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Japanese (NIKKEI) IT Industry Analysis

UpdatedJun 11, 2026
DataAggregated Company Financials
Companies219
  • 7D-4.7%
  • 3M-2.3%
  • 1Y-11.8%
  • YTD-21.7%

Over the last 7 days, the IT industry has dropped 7.0%, driven by pullbacks in Fujitsu and NEC of 6.0% and 6.2%, respectively. On the other hand baudroieinc is actually up 6.2%. Overall the industry is down 10% in 12 months. As for the next few years, earnings are expected to grow by 12% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 11 Jun 2026JP¥23.3tJP¥15.2tJP¥1.1t14.6x20.5x1.5x
Sat, 09 May 2026JP¥23.9tJP¥15.1tJP¥1.1t14.7x21.1x1.6x
Mon, 06 Apr 2026JP¥23.4tJP¥15.1tJP¥1.2t14.7x19.4x1.5x
Wed, 04 Mar 2026JP¥25.5tJP¥15.9tJP¥1.3t15.2x19.9x1.6x
Fri, 30 Jan 2026JP¥30.7tJP¥15.5tJP¥1.2t17.1x25.6x2x
Sun, 28 Dec 2025JP¥31.9tJP¥15.4tJP¥1.2t17.4x26.6x2.1x
Tue, 25 Nov 2025JP¥32.7tJP¥15.4tJP¥1.2t17.2x27.4x2.1x
Thu, 23 Oct 2025JP¥29.9tJP¥15.3tJP¥1.0t17.5x28.6x2x
Sat, 20 Sep 2025JP¥35.3tJP¥19.9tJP¥1.2t18.1x29.8x1.8x
Mon, 18 Aug 2025JP¥29.2tJP¥15.2tJP¥1.0t16.9x28.1x1.9x
Wed, 16 Jul 2025JP¥26.8tJP¥15.0tJP¥981.5b17.1x27.3x1.8x
Fri, 13 Jun 2025JP¥33.7tJP¥19.6tJP¥1.1t18.1x30.1x1.7x
Sun, 11 May 2025JP¥32.6tJP¥19.5tJP¥1.1t17.8x29.2x1.7x
Tue, 08 Apr 2025JP¥24.9tJP¥19.5tJP¥1.2t13.9x20.1x1.3x
Thu, 06 Mar 2025JP¥29.6tJP¥20.0tJP¥1.3t17.2x23.5x1.5x
Sat, 01 Feb 2025JP¥29.6tJP¥19.9tJP¥1.2t18.1x25.4x1.5x
Mon, 30 Dec 2024JP¥28.6tJP¥19.8tJP¥1.1t17.6x25.5x1.4x
Wed, 27 Nov 2024JP¥27.4tJP¥19.8tJP¥1.1t18x24.5x1.4x
Fri, 25 Oct 2024JP¥26.9tJP¥19.7tJP¥1.1t17.1x23.9x1.4x
Sun, 22 Sep 2024JP¥27.5tJP¥19.7tJP¥1.1t17.9x24.5x1.4x
Tue, 20 Aug 2024JP¥25.0tJP¥19.7tJP¥1.1t16.7x22.1x1.3x
Thu, 18 Jul 2024JP¥26.2tJP¥19.5tJP¥1.1t19.2x23.3x1.3x
Sat, 15 Jun 2024JP¥24.4tJP¥19.5tJP¥1.1t17.2x21.8x1.3x
Mon, 13 May 2024JP¥24.0tJP¥19.5tJP¥1.1t18.2x21.3x1.2x
Wed, 10 Apr 2024JP¥24.9tJP¥19.2tJP¥964.2b18.7x25.8x1.3x
Fri, 08 Mar 2024JP¥25.6tJP¥19.2tJP¥965.0b20x26.6x1.3x
Sun, 04 Feb 2024JP¥25.1tJP¥19.7tJP¥1.0t18.6x25x1.3x
Tue, 02 Jan 2024JP¥24.2tJP¥19.6tJP¥1.0t18.2x23.3x1.2x
Thu, 30 Nov 2023JP¥23.5tJP¥19.6tJP¥1.0t18.3x22.7x1.2x
Sat, 28 Oct 2023JP¥22.1tJP¥18.9tJP¥1.0t17.5x21.6x1.2x
Mon, 25 Sep 2023JP¥23.3tJP¥18.8tJP¥1.0t18.7x22.9x1.2x
Wed, 23 Aug 2023JP¥22.6tJP¥18.8tJP¥1.0t18.6x22.1x1.2x
Fri, 21 Jul 2023JP¥22.6tJP¥18.3tJP¥1.0t18.7x22x1.2x
Sun, 18 Jun 2023JP¥23.3tJP¥18.2tJP¥1.0t19.3x22.9x1.3x
Price to Earnings Ratio

