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Japanese (NIKKEI) IT Industry Analysis

UpdatedApr 27, 2026
DataAggregated Company Financials
Companies219
  • 7D-0.3%
  • 3M-13.3%
  • 1Y8.5%
  • YTD-15.2%

The IT is pretty flat in the last 7 days, but NEC has stood out, gaining 6.5%. As for the the longer term, the industry is up 8.5% over the past 12 months. As for the next few years, earnings are expected to grow by 10% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Mon, 27 Apr 2026JP¥25.3tJP¥15.1tJP¥1.1t14.8x22.6x1.7x
Wed, 25 Mar 2026JP¥23.3tJP¥15.1tJP¥1.2t14.9x19.3x1.5x
Fri, 20 Feb 2026JP¥25.9tJP¥15.9tJP¥1.3t16.1x20.3x1.6x
Sun, 18 Jan 2026JP¥32.9tJP¥15.5tJP¥1.2t17.9x27.5x2.1x
Tue, 16 Dec 2025JP¥32.0tJP¥15.4tJP¥1.2t17.2x26.7x2.1x
Thu, 13 Nov 2025JP¥32.3tJP¥15.4tJP¥1.2t17.2x27.6x2.1x
Sat, 11 Oct 2025JP¥29.5tJP¥15.3tJP¥1.0t17.8x28.3x1.9x
Mon, 08 Sep 2025JP¥34.2tJP¥19.9tJP¥1.2t17.7x28.9x1.7x
Wed, 06 Aug 2025JP¥29.3tJP¥15.2tJP¥1.0t17.9x28.2x1.9x
Fri, 04 Jul 2025JP¥27.6tJP¥15.0tJP¥979.1b16.7x28.2x1.8x
Sun, 01 Jun 2025JP¥32.9tJP¥19.6tJP¥1.1t17.4x29.4x1.7x
Tue, 29 Apr 2025JP¥29.0tJP¥19.3tJP¥1.1t17.3x26x1.5x
Thu, 27 Mar 2025JP¥28.2tJP¥19.5tJP¥1.2t17.3x22.9x1.5x
Sat, 22 Feb 2025JP¥29.4tJP¥20.1tJP¥1.3t17.4x23.3x1.5x
Mon, 20 Jan 2025JP¥27.0tJP¥19.8tJP¥1.1t17.3x24.1x1.4x
Wed, 18 Dec 2024JP¥28.3tJP¥19.8tJP¥1.1t18.6x25.4x1.4x
Fri, 15 Nov 2024JP¥27.9tJP¥19.8tJP¥1.1t17.9x24.9x1.4x
Sun, 13 Oct 2024JP¥28.1tJP¥19.7tJP¥1.1t17.7x25x1.4x
Tue, 10 Sep 2024JP¥26.8tJP¥19.8tJP¥1.1t17.6x23.7x1.4x
Thu, 08 Aug 2024JP¥24.0tJP¥19.7tJP¥1.1t15.7x21.1x1.2x
Sat, 06 Jul 2024JP¥26.0tJP¥19.5tJP¥1.1t18.6x23.1x1.3x
Mon, 03 Jun 2024JP¥24.0tJP¥19.5tJP¥1.1t16.8x21.4x1.2x
Wed, 01 May 2024JP¥24.5tJP¥19.2tJP¥1.1t18.6x22.5x1.3x
Fri, 29 Mar 2024JP¥24.9tJP¥19.2tJP¥964.4b19.2x25.9x1.3x
Sun, 25 Feb 2024JP¥24.3tJP¥19.2tJP¥965.2b18.5x25.2x1.3x
Tue, 23 Jan 2024JP¥25.1tJP¥19.6tJP¥1.0t18.9x24.2x1.3x
Thu, 21 Dec 2023JP¥23.8tJP¥19.6tJP¥1.0t18.3x22.9x1.2x
Sat, 18 Nov 2023JP¥23.5tJP¥19.5tJP¥1.0t18x22.8x1.2x
Mon, 16 Oct 2023JP¥22.3tJP¥18.9tJP¥1.0t17.9x21.8x1.2x
Wed, 13 Sep 2023JP¥23.8tJP¥18.8tJP¥1.0t19x23.4x1.3x
Fri, 11 Aug 2023JP¥22.6tJP¥18.8tJP¥1.0t19x22.2x1.2x
Sun, 09 Jul 2023JP¥22.3tJP¥18.2tJP¥1.0t18.6x21.8x1.2x
Tue, 06 Jun 2023JP¥22.8tJP¥18.2tJP¥1.0t19x22.3x1.3x
Thu, 04 May 2023JP¥21.4tJP¥17.7tJP¥1.0t17.8x21.2x1.2x
Price to Earnings Ratio

