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

Japanese (NIKKEI) Software Industry Analysis

UpdatedMay 21, 2026
DataAggregated Company Financials
Companies180
  • 7D0.7%
  • 3M-0.5%
  • 1Y-24.4%
  • YTD-17.0%

Over the last 7 days, the Software industry has remained flat, although notably Trend Micro gained 9.3%. As for the longer term, the industry has declined 24% in the last year. Looking forward, earnings are forecast to grow by 13% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 21 May 2026JP¥6.5tJP¥2.6tJP¥299.7b16.7x21.8x2.5x
Sat, 18 Apr 2026JP¥6.8tJP¥2.5tJP¥282.7b17.6x24.1x2.7x
Mon, 16 Mar 2026JP¥6.4tJP¥2.5tJP¥271.1b17.1x23.6x2.5x
Wed, 11 Feb 2026JP¥6.9tJP¥2.5tJP¥267.5b18.9x25.9x2.8x
Fri, 09 Jan 2026JP¥8.0tJP¥2.4tJP¥255.6b20.3x31.5x3.3x
Sun, 07 Dec 2025JP¥8.0tJP¥2.4tJP¥252.5b19.3x31.8x3.3x
Tue, 04 Nov 2025JP¥8.5tJP¥2.4tJP¥239.3b20.8x35.5x3.6x
Thu, 02 Oct 2025JP¥8.7tJP¥2.4tJP¥234.3b21.1x36.9x3.7x
Sat, 30 Aug 2025JP¥8.9tJP¥2.4tJP¥232.9b22.6x38.2x3.8x
Mon, 28 Jul 2025JP¥9.0tJP¥2.3tJP¥225.2b21.8x39.9x3.9x
Wed, 25 Jun 2025JP¥9.1tJP¥2.3tJP¥232.7b20.5x39x3.9x
Fri, 23 May 2025JP¥8.7tJP¥2.3tJP¥231.4b19.9x37.7x3.8x
Sun, 20 Apr 2025JP¥8.4tJP¥2.2tJP¥228.2b19.2x36.8x3.7x
Tue, 18 Mar 2025JP¥8.1tJP¥2.2tJP¥225.2b19.7x36.1x3.6x
Thu, 13 Feb 2025JP¥8.8tJP¥2.5tJP¥222.8b21.3x39.6x3.5x
Sat, 11 Jan 2025JP¥8.4tJP¥2.5tJP¥219.3b21.8x38.4x3.4x
Mon, 09 Dec 2024JP¥8.5tJP¥2.5tJP¥220.3b21.9x38.7x3.5x
Wed, 06 Nov 2024JP¥8.3tJP¥2.4tJP¥205.6b21x40.4x3.4x
Fri, 04 Oct 2024JP¥8.4tJP¥2.4tJP¥205.4b22x41x3.5x
Sun, 01 Sep 2024JP¥8.4tJP¥2.4tJP¥203.7b22.1x41.1x3.4x
Tue, 30 Jul 2024JP¥7.8tJP¥2.4tJP¥190.2b22.5x41x3.3x
Thu, 27 Jun 2024JP¥7.5tJP¥2.4tJP¥187.3b22.4x40.1x3.2x
Sat, 25 May 2024JP¥7.5tJP¥2.4tJP¥189.0b22.4x39.7x3.2x
Mon, 22 Apr 2024JP¥7.4tJP¥2.3tJP¥169.2b22.1x43.5x3.2x
Wed, 20 Mar 2024JP¥8.1tJP¥2.3tJP¥166.4b24.2x48.8x3.5x
Fri, 16 Feb 2024JP¥7.8tJP¥2.3tJP¥170.2b22.7x45.6x3.4x
Sun, 14 Jan 2024JP¥7.8tJP¥2.3tJP¥161.8b23.6x48.5x3.4x
Tue, 12 Dec 2023JP¥7.6tJP¥2.3tJP¥162.7b22.4x46.9x3.3x
Thu, 09 Nov 2023JP¥7.0tJP¥2.3tJP¥175.5b23.4x40.1x3.1x
Sat, 07 Oct 2023JP¥6.9tJP¥2.2tJP¥172.5b23.6x40.1x3.1x
Mon, 04 Sep 2023JP¥7.1tJP¥2.2tJP¥171.6b24.5x41.6x3.2x
Wed, 02 Aug 2023JP¥7.4tJP¥2.2tJP¥168.1b24.7x43.9x3.4x
Fri, 30 Jun 2023JP¥7.6tJP¥2.2tJP¥167.3b24.6x45.2x3.5x
Sun, 28 May 2023JP¥7.2tJP¥2.2tJP¥165.6b22.2x43.2x3.3x
Price to Earnings Ratio

