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Japanese (NIKKEI) IT Industry Analysis

UpdatedMar 12, 2026
DataAggregated Company Financials
Companies217
  • 7D2.5%
  • 3M-16.5%
  • 1Y10.3%
  • YTD-17.7%

In the last week, the IT industry is up 2.5%, with Fujitsu up 1.3%. Meanwhile, NS Solutions actually underperformed within the industry, shrinking 6.1% in the last week. This means that the industry has gained 10% over the past year. Looking forward, earnings are forecast to grow by 7.4% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 12 Mar 2026JP¥26.2tJP¥15.9tJP¥1.3t15.3x20.5x1.6x
Sat, 07 Feb 2026JP¥26.9tJP¥15.8tJP¥1.3t16.2x21.1x1.7x
Mon, 05 Jan 2026JP¥31.9tJP¥15.4tJP¥1.2t17.2x26.6x2.1x
Wed, 03 Dec 2025JP¥32.3tJP¥15.4tJP¥1.2t17.3x27.1x2.1x
Fri, 31 Oct 2025JP¥31.2tJP¥15.4tJP¥1.1t17.4x28.6x2x
Sun, 28 Sep 2025JP¥35.0tJP¥19.9tJP¥1.2t18.4x29.5x1.8x
Tue, 26 Aug 2025JP¥34.9tJP¥19.9tJP¥1.2t17.5x29.5x1.8x
Thu, 24 Jul 2025JP¥27.0tJP¥15.0tJP¥980.9b17.4x27.6x1.8x
Sat, 21 Jun 2025JP¥28.2tJP¥15.0tJP¥979.4b17.1x28.8x1.9x
Mon, 19 May 2025JP¥32.6tJP¥19.6tJP¥1.1t17.5x29.2x1.7x
Wed, 16 Apr 2025JP¥27.2tJP¥19.5tJP¥1.2t15.9x22x1.4x
Fri, 14 Mar 2025JP¥28.6tJP¥20.0tJP¥1.3t16.8x22.7x1.4x
Sun, 09 Feb 2025JP¥29.9tJP¥20.0tJP¥1.3t17.8x23.9x1.5x
Tue, 07 Jan 2025JP¥27.9tJP¥19.8tJP¥1.1t17.9x24.8x1.4x
Thu, 05 Dec 2024JP¥28.1tJP¥19.8tJP¥1.1t18x25x1.4x
Sat, 02 Nov 2024JP¥26.3tJP¥19.7tJP¥1.1t17.3x23.6x1.3x
Mon, 30 Sep 2024JP¥28.6tJP¥19.7tJP¥1.1t17.9x25.4x1.5x
Wed, 28 Aug 2024JP¥26.2tJP¥19.7tJP¥1.1t17.7x23.1x1.3x
Fri, 26 Jul 2024JP¥24.9tJP¥19.5tJP¥1.1t18.1x22.1x1.3x
Sun, 23 Jun 2024JP¥24.5tJP¥19.5tJP¥1.1t17.4x21.8x1.3x
Tue, 21 May 2024JP¥24.1tJP¥19.5tJP¥1.1t18x21.5x1.2x
Thu, 18 Apr 2024JP¥24.4tJP¥19.2tJP¥965.5b18.2x25.3x1.3x
Sat, 16 Mar 2024JP¥25.0tJP¥19.2tJP¥963.3b19.6x25.9x1.3x
Mon, 12 Feb 2024JP¥23.7tJP¥19.2tJP¥956.8b18.3x24.7x1.2x
Wed, 10 Jan 2024JP¥24.5tJP¥19.6tJP¥1.0t18.4x23.6x1.2x
Fri, 08 Dec 2023JP¥23.7tJP¥19.6tJP¥1.0t18x22.9x1.2x
Sun, 05 Nov 2023JP¥22.6tJP¥19.0tJP¥1.0t17.6x22.2x1.2x
Tue, 03 Oct 2023JP¥22.8tJP¥18.8tJP¥1.0t18.4x22.3x1.2x
Thu, 31 Aug 2023JP¥23.3tJP¥18.8tJP¥1.0t19x22.8x1.2x
Sat, 29 Jul 2023JP¥22.5tJP¥18.3tJP¥1.0t19x22.2x1.2x
Mon, 26 Jun 2023JP¥22.8tJP¥18.2tJP¥1.0t19.1x22.3x1.2x
Wed, 24 May 2023JP¥22.3tJP¥18.2tJP¥1.0t18.3x21.8x1.2x
Fri, 21 Apr 2023JP¥20.8tJP¥17.5tJP¥978.7b18.1x21.2x1.2x
Sun, 19 Mar 2023JP¥20.0tJP¥17.4tJP¥980.0b17.5x20.4x1.1x
Price to Earnings Ratio

