Investing IdeasBrowse All StocksMarkets
Have your own idea? Try our Stock Screener
Header cover image

Japanese (NIKKEI) IT Industry Analysis

UpdatedApr 21, 2026
DataAggregated Company Financials
Companies218
  • 7D9.3%
  • 3M-16.9%
  • 1Y9.5%
  • YTD-15.1%

Over the last 7 days, the IT industry has risen 9.9%, driven by gains from Fujitsu of 12%. Meanwhile, Progress Technologies Group actually underperformed within the industry, shrinking 16% in the last week. In the last 12 months, the industry was up 9.9%. 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
Tue, 21 Apr 2026JP¥25.3tJP¥15.1tJP¥1.2t15.1x20.9x1.7x
Thu, 19 Mar 2026JP¥24.0tJP¥15.1tJP¥1.2t15.3x19.8x1.6x
Sat, 14 Feb 2026JP¥26.1tJP¥15.8tJP¥1.3t16.2x20.4x1.7x
Mon, 12 Jan 2026JP¥32.4tJP¥15.4tJP¥1.2t17.5x27x2.1x
Wed, 10 Dec 2025JP¥31.8tJP¥15.4tJP¥1.2t17.1x26.6x2.1x
Fri, 07 Nov 2025JP¥30.9tJP¥15.5tJP¥1.2t17.2x26.3x2x
Sun, 05 Oct 2025JP¥28.3tJP¥15.3tJP¥1.0t17.5x27.1x1.9x
Tue, 02 Sep 2025JP¥34.3tJP¥19.9tJP¥1.2t17.4x29x1.7x
Thu, 31 Jul 2025JP¥28.4tJP¥15.1tJP¥1.0t17.7x27.9x1.9x
Sat, 28 Jun 2025JP¥28.4tJP¥15.0tJP¥979.1b17.2x29x1.9x
Mon, 26 May 2025JP¥32.6tJP¥19.6tJP¥1.1t17x29.1x1.7x
Wed, 23 Apr 2025JP¥28.0tJP¥19.5tJP¥1.2t16.6x22.7x1.4x
Fri, 21 Mar 2025JP¥29.4tJP¥20.0tJP¥1.3t17.4x23.2x1.5x
Sun, 16 Feb 2025JP¥30.1tJP¥20.1tJP¥1.3t17.6x23.8x1.5x
Tue, 14 Jan 2025JP¥27.8tJP¥19.5tJP¥1.1t17.4x25.1x1.4x
Thu, 12 Dec 2024JP¥28.4tJP¥19.8tJP¥1.1t18.5x25.3x1.4x
Sat, 09 Nov 2024JP¥28.1tJP¥19.8tJP¥1.1t17.8x24.9x1.4x
Mon, 07 Oct 2024JP¥28.0tJP¥19.7tJP¥1.1t17.6x24.9x1.4x
Wed, 04 Sep 2024JP¥27.3tJP¥19.7tJP¥1.1t18.5x24.1x1.4x
Fri, 02 Aug 2024JP¥25.6tJP¥19.6tJP¥1.1t17.9x22.3x1.3x
Sun, 30 Jun 2024JP¥25.5tJP¥19.5tJP¥1.1t18.2x22.7x1.3x
Tue, 28 May 2024JP¥24.3tJP¥19.5tJP¥1.1t17.1x21.6x1.2x
Thu, 25 Apr 2024JP¥24.6tJP¥19.2tJP¥967.5b18.7x25.4x1.3x
Sat, 23 Mar 2024JP¥26.0tJP¥19.2tJP¥964.4b19.6x27x1.4x
Mon, 19 Feb 2024JP¥24.4tJP¥19.1tJP¥965.5b18.6x25.2x1.3x
Wed, 17 Jan 2024JP¥25.0tJP¥19.6tJP¥1.0t18.8x24x1.3x
Fri, 15 Dec 2023JP¥23.7tJP¥19.6tJP¥1.0t17.8x22.9x1.2x
Sun, 12 Nov 2023JP¥22.9tJP¥19.4tJP¥1.0t17.7x22.4x1.2x
Tue, 10 Oct 2023JP¥22.5tJP¥18.8tJP¥1.0t18.2x22x1.2x
Thu, 07 Sep 2023JP¥23.9tJP¥18.8tJP¥1.0t19.4x23.4x1.3x
Sat, 05 Aug 2023JP¥22.7tJP¥18.5tJP¥1.0t18.6x21.8x1.2x
Mon, 03 Jul 2023JP¥22.9tJP¥18.2tJP¥1.0t19x22.4x1.3x
Wed, 31 May 2023JP¥21.9tJP¥18.2tJP¥1.0t18.6x21.4x1.2x
Fri, 28 Apr 2023JP¥20.5tJP¥17.5tJP¥979.9b17.6x20.9x1.2x
Price to Earnings Ratio