43.2x


Total Market Cap: JP¥7.2tTotal Earnings: JP¥165.6bTotal Revenue: JP¥2.2tTotal Market Cap vs Earnings and Revenue0%0%0%
Japanese Software Industry Price to Earnings3Y Average 38.6x202420252026
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 21.8x which is lower than its 3-year average PE of 38.6x.
  • The 3-year average PS ratio of 3.4x is higher than the industry's current PS ratio of 2.5x.
Past Earnings Growth
  • The earnings for companies in the Software industry have grown 22% 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-3.06%
Tech-4.13%
Software0.72%
Systems Software2.21%
Application Software-0.22%
Industry PE
  • Investors are most optimistic about the Application Software industry even though it's trading below its 3-year average PE ratio of 49.9x.
    • Analysts are expecting annual earnings growth of 17.7%, which is higher than its past year's earnings growth of 15.2% per year.
  • Investors are most pessimistic about the Systems Software industry, which is trading below its 3-year average of 30.8x.
Forecasted Growth
  • Analysts are most optimistic on the Application Software industry, expecting annual earnings growth of 18% 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 8.7% 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¥5.99k9.5%
+JP¥67.3b		-44.8%PE20.8x
3905 DatasectionJP¥4.10k90.8%
+JP¥57.9b		445.2%PE43.4x
4716 Oracle Corporation JapanJP¥8.90k4.8%
+JP¥52.0b		-47.6%PE18.1x
3923 RakusJP¥904.206.8%
+JP¥20.0b		-14.3%PE23.7x
4443 SansanJP¥1.41k11.1%
+JP¥17.9b		-24.5%PE62.8x

Latest News

4776
JP¥2,495.00
Cybozu
7D
17.5%
1Y
-20.0%
3993
JP¥2,753.00
PKSHA Technology
7D
-16.6%
1Y
-7.7%
4443
JP¥1,407.00
Sansan
7D
11.1%
1Y
-24.5%
3905
JP¥4,100.00
Datasection
7D
90.8%
1Y
445.2%
3692
JP¥5,570.00
FFRI Security
7D
-16.5%
1Y
16.0%
3694
JP¥398.00
OPTiM
7D
-11.2%
1Y
-29.8%
5137
JP¥214.00
SmartDrive
7D
-27.5%
1Y
-43.4%
3923
JP¥904.20
Rakus
7D
6.8%
1Y
-14.3%
Analysis Article • May 19

The Rakus Co., Ltd. (TSE:3923) Annual Results Are Out And Analysts Have Published New Forecasts

Shareholders might have noticed that Rakus Co., Ltd. ( TSE:3923 ) filed its full-year result this time last week. The...
3853
JP¥2,144.00
Asteria
7D
52.9%
1Y
339.3%
Analysis Article • May 18

If EPS Growth Is Important To You, Asteria (TSE:3853) Presents An Opportunity

It's common for many investors, especially those who are inexperienced, to buy shares in companies with a good story...
4323
JP¥1,713.00
Japan System Techniques
7D
-7.1%
1Y
-8.4%
4686
JP¥3,830.00
JustSystems
7D
5.8%
1Y
12.6%
4425
JP¥1,917.00
Kudan
7D
-34.0%
1Y
64.8%
554A
JP¥1,310.00
Batonz
7D
-31.1%
1Y
n/a
4704
JP¥5,990.00
Trend Micro
7D
9.5%
1Y
-44.8%
4180
JP¥950.00
Appier Group
7D
-10.1%
1Y
-29.4%
4716
JP¥8,898.00
Oracle Corporation Japan
7D
4.8%
1Y
-47.6%
Narrative Update • Apr 23

4716: Future Earnings Power Will Support Upside With Refined Discount Rate Assumptions

Oracle Corporation Japan's analyst price target has shifted from approximately ¥14,842 to ¥13,443. Analysts point to updated assumptions for the discount rate, revenue growth, profit margins and future P/E as the key drivers behind this recalibration.