21.2x


Total Market Cap: JP¥21.4tTotal Earnings: JP¥1.0tTotal Revenue: JP¥17.7tTotal Market Cap vs Earnings and Revenue0%0%0%
Japanese IT Industry Price to Earnings3Y Average 24.3x202420252026
Current Industry PE
  • Investors are relatively neutral on the Japanese IT industry at the moment, indicating that they anticipate long term growth rates to remain steady.
  • The industry is trading close to its 3-year average PE ratio of 24.3x.
  • The 3-year average PS ratio of 1.5x is lower than the industry's current PS ratio of 1.7x.
Past Earnings Growth
  • The earnings for companies in the IT industry have grown 3.6% per year over the last three years.
  • Meanwhile revenues for these companies have declined 5.2% 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-0.95%
Tech3.29%
IT-0.27%
IT Consulting-0.15%
Data Processing Services-2.87%
Internet Services and Infrastructure-3.95%
Industry PE
  • Investors are most optimistic about the IT Consulting industry, which is trading close to its 3-year average PE ratio of 24.1x.
    • Analysts are expecting annual earnings growth of 9.8%, which is lower than the prior year's growth of 14.0% 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 18% over the next 5 years.
  • However this is lower than its past earnings growth rate of 27% per year.
  • In contrast, the IT Consulting industry is expected to see its earnings grow by 9.8% 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¥4.61k6.5%
+JP¥373.3b		42.0%PE24.9x
6702 FujitsuJP¥3.82k1.8%
+JP¥114.5b		21.4%PE20.8x
4819 Digital GarageJP¥2.47k7.5%
+JP¥7.9b		-44.8%PE58.6x
2349 Nippon Information DevelopmentJP¥2.44k5.4%
+JP¥1.4b		1.7%PE11.5x
4685 Ryoyu SystemsJP¥3.15k3.1%
+JP¥1.2b		-2.3%PE10.4x

Latest News

4684
JP¥4,191.00
OBICLtd
7D
-1.8%
1Y
-16.0%
4307
JP¥4,370.00
Nomura Research Institute
7D
-12.0%
1Y
-19.4%
7527
JP¥53.00
SystemSoft
7D
-5.4%
1Y
-20.9%
4819
JP¥2,470.00
Digital Garage
7D
7.5%
1Y
-44.8%
6701
JP¥4,608.00
NEC
7D
6.5%
1Y
42.0%
3697
JP¥649.90
SHIFT
7D
-10.0%
1Y
-51.8%

SHIFT's (TSE:3697) Earnings May Just Be The Starting Point

Apr 21
SHIFT's (TSE:3697) Earnings May Just Be The Starting Point
8056
JP¥4,610.00
BIPROGY
7D
-5.6%
1Y
-0.3%
7376
JP¥1,000.00
BCC
7D
23.8%
1Y
61.7%
4685
JP¥3,150.00
Ryoyu Systems
7D
3.1%
1Y
-2.3%
4768
JP¥2,915.00
Otsuka
7D
-4.4%
1Y
-8.0%
3778
JP¥3,270.00
SAKURA Internet
7D
-11.7%
1Y
-2.5%
6702
JP¥3,819.00
Fujitsu
7D
1.8%
1Y
21.4%

6702: Share Cancellation And Higher Dividend Policy Will Support Future Returns

Analysts have made only a marginal adjustment to their Fujitsu fair value and price target, keeping it broadly in line with the prior view around ¥4,689. Updated assumptions for discount rate, revenue growth, profit margin and future P/E remain very close to earlier estimates.
3626
JP¥3,530.00
TIS
7D
-3.7%
1Y
-14.2%
2354
JP¥944.00
YE DIGITAL
7D
3.6%
1Y
56.6%
2327
JP¥3,583.00
NS Solutions
7D
-6.5%
1Y
1.9%
2349
JP¥2,440.00
Nippon Information Development
7D
5.4%
1Y
1.7%