Investing IdeasBrowse All StocksMarkets
Have your own idea? Try our Stock Screener
Header cover image

Japanese (NIKKEI) Software Industry Analysis

UpdatedJan 25, 2026
DataAggregated Company Financials
Companies184
  • 7D-3.7%
  • 3M-12.5%
  • 1Y-3.9%
  • YTD-3.3%

Over the last 7 days, the Software industry has dropped 3.7%, driven by a pullback from Oracle Corporation Japan of 3.6%. Meanwhile, Asteria actually outperformed within the industry, gaining 14% in the last week. The industry has fallen 3.9% in the last year. Earnings are forecast to grow by 17% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sun, 25 Jan 2026JP¥7.6tJP¥2.4tJP¥265.0b19.8x28.8x3.1x
Tue, 23 Dec 2025JP¥8.0tJP¥2.4tJP¥254.4b19.7x31.5x3.3x
Thu, 20 Nov 2025JP¥8.2tJP¥2.4tJP¥252.3b18.7x32.4x3.4x
Sat, 18 Oct 2025JP¥8.3tJP¥2.4tJP¥236.1b21.1x35.2x3.5x
Mon, 15 Sep 2025JP¥9.1tJP¥2.4tJP¥236.4b21.3x38.7x3.9x
Wed, 13 Aug 2025JP¥9.1tJP¥2.3tJP¥224.9b21.4x40.4x3.9x
Fri, 11 Jul 2025JP¥8.9tJP¥2.3tJP¥227.7b20.1x39x3.8x
Sun, 08 Jun 2025JP¥9.0tJP¥2.3tJP¥232.4b20.7x38.9x3.9x
Tue, 06 May 2025JP¥8.6tJP¥2.3tJP¥230.6b20.7x37.1x3.8x
Thu, 03 Apr 2025JP¥8.2tJP¥2.2tJP¥222.8b19.2x36.6x3.6x
Sat, 01 Mar 2025JP¥8.2tJP¥2.2tJP¥225.3b19.5x36.2x3.7x
Mon, 27 Jan 2025JP¥8.5tJP¥2.5tJP¥219.2b21.3x38.7x3.4x
Wed, 25 Dec 2024JP¥8.6tJP¥2.5tJP¥222.1b22x38.7x3.5x
Fri, 22 Nov 2024JP¥8.4tJP¥2.5tJP¥221.8b23.5x37.7x3.4x
Sun, 20 Oct 2024JP¥8.6tJP¥2.4tJP¥205.0b22x41.8x3.5x
Tue, 17 Sep 2024JP¥8.4tJP¥2.4tJP¥203.1b21.7x41.3x3.5x
Thu, 15 Aug 2024JP¥7.7tJP¥2.4tJP¥195.1b20.1x39.7x3.2x
Sat, 13 Jul 2024JP¥7.9tJP¥2.4tJP¥187.1b22.7x42.3x3.3x
Mon, 10 Jun 2024JP¥7.4tJP¥2.4tJP¥188.0b22.3x39.2x3.1x
Wed, 08 May 2024JP¥7.8tJP¥2.3tJP¥170.7b23x45.8x3.4x
Fri, 05 Apr 2024JP¥7.7tJP¥2.3tJP¥167.6b22.6x45.9x3.3x
Sun, 03 Mar 2024JP¥8.2tJP¥2.3tJP¥163.5b24x50x3.5x
Tue, 30 Jan 2024JP¥7.8tJP¥2.3tJP¥164.3b24.4x47.6x3.4x
Thu, 28 Dec 2023JP¥7.6tJP¥2.3tJP¥162.3b22.6x47x3.3x
Sat, 25 Nov 2023JP¥7.6tJP¥2.3tJP¥163.4b22x46.4x3.3x
Mon, 23 Oct 2023JP¥6.7tJP¥2.2tJP¥174.3b23x38.2x3x
Wed, 20 Sep 2023JP¥7.0tJP¥2.2tJP¥171.0b24.3x40.7x3.1x
Fri, 18 Aug 2023JP¥6.8tJP¥2.2tJP¥171.9b24.4x39.8x3.1x
Sun, 16 Jul 2023JP¥7.4tJP¥2.2tJP¥166.4b24.5x44.2x3.4x
Tue, 13 Jun 2023JP¥7.6tJP¥2.2tJP¥167.3b23.9x45.2x3.5x
Thu, 11 May 2023JP¥7.1tJP¥2.1tJP¥169.8b24x41.9x3.4x
Sat, 08 Apr 2023JP¥6.7tJP¥2.1tJP¥170.2b22.8x39.3x3.2x
Mon, 06 Mar 2023JP¥6.6tJP¥2.1tJP¥170.7b23.1x38.9x3.2x
Wed, 01 Feb 2023JP¥6.6tJP¥2.0tJP¥180.0b23.8x36.7x3.2x
Price to Earnings Ratio

36.7x


Total Market Cap: JP¥6.6tTotal Earnings: JP¥180.0bTotal Revenue: JP¥2.0tTotal Market Cap vs Earnings and Revenue0%0%0%
Japanese Software Industry Price to Earnings3Y Average 40.3x202420252026
Current Industry PE
  • Investors are pessimistic on the Japanese Software 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 28.8x which is lower than its 3-year average PE of 40.3x.
  • The industry is trading close to its 3-year average PS ratio of 3.4x.
Past Earnings Growth
  • The earnings for companies in the Software industry have grown 14% per year over the last three years.
  • Revenues for these companies have grown 6.3% per year.
  • This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.

