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Japanese (NIKKEI) IT Industry Analysis

UpdatedJun 30, 2026
DataAggregated Company Financials
Companies218
  • 7D4.2%
  • 3M2.3%
  • 1Y-14.5%
  • YTD-22.4%

Last week, the IT industry hasn't moved much but NEC is up 7.9% in that time. As for the longer term, the industry has declined 17% in the last year. 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
Tue, 30 Jun 2026JP¥23.0tJP¥15.2tJP¥1.1t14.4x20.2x1.5x
Thu, 28 May 2026JP¥24.1tJP¥15.2tJP¥1.1t14.5x21.2x1.6x
Sat, 25 Apr 2026JP¥25.3tJP¥15.1tJP¥1.2t14.7x20.9x1.7x
Mon, 23 Mar 2026JP¥23.4tJP¥15.1tJP¥1.2t15x19.4x1.5x
Wed, 18 Feb 2026JP¥25.7tJP¥15.9tJP¥1.3t15.8x20.1x1.6x
Fri, 16 Jan 2026JP¥33.3tJP¥15.5tJP¥1.2t17.9x27.8x2.2x
Sun, 14 Dec 2025JP¥31.9tJP¥15.4tJP¥1.2t17.2x26.7x2.1x
Tue, 11 Nov 2025JP¥31.6tJP¥15.6tJP¥1.2t17.2x26.7x2x
Thu, 09 Oct 2025JP¥30.1tJP¥15.3tJP¥1.0t18.2x28.8x2x
Sat, 06 Sep 2025JP¥34.2tJP¥19.9tJP¥1.2t17.7x28.9x1.7x
Mon, 04 Aug 2025JP¥29.1tJP¥16.0tJP¥1.0t17.9x28.3x1.8x
Wed, 02 Jul 2025JP¥28.6tJP¥15.0tJP¥979.1b17.2x29.2x1.9x
Fri, 30 May 2025JP¥32.9tJP¥19.6tJP¥1.1t17.4x29.4x1.7x
Sun, 27 Apr 2025JP¥28.6tJP¥19.3tJP¥1.1t16.8x25.6x1.5x
Tue, 25 Mar 2025JP¥28.4tJP¥19.8tJP¥1.2t17.4x22.7x1.4x
Thu, 20 Feb 2025JP¥30.2tJP¥20.1tJP¥1.3t17.7x23.9x1.5x
Sat, 18 Jan 2025JP¥27.0tJP¥19.8tJP¥1.1t17.3x24.1x1.4x
Mon, 16 Dec 2024JP¥28.6tJP¥19.8tJP¥1.1t18.6x25.5x1.4x
Wed, 13 Nov 2024JP¥27.9tJP¥19.8tJP¥1.1t17.6x24.9x1.4x
Fri, 11 Oct 2024JP¥28.2tJP¥19.7tJP¥1.1t17.8x25.1x1.4x
Sun, 08 Sep 2024JP¥26.7tJP¥19.8tJP¥1.1t17.6x23.6x1.4x
Tue, 06 Aug 2024JP¥21.7tJP¥19.6tJP¥1.1t14.5x18.9x1.1x
Thu, 04 Jul 2024JP¥26.0tJP¥19.5tJP¥1.1t18.7x23.2x1.3x
Sat, 01 Jun 2024JP¥24.0tJP¥19.5tJP¥1.1t16.8x21.4x1.2x
Mon, 29 Apr 2024JP¥24.2tJP¥19.2tJP¥1.1t18.4x22.2x1.3x
Wed, 27 Mar 2024JP¥25.3tJP¥19.2tJP¥964.4b19.5x26.2x1.3x
Fri, 23 Feb 2024JP¥24.3tJP¥19.1tJP¥964.6b18.5x25.2x1.3x
Sun, 21 Jan 2024JP¥24.7tJP¥19.6tJP¥1.0t18.8x23.8x1.3x
Tue, 19 Dec 2023JP¥23.6tJP¥19.6tJP¥1.0t17.8x22.9x1.2x
Thu, 16 Nov 2023JP¥23.1tJP¥19.4tJP¥1.0t17.5x22.5x1.2x
Sat, 14 Oct 2023JP¥22.3tJP¥18.9tJP¥1.0t17.9x21.8x1.2x
Mon, 11 Sep 2023JP¥23.6tJP¥18.8tJP¥1.0t19.2x23.1x1.3x
Wed, 09 Aug 2023JP¥22.8tJP¥18.5tJP¥1.0t18.6x21.9x1.2x
Fri, 07 Jul 2023JP¥22.4tJP¥18.2tJP¥1.0t18.7x21.9x1.2x
Price to Earnings Ratio

21.9x


Total Market Cap: JP¥22.4tTotal 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 19.4x 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-3.00%
Tech-7.08%
IT4.23%
IT Consulting4.54%
Data Processing Services0.37%
Internet Services and Infrastructure-4.20%
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 38.7x.
    • Analysts are expecting annual earnings growth of 17.5%, 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 17% 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
6701 NECJP¥3.94k7.1%
+JP¥346.2b		-5.5%PE19.4x
4307 Nomura Research InstituteJP¥4.59k6.5%
+JP¥157.3b		-19.4%PE168.2x
6702 FujitsuJP¥3.25k2.8%
+JP¥150.9b		-6.7%PE18.6x
4684 OBICLtdJP¥3.83k3.6%
+JP¥57.5b		-31.1%PE22.1x
2327 NS SolutionsJP¥3.38k6.1%
+JP¥35.3b		-17.0%PE20x

Latest News

6702
JP¥3,249.00
Fujitsu
7D
2.8%
1Y
-6.7%
4499
JP¥2,243.00
Speee
7D
-6.5%
1Y
-10.8%
4055
JP¥1,695.00
T&S Group
7D
-11.5%
1Y
41.3%
3962
JP¥905.00
CHANGE HoldingsInc
7D
-1.8%
1Y
-20.1%
2354
JP¥778.00
YE DIGITAL
7D
-13.9%
1Y
21.0%
4812
JP¥2,150.00
Dentsu Soken
7D
8.1%
1Y
-3.7%
9211
JP¥1,321.00
f-code
7D
-5.2%
1Y
-41.9%
3626
JP¥3,155.00
TIS
7D
4.8%
1Y
-34.5%
4684
JP¥3,833.00
OBICLtd
7D
3.6%
1Y
-31.1%
4307
JP¥4,585.00
Nomura Research Institute
7D
6.5%
1Y
-19.4%
Narrative Update • Jun 23

4307: Share Buybacks And Higher Dividend Will Support Future Upside

Analysts have trimmed their price target for Nomura Research Institute slightly to ¥5,675 from ¥5,730, reflecting updated assumptions around discount rates, modest revenue growth expectations, a steady profit margin profile, and a lower future P/E multiple. What's in the News Nomura Research Institute has scheduled a board meeting on April 24, 2026 to consider the purchase of treasury shares, according to a company announcement.
149A
JP¥749.00
ThincaLtd
7D
-25.1%
1Y
-33.5%
4768
JP¥2,784.50
Otsuka
7D
3.1%
1Y
-5.4%
2327
JP¥3,375.00
NS Solutions
7D
6.1%
1Y
-17.0%
6701
JP¥3,944.00
NEC
7D
7.1%
1Y
-5.5%
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.
3915
JP¥2,257.00
TerraSkyLtd
7D
-10.4%
1Y
-21.3%
4259
JP¥806.00
ExaWizards
7D
-8.0%
1Y
97.5%