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Japanese (NIKKEI) IT Industry Analysis

UpdatedMar 07, 2026
DataAggregated Company Financials
Companies217
  • 7D0.5%
  • 3M-15.6%
  • 1Y10.6%
  • YTD-16.0%

In the last week, IT has been flat. The past year has been better, since the industry has gained 4.2% in that time. 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
Sat, 07 Mar 2026JP¥26.7tJP¥15.9tJP¥1.3t15.4x20.9x1.7x
Mon, 02 Feb 2026JP¥30.0tJP¥15.7tJP¥1.3t17.1x23.6x1.9x
Wed, 31 Dec 2025JP¥31.9tJP¥15.4tJP¥1.2t17.2x26.6x2.1x
Fri, 28 Nov 2025JP¥32.8tJP¥15.4tJP¥1.2t17.2x27.4x2.1x
Sun, 26 Oct 2025JP¥30.1tJP¥15.3tJP¥1.0t18.1x28.8x2x
Tue, 23 Sep 2025JP¥35.2tJP¥19.9tJP¥1.2t18.2x29.7x1.8x
Thu, 21 Aug 2025JP¥35.1tJP¥19.9tJP¥1.2t17.4x29.7x1.8x
Sat, 19 Jul 2025JP¥27.4tJP¥15.0tJP¥980.9b17.2x27.9x1.8x
Mon, 16 Jun 2025JP¥33.6tJP¥19.6tJP¥1.1t17.6x30x1.7x
Wed, 14 May 2025JP¥32.4tJP¥19.5tJP¥1.1t17.7x28.9x1.7x
Fri, 11 Apr 2025JP¥27.3tJP¥19.5tJP¥1.2t15.3x22.1x1.4x
Sun, 09 Mar 2025JP¥29.1tJP¥20.0tJP¥1.3t17.2x23x1.5x
Tue, 04 Feb 2025JP¥29.4tJP¥19.9tJP¥1.2t17.3x23.8x1.5x
Thu, 02 Jan 2025JP¥28.4tJP¥19.8tJP¥1.1t17.6x25.3x1.4x
Sat, 30 Nov 2024JP¥28.0tJP¥19.8tJP¥1.1t18.1x25x1.4x
Mon, 28 Oct 2024JP¥26.6tJP¥19.7tJP¥1.1t16.6x23.7x1.4x
Wed, 25 Sep 2024JP¥27.9tJP¥19.7tJP¥1.1t17.6x24.8x1.4x
Fri, 23 Aug 2024JP¥25.8tJP¥19.7tJP¥1.1t17.5x22.8x1.3x
Sun, 21 Jul 2024JP¥26.3tJP¥19.5tJP¥1.1t18.8x23.4x1.3x
Tue, 18 Jun 2024JP¥24.1tJP¥19.5tJP¥1.1t17.2x21.4x1.2x
Thu, 16 May 2024JP¥23.8tJP¥19.5tJP¥1.1t18.3x21.1x1.2x
Sat, 13 Apr 2024JP¥24.9tJP¥19.2tJP¥965.2b18.7x25.8x1.3x
Mon, 11 Mar 2024JP¥25.3tJP¥19.2tJP¥965.0b19.6x26.2x1.3x
Wed, 07 Feb 2024JP¥23.7tJP¥19.1tJP¥952.5b18.9x24.9x1.2x
Fri, 05 Jan 2024JP¥24.4tJP¥19.6tJP¥1.0t18.4x23.5x1.2x
Sun, 03 Dec 2023JP¥23.6tJP¥19.6tJP¥1.0t18x22.8x1.2x
Tue, 31 Oct 2023JP¥22.1tJP¥18.9tJP¥1.0t17.7x22x1.2x
Thu, 28 Sep 2023JP¥23.4tJP¥18.8tJP¥1.0t18.9x23x1.2x
Sat, 26 Aug 2023JP¥23.0tJP¥18.8tJP¥1.0t19x22.5x1.2x
Mon, 24 Jul 2023JP¥22.5tJP¥18.3tJP¥1.0t19.2x21.9x1.2x
Wed, 21 Jun 2023JP¥23.1tJP¥18.2tJP¥1.0t19.2x22.6x1.3x
Fri, 19 May 2023JP¥22.1tJP¥18.2tJP¥1.0t17.6x21.6x1.2x
Sun, 16 Apr 2023JP¥20.7tJP¥17.5tJP¥978.8b18.1x21.1x1.2x
Tue, 14 Mar 2023JP¥21.7tJP¥18.3tJP¥1.1t17.9x20.6x1.2x
Price to Earnings Ratio

