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Japanese (NIKKEI) IT Industry Analysis

UpdatedFeb 24, 2026
DataAggregated Company Financials
Companies216
  • 7D-1.2%
  • 3M-22.3%
  • 1Y5.7%
  • YTD-20.3%

Over the last 7 days, the IT industry has dropped 2.8%, driven by pullbacks in Fujitsu and NEC of 1.9% and 2.2%, respectively. Over the past 12 months, the industry was up 5.0%. Earnings are forecast to grow by 7.5% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Tue, 24 Feb 2026JP¥25.4tJP¥15.9tJP¥1.3t15.8x19.9x1.6x
Thu, 22 Jan 2026JP¥32.2tJP¥15.5tJP¥1.2t17.6x26.9x2.1x
Sat, 20 Dec 2025JP¥32.1tJP¥15.4tJP¥1.2t17.2x26.8x2.1x
Mon, 17 Nov 2025JP¥32.4tJP¥15.4tJP¥1.2t17.5x27.2x2.1x
Wed, 15 Oct 2025JP¥28.6tJP¥15.3tJP¥1.0t17.4x27.5x1.9x
Fri, 12 Sep 2025JP¥35.4tJP¥19.9tJP¥1.2t17.7x29.9x1.8x
Sun, 10 Aug 2025JP¥29.5tJP¥15.2tJP¥1.0t17.6x28.5x1.9x
Tue, 08 Jul 2025JP¥27.9tJP¥15.0tJP¥979.2b17x28.5x1.9x
Thu, 05 Jun 2025JP¥32.9tJP¥19.6tJP¥1.1t17.4x29.4x1.7x
Sat, 03 May 2025JP¥29.7tJP¥19.5tJP¥1.1t17.3x26.6x1.5x
Mon, 31 Mar 2025JP¥28.6tJP¥19.5tJP¥1.2t17.4x23.2x1.5x
Wed, 26 Feb 2025JP¥29.0tJP¥20.1tJP¥1.3t17.2x23x1.4x
Fri, 24 Jan 2025JP¥27.6tJP¥19.8tJP¥1.1t17.4x24.5x1.4x
Sun, 22 Dec 2024JP¥28.1tJP¥19.8tJP¥1.1t18x25.1x1.4x
Tue, 19 Nov 2024JP¥27.5tJP¥19.8tJP¥1.1t17.6x24.6x1.4x
Thu, 17 Oct 2024JP¥27.8tJP¥19.7tJP¥1.1t17.5x24.8x1.4x
Sat, 14 Sep 2024JP¥26.9tJP¥19.7tJP¥1.1t17.4x23.9x1.4x
Mon, 12 Aug 2024JP¥24.0tJP¥19.7tJP¥1.1t16x21x1.2x
Wed, 10 Jul 2024JP¥25.9tJP¥19.5tJP¥1.1t18.8x23x1.3x
Fri, 07 Jun 2024JP¥24.1tJP¥19.5tJP¥1.1t16.8x21.5x1.2x
Sun, 05 May 2024JP¥24.3tJP¥19.3tJP¥1.1t18.6x21.7x1.3x
Tue, 02 Apr 2024JP¥24.8tJP¥19.2tJP¥964.2b19x25.8x1.3x
Thu, 29 Feb 2024JP¥24.9tJP¥19.2tJP¥965.2b18.8x25.8x1.3x
Sat, 27 Jan 2024JP¥24.7tJP¥19.6tJP¥1.0t18.9x23.7x1.3x
Mon, 25 Dec 2023JP¥23.8tJP¥19.6tJP¥1.0t17.9x22.9x1.2x
Wed, 22 Nov 2023JP¥23.6tJP¥19.6tJP¥1.0t18.3x22.9x1.2x
Fri, 20 Oct 2023JP¥22.0tJP¥18.9tJP¥1.0t17.8x21.5x1.2x
Sun, 17 Sep 2023JP¥24.0tJP¥18.8tJP¥1.0t18.9x23.5x1.3x
Tue, 15 Aug 2023JP¥22.5tJP¥18.8tJP¥1.0t18.9x22x1.2x
Thu, 13 Jul 2023JP¥22.2tJP¥18.2tJP¥1.0t18.4x21.7x1.2x
Sat, 10 Jun 2023JP¥22.7tJP¥18.2tJP¥1.0t18.9x22.2x1.2x
Mon, 08 May 2023JP¥21.4tJP¥17.7tJP¥1.0t17.8x21.2x1.2x
Wed, 05 Apr 2023JP¥20.4tJP¥17.5tJP¥978.8b18.1x20.8x1.2x
Fri, 03 Mar 2023JP¥21.6tJP¥18.3tJP¥1.1t17.6x20.5x1.2x
Price to Earnings Ratio

