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

Japanese (NIKKEI) Software Industry Analysis

UpdatedJul 17, 2026
DataAggregated Company Financials
Companies182
  • 7D0.9%
  • 3M0.5%
  • 1Y-24.1%
  • YTD-12.7%

Over the last 7 days, the Software industry has remained flat, although notably Trend Micro gained 3.4%. Unfortunately though, the industry is down 24% over the past 12 months. Looking forward, earnings are forecast to grow by 14% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Fri, 17 Jul 2026JP¥6.9tJP¥2.6tJP¥305.5b17.4x22.5x2.6x
Sun, 14 Jun 2026JP¥6.4tJP¥2.6tJP¥299.9b16.1x21.3x2.4x
Tue, 12 May 2026JP¥6.6tJP¥2.6tJP¥285.9b17.1x23x2.6x
Thu, 09 Apr 2026JP¥6.4tJP¥2.5tJP¥278.7b17.5x23.1x2.5x
Sat, 07 Mar 2026JP¥6.6tJP¥2.5tJP¥269.8b17.9x24.5x2.6x
Mon, 02 Feb 2026JP¥7.2tJP¥2.5tJP¥265.4b19.2x27.1x2.9x
Wed, 31 Dec 2025JP¥8.0tJP¥2.4tJP¥255.6b20.3x31.2x3.3x
Fri, 28 Nov 2025JP¥8.3tJP¥2.4tJP¥252.5b19.5x32.9x3.4x
Sun, 26 Oct 2025JP¥8.6tJP¥2.4tJP¥236.2b22x36.6x3.6x
Tue, 23 Sep 2025JP¥9.2tJP¥2.4tJP¥234.9b21.9x39.2x3.9x
Thu, 21 Aug 2025JP¥9.0tJP¥2.4tJP¥232.8b21.4x38.8x3.8x
Sat, 19 Jul 2025JP¥8.9tJP¥2.3tJP¥225.1b20.5x39.4x3.8x
Mon, 16 Jun 2025JP¥9.0tJP¥2.3tJP¥232.5b20.7x38.8x3.9x
Wed, 14 May 2025JP¥8.8tJP¥2.3tJP¥228.6b21.1x38.6x3.9x
Fri, 11 Apr 2025JP¥8.1tJP¥2.2tJP¥226.8b18.1x35.8x3.6x
Sun, 09 Mar 2025JP¥8.0tJP¥2.2tJP¥225.4b19.5x35.6x3.6x
Tue, 04 Feb 2025JP¥8.6tJP¥2.5tJP¥219.6b21.1x39x3.5x
Thu, 02 Jan 2025JP¥8.7tJP¥2.5tJP¥220.8b22.6x39.4x3.5x
Sat, 30 Nov 2024JP¥8.6tJP¥2.5tJP¥220.0b22x39x3.5x
Mon, 28 Oct 2024JP¥8.2tJP¥2.4tJP¥205.1b21.2x39.9x3.4x
Wed, 25 Sep 2024JP¥8.5tJP¥2.4tJP¥202.8b22.9x42x3.5x
Fri, 23 Aug 2024JP¥8.2tJP¥2.4tJP¥203.8b21.8x40.1x3.4x
Sun, 21 Jul 2024JP¥7.9tJP¥2.4tJP¥188.9b23.2x42.1x3.3x
Tue, 18 Jun 2024JP¥7.4tJP¥2.4tJP¥187.1b22.3x39.5x3.1x
Thu, 16 May 2024JP¥7.6tJP¥2.3tJP¥175.5b22.4x43.3x3.2x
Sat, 13 Apr 2024JP¥7.8tJP¥2.3tJP¥167.7b23x46.3x3.3x
Mon, 11 Mar 2024JP¥8.0tJP¥2.3tJP¥164.0b24.4x48.9x3.5x
Wed, 07 Feb 2024JP¥7.8tJP¥2.3tJP¥166.9b23.8x46.9x3.4x
Fri, 05 Jan 2024JP¥7.6tJP¥2.3tJP¥162.4b22x46.6x3.3x
Sun, 03 Dec 2023JP¥7.7tJP¥2.3tJP¥162.6b22.5x47.4x3.4x
Tue, 31 Oct 2023JP¥6.6tJP¥2.2tJP¥175.3b22.1x37.4x2.9x
Thu, 28 Sep 2023JP¥7.1tJP¥2.2tJP¥172.5b25.3x41.1x3.2x
Sat, 26 Aug 2023JP¥7.0tJP¥2.2tJP¥171.9b23.6x40.5x3.1x
Mon, 24 Jul 2023JP¥7.2tJP¥2.2tJP¥167.8b24.4x43.1x3.3x
Price to Earnings Ratio

