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Japanese (NIKKEI) Software Industry Analysis

UpdatedFeb 19, 2026
DataAggregated Company Financials
Companies185
  • 7D-5.9%
  • 3M-20.7%
  • 1Y-25.1%
  • YTD-17.4%

Over the last 7 days, the Software industry has dropped 5.9%, driven by declines in Trend Micro and OBIC Business Consultants of 4.9% and 7.6%, respectively. In contrast, TRADE WORKS has gained 19%. However, the industry is down 25% over the past year. Looking forward, earnings are forecast to grow by 16% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 19 Feb 2026JP¥6.5tJP¥2.5tJP¥271.0b17.6x24x2.6x
Sat, 17 Jan 2026JP¥7.9tJP¥2.5tJP¥265.1b20.4x29.9x3.2x
Mon, 15 Dec 2025JP¥8.0tJP¥2.4tJP¥253.9b19.1x31.4x3.3x
Wed, 12 Nov 2025JP¥8.5tJP¥2.4tJP¥242.0b21.8x35.1x3.6x
Fri, 10 Oct 2025JP¥8.7tJP¥2.4tJP¥234.3b21.9x37.2x3.7x
Sun, 07 Sep 2025JP¥8.8tJP¥2.4tJP¥236.0b22.1x37.3x3.7x
Tue, 05 Aug 2025JP¥9.1tJP¥2.3tJP¥223.0b21.5x40.9x3.9x
Thu, 03 Jul 2025JP¥8.9tJP¥2.3tJP¥227.8b20.1x39.2x3.8x
Sat, 31 May 2025JP¥8.9tJP¥2.3tJP¥231.9b20.4x38.6x3.9x
Mon, 28 Apr 2025JP¥8.3tJP¥2.3tJP¥228.9b19.9x36.5x3.7x
Wed, 26 Mar 2025JP¥8.5tJP¥2.2tJP¥225.2b19.6x37.7x3.8x
Fri, 21 Feb 2025JP¥8.6tJP¥2.2tJP¥225.3b20.2x38x3.8x
Sun, 19 Jan 2025JP¥8.2tJP¥2.5tJP¥219.3b21.1x37.5x3.3x
Tue, 17 Dec 2024JP¥8.5tJP¥2.4tJP¥212.0b22.6x40.1x3.6x
Thu, 14 Nov 2024JP¥8.5tJP¥2.4tJP¥207.6b22x40.9x3.5x
Sat, 12 Oct 2024JP¥8.7tJP¥2.4tJP¥205.7b22.2x42.2x3.6x
Mon, 09 Sep 2024JP¥8.3tJP¥2.4tJP¥205.4b21.5x40.5x3.4x
Wed, 07 Aug 2024JP¥7.0tJP¥2.4tJP¥191.2b18.6x36.5x2.9x
Fri, 05 Jul 2024JP¥7.7tJP¥2.4tJP¥187.1b23x41.2x3.2x
Sun, 02 Jun 2024JP¥7.3tJP¥2.4tJP¥187.9b22.4x38.9x3.1x
Tue, 30 Apr 2024JP¥7.5tJP¥2.3tJP¥170.3b22.4x44.1x3.2x
Thu, 28 Mar 2024JP¥8.0tJP¥2.3tJP¥167.4b23.5x47.7x3.4x
Sat, 24 Feb 2024JP¥7.7tJP¥2.3tJP¥163.6b24.1x47.1x3.3x
Mon, 22 Jan 2024JP¥7.8tJP¥2.3tJP¥163.1b22.7x47.7x3.4x
Wed, 20 Dec 2023JP¥7.7tJP¥2.3tJP¥162.1b21.6x47.3x3.3x
Fri, 17 Nov 2023JP¥7.4tJP¥2.3tJP¥164.2b21.5x45.2x3.2x
Sun, 15 Oct 2023JP¥6.9tJP¥2.2tJP¥173.3b23.6x39.7x3.1x
Tue, 12 Sep 2023JP¥7.1tJP¥2.2tJP¥170.6b24.7x41.5x3.2x
Thu, 10 Aug 2023JP¥7.0tJP¥2.2tJP¥167.2b24.5x41.9x3.2x
Sat, 08 Jul 2023JP¥7.3tJP¥2.2tJP¥167.2b24.5x43.4x3.3x
Mon, 05 Jun 2023JP¥7.4tJP¥2.2tJP¥166.6b23.4x44.1x3.4x
Wed, 03 May 2023JP¥6.9tJP¥2.1tJP¥170.1b21.9x40.9x3.3x
Fri, 31 Mar 2023JP¥6.9tJP¥2.1tJP¥170.1b23.4x40.4x3.2x
Sun, 26 Feb 2023JP¥6.5tJP¥2.1tJP¥170.7b23.1x38.3x3.1x
Price to Earnings Ratio

38.3x


Total Market Cap: JP¥6.5tTotal Earnings: JP¥170.7bTotal Revenue: JP¥2.1tTotal Market Cap vs Earnings and Revenue0%0%0%
Japanese Software Industry Price to Earnings3Y Average 40x202420252026
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 24.0x which is lower than its 3-year average PE of 40.0x.
  • The 3-year average PS ratio of 3.4x is higher than the industry's current PS ratio of 2.6x.
Past Earnings Growth
  • The earnings for companies in the Software industry have grown 17% per year over the last three years.
  • Revenues for these companies have grown 6.6% 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-0.84%
Tech0.17%
Software-5.90%
Systems Software-5.28%
Application Software-6.33%
Industry PE
  • Investors are most optimistic about the Application Software industry even though it's trading below its 3-year average PE ratio of 53.9x.
    • Analysts are expecting annual earnings growth of 22.3%, which is higher than its past year's earnings growth of 18.8% per year.
  • 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 22% 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 9.5% 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
4704 Trend MicroJP¥5.83k1.5%
+JP¥12.5b
-49.2%PE21.9x
9790 Fukui Computer HoldingsIncJP¥3.40k6.4%
+JP¥4.2b
12.4%PE18.4x
3997 TRADE WORKSJP¥567.0019.4%
+JP¥3.6b
261.1%PE395.1x
2326 Digital ArtsJP¥5.50k4.4%
+JP¥3.1b
-15.4%PE22.2x
4258 AMIYAJP¥3.26k11.2%
+JP¥2.8b
79.4%PE36.7x

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