20.5x


Total Market Cap: JP¥21.6tTotal Earnings: JP¥1.1tTotal Revenue: JP¥18.3tTotal 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 19.9x 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 6.6% 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 Market1.07%
Tech0.56%
IT-1.17%
Data Processing Services-0.46%
IT Consulting-1.16%
Internet Services and Infrastructure-1.55%
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 41.1x.
    • Analysts are expecting annual earnings growth of 19.4%, 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 17.3x.
Forecasted Growth
  • Analysts are most optimistic on the Internet Services and Infrastructure industry, expecting annual earnings growth of 19% over the next 5 years.
  • However this is lower than its past earnings growth rate of 24% per year.
  • In contrast, the Data Processing Services industry is expected to see its earnings grow by 6.5% 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
4684 OBICLtdJP¥3.88k1.5%
+JP¥25.6b		-12.0%PE23.3x
2327 NS SolutionsJP¥3.66k1.4%
+JP¥9.3b		-8.8%PE24.1x
4768 OtsukaJP¥3.04k0.8%
+JP¥9.1b		-14.1%PE17.9x
4812 Dentsu SokenJP¥1.81k1.7%
+JP¥6.1b		-9.6%PE21.6x
3697 SHIFTJP¥657.102.6%
+JP¥4.3b		-51.1%PE19.2x

Latest News

6702
JP¥3,630.00
Fujitsu
7D
-1.9%
1Y
23.4%

6702: AI Productivity Gains And Capital Returns Will Support Fairly Valued Outlook

Analysts have lifted their price target on Fujitsu from about ¥3,704 to roughly ¥4,025 as they refine assumptions around discount rates, profit margins and future P/E levels. What's in the News Fujitsu launched an AI Driven Software Development Platform that automates the full development cycle using its Takane LLM and agentic AI, with internal plans to apply it across 67 medical and government software products by the end of fiscal 2026 (Key Developments).
4768
JP¥3,040.00
Otsuka
7D
0.8%
1Y
-14.1%
6701
JP¥3,916.00
NEC
7D
-2.2%
1Y
32.7%

6701: Share Repurchases And Earnings Guidance Will Support A Higher Share Price

Narrative Update on NEC Analysts have kept their NEC price target broadly steady around ¥5,000, with small tweaks to inputs such as discount rate, revenue growth, profit margin, and forward P/E to reflect updated assumptions rather than a major change in view. What’s in the News Board of Directors authorizes a share repurchase plan, with NEC planning to buy back up to 6,800,000 shares, about 0.51% of issued shares excluding treasury stock, for up to ¥30,000m through March 31, 2026.
4307
JP¥3,833.00
Nomura Research Institute
7D
-2.5%
1Y
-26.6%

4307: Financial Platform Services Will Drive Future Upside As Risk Assumptions Tighten

Analysts have slightly adjusted their price target on Nomura Research Institute to ¥6,530 from ¥6,563. This reflects minor tweaks to assumptions around discount rate, revenue growth, profit margin, and future P/E expectations.
5254
JP¥4,040.00
Arent
7D
8.0%
1Y
-38.4%

Arent (TSE:5254) Is Posting Healthy Earnings, But It Is Not All Good News

Feb 19
Arent (TSE:5254) Is Posting Healthy Earnings, But It Is Not All Good News
9449
JP¥2,930.00
GMO internet group
7D
-3.8%
1Y
2.1%

9449: Share Repurchases And AI Expansion Will Support Stronger Shareholder Returns

Analysts have kept their ¥5,000 price target on GMO Internet Group steady, citing a slightly lower discount rate, a modestly softer revenue growth outlook, and a small improvement in expected profit margin and future P/E assumptions as reasons for only fine tuning their models rather than changing the headline target. What's in the News The board approved a proposal to amend the Articles of Incorporation, aiming to expand and reinforce operations in AI, robotics and cybersecurity, and to add new purposes related to insurance and small-amount and short-term insurance businesses, subject to approval at the FY2025 AGM on March 19, 2026 (Changes in Company Bylaws/Rules, Feb 16, 2026).
4684
JP¥3,883.00
OBICLtd
7D
1.5%
1Y
-12.0%

Returns At OBICLtd (TSE:4684) Appear To Be Weighed Down

Feb 16
Returns At OBICLtd (TSE:4684) Appear To Be Weighed Down
3962
JP¥939.00
CHANGE HoldingsInc
7D
-7.1%
1Y
-28.4%
9759
JP¥2,840.00
NSD
7D
-2.4%
1Y
-16.8%

NSD (TSE:9759) Has A Rock Solid Balance Sheet

Feb 14
NSD (TSE:9759) Has A Rock Solid Balance Sheet
4259
JP¥690.00
ExaWizards
7D
-6.6%
1Y
99.4%
4812
JP¥1,814.00
Dentsu Soken
7D
1.7%
1Y
-9.6%
3626
JP¥3,109.00
TIS
7D
-2.8%
1Y
-19.9%
2327
JP¥3,660.00
NS Solutions
7D
1.4%
1Y
-8.8%

Why NS Solutions' (TSE:2327) Shaky Earnings Are Just The Beginning Of Its Problems

Feb 06
Why NS Solutions' (TSE:2327) Shaky Earnings Are Just The Beginning Of Its Problems
3778
JP¥2,887.00
SAKURA Internet
7D
2.0%
1Y
-31.7%
3697
JP¥657.10
SHIFT
7D
2.6%
1Y
-51.1%
9719
JP¥5,670.00
SCSK
7D
0.2%
1Y
50.2%