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Japanese (NIKKEI) IT Industry Analysis

UpdatedJun 24, 2026
DataAggregated Company Financials
Companies219
  • 7D-3.1%
  • 3M-5.7%
  • 1Y-17.2%
  • YTD-26.5%

Over the last 7 days, the IT industry has dropped 3.1%, driven by pullbacks in Fujitsu and NEC of 3.6% and 3.9%, respectively. Meanwhile, GMO internet group actually outperformed within the industry, gaining 5.5% in the last week. However, the industry is down 17% over the past year. Looking forward, earnings are forecast to grow by 12% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Wed, 24 Jun 2026JP¥21.8tJP¥15.2tJP¥1.1t14.1x19.2x1.4x
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
Price to Earnings Ratio

22.4x


Total Market Cap: JP¥22.9tTotal Earnings: JP¥1.0tTotal Revenue: JP¥18.2tTotal Market Cap vs Earnings and Revenue0%0%0%
Japanese IT Industry Price to Earnings3Y Average 24.2x202420252026
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 19.2x which is lower than its 3-year average PE of 24.2x.
  • 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-0.22%
Tech0.97%
IT-3.08%
Internet Services and Infrastructure2.34%
Data Processing Services-0.55%
IT Consulting-3.26%
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 38.9x.
    • Analysts are expecting annual earnings growth of 17.6%, 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 17.0x.
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
9449 GMO internet groupJP¥3.28k5.7%
+JP¥17.5b		-8.1%PE18.5x
2327 NS SolutionsJP¥3.23k3.0%
+JP¥17.4b		-18.7%PE19.2x
4419 Finatext HoldingsJP¥1.32k4.2%
+JP¥2.8b		13.3%PE45.2x
4371 Core Concept TechnologiesJP¥1.42k8.8%
+JP¥1.8b		4.5%PE18.5x
9742 INESJP¥2.10k4.3%
+JP¥1.8b		26.8%PS1.2x

Latest News

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NS Solutions
7D
3.0%
1Y
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6702
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Fujitsu
7D
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1Y
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Analysis Article • Jun 19

Fujitsu (TSE:6702) Stock Could Be 28% Undervalued After Board Candidate Withdrawal

Fujitsu (TSE:6702) is in focus after its board moved to amend the slate of director candidates by withdrawing the planned reappointment of Hidenori Furuta, following findings of inappropriate conduct and his request to resign. See our latest analysis for Fujitsu. The governance news lands at a time when Fujitsu’s share price has fallen 23% year to date, yet the 3 year total shareholder return of 84% and 5 year total shareholder return of 77% still point to a strong longer run outcome. If you...
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NEC
7D
-0.4%
1Y
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Narrative Update • Jun 18

6701: Physical AI Partnership And Buybacks Will Support A Stronger Share Price

Analysts have adjusted their price target on NEC stock to ¥6,007.5 from ¥6,362.5, reflecting revised assumptions for fair value, discount rate, revenue growth, profit margin and future P/E, which together point to a slightly more conservative outlook on the shares. What’s in the News for NEC SoftBank, NEC, Sony and Honda agreed to form a new company focused on “physical AI,” according to Nikkei.
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BIPROGY
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