20.9x


Total Market Cap: JP¥20.5tTotal Earnings: JP¥979.9bTotal Revenue: JP¥17.5tTotal 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 21.0x 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 1.7x.
Past Earnings Growth
  • The earnings for companies in the IT industry have grown 7.3% 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 Market1.52%
Tech5.26%
IT9.25%
IT Consulting9.32%
Internet Services and Infrastructure7.05%
Data Processing Services2.37%
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 40.2x.
    • Analysts are expecting annual earnings growth of 18.0%, which is lower than the prior year's growth of 26.9% 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.
  • However this is lower than its past earnings growth rate of 27% per year.
  • 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
6702 FujitsuJP¥3.75k12.4%
+JP¥718.2b		28.5%PE20.5x
6701 NECJP¥4.33k11.5%
+JP¥591.2b		33.0%PE23.4x
4307 Nomura Research InstituteJP¥4.97k10.5%
+JP¥271.3b		-8.4%PE27.1x
4684 OBICLtdJP¥4.27k9.6%
+JP¥162.5b		-13.4%PE25.6x
3626 TISJP¥3.67k8.9%
+JP¥65.9b		-10.1%PE15x

Latest News

4684
JP¥4,267.00
OBICLtd
7D
9.6%
1Y
-13.4%
6701
JP¥4,327.00
NEC
7D
11.5%
1Y
33.0%

6701: Share Repurchases And Physical AI Collaboration Will Support A Higher Share Price

Analysts have kept NEC's fair value price target steady at ¥5,000. Small shifts in the assumed discount rate, revenue growth, profit margin, and future P/E have led only to a minor recalibration of their valuation framework rather than a change in the headline target.
9449
JP¥3,236.00
GMO internet group
7D
8.8%
1Y
-7.8%

9449: AI Alliance And GPU Cloud Expansion Will Drive A More Upside-Skewed Outlook

Analysts now see GMO Internet Group’s fair value edging from ¥4,062.5 to ¥4,122.0. This reflects slightly adjusted assumptions on the discount rate, revenue growth, profit margins, and a lower future P/E of 17.22 versus 18.51 previously. What's in the News Board meeting on April 10, 2026 to consider a secondary offering of shares in consolidated subsidiary GMO Internet, Inc., via an underwriting syndicate led by joint lead managers (Key Developments).
4373
JP¥948.00
Simplex Holdings
7D
16.5%
1Y
21.7%
6702
JP¥3,753.00
Fujitsu
7D
12.4%
1Y
28.5%
4429
JP¥879.00
Ricksoft
7D
-10.9%
1Y
8.7%
339A
JP¥1,125.00
Progress Technologies Group
7D
-15.6%
1Y
-22.1%
4307
JP¥4,965.00
Nomura Research Institute
7D
10.5%
1Y
-8.4%
4768
JP¥3,048.00
Otsuka
7D
2.9%
1Y
-0.2%
3626
JP¥3,667.00
TIS
7D
8.9%
1Y
-10.1%
3914
JP¥2,522.00
JIG-SAW
7D
-6.6%
1Y
-14.0%
4499
JP¥2,640.00
Speee
7D
-2.9%
1Y
22.2%
7595
JP¥1,445.00
ARGO GRAPHICS
7D
-0.8%
1Y
14.0%
5132
JP¥2,356.00
pluszero
7D
-4.1%
1Y
-5.5%
5254
JP¥4,285.00
Arent
7D
-1.8%
1Y
-13.8%

Arent (TSE:5254) Is Posting Healthy Earnings, But It Is Not All Good News

Feb 19
Arent (TSE:5254) Is Posting Healthy Earnings, But It Is Not All Good News
3776
JP¥228.00
BroadBand Tower
7D
-5.0%
1Y
65.2%

BroadBand Tower's (TSE:3776) Soft Earnings Are Actually Better Than They Appear

Feb 15
BroadBand Tower's (TSE:3776) Soft Earnings Are Actually Better Than They Appear