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Japanese (NIKKEI) IT Industry Analysis

UpdatedJul 25, 2026
DataAggregated Company Financials
Companies215
  • 7D-1.4%
  • 3M-3.2%
  • 1Y-6.2%
  • YTD-17.9%

Over the last 7 days, the IT industry has dropped 2.2%, driven by NEC declining 2.4%. Meanwhile, SHIFT actually outperformed within the industry, gaining 8.6% in the last week. However, the industry is down 6.3% over the past 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
Sat, 25 Jul 2026JP¥24.3tJP¥15.2tJP¥1.1t15.5x21.3x1.6x
Mon, 22 Jun 2026JP¥22.1tJP¥15.2tJP¥1.1t14.2x19.4x1.5x
Wed, 20 May 2026JP¥24.3tJP¥15.2tJP¥1.1t14.5x21.3x1.6x
Fri, 17 Apr 2026JP¥25.0tJP¥15.1tJP¥1.2t15.1x20.7x1.7x
Sun, 15 Mar 2026JP¥25.9tJP¥15.9tJP¥1.3t14.9x20.3x1.6x
Tue, 10 Feb 2026JP¥27.4tJP¥15.8tJP¥1.3t16.4x21.5x1.7x
Thu, 08 Jan 2026JP¥32.4tJP¥15.4tJP¥1.2t17.6x27x2.1x
Sat, 06 Dec 2025JP¥31.8tJP¥15.4tJP¥1.2t17.2x26.6x2.1x
Mon, 03 Nov 2025JP¥31.6tJP¥15.5tJP¥1.2t17.3x26.8x2x
Wed, 01 Oct 2025JP¥34.5tJP¥19.9tJP¥1.2t18.3x29.1x1.7x
Fri, 29 Aug 2025JP¥34.4tJP¥19.9tJP¥1.2t17.4x29.1x1.7x
Sun, 27 Jul 2025JP¥27.7tJP¥15.0tJP¥983.6b17.6x28.2x1.8x
Tue, 24 Jun 2025JP¥27.7tJP¥15.0tJP¥979.4b16.8x28.3x1.9x
Thu, 22 May 2025JP¥32.2tJP¥19.6tJP¥1.1t17x28.7x1.6x
Sat, 19 Apr 2025JP¥28.2tJP¥19.5tJP¥1.2t16.4x22.8x1.4x
Mon, 17 Mar 2025JP¥28.8tJP¥20.0tJP¥1.3t16.8x22.8x1.4x
Wed, 12 Feb 2025JP¥29.8tJP¥20.0tJP¥1.3t17.7x23.7x1.5x
Fri, 10 Jan 2025JP¥27.9tJP¥19.8tJP¥1.1t17.7x24.9x1.4x
Sun, 08 Dec 2024JP¥28.0tJP¥19.8tJP¥1.1t17.9x24.9x1.4x
Tue, 05 Nov 2024JP¥26.3tJP¥19.7tJP¥1.1t17.2x23.5x1.3x
Thu, 03 Oct 2024JP¥28.4tJP¥19.7tJP¥1.1t18x25.3x1.4x
Sat, 31 Aug 2024JP¥26.5tJP¥19.7tJP¥1.1t17.7x23.4x1.3x
Mon, 29 Jul 2024JP¥25.7tJP¥19.6tJP¥1.1t18.2x22.5x1.3x
Wed, 26 Jun 2024JP¥25.1tJP¥19.5tJP¥1.1t17.8x22.4x1.3x
Fri, 24 May 2024JP¥24.2tJP¥19.5tJP¥1.1t17x21.5x1.2x
Sun, 21 Apr 2024JP¥23.9tJP¥19.2tJP¥965.5b17.9x24.7x1.2x
Tue, 19 Mar 2024JP¥25.6tJP¥19.2tJP¥964.4b19.6x26.5x1.3x
Thu, 15 Feb 2024JP¥24.0tJP¥19.2tJP¥963.2b18.4x24.9x1.3x
Sat, 13 Jan 2024JP¥25.0tJP¥19.6tJP¥1.0t18.6x24.1x1.3x
Mon, 11 Dec 2023JP¥23.4tJP¥19.6tJP¥1.0t18x22.6x1.2x
Wed, 08 Nov 2023JP¥22.5tJP¥19.4tJP¥1.0t17.9x22.2x1.2x
Fri, 06 Oct 2023JP¥22.8tJP¥18.8tJP¥1.0t17.9x22.3x1.2x
Sun, 03 Sep 2023JP¥23.5tJP¥18.8tJP¥1.0t19.3x23.1x1.2x
Tue, 01 Aug 2023JP¥22.9tJP¥18.4tJP¥1.0t19.1x22.4x1.2x
Price to Earnings Ratio