20.4x


Total Market Cap: JP¥20.0tTotal Earnings: JP¥980.0bTotal Revenue: JP¥17.4tTotal 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 20.5x which is lower than its 3-year average PE of 24.3x.
  • The 3-year average PS ratio of 1.5x is lower than the industry's current PS ratio of 1.6x.
Past Earnings Growth
  • The earnings for companies in the IT industry have grown 9.3% per year over the last three years.
  • Meanwhile revenues for these companies have declined 3.1% 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 Market1.82%
Tech2.93%
IT2.49%
Internet Services and Infrastructure5.98%
IT Consulting2.39%
Data Processing Services1.32%
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 40.8x.
    • Analysts are expecting annual earnings growth of 20.8%, 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 17.2x.
Forecasted Growth
  • Analysts are most optimistic on the Internet Services and Infrastructure industry, expecting annual earnings growth of 21% over the next 5 years.
  • This is roughly in line with its past earnings growth rate.
  • In contrast, the Data Processing Services industry is expected to see its earnings grow by 6.0% 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
6702 FujitsuJP¥3.54k1.3%
+JP¥76.5b		18.4%PE19.4x
3626 TISJP¥3.37k7.0%
+JP¥59.5b		-20.1%PE14.2x
4307 Nomura Research InstituteJP¥4.23k2.2%
+JP¥51.6b		-14.2%PE23.1x
8056 BIPROGYJP¥4.60k2.3%
+JP¥10.0b		4.2%PE14x
446A NorthsandJP¥1.19k13.8%
+JP¥9.9b		n/an/a

Latest News

3697
JP¥656.60
SHIFT
7D
-6.2%
1Y
-44.8%
4307
JP¥4,227.00
Nomura Research Institute
7D
2.2%
1Y
-14.2%
3626
JP¥3,365.00
TIS
7D
7.0%
1Y
-20.1%
6702
JP¥3,540.00
Fujitsu
7D
1.3%
1Y
18.4%

6702: AI Infrastructure Partnerships And Capital Return Will Support Further Upside

Analysts have nudged their fair value estimate for Fujitsu to ¥5,940 from ¥5,918, reflecting updated views on a slightly higher discount rate, more moderate revenue growth and profit margins, and a higher assumed future P/E multiple. What's in the News Fujitsu issued consolidated earnings guidance for the year ending 31 March 2026, targeting revenue of ¥3,530,000 million, operating profit of ¥360,000 million, profit attributable to owners of the parent of ¥425,000 million, and basic EPS of ¥241.83 (corporate guidance).
6701
JP¥4,214.00
NEC
7D
-0.2%
1Y
43.9%

6701: Share Buyback And Earnings Outlook Will Support A Stronger Future

Analysts have revised their price target on NEC to ¥6,362.5 from ¥6,050, reflecting updated assumptions on fair value, discount rate, revenue growth, profit margin and future P/E. What's in the News NEC has announced a share repurchase program of up to 6,800,000 shares, or 0.51% of issued shares excluding treasury stock, with a total purchase value of ¥30,000m, running through March 31, 2026 (company announcement).
4684
JP¥3,985.00
OBICLtd
7D
-1.4%
1Y
-8.5%
2327
JP¥3,663.00
NS Solutions
7D
-6.1%
1Y
-9.2%
8056
JP¥4,603.00
BIPROGY
7D
2.3%
1Y
4.2%
9449
JP¥2,864.00
GMO internet group
7D
1.6%
1Y
-8.9%

9449: Share Repurchases And New AI Authorizations Will Support Future Shareholder Returns

Analysts have maintained their fair value estimate for GMO Internet Group at ¥5,000. Only minor adjustments have been made to assumptions on revenue growth, profit margins, and the future P/E used to support the unchanged price target.
4812
JP¥1,933.00
Dentsu Soken
7D
2.0%
1Y
-10.8%
3844
JP¥1,458.00
Comture
7D
-6.2%
1Y
-18.0%
4768
JP¥2,981.00
Otsuka
7D
-1.6%
1Y
-8.3%
4373
JP¥825.00
Simplex Holdings
7D
2.7%
1Y
14.7%
3962
JP¥931.00
CHANGE HoldingsInc
7D
-5.2%
1Y
-30.1%
7595
JP¥1,521.00
ARGO GRAPHICS
7D
-3.1%
1Y
18.4%
446A
JP¥1,188.00
Northsand
7D
13.8%
1Y
n/a