20.6x


Total Market Cap: JP¥21.7tTotal 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 20.1x which is lower than its 3-year average PE of 24.3x.
  • The 3-year average PS ratio of 1.5x is lower than the industry's current PS ratio of 1.6x.
Past Earnings Growth
  • The earnings for companies in the IT industry have grown 6.7% per year over the last three years.
  • Meanwhile revenues for these companies have declined 4.7% 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-5.40%
Tech-4.40%
IT0.46%
IT Consulting0.54%
Data Processing Services-2.32%
Internet Services and Infrastructure-2.33%
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 40.9x.
    • Analysts are expecting annual earnings growth of 19.7%, which is lower than the prior year's growth of 24.5% per year.
  • Investors are most pessimistic about the Data Processing Services industry, which is trading below its 3-year average of 17.2x.
Forecasted Growth
  • Analysts are most optimistic on the Internet Services and Infrastructure industry, expecting annual earnings growth of 20% over the next 5 years.
  • This is roughly in line with its past earnings growth rate.
  • In contrast, the Data Processing Services industry is expected to see its earnings grow by 5.2% 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
6701 NECJP¥4.45k2.6%
+JP¥148.2b		46.4%PE24.1x
6702 FujitsuJP¥3.68k2.6%
+JP¥134.0b		18.3%PE20.1x
4307 Nomura Research InstituteJP¥4.39k0.5%
+JP¥13.8b		-12.9%PE23.9x
3697 SHIFTJP¥732.904.4%
+JP¥7.8b		-37.0%PE21.4x
446A NorthsandJP¥1.15k6.4%
+JP¥4.8b		n/an/a

Latest News

4684
JP¥4,136.00
OBICLtd
7D
-1.5%
1Y
-3.3%
2327
JP¥3,930.00
NS Solutions
7D
-2.2%
1Y
-2.8%
3626
JP¥3,173.00
TIS
7D
-1.6%
1Y
-24.3%
8056
JP¥4,608.00
BIPROGY
7D
-2.9%
1Y
2.2%
9449
JP¥2,908.00
GMO internet group
7D
-3.0%
1Y
-1.9%

9449: Share Repurchases And New AI Authorizations Will Support Future Shareholder Returns

Analysts have maintained their fair value estimate for GMO Internet Group at ¥5,000. Only minor adjustments have been made to assumptions on revenue growth, profit margins, and the future P/E used to support the unchanged price target.
6701
JP¥4,445.00
NEC
7D
2.6%
1Y
46.4%
4307
JP¥4,391.00
Nomura Research Institute
7D
0.5%
1Y
-12.9%
4768
JP¥3,067.00
Otsuka
7D
-2.6%
1Y
-6.2%
3697
JP¥732.90
SHIFT
7D
4.4%
1Y
-37.0%
4373
JP¥831.00
Simplex Holdings
7D
-3.7%
1Y
16.4%
6702
JP¥3,683.00
Fujitsu
7D
2.6%
1Y
18.3%

6702: AI Productivity Gains And Capital Returns Will Support Fairly Valued Outlook

Analysts have lifted their price target on Fujitsu from about ¥3,704 to roughly ¥4,025 as they refine assumptions around discount rates, profit margins and future P/E levels. What's in the News Fujitsu launched an AI Driven Software Development Platform that automates the full development cycle using its Takane LLM and agentic AI, with internal plans to apply it across 67 medical and government software products by the end of fiscal 2026 (Key Developments).
4499
JP¥2,894.00
Speee
7D
8.9%
1Y
26.8%
4419
JP¥957.00
Finatext Holdings
7D
9.7%
1Y
28.6%
4413
JP¥1,992.00
baudroieinc
7D
5.7%
1Y
-20.2%

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4722
JP¥1,706.00
Future
7D
-6.2%
1Y
-8.4%
446A
JP¥1,151.00
Northsand
7D
6.4%
1Y
n/a