22.9x


Total Market Cap: JP¥23.3tTotal 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 20.6x 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-3.75%
Tech-7.63%
IT-4.72%
Data Processing Services-2.21%
IT Consulting-4.69%
Internet Services and Infrastructure-5.71%
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 39.2x.
    • Analysts are expecting annual earnings growth of 17.8%, 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
4413 baudroieincJP¥2.59k6.2%
+JP¥4.7b		-21.5%PE32.9x
446A NorthsandJP¥1.41k4.3%
+JP¥4.0b		n/an/a
4709 ID HoldingsJP¥1.08k8.0%
+JP¥2.7b		-4.6%PE12.7x
3776 BroadBand TowerJP¥281.009.3%
+JP¥1.5b		81.3%PE51.7x
3962 CHANGE HoldingsIncJP¥936.002.2%
+JP¥1.4b		-23.8%PE9.4x

Latest News

4174
JP¥865.00
Appirits
7D
39.7%
1Y
-0.9%
4259
JP¥965.00
ExaWizards
7D
-16.1%
1Y
100.6%
6702
JP¥3,362.00
Fujitsu
7D
-6.0%
1Y
-3.4%
Narrative Update • Jun 06

6702: AI Partnerships And Capital Returns Will Drive Future Upside Potential

Analysts have raised their fair value estimate for Fujitsu slightly, from about ¥5,940 to roughly ¥5,953, citing updated assumptions around discount rates, revenue growth, profit margins, and a lower future P/E multiple. What's in the News The board approves a year end dividend of ¥35 per share for the fiscal year ended March 31, 2026, compared with ¥14 per share a year earlier, with a record date of March 31, 2026 and payment on June 8, 2026.
4307
JP¥4,650.00
Nomura Research Institute
7D
-5.0%
1Y
-19.7%
Narrative Update • Jun 06

4307: Share Buyback And Dividend Framework Will Support Future Upside

Analysts have made a small upward tweak to Nomura Research Institute's fair value estimate, lifting the price target from ¥5,703 to ¥5,730, reflecting updated assumptions around discount rate, revenue growth, profit margin and future P/E. What's in the News Nomura Research Institute is running a ¥70b share buyback program, with recent reports indicating purchases of 13.8 million shares in May as part of an effort to return capital to shareholders and adjust its share base (source: recent news).
6701
JP¥4,010.00
NEC
7D
-6.2%
1Y
3.3%
Narrative Update • Jun 04

6701: Cloud Communications Shift And Physical AI Venture Will Support Future Upside

Analysts have kept NEC's fair value estimate steady at ¥5,000. Changes to the discount rate, revenue growth, profit margin, and future P/E assumptions reflect an updated view of the stock's risk profile and earnings potential rather than a directional shift in the price target.
4722
JP¥1,543.00
Future
7D
0.8%
1Y
-30.7%
4413
JP¥2,592.00
baudroieinc
7D
6.2%
1Y
-21.5%
3776
JP¥281.00
BroadBand Tower
7D
9.3%
1Y
81.3%
2327
JP¥3,256.00
NS Solutions
7D
-4.9%
1Y
-20.2%
3962
JP¥936.00
CHANGE HoldingsInc
7D
2.2%
1Y
-23.8%
3626
JP¥3,245.00
TIS
7D
-2.7%
1Y
-31.8%
Analysis Article • May 16

Some May Be Optimistic About TIS' (TSE:3626) Earnings

Shareholders appeared unconcerned with TIS Inc.'s ( TSE:3626 ) lackluster earnings report last week. We did some...
4709
JP¥1,084.00
ID Holdings
7D
8.0%
1Y
-4.6%
4768
JP¥2,928.50
Otsuka
7D
-3.5%
1Y
-1.9%
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...
9742
JP¥2,138.00
INES
7D
2.2%
1Y
27.0%
4684
JP¥3,956.00
OBICLtd
7D
-3.6%
1Y
-28.6%
446A
JP¥1,405.00
Northsand
7D
4.3%
1Y
n/a