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Japanese (NIKKEI) IT Industry Analysis

UpdatedDec 26, 2025
DataAggregated Company Financials
Companies218
  • 7D0.8%
  • 3M8.4%
  • 1Y39.0%
  • YTD39.9%

Over the last 7 days, the IT industry has remained flat. The past year has been better, since the industry has gained 40% in that time. As for the next few years, earnings are expected to grow by 8.5% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Fri, 26 Dec 2025JP¥31.9tJP¥15.4tJP¥1.2t17.3x26.6x2.1x
Sun, 23 Nov 2025JP¥32.7tJP¥15.4tJP¥1.2t17.2x27.4x2.1x
Tue, 21 Oct 2025JP¥28.6tJP¥15.3tJP¥1.0t17.2x27.4x1.9x
Thu, 18 Sep 2025JP¥35.1tJP¥19.9tJP¥1.2t17.8x29.6x1.8x
Sat, 16 Aug 2025JP¥29.2tJP¥15.2tJP¥1.0t17.6x28x1.9x
Mon, 14 Jul 2025JP¥26.7tJP¥15.0tJP¥980.6b17.2x27.2x1.8x
Wed, 11 Jun 2025JP¥33.4tJP¥19.6tJP¥1.1t17.4x29.8x1.7x
Fri, 09 May 2025JP¥31.2tJP¥19.5tJP¥1.1t17.5x27.9x1.6x
Sun, 06 Apr 2025JP¥26.7tJP¥19.5tJP¥1.2t15.2x21.6x1.4x
Tue, 04 Mar 2025JP¥29.1tJP¥20.0tJP¥1.3t17.3x23.1x1.5x
Thu, 30 Jan 2025JP¥28.6tJP¥19.8tJP¥1.1t18x25.4x1.4x
Sat, 28 Dec 2024JP¥28.6tJP¥19.8tJP¥1.1t18x25.5x1.4x
Mon, 25 Nov 2024JP¥27.4tJP¥19.8tJP¥1.1t17.6x24.4x1.4x
Wed, 23 Oct 2024JP¥27.1tJP¥19.7tJP¥1.1t17.3x24.1x1.4x
Fri, 20 Sep 2024JP¥27.4tJP¥19.7tJP¥1.1t17.9x24.4x1.4x
Sun, 18 Aug 2024JP¥25.3tJP¥19.7tJP¥1.1t16.8x22.4x1.3x
Tue, 16 Jul 2024JP¥25.9tJP¥19.5tJP¥1.1t18.9x23.1x1.3x
Thu, 13 Jun 2024JP¥24.5tJP¥19.5tJP¥1.1t17x21.8x1.3x
Sat, 11 May 2024JP¥24.2tJP¥19.3tJP¥1.1t18.7x21.7x1.3x
Mon, 08 Apr 2024JP¥24.4tJP¥19.2tJP¥964.2b18.6x25.3x1.3x
Wed, 06 Mar 2024JP¥25.5tJP¥19.2tJP¥965.2b19.3x26.5x1.3x
Fri, 02 Feb 2024JP¥24.7tJP¥19.6tJP¥989.5b18.6x25x1.3x
Sun, 31 Dec 2023JP¥24.2tJP¥19.6tJP¥1.0t18.2x23.3x1.2x
Tue, 28 Nov 2023JP¥23.4tJP¥19.6tJP¥1.0t18.4x22.7x1.2x
Thu, 26 Oct 2023JP¥21.5tJP¥18.9tJP¥1.0t17.4x21.1x1.1x
Sat, 23 Sep 2023JP¥23.3tJP¥18.8tJP¥1.0t18.7x22.9x1.2x
Mon, 21 Aug 2023JP¥22.4tJP¥18.8tJP¥1.0t18.2x21.9x1.2x
Wed, 19 Jul 2023JP¥22.7tJP¥18.3tJP¥1.0t18.8x22.2x1.2x
Fri, 16 Jun 2023JP¥23.0tJP¥18.2tJP¥1.0t19x22.5x1.3x
Sun, 14 May 2023JP¥21.7tJP¥17.8tJP¥1.0t18x21.3x1.2x
Tue, 11 Apr 2023JP¥19.9tJP¥17.5tJP¥978.9b18.1x20.4x1.1x
Thu, 09 Mar 2023JP¥22.0tJP¥18.3tJP¥1.1t18.1x20.9x1.2x
Sat, 04 Feb 2023JP¥22.4tJP¥17.9tJP¥1.1t17.5x20.7x1.3x
Mon, 02 Jan 2023JP¥21.4tJP¥17.7tJP¥1.1t16.6x19.5x1.2x
Price to Earnings Ratio