Industry Trends

Which industries have driven the changes within the Japanese Tech industry?

JP Market-0.56%
Tech0.92%
Software-3.70%
Systems Software-3.14%
Application Software-4.06%
Industry PE
  • Investors are most optimistic about the Application Software industry even though it's trading below its 3-year average PE ratio of 54.9x.
    • Analysts expect its future annual earnings growth (24.2%) to be largely in line with prior year's earnings growth.
  • Investors are most pessimistic about the Systems Software industry, which is trading below its 3-year average of 31.3x.
Forecasted Growth
  • Analysts are most optimistic on the Application Software industry, expecting annual earnings growth of 24% over the next 5 years.
  • This is roughly in line with its past earnings growth rate.
  • In contrast, the Systems Software industry is expected to see its earnings grow by 9.1% 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
3853 AsteriaJP¥1.23k13.6%
+JP¥2.4b		108.3%PE17.9x
4323 Japan System TechniquesJP¥2.65k3.8%
+JP¥2.4b		42.2%PE22.8x
3997 TRADE WORKSJP¥531.0013.2%
+JP¥2.4b		286.5%PE291.8x
4425 KudanJP¥1.58k9.5%
+JP¥1.5b		15.4%PS23.1x
5246 ELEMENTSJP¥760.006.0%
+JP¥1.2b		16.7%PS5.3x

Latest News

3917
JP¥627.00
iRidge
7D
19.2%
1Y
8.1%

iRidge, Inc.'s (TSE:3917) Share Price Boosted 37% But Its Business Prospects Need A Lift Too

Jan 23
iRidge, Inc.'s (TSE:3917) Share Price Boosted 37% But Its Business Prospects Need A Lift Too
3853
JP¥1,227.00
Asteria
7D
13.6%
1Y
108.3%

Optimistic Investors Push Asteria Corporation (TSE:3853) Shares Up 29% But Growth Is Lacking

Jan 23
Optimistic Investors Push Asteria Corporation (TSE:3853) Shares Up 29% But Growth Is Lacking
3994
JP¥4,141.00
Money Forward
7D
-12.8%
1Y
-3.5%
4716
JP¥11,215.00
Oracle Corporation Japan
7D
-3.6%
1Y
-22.4%

Cloud Transition And AI Uncertainty Will Shape A Cautious Yet Constructive Long Term View

Catalysts About Oracle Corporation Japan Oracle Corporation Japan provides cloud, database and enterprise software services to customers across multiple industries in Japan. What are the underlying business or industry changes driving this perspective?
3854
JP¥2,560.00
I'LL
7D
1.3%
1Y
-0.4%
4704
JP¥6,277.00
Trend Micro
7D
-2.9%
1Y
-28.9%

4704: AI Security And Share Buybacks Will Support Future Upside Potential

Analysts have trimmed their fair value estimate for Trend Micro from ¥7,950 to about ¥7,464, reflecting slightly softer assumptions on revenue growth and profit margins, along with a modestly higher future P/E multiple. What's in the News The board approved a share repurchase plan on November 12, 2025, authorizing the buyback of 1,670,000 shares, or 1.27% of share capital, for ¥10,000 million.
4443
JP¥1,662.00
Sansan
7D
-13.3%
1Y
-29.5%
6047
JP¥582.00
Gunosy
7D
6.0%
1Y
-6.4%

Gunosy's (TSE:6047) Solid Earnings May Rest On Weak Foundations

Jan 20
Gunosy's (TSE:6047) Solid Earnings May Rest On Weak Foundations
5246
JP¥760.00
ELEMENTS
7D
6.0%
1Y
16.7%
3692
JP¥8,990.00
FFRI Security
7D
-8.4%
1Y
276.0%

Earnings Tell The Story For FFRI Security, Inc. (TSE:3692) As Its Stock Soars 32%

Jan 13
Earnings Tell The Story For FFRI Security, Inc. (TSE:3692) As Its Stock Soars 32%
3997
JP¥531.00
TRADE WORKS
7D
13.2%
1Y
286.5%
4733
JP¥7,839.00
OBIC Business Consultants
7D
-5.6%
1Y
5.9%

Is OBIC Business Consultants Co., Ltd. (TSE:4733) Worth JP¥8.5k Based On Its Intrinsic Value?

Dec 26
Is OBIC Business Consultants Co., Ltd. (TSE:4733) Worth JP¥8.5k Based On Its Intrinsic Value?
4323
JP¥2,654.00
Japan System Techniques
7D
3.8%
1Y
42.2%
4686
JP¥5,060.00
JustSystems
7D
-2.1%
1Y
51.3%

Some Investors May Be Worried About JustSystems' (TSE:4686) Returns On Capital

Dec 16
Some Investors May Be Worried About JustSystems' (TSE:4686) Returns On Capital
3923
JP¥943.40
Rakus
7D
-6.4%
1Y
1.8%

Is There An Opportunity With Rakus Co., Ltd.'s (TSE:3923) 33% Undervaluation?

Dec 12
Is There An Opportunity With Rakus Co., Ltd.'s (TSE:3923) 33% Undervaluation?
4425
JP¥1,575.00
Kudan
7D
9.5%
1Y
15.4%