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Japanese (NIKKEI) IT Industry Analysis

UpdatedDec 11, 2025
DataAggregated Company Financials
Companies216
  • 7D-0.9%
  • 3M6.7%
  • 1Y37.7%
  • YTD39.7%

Over the last 7 days, the IT industry has remained flat, although notably NEC declined by 3.2%. The past year has been better, since the industry has gained 38% in that time. As for the next few years, earnings are expected to grow by 8.2% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 11 Dec 2025JP¥31.8tJP¥15.4tJP¥1.2t17.2x26.6x2.1x
Sat, 08 Nov 2025JP¥31.1tJP¥15.6tJP¥1.2t17.1x26.3x2x
Mon, 06 Oct 2025JP¥28.3tJP¥15.3tJP¥1.0t17.5x27.1x1.9x
Wed, 03 Sep 2025JP¥34.3tJP¥19.9tJP¥1.2t17.3x29x1.7x
Fri, 01 Aug 2025JP¥28.6tJP¥15.1tJP¥1.0t17.9x27.6x1.9x
Sun, 29 Jun 2025JP¥28.4tJP¥15.0tJP¥979.1b17.2x29x1.9x
Tue, 27 May 2025JP¥32.8tJP¥19.6tJP¥1.1t17.1x29.3x1.7x
Thu, 24 Apr 2025JP¥28.3tJP¥19.5tJP¥1.2t16.6x22.9x1.5x
Sat, 22 Mar 2025JP¥28.8tJP¥19.8tJP¥1.2t17.4x23.1x1.5x
Mon, 17 Feb 2025JP¥30.1tJP¥20.1tJP¥1.3t17.4x23.8x1.5x
Wed, 15 Jan 2025JP¥27.2tJP¥19.5tJP¥1.1t16.8x24.5x1.4x
Fri, 13 Dec 2024JP¥28.7tJP¥19.8tJP¥1.1t18.5x25.6x1.4x
Sun, 10 Nov 2024JP¥28.1tJP¥19.8tJP¥1.1t17.7x25.1x1.4x
Tue, 08 Oct 2024JP¥28.1tJP¥19.7tJP¥1.1t17.7x25x1.4x
Thu, 05 Sep 2024JP¥26.7tJP¥19.7tJP¥1.1t17.9x23.6x1.4x
Sat, 03 Aug 2024JP¥24.1tJP¥19.6tJP¥1.1t16.8x21x1.2x
Mon, 01 Jul 2024JP¥25.5tJP¥19.5tJP¥1.1t18.2x22.7x1.3x
Wed, 29 May 2024JP¥24.3tJP¥19.5tJP¥1.1t17x21.6x1.2x
Fri, 26 Apr 2024JP¥24.2tJP¥19.2tJP¥967.3b18.4x25x1.3x
Sun, 24 Mar 2024JP¥26.0tJP¥19.2tJP¥964.4b19.6x27x1.4x
Tue, 20 Feb 2024JP¥24.5tJP¥19.1tJP¥964.6b18.5x25.4x1.3x
Thu, 18 Jan 2024JP¥24.6tJP¥19.6tJP¥1.0t18.7x23.7x1.3x
Sat, 16 Dec 2023JP¥23.7tJP¥19.6tJP¥1.0t17.6x22.9x1.2x
Mon, 13 Nov 2023JP¥22.9tJP¥19.4tJP¥1.0t17.7x22.4x1.2x
Wed, 11 Oct 2023JP¥22.8tJP¥18.8tJP¥1.0t18.2x22.4x1.2x
Fri, 08 Sep 2023JP¥23.8tJP¥18.8tJP¥1.0t19.3x23.3x1.3x
Sun, 06 Aug 2023JP¥22.7tJP¥18.5tJP¥1.0t18.6x21.8x1.2x
Tue, 04 Jul 2023JP¥23.0tJP¥18.2tJP¥1.0t19.1x22.5x1.3x
Thu, 01 Jun 2023JP¥21.9tJP¥18.2tJP¥1.0t18.5x21.4x1.2x
Sat, 29 Apr 2023JP¥20.8tJP¥17.5tJP¥979.9b17.9x21.3x1.2x
Mon, 27 Mar 2023JP¥19.8tJP¥17.5tJP¥980.3b17.6x20.2x1.1x
Wed, 22 Feb 2023JP¥21.6tJP¥18.3tJP¥1.1t17.5x20.5x1.2x
Fri, 20 Jan 2023JP¥21.8tJP¥17.7tJP¥1.1t16.8x19.9x1.2x
Sun, 18 Dec 2022JP¥22.3tJP¥17.7tJP¥1.1t17.7x20.3x1.3x
Price to Earnings Ratio

