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Japanese (NIKKEI) IT Industry Analysis

UpdatedMay 27, 2026
DataAggregated Company Financials
Companies219
  • 7D-2.4%
  • 3M5.0%
  • 1Y-7.7%
  • YTD-20.5%

Over the last 7 days, the IT industry has dropped 2.4%, driven by a pullback from Otsuka of 5.5%. Meanwhile, Fujitsu actually outperformed within the industry, gaining 8.1% in the last week. However, the industry is down 7.7% over the past year. 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
Wed, 27 May 2026JP¥23.7tJP¥15.2tJP¥1.1t14.8x20.8x1.6x
Fri, 24 Apr 2026JP¥25.2tJP¥15.1tJP¥1.2t14.8x20.8x1.7x
Sun, 22 Mar 2026JP¥23.4tJP¥15.1tJP¥1.2t15x19.4x1.5x
Tue, 17 Feb 2026JP¥26.3tJP¥15.9tJP¥1.3t15.9x20.6x1.7x
Thu, 15 Jan 2026JP¥33.3tJP¥15.4tJP¥1.2t17.7x27.8x2.2x
Sat, 13 Dec 2025JP¥31.9tJP¥15.4tJP¥1.2t17.2x26.7x2.1x
Mon, 10 Nov 2025JP¥31.1tJP¥15.6tJP¥1.2t17.2x26.3x2x
Wed, 08 Oct 2025JP¥29.8tJP¥15.3tJP¥1.0t18.1x28.6x2x
Fri, 05 Sep 2025JP¥34.3tJP¥19.9tJP¥1.2t17.4x28.9x1.7x
Sun, 03 Aug 2025JP¥29.1tJP¥15.2tJP¥1.0t17.8x28x1.9x
Tue, 01 Jul 2025JP¥28.6tJP¥15.0tJP¥979.1b17.2x29.2x1.9x
Thu, 29 May 2025JP¥32.7tJP¥19.6tJP¥1.1t17.3x29.2x1.7x
Sat, 26 Apr 2025JP¥28.6tJP¥19.3tJP¥1.1t16.6x25.6x1.5x
Mon, 24 Mar 2025JP¥28.8tJP¥19.8tJP¥1.2t17.4x23.1x1.5x
Wed, 19 Feb 2025JP¥30.2tJP¥20.1tJP¥1.3t17.7x23.9x1.5x
Fri, 17 Jan 2025JP¥27.2tJP¥19.8tJP¥1.1t17.3x24.2x1.4x
Sun, 15 Dec 2024JP¥28.6tJP¥19.8tJP¥1.1t18.4x25.5x1.4x
Tue, 12 Nov 2024JP¥28.0tJP¥19.8tJP¥1.1t17.6x25x1.4x
Thu, 10 Oct 2024JP¥28.4tJP¥19.7tJP¥1.1t17.9x25.3x1.4x
Sat, 07 Sep 2024JP¥26.7tJP¥19.8tJP¥1.1t17.6x23.6x1.4x
Mon, 05 Aug 2024JP¥24.1tJP¥19.6tJP¥1.1t16.8x21x1.2x
Wed, 03 Jul 2024JP¥25.8tJP¥19.5tJP¥1.1t18.7x22.9x1.3x
Fri, 31 May 2024JP¥23.6tJP¥19.5tJP¥1.1t16.8x21x1.2x
Sun, 28 Apr 2024JP¥24.2tJP¥19.2tJP¥1.1t18.4x22.2x1.3x
Tue, 26 Mar 2024JP¥25.5tJP¥19.2tJP¥964.4b19.7x26.4x1.3x
Thu, 22 Feb 2024JP¥24.1tJP¥19.1tJP¥964.6b18.3x25x1.3x
Sat, 20 Jan 2024JP¥24.7tJP¥19.6tJP¥1.0t18.8x23.8x1.3x
Mon, 18 Dec 2023JP¥23.7tJP¥19.6tJP¥1.0t17.6x22.9x1.2x
Wed, 15 Nov 2023JP¥22.8tJP¥19.4tJP¥1.0t17.5x22.2x1.2x
Fri, 13 Oct 2023JP¥22.8tJP¥18.8tJP¥1.0t18.2x22.3x1.2x
Sun, 10 Sep 2023JP¥23.6tJP¥18.8tJP¥1.0t19.2x23.1x1.3x
Tue, 08 Aug 2023JP¥22.9tJP¥18.5tJP¥1.0t18.6x22x1.2x
Thu, 06 Jul 2023JP¥22.7tJP¥18.2tJP¥1.0t18.9x22.2x1.2x
Sat, 03 Jun 2023JP¥22.6tJP¥18.2tJP¥1.0t18.7x22.1x1.2x
Price to Earnings Ratio