43.1x


Total Market Cap: JP¥7.2tTotal Earnings: JP¥167.8bTotal Revenue: JP¥2.2tTotal Market Cap vs Earnings and Revenue0%0%0%
Japanese Software Industry Price to Earnings3Y Average 37.4x202420252026
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 22.5x which is lower than its 3-year average PE of 37.4x.
  • The 3-year average PS ratio of 3.3x 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 22% 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-0.36%
Tech-5.21%
Software0.90%
Application Software1.31%
Systems Software0.23%
Industry PE
  • Investors are most optimistic about the Application Software industry even though it's trading below its 3-year average PE ratio of 47.4x.
    • Analysts expect its future annual earnings growth (18.7%) 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 30.3x.
Forecasted Growth
  • Analysts are most optimistic on the Application Software industry, expecting annual earnings growth of 19% 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
3994 Money ForwardJP¥5.37k8.7%
+JP¥23.9b		7.8%PE68.6x
4704 Trend MicroJP¥6.46k2.8%
+JP¥23.1b		-31.4%PE22.4x
4443 SansanJP¥1.83k6.1%
+JP¥12.3b		-6.7%PE34x
4432 WingArc1stJP¥2.89k13.7%
+JP¥12.3b		-19.3%PE15.2x
4478 freee K.KJP¥2.40k6.6%
+JP¥8.8b		-38.2%PE206.9x

Latest News

4478
JP¥2,399.00
freee K.K
7D
6.6%
1Y
-38.2%
4443
JP¥1,828.00
Sansan
7D
6.1%
1Y
-6.7%
Analysis Article • 11h

Results: Sansan, Inc. Exceeded Expectations And The Consensus Has Updated Its Estimates

Investors in Sansan, Inc. ( TSE:4443 ) had a good week, as its shares rose 8.5% to close at JP¥1,837 following the...
3923
JP¥1,020.50
Rakus
7D
-1.5%
1Y
-10.2%
4432
JP¥2,892.00
WingArc1st
7D
13.7%
1Y
-19.3%
3994
JP¥5,365.00
Money Forward
7D
8.7%
1Y
7.8%
Analysis Article • Jul 16

Money Forward, Inc. (TSE:3994) Just Reported Half-Year Earnings: Have Analysts Changed Their Mind On The Stock?

As you might know, Money Forward, Inc. ( TSE:3994 ) recently reported its half-yearly numbers. It was a pretty bad...
4071
JP¥2,387.00
Plus Alpha ConsultingLtd
7D
-19.6%
1Y
7.9%
4704
JP¥6,455.00
Trend Micro
7D
2.8%
1Y
-31.4%
3663
JP¥1,879.00
CELSYS
7D
-8.5%
1Y
18.5%
4716
JP¥8,534.00
Oracle Corporation Japan
7D
-1.7%
1Y
-48.7%
Narrative Update • Jul 10

4716: Future Earnings Power Will Be Underpinned By Rising Dividends

Analysts have trimmed their price target for Oracle Corporation Japan from ¥13,300 to about ¥12,043, citing updated assumptions around fair value, discount rate, revenue growth, profit margin and future P/E, which together point to a more conservative valuation framework. What's in the News Oracle Corporation Japan announced a special dividend of ¥660 per share for the fiscal year ended May 31, 2026, with dividend payments scheduled to commence on August 10, 2026.
3905
JP¥2,527.00
Datasection
7D
-12.0%
1Y
-28.8%
4686
JP¥3,775.00
JustSystems
7D
-4.8%
1Y
1.2%
3673
JP¥440.00
Broadleaf
7D
3.8%
1Y
12.8%
4431
JP¥2,993.00
Smaregi
7D
5.4%
1Y
-12.6%
4733
JP¥6,626.00
OBIC Business Consultants
7D
1.3%
1Y
-21.4%
3687
JP¥2,134.00
Fixstars
7D
-8.4%
1Y
12.1%
135A
JP¥3,760.00
VRAIN Solution
7D
-14.8%
1Y
77.9%
Analysis Article • May 23

Is Now The Time To Put VRAIN Solution (TSE:135A) On Your Watchlist?

Investors are often guided by the idea of discovering 'the next big thing', even if that means buying 'story stocks...