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

Japanese (NIKKEI) IT Industry Analysis

UpdatedMar 26, 2026
DataAggregated Company Financials
Companies215
  • 7D-2.8%
  • 3M-22.0%
  • 1Y1.3%
  • YTD-22.1%

Over the last 7 days, the IT industry has dropped 2.8%, driven by pullbacks in Fujitsu and NEC of 3.6% and 3.5%, respectively. As for the longer term, the industry's performance has been flat for the past year. 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
Thu, 26 Mar 2026JP¥23.3tJP¥15.1tJP¥1.2t15.1x19.3x1.5x
Sat, 21 Feb 2026JP¥25.4tJP¥15.9tJP¥1.3t15.8x19.9x1.6x
Mon, 19 Jan 2026JP¥32.9tJP¥15.5tJP¥1.2t17.9x27.5x2.1x
Wed, 17 Dec 2025JP¥31.7tJP¥15.4tJP¥1.2t17.1x26.4x2.1x
Fri, 14 Nov 2025JP¥32.3tJP¥15.4tJP¥1.2t17.2x27.5x2.1x
Sun, 12 Oct 2025JP¥29.4tJP¥15.3tJP¥1.0t17.8x28.2x1.9x
Tue, 09 Sep 2025JP¥34.7tJP¥19.9tJP¥1.2t17.8x29.3x1.7x
Thu, 07 Aug 2025JP¥29.5tJP¥15.2tJP¥1.0t17.9x28.4x1.9x
Sat, 05 Jul 2025JP¥27.7tJP¥15.0tJP¥979.1b17x28.3x1.9x
Mon, 02 Jun 2025JP¥32.9tJP¥19.6tJP¥1.1t17.4x29.4x1.7x
Wed, 30 Apr 2025JP¥29.0tJP¥19.3tJP¥1.1t17.3x26.3x1.5x
Fri, 28 Mar 2025JP¥28.3tJP¥19.5tJP¥1.2t17.4x22.9x1.5x
Sun, 23 Feb 2025JP¥29.4tJP¥20.1tJP¥1.3t17.4x23.3x1.5x
Tue, 21 Jan 2025JP¥27.3tJP¥19.8tJP¥1.1t17.4x24.3x1.4x
Thu, 19 Dec 2024JP¥28.2tJP¥19.8tJP¥1.1t18.4x25.3x1.4x
Sat, 16 Nov 2024JP¥27.7tJP¥19.8tJP¥1.1t17.3x24.8x1.4x
Mon, 14 Oct 2024JP¥28.1tJP¥19.7tJP¥1.1t17.7x25x1.4x
Wed, 11 Sep 2024JP¥26.9tJP¥19.8tJP¥1.1t17.7x23.8x1.4x
Fri, 09 Aug 2024JP¥23.7tJP¥19.7tJP¥1.1t15.9x20.8x1.2x
Sun, 07 Jul 2024JP¥26.0tJP¥19.5tJP¥1.1t18.5x23.1x1.3x
Tue, 04 Jun 2024JP¥24.0tJP¥19.5tJP¥1.1t16.9x21.4x1.2x
Thu, 02 May 2024JP¥24.3tJP¥19.3tJP¥1.1t18.6x21.7x1.3x
Sat, 30 Mar 2024JP¥25.2tJP¥19.2tJP¥964.4b19.6x26.1x1.3x
Mon, 26 Feb 2024JP¥24.3tJP¥19.2tJP¥965.2b18.5x25.2x1.3x
Wed, 24 Jan 2024JP¥25.2tJP¥19.6tJP¥1.0t18.7x24.3x1.3x
Fri, 22 Dec 2023JP¥23.7tJP¥19.6tJP¥1.0t18x22.9x1.2x
Sun, 19 Nov 2023JP¥23.5tJP¥19.6tJP¥1.0t17.9x22.6x1.2x
Tue, 17 Oct 2023JP¥22.3tJP¥18.9tJP¥1.0t17.9x21.8x1.2x
Thu, 14 Sep 2023JP¥23.6tJP¥18.8tJP¥1.0t19.2x23.2x1.3x
Sat, 12 Aug 2023JP¥22.6tJP¥18.8tJP¥1.0t18.7x22.2x1.2x
Mon, 10 Jul 2023JP¥22.3tJP¥18.2tJP¥1.0t18.6x21.8x1.2x
Wed, 07 Jun 2023JP¥22.9tJP¥18.2tJP¥1.0t19.1x22.4x1.3x
Fri, 05 May 2023JP¥21.4tJP¥17.7tJP¥1.0t17.8x21.2x1.2x
Sun, 02 Apr 2023JP¥20.1tJP¥17.5tJP¥978.8b17.8x20.5x1.2x
Price to Earnings Ratio

20.5x


Total Market Cap: JP¥20.1tTotal Earnings: JP¥978.8bTotal 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 19.3x which is lower than its 3-year average PE of 24.3x.
  • 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 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 Market-1.93%
Tech-3.08%
IT-2.82%
Data Processing Services0.22%
Internet Services and Infrastructure-2.79%
IT Consulting-2.83%
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 40.6x.
    • Analysts are expecting annual earnings growth of 19.9%, which is lower than the prior year's growth of 24.5% 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 20% 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 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
4812 Dentsu SokenJP¥1.95k2.2%
+JP¥8.2b		-8.4%PE23.3x
4768 OtsukaJP¥2.95k0.5%
+JP¥5.5b		-11.3%PE17.4x
3762 TechMatrixJP¥1.70k2.7%
+JP¥1.8b		-16.7%PE15.2x
4053 Sun*JP¥431.0010.5%
+JP¥1.6b		-24.3%PE34.5x
4819 Digital GarageJP¥2.04k1.5%
+JP¥1.4b		-57.2%PE48.3x

Latest News

3778
JP¥2,620.00
SAKURA Internet
7D
-5.8%
1Y
-33.2%
4812
JP¥1,951.00
Dentsu Soken
7D
2.2%
1Y
-8.4%
6701
JP¥3,899.00
NEC
7D
-5.5%
1Y
21.8%
7595
JP¥1,513.00
ARGO GRAPHICS
7D
1.2%
1Y
15.7%
3626
JP¥3,321.00
TIS
7D
-1.3%
1Y
-23.1%
2359
JP¥2,277.00
Core
7D
4.2%
1Y
20.2%
2327
JP¥3,651.00
NS Solutions
7D
-0.9%
1Y
-9.6%
4307
JP¥4,192.00
Nomura Research Institute
7D
-2.3%
1Y
-16.0%
3762
JP¥1,703.00
TechMatrix
7D
2.7%
1Y
-16.7%
4684
JP¥3,833.00
OBICLtd
7D
-2.6%
1Y
-12.7%
4819
JP¥2,036.00
Digital Garage
7D
1.5%
1Y
-57.2%
6702
JP¥3,247.00
Fujitsu
7D
-2.8%
1Y
4.7%

6702: AI Development Productivity And Buybacks Will Support Future Upside

Analysts have set a slightly lower fair value price target for Fujitsu at ¥3,960, down from ¥4,025. This reflects updated assumptions for the discount rate, revenue growth, profit margin and future P/E that they consider better aligned with current inputs.
149A
JP¥1,301.00
ThincaLtd
7D
41.4%
1Y
13.0%
3697
JP¥618.00
SHIFT
7D
-3.2%
1Y
-49.8%
4768
JP¥2,949.50
Otsuka
7D
0.5%
1Y
-11.3%
4053
JP¥431.00
Sun*
7D
10.5%
1Y
-24.3%