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Japanese (NIKKEI) Software Industry Analysis

UpdatedJan 29, 2026
DataAggregated Company Financials
Companies184
  • 7D-3.3%
  • 3M-12.3%
  • 1Y-10.5%
  • YTD-6.4%

Over the last 7 days, the Software industry has dropped 3.3%, driven by a pullback from Oracle Corporation Japan of 3.5%. The industry has fallen 11% 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
Thu, 29 Jan 2026JP¥7.4tJP¥2.4tJP¥265.2b19.4x27.8x3x
Sat, 27 Dec 2025JP¥8.1tJP¥2.4tJP¥255.6b20.4x31.7x3.3x
Mon, 24 Nov 2025JP¥8.3tJP¥2.4tJP¥252.6b19.1x33x3.4x
Wed, 22 Oct 2025JP¥8.6tJP¥2.4tJP¥236.1b21x36.4x3.6x
Fri, 19 Sep 2025JP¥9.2tJP¥2.4tJP¥234.9b21.6x39.3x3.9x
Sun, 17 Aug 2025JP¥9.0tJP¥2.4tJP¥232.8b21x38.5x3.8x
Tue, 15 Jul 2025JP¥8.8tJP¥2.3tJP¥226.7b20x38.8x3.8x
Thu, 12 Jun 2025JP¥9.1tJP¥2.3tJP¥232.8b20.8x39.3x3.9x
Sat, 10 May 2025JP¥8.7tJP¥2.3tJP¥227.8b20.9x38.4x3.9x
Mon, 07 Apr 2025JP¥7.9tJP¥2.2tJP¥226.8b18x34.7x3.5x
Wed, 05 Mar 2025JP¥8.3tJP¥2.2tJP¥225.3b19.6x36.7x3.7x
Fri, 31 Jan 2025JP¥8.7tJP¥2.5tJP¥219.4b21.4x39.8x3.5x
Sun, 29 Dec 2024JP¥8.7tJP¥2.5tJP¥220.8b22.4x39.5x3.5x
Tue, 26 Nov 2024JP¥8.5tJP¥2.5tJP¥221.4b22.4x38.4x3.4x
Thu, 24 Oct 2024JP¥8.3tJP¥2.4tJP¥205.0b21.6x40.6x3.4x
Sat, 21 Sep 2024JP¥8.5tJP¥2.4tJP¥202.7b22.2x41.7x3.5x
Mon, 19 Aug 2024JP¥7.9tJP¥2.4tJP¥200.6b20.9x39.4x3.3x
Wed, 17 Jul 2024JP¥8.0tJP¥2.4tJP¥189.1b22.8x42.1x3.3x
Fri, 14 Jun 2024JP¥7.4tJP¥2.4tJP¥188.1b22x39.4x3.1x
Sun, 12 May 2024JP¥7.6tJP¥2.3tJP¥176.4b22.4x43.1x3.2x
Tue, 09 Apr 2024JP¥7.7tJP¥2.3tJP¥167.7b22.7x46x3.3x
Thu, 07 Mar 2024JP¥8.1tJP¥2.3tJP¥163.5b25.7x49.6x3.5x
Sat, 03 Feb 2024JP¥7.9tJP¥2.3tJP¥167.0b23.8x47.5x3.4x
Mon, 01 Jan 2024JP¥7.6tJP¥2.3tJP¥162.4b22.7x46.7x3.3x
Wed, 29 Nov 2023JP¥7.6tJP¥2.3tJP¥163.4b22.1x46.3x3.3x
Fri, 27 Oct 2023JP¥6.5tJP¥2.2tJP¥175.4b22.1x37.2x2.9x
Sun, 24 Sep 2023JP¥6.8tJP¥2.2tJP¥171.0b24.3x39.9x3.1x
Tue, 22 Aug 2023JP¥6.8tJP¥2.2tJP¥171.9b24.1x39.4x3x
Thu, 20 Jul 2023JP¥7.4tJP¥2.2tJP¥165.3b24.5x44.8x3.4x
Sat, 17 Jun 2023JP¥8.0tJP¥2.2tJP¥167.0b24.5x48.1x3.7x
Mon, 15 May 2023JP¥7.1tJP¥2.1tJP¥171.0b22.5x41.8x3.3x
Wed, 12 Apr 2023JP¥6.7tJP¥2.1tJP¥170.3b22.4x39.5x3.2x
Fri, 10 Mar 2023JP¥6.8tJP¥2.1tJP¥171.0b23.2x39.7x3.3x
Sun, 05 Feb 2023JP¥6.7tJP¥2.0tJP¥181.6b23.4x37x3.3x
Price to Earnings Ratio

37x


Total Market Cap: JP¥6.7tTotal Earnings: JP¥181.6bTotal 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 27.8x which is lower than its 3-year average PE of 40.3x.
  • The 3-year average PS ratio of 3.4x is higher than the industry's current PS ratio of 3.0x.
Past Earnings Growth
  • The earnings for companies in the Software industry have grown 13% per year over the last three years.
  • Revenues for these companies have grown 6.1% 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-1.33%
Tech3.02%
Software-3.26%
Application Software-3.14%
Systems Software-3.45%
Industry PE
  • Investors are most optimistic about the Application Software industry even though it's trading below its 3-year average PE ratio of 54.8x.
    • Analysts expect its future annual earnings growth (24.4%) 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
3692 FFRI SecurityJP¥9.52k6.3%
+JP¥4.4b		275.1%PE64.9x
3853 AsteriaJP¥1.37k18.7%
+JP¥3.5b		127.1%PE19.9x
4412 Science ArtsJP¥2.31k11.6%
+JP¥1.9b		321.3%PE114.2x
441A NEJP¥710.0015.3%
+JP¥1.6b		n/an/a
4425 KudanJP¥1.55k7.4%
+JP¥1.2b		14.3%PS22.7x

Latest News

3994
JP¥3,980.00
Money Forward
7D
-4.9%
1Y
-7.5%
4733
JP¥7,304.00
OBIC Business Consultants
7D
-6.3%
1Y
-9.5%

OBIC Business Consultants (TSE:4733) Has Announced That It Will Be Increasing Its Dividend To ¥58.00

Jan 28
OBIC Business Consultants (TSE:4733) Has Announced That It Will Be Increasing Its Dividend To ¥58.00
3917
JP¥624.00
iRidge
7D
18.4%
1Y
3.7%

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¥1,365.00
Asteria
7D
18.7%
1Y
127.1%

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
4716
JP¥10,570.00
Oracle Corporation Japan
7D
-4.6%
1Y
-25.8%

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?
4704
JP¥6,088.00
Trend Micro
7D
-3.1%
1Y
-33.8%

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¥1,472.00
Sansan
7D
-12.0%
1Y
-40.9%
4412
JP¥2,313.00
Science Arts
7D
11.6%
1Y
321.3%
5246
JP¥751.00
ELEMENTS
7D
4.7%
1Y
2.2%
3692
JP¥9,520.00
FFRI Security
7D
6.3%
1Y
275.1%

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%
441A
JP¥710.00
NE
7D
15.3%
1Y
n/a
4478
JP¥2,732.00
freee K.K
7D
-7.9%
1Y
-17.8%
4686
JP¥4,795.00
JustSystems
7D
-4.1%
1Y
41.7%

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¥885.00
Rakus
7D
-6.8%
1Y
-8.6%

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¥1,547.00
Kudan
7D
7.4%
1Y
14.3%
4344
JP¥148.00
Sourcenext
7D
5.0%
1Y
-32.7%