20.3x


Total Market Cap: JP¥22.3tTotal Earnings: JP¥1.1tTotal Revenue: JP¥17.7tTotal Market Cap vs Earnings and Revenue0%0%0%
Japanese IT Industry Price to Earnings3Y Average 24x202320242025
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 26.6x 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 2.8% 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 Market1.62%
Tech1.54%
IT-0.87%
Data Processing Services1.48%
Internet Services and Infrastructure0.58%
IT Consulting-0.92%
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 41.4x.
    • Analysts expect its future annual earnings growth (19.3%) to be largely in line with prior year's earnings growth.
  • Investors are most pessimistic about the Data Processing Services industry, which is trading below its 3-year average of 17.8x.
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 7.9% 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¥7.89k2.7%
+JP¥13.7b		34.4%PE30.6x
4768 OtsukaJP¥3.21k1.1%
+JP¥12.9b		-13.5%PE19.2x
446A NorthsandJP¥1.45k6.1%
+JP¥5.8b		n/an/a
2743 Pixel CompanyzJP¥48.0054.8%
+JP¥3.9b		-61.3%PS6.9x
2338 Quantum SolutionsLtdJP¥430.0016.2%
+JP¥2.8b		-11.9%PS72.8x

Latest News

2743
JP¥48.00
Pixel Companyz
7D
54.8%
1Y
-61.3%
4307
JP¥6,162.00
Nomura Research Institute
7D
-0.8%
1Y
30.6%

4307: Financial Platforms And Industrial IT Recovery Will Shape A Measured Forward Outlook

The analyst price target for Nomura Research Institute has been raised from ¥6,335 to approximately ¥6,579, as analysts point to improving financial platform service growth and a recovering industrial IT segment to justify slightly higher long term growth, margins, and valuation multiples. Analyst Commentary Recent coverage updates highlight a more balanced stance on Nomura Research Institute, with analysts acknowledging both improving fundamentals and lingering execution risks.
6702
JP¥4,060.00
Fujitsu
7D
-1.6%
1Y
41.7%
4828
JP¥7,840.00
Business Engineering
7D
2.9%
1Y
100.5%

Business Engineering (TSE:4828) Is Increasing Its Dividend To ¥110.00

Dec 03
Business Engineering (TSE:4828) Is Increasing Its Dividend To ¥110.00
9449
JP¥3,805.00
GMO internet group
7D
-3.0%
1Y
34.4%
8056
JP¥5,422.00
BIPROGY
7D
-4.1%
1Y
15.9%
6701
JP¥5,489.00
NEC
7D
-4.2%
1Y
108.3%

6701: Earnings and Merger Activity Will Guide Future Market Performance

Analysts have raised their fair value estimate for NEC from ¥5,445 to ¥5,860, citing modest improvements in profit margin expectations and future earnings multiples, even though revenue growth projections are slightly lower. What's in the News Broadcom announced plans to expand its strategic partnership with NEC Corporation, adopting VMware Cloud Foundation to modernize private cloud solutions and offer flexible hybrid cloud resources to customers (Client Announcements).
9799
JP¥1,293.00
Asahi Intelligence Service
7D
12.9%
1Y
44.6%
446A
JP¥1,450.00
Northsand
7D
6.1%
1Y
n/a
4812
JP¥7,890.00
Dentsu Soken
7D
2.7%
1Y
34.4%
4684
JP¥4,894.00
OBICLtd
7D
-3.9%
1Y
-1.6%
9759
JP¥3,481.00
NSD
7D
-3.2%
1Y
0.3%
4316
JP¥1,345.00
BeMap
7D
48.5%
1Y
255.8%

BeMap, Inc.'s (TSE:4316) Share Price Is Still Matching Investor Opinion Despite 26% Slump

Nov 20
BeMap, Inc.'s (TSE:4316) Share Price Is Still Matching Investor Opinion Despite 26% Slump
3697
JP¥906.40
SHIFT
7D
-6.4%
1Y
-26.1%
4768
JP¥3,214.00
Otsuka
7D
1.1%
1Y
-13.5%

A Look At The Intrinsic Value Of Otsuka Corporation (TSE:4768)

Nov 18
A Look At The Intrinsic Value Of Otsuka Corporation (TSE:4768)
2338
JP¥430.00
Quantum SolutionsLtd
7D
16.2%
1Y
-11.9%