22.4x


Total Market Cap: JP¥22.9tTotal Earnings: JP¥1.0tTotal Revenue: JP¥18.4tTotal 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 21.1x 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 3.8% per year over the last three years.
  • Meanwhile revenues for these companies have declined 6.0% 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 Market2.14%
Tech2.16%
IT-1.38%
Data Processing Services1.04%
IT Consulting-1.35%
Internet Services and Infrastructure-2.20%
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 38.0x.
    • Analysts are expecting annual earnings growth of 17.6%, which is lower than the prior year's growth of 22.1% per year.
  • Investors are most pessimistic about the Data Processing Services industry, which is trading close to its 3-year average of 16.9x.
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 22% per year.
  • In contrast, the IT Consulting industry is expected to see its earnings grow by 12% 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
3697 SHIFTJP¥807.008.6%
+JP¥16.3b		-48.7%PE31.1x
2354 YE DIGITALJP¥1.60k51.1%
+JP¥10.0b		146.5%PE23.5x
4722 FutureJP¥2.21k2.3%
+JP¥4.3b		-0.3%PE16.2x
4768 OtsukaJP¥3.03k0.4%
+JP¥4.2b		5.1%PE17.3x
4828 Business EngineeringJP¥1.18k3.1%
+JP¥2.1b		16.5%PE14.4x

Latest News

4684
JP¥4,192.00
OBICLtd
7D
-1.8%
1Y
-22.5%
Analysis Article • 10h

OBIC Co.,Ltd. Just Beat EPS By 8.2%: Here's What Analysts Think Will Happen Next

OBIC Co.,Ltd. ( TSE:4684 ) investors will be delighted, with the company turning in some strong numbers with its latest...
2354
JP¥1,600.00
YE DIGITAL
7D
51.1%
1Y
146.5%
3697
JP¥807.00
SHIFT
7D
8.6%
1Y
-48.7%
4768
JP¥3,026.00
Otsuka
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0.4%
1Y
5.1%
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Finatext Holdings
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-8.5%
1Y
23.1%
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When Should You Buy Finatext Holdings Ltd. (TSE:4419)?

Finatext Holdings Ltd. ( TSE:4419 ), is not the largest company out there, but it saw a significant share price rise of...
4722
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Future
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2.3%
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9449
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GMO internet group
7D
-3.5%
1Y
3.5%
6701
JP¥4,249.00
NEC
7D
-2.4%
1Y
1.8%
6702
JP¥3,279.00
Fujitsu
7D
-0.6%
1Y
-0.3%
Narrative Update • Jul 08

6702: Capital Returns And AI Partnerships Will Drive Future Upside

Analysts have trimmed their price target for Fujitsu from ¥3,960 to ¥3,830, citing updated assumptions for discount rate, revenue growth, profit margin, and future P/E that together point to a slightly lower fair value estimate. What's in the News for Fujitsu Fujitsu plans to invest about ¥200b alongside Dentsu Group and a trading house to take system integrator Dentsu Soken private by acquiring the remaining 38.2% stake from the market, according to recent news reports.
4259
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ExaWizards
7D
2.0%
1Y
76.4%
3778
JP¥2,818.00
SAKURA Internet
7D
1.3%
1Y
-22.7%
4828
JP¥1,179.00
Business Engineering
7D
3.1%
1Y
16.5%
3626
JP¥3,490.00
TISI
7D
-1.0%
1Y
-24.8%
9889
JP¥1,450.00
JBCC Holdings
7D
1.6%
1Y
11.4%
4307
JP¥4,935.00
Nomura Research Institute
7D
-2.8%
1Y
-10.7%
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.
446A
JP¥1,450.00
Northsand
7D
-11.6%
1Y
n/a