22.1x


Total Market Cap: JP¥22.6tTotal 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 Market2.68%
Tech10.57%
IT-2.44%
Internet Services and Infrastructure0.64%
IT Consulting-2.55%
Data Processing Services-2.83%
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 39.6x.
    • Analysts are expecting annual earnings growth of 17.9%, 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 18% 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 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
6702 FujitsuJP¥3.51k7.6%
+JP¥432.0b		5.9%PE20.1x
4259 ExaWizardsJP¥1.23k12.0%
+JP¥12.4b		205.5%PE75.8x
3697 SHIFTJP¥697.607.2%
+JP¥11.9b		-54.7%PE21.1x
3778 SAKURA InternetJP¥3.10k10.1%
+JP¥11.4b		-8.7%PE574.4x
4373 Simplex HoldingsJP¥1.03k4.4%
+JP¥9.8b		12.1%PE21.9x

Latest News

8056
JP¥4,626.00
BIPROGY
7D
-1.5%
1Y
-19.3%
6702
JP¥3,512.00
Fujitsu
7D
7.6%
1Y
5.9%
Narrative Update • May 23

6702: Healthcare Data Platform And Buybacks Will Support Future Returns

Analysts have trimmed their Fujitsu price target from ¥4,689 to ¥4,592, citing updated assumptions that combine a lower discount rate and P/E multiple with slightly higher revenue growth and profit margin expectations. What's in the News Fujitsu, Sumitomo Mitsui Financial Group, and SoftBank agreed to build a Japan based healthcare data and AI platform aimed at supporting universal health insurance, improving hospital management, and targeting healthcare cost savings on the scale of about ¥5 trillion (Key Developments).
4417
JP¥3,385.00
Global Security Experts
7D
18.2%
1Y
6.1%
9640
JP¥2,000.00
Saison Technology
7D
-8.5%
1Y
10.7%
Analysis Article • May 20

Some Investors May Be Willing To Look Past Saison Technology's (TSE:9640) Soft Earnings

Shareholders appeared unconcerned with Saison Technology Co., Ltd.'s ( TSE:9640 ) lackluster earnings report last week...
4259
JP¥1,225.00
ExaWizards
7D
12.0%
1Y
205.5%
Analysis Article • May 19

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...
4307
JP¥4,747.00
Nomura Research Institute
7D
0.3%
1Y
-17.6%
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.
5036
JP¥1,706.00
Japan Business Systems
7D
-7.8%
1Y
18.7%
6701
JP¥4,146.00
NEC
7D
0.1%
1Y
10.5%
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).
4828
JP¥1,058.00
Business Engineering
7D
-10.0%
1Y
12.7%
3778
JP¥3,100.00
SAKURA Internet
7D
10.1%
1Y
-8.7%
9759
JP¥2,575.50
NSD
7D
-2.3%
1Y
-27.1%
4768
JP¥2,833.50
Otsuka
7D
-5.6%
1Y
-3.1%
Analysis Article • May 08

We Like The Quality Of Otsuka's (TSE:4768) Earnings

The market seemed underwhelmed by last week's earnings announcement from Otsuka Corporation ( TSE:4768 ) despite the...
4812
JP¥2,099.00
Dentsu Soken
7D
-2.0%
1Y
-6.8%
4373
JP¥1,034.00
Simplex Holdings
7D
4.4%
1Y
12.1%
4684
JP¥4,124.00
OBICLtd
7D
-1.4%
1Y
-20.0%
3697
JP¥697.60
SHIFT
7D
7.2%
1Y
-54.7%
Analysis Article • Apr 21

SHIFT's (TSE:3697) Earnings May Just Be The Starting Point

SHIFT Inc.'s ( TSE:3697 ) strong earnings report was rewarded with a positive stock price move. We did some digging and...