19.5x


Total Market Cap: JP¥21.4tTotal Earnings: JP¥1.1tTotal Revenue: JP¥17.7tTotal Market Cap vs Earnings and Revenue0%0%0%
Japanese IT Industry Price to Earnings3Y Average 24x20242025
Current Industry PE
  • Investors are optimistic on the Japanese IT industry, and appear confident in long term growth rates.
  • The industry is trading at a PE ratio of 26.5x which is higher than its 3-year average PE of 24.0x.
  • The 3-year average PS ratio of 1.4x is lower than the industry's current PS ratio of 2.1x.
Past Earnings Growth
  • The earnings for companies in the IT industry have grown 3.0% per year over the last three years.
  • Meanwhile revenues for these companies have declined 4.4% 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 Market1.84%
Tech4.13%
IT0.77%
Data Processing Services2.93%
Internet Services and Infrastructure2.58%
IT Consulting0.72%
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 41.3x.
    • Analysts are expecting annual earnings growth of 18.9%, which is lower than the prior year's growth of 23.5% per year.
  • Investors are most pessimistic about the Data Processing Services industry, which is trading close to its 3-year average of 17.7x.
Forecasted Growth
  • Analysts are most optimistic on the Internet Services and Infrastructure industry, expecting annual earnings growth of 19% 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 8.3% 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
446A NorthsandJP¥1.64k12.0%
+JP¥12.1b		n/an/a
9449 GMO internet groupJP¥4.01k2.1%
+JP¥8.3b		48.7%PE24.1x
202A MamezoJP¥3.53k11.4%
+JP¥5.8b		185.4%PE35.5x
4417 Global Security ExpertsJP¥3.24k12.0%
+JP¥5.2b		27.6%PE41.6x
4419 Finatext HoldingsJP¥1.02k9.5%
+JP¥4.5b		4.5%PE60.3x

Latest News

3626
JP¥5,289.00
TIS
7D
-0.8%
1Y
41.2%

TIS (TSE:3626) Is Due To Pay A Dividend Of ¥38.00

Dec 25
TIS (TSE:3626) Is Due To Pay A Dividend Of ¥38.00
4419
JP¥1,019.00
Finatext Holdings
7D
9.5%
1Y
4.5%

Finatext Holdings (TSE:4419) Is Doing The Right Things To Multiply Its Share Price

Dec 25
Finatext Holdings (TSE:4419) Is Doing The Right Things To Multiply Its Share Price
6702
JP¥4,263.00
Fujitsu
7D
-1.0%
1Y
51.4%

6702: Removal From APAC Conviction List Will Pressure Upside Potential

Analysts have raised their price target for Fujitsu from ¥2,621.52 to ¥3,704.07, citing improved expectations for revenue growth and profitability even as the stock was removed from a key regional conviction list. Analyst Commentary Bearish analysts have framed the removal of Fujitsu from a key APAC conviction list as a signal that the risk reward profile has become less compelling, even as headline price targets move higher.
3798
JP¥662.00
ULS Group
7D
10.7%
1Y
25.4%
4768
JP¥3,280.00
Otsuka
7D
-0.8%
1Y
-9.6%
4684
JP¥4,944.00
OBICLtd
7D
-0.9%
1Y
4.8%
4307
JP¥6,009.00
Nomura Research Institute
7D
-2.8%
1Y
27.4%

4307: Financial Platforms And Industrial IT Recovery Will Drive A Balanced Forward Outlook

Analysts have modestly raised their price target for Nomura Research Institute to ¥6,550 from ¥6,579, citing strengthening growth in financial platform services and early signs of recovery in industrial IT that support slightly higher profitability and a sustained premium valuation multiple. Analyst Commentary Bullish analysts point to a more constructive outlook on Nomura Research Institute, driven by improving demand trends and a clearer path to sustainable earnings growth supporting the stock’s premium valuation.
9449
JP¥4,005.00
GMO internet group
7D
2.1%
1Y
48.7%
6701
JP¥5,379.00
NEC
7D
-1.0%
1Y
92.7%

6701: Future Cloud Expansion And Merger Execution Will Shape Balanced Outlook

Analysts have raised their price target for NEC from ¥5,860 to ¥6,050. This reflects slightly higher assumed revenue growth, modestly improved profit margins, and a marginally richer future P E multiple despite a small uptick in the discount rate.
202A
JP¥3,530.00
Mamezo
7D
11.4%
1Y
185.4%
4373
JP¥1,053.00
Simplex Holdings
7D
-2.8%
1Y
66.3%

Estimating The Fair Value Of Simplex Holdings, Inc. (TSE:4373)

Dec 11
Estimating The Fair Value Of Simplex Holdings, Inc. (TSE:4373)
4259
JP¥666.00
ExaWizards
7D
7.4%
1Y
60.9%

Returns On Capital Are Showing Encouraging Signs At ExaWizards (TSE:4259)

Dec 05
Returns On Capital Are Showing Encouraging Signs At ExaWizards (TSE:4259)
8057
JP¥10,550.00
Uchida Yoko
7D
3.1%
1Y
55.6%
8056
JP¥5,457.00
BIPROGY
7D
-1.6%
1Y
15.0%
446A
JP¥1,640.00
Northsand
7D
12.0%
1Y
n/a
4417
JP¥3,240.00
Global Security Experts
7D
12.0%
1Y
27.6%