP¥1.2t15.1x21x1.7x
Tue, 17 Mar 2026JP¥25.9tJP¥15.9tJP¥1.3t14.9x20.3x1.6x
Thu, 12 Feb 2026JP¥28.5tJP¥15.8tJP¥1.3t16.4x22.3x1.8x
Sat, 10 Jan 2026JP¥32.4tJP¥15.4tJP¥1.2t17.5x27x2.1x
Mon, 08 Dec 2025JP¥31.8tJP¥15.4tJP¥1.2t17.2x26.6x2.1x
Wed, 05 Nov 2025JP¥30.9tJP¥15.5tJP¥1.2t17.5x26.2x2x
Fri, 03 Oct 2025JP¥27.9tJP¥15.3tJP¥1.0t17.6x26.7x1.8x
Sun, 31 Aug 2025JP¥34.7tJP¥19.9tJP¥1.2t17.6x29.3x1.7x
Tue, 29 Jul 2025JP¥27.2tJP¥15.0tJP¥983.6b17.6x27.7x1.8x
Thu, 26 Jun 2025JP¥28.0tJP¥15.0tJP¥979.0b17.1x28.6x1.9x
Sat, 24 May 2025JP¥32.6tJP¥19.6tJP¥1.1t17x29.1x1.7x
Mon, 21 Apr 2025JP¥28.2tJP¥19.5tJP¥1.2t16.4x22.8x1.4x
Wed, 19 Mar 2025JP¥29.5tJP¥20.0tJP¥1.3t17.5x23.4x1.5x
Fri, 14 Feb 2025JP¥30.3tJP¥20.0tJP¥1.3t17.6x24.1x1.5x
Sun, 12 Jan 2025JP¥27.8tJP¥19.8tJP¥1.1t17.5x24.7x1.4x
Tue, 10 Dec 2024JP¥28.4tJP¥19.8tJP¥1.1t18.2x25.3x1.4x
Thu, 07 Nov 2024JP¥27.1tJP¥19.7tJP¥1.1t16.9x24.3x1.4x
Sat, 05 Oct 2024JP¥28.0tJP¥19.7tJP¥1.1t17.6x24.9x1.4x
Mon, 02 Sep 2024JP¥26.5tJP¥19.7tJP¥1.1t17.9x23.4x1.3x
Wed, 31 Jul 2024JP¥25.9tJP¥19.6tJP¥1.1t18.3x22.6x1.3x
Fri, 28 Jun 2024JP¥25.6tJP¥19.5tJP¥1.1t18.1x22.7x1.3x
Sun, 26 May 2024JP¥24.2tJP¥19.5tJP¥1.1t17x21.5x1.2x
Tue, 23 Apr 2024JP¥23.9tJP¥19.2tJP¥965.5b17.9x24.7x1.2x
Thu, 21 Mar 2024JP¥25.6tJP¥19.2tJP¥964.4b19.6x26.6x1.3x
Sat, 17 Feb 2024JP¥24.3tJP¥19.1tJP¥964.1b18.6x25.2x1.3x
Mon, 15 Jan 2024JP¥25.0tJP¥19.6tJP¥1.0t18.6x24.1x1.3x
Wed, 13 Dec 2023JP¥23.7tJP¥19.6tJP¥1.0t18x22.9x1.2x
Fri, 10 Nov 2023JP¥23.0tJP¥19.4tJP¥1.0t18x22.6x1.2x
Sun, 08 Oct 2023JP¥22.5tJP¥18.8tJP¥1.0t18.2x22x1.2x
Tue, 05 Sep 2023JP¥23.6tJP¥18.8tJP¥1.0t19.1x23.1x1.3x
Thu, 03 Aug 2023JP¥22.7tJP¥18.4tJP¥1.0t18.8x21.9x1.2x
Sat, 01 Jul 2023JP¥22.9tJP¥18.2tJP¥1.0t19x22.4x1.3x
Mon, 29 May 2023JP¥21.8tJP¥18.2tJP¥1.0t18.3x21.3x1.2x
Price to Earnings Ratio

21.3x


Total Market Cap: JP¥21.8tTotal Earnings: JP¥1.0tTotal Revenue: JP¥18.2tTotal 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 20.8x which is lower than its 3-year average PE of 24.3x.
  • The industry is trading close to its 3-year average PS ratio of 1.5x.
Past Earnings Growth
  • The earnings for companies in the IT industry have grown 3.7% per year over the last three years.
  • Meanwhile revenues for these companies have declined 5.8% 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 Market-0.49%
Tech0.71%
IT2.90%
Internet Services and Infrastructure4.24%
IT Consulting2.85%
Data Processing Services-0.28%
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 39.7x.
    • Analysts are expecting annual earnings growth of 16.1%, which is lower than the prior year's growth of 21.2% per year.
  • Investors are most pessimistic about the Data Processing Services industry, which is trading below its 3-year average of 17.1x.
Forecasted Growth
  • Analysts are most optimistic on the Internet Services and Infrastructure industry, expecting annual earnings growth of 16% over the next 5 years.
  • However this is lower than its past earnings growth rate of 21% per year.
  • In contrast, the IT Consulting industry is expected to see its earnings grow by 11% 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
4307 Nomura Research InstituteJP¥4.67k7.9%
+JP¥196.4b		-19.4%PE176x
6702 FujitsuJP¥3.32k3.0%
+JP¥170.0b		-0.2%PE19x
6701 NECJP¥4.12k2.9%
+JP¥156.5b		9.8%PE20.2x
4684 OBICLtdJP¥4.15k2.8%
+JP¥48.9b		-20.6%PE23.9x
9449 GMO internet groupJP¥3.41k10.8%
+JP¥32.7b		-7.2%PE19.2x

Latest News

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ExaWizards' (TSE:4259) Earnings Are Of Questionable Quality

ExaWizards Inc.'s ( TSE:4259 ) stock was strong after they recently reported robust earnings. However, our analysis...
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7D
7.9%
1Y
-19.4%
Narrative Update • May 19

4307: Share Repurchase Program Will Support Upside Despite Goodwill Impairment

Analysts have slightly adjusted their price target on Nomura Research Institute to about ¥5,703 from roughly ¥5,730. This reflects updated assumptions for fair value, discount rate, revenue growth, profit margin, and future P/E.
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2.9%
1Y
9.8%
Narrative Update • May 18

6701: Physical AI Partnership Will Support Stronger Future Upside

Analysts have trimmed their fair value estimate for NEC from ¥7,980.52 to ¥7,786.31 as they reset assumptions around profit margins and future P/E, while also applying a slightly lower discount rate and updated revenue growth outlooks. What's in the News SoftBank, NEC, Sony and Honda agreed to form a new company focused on "physical AI," highlighting NEC's role in a broader Japanese technology collaboration (Nikkei).
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We Like The Quality Of Otsuka's (TSE:4768) Earnings

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Analysis Article • May 01

NS Solutions Corporation (TSE:2327) Just Released Its Annual Results And Analysts Are Updating Their Estimates

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