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Japanese (NIKKEI) Software Industry Analysis

UpdatedAug 17, 2026
DataAggregated Company Financials
Companies182
  • 7D3.8%
  • 3M14.7%
  • 1Y-17.6%
  • YTD-5.6%

Over the last 7 days, the Software industry has risen 3.8%, and freee K.K contributed the most with a gain of 24%. Meanwhile, Trend Micro actually underperformed within the industry, shrinking 23% in the last week. In contrast, the industry has lost 18% in the last 12 months. 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
Mon, 17 Aug 2026JP¥7.4tJP¥2.7tJP¥320.3b17.8x23.3x2.8x
Wed, 15 Jul 2026JP¥6.9tJP¥2.6tJP¥305.5b17.4x22.5x2.6x
Fri, 12 Jun 2026JP¥6.5tJP¥2.6tJP¥299.6b16.4x21.7x2.5x
Sun, 10 May 2026JP¥6.6tJP¥2.5tJP¥284.8b17.3x23.2x2.6x
Tue, 07 Apr 2026JP¥6.3tJP¥2.5tJP¥278.7b17.2x22.5x2.5x
Thu, 05 Mar 2026JP¥6.3tJP¥2.5tJP¥269.9b16.9x23.2x2.5x
Sat, 31 Jan 2026JP¥7.2tJP¥2.5tJP¥265.5b19.2x27.1x2.9x
Mon, 29 Dec 2025JP¥8.1tJP¥2.4tJP¥255.6b20.4x31.7x3.3x
Wed, 26 Nov 2025JP¥8.2tJP¥2.4tJP¥252.5b18.9x32.4x3.4x
Fri, 24 Oct 2025JP¥8.6tJP¥2.4tJP¥236.2b22.3x36.5x3.6x
Sun, 21 Sep 2025JP¥9.2tJP¥2.4tJP¥234.9b21.8x39.2x3.9x
Tue, 19 Aug 2025JP¥9.1tJP¥2.4tJP¥232.8b21.4x39.2x3.9x
Thu, 17 Jul 2025JP¥8.8tJP¥2.3tJP¥224.9b20.7x39.2x3.8x
Sat, 14 Jun 2025JP¥9.0tJP¥2.3tJP¥232.6b20.9x38.8x3.9x
Mon, 12 May 2025JP¥8.7tJP¥2.3tJP¥228.3b21x38.3x3.9x
Wed, 09 Apr 2025JP¥7.7tJP¥2.2tJP¥226.8b17.6x33.8x3.4x
Fri, 07 Mar 2025JP¥8.3tJP¥2.2tJP¥225.3b19.7x36.6x3.7x
Sun, 02 Feb 2025JP¥8.7tJP¥2.5tJP¥219.6b21.2x39.5x3.5x
Tue, 31 Dec 2024JP¥8.7tJP¥2.5tJP¥220.8b22.6x39.4x3.5x
Thu, 28 Nov 2024JP¥8.6tJP¥2.5tJP¥220.1b21.5x38.8x3.5x
Sat, 26 Oct 2024JP¥8.2tJP¥2.4tJP¥205.0b21.2x39.9x3.4x
Mon, 23 Sep 2024JP¥8.5tJP¥2.4tJP¥202.8b22.2x41.7x3.5x
Wed, 21 Aug 2024JP¥8.0tJP¥2.4tJP¥202.8b20.5x39.6x3.3x
Fri, 19 Jul 2024JP¥7.9tJP¥2.4tJP¥188.9b22.7x42.1x3.3x
Sun, 16 Jun 2024JP¥7.5tJP¥2.4tJP¥187.1b22.4x39.9x3.1x
Tue, 14 May 2024JP¥7.6tJP¥2.3tJP¥175.4b22.4x43.3x3.2x
Thu, 11 Apr 2024JP¥7.8tJP¥2.3tJP¥167.7b23.4x46.4x3.4x
Sat, 09 Mar 2024JP¥8.0tJP¥2.3tJP¥163.7b24.4x49x3.5x
Mon, 05 Feb 2024JP¥7.9tJP¥2.3tJP¥167.0b23.8x47.5x3.4x
Wed, 03 Jan 2024JP¥7.6tJP¥2.3tJP¥162.4b22.7x46.7x3.3x
Fri, 01 Dec 2023JP¥7.7tJP¥2.3tJP¥163.4b22.3x47.1x3.3x
Sun, 29 Oct 2023JP¥6.6tJP¥2.2tJP¥175.2b22.5x37.7x2.9x
Tue, 26 Sep 2023JP¥6.9tJP¥2.2tJP¥171.0b25x40.5x3.1x
Thu, 24 Aug 2023JP¥7.0tJP¥2.2tJP¥171.9b23.9x40.6x3.1x
Price to Earnings Ratio

40.6x


Total Market Cap: JP¥7.0tTotal Earnings: JP¥171.9bTotal Revenue: JP¥2.2tTotal Market Cap vs Earnings and Revenue0%0%0%
Japanese Software Industry Price to Earnings3Y Average 36.9x202420252026
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 23.3x which is lower than its 3-year average PE of 36.9x.
  • The 3-year average PS ratio of 3.3x is higher than the industry's current PS ratio of 2.8x.
Past Earnings Growth
  • The earnings for companies in the Software industry have grown 23% per year over the last three years.
  • Revenues for these companies have grown 6.2% 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 Market2.94%
Tech7.57%
Software3.78%
Application Software6.80%
Systems Software-1.13%
Industry PE
  • Investors are most optimistic about the Application Software industry even though it's trading below its 3-year average PE ratio of 46.1x.
    • Analysts expect its future annual earnings growth (18.3%) 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 30.0x.
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 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
4478 freee K.KJP¥3.35k23.0%
+JP¥37.2b		-5.5%PE184.6x
3994 Money ForwardJP¥6.00k11.5%
+JP¥34.3b		-9.6%PE76.7x
4180 Appier GroupJP¥1.30k34.4%
+JP¥34.0b		-15.1%PE39.6x
3763 Pro-ShipJP¥2.50k35.7%
+JP¥17.0b		44.9%PE26.3x
5027 AnyMind GroupJP¥723.0027.5%
+JP¥9.3b		5.9%PE34.1x

Latest News

3763
JP¥2,503.00
Pro-Ship
7D
35.7%
1Y
44.9%
5027
JP¥723.00
AnyMind Group
7D
27.5%
1Y
5.9%
4478
JP¥3,350.00
freee K.K
7D
23.0%
1Y
-5.5%
Analysis Article • 22h

freee K.K. Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

The investors in freee K.K. 's ( TSE:4478 ) will be rubbing their hands together with glee today, after the share price...
4180
JP¥1,302.00
Appier Group
7D
34.4%
1Y
-15.1%
3994
JP¥6,000.00
Money Forward
7D
11.5%
1Y
-9.6%
4776
JP¥2,919.00
Cybozu
7D
6.1%
1Y
-28.7%
4704
JP¥5,352.00
Trend Micro
7D
-22.6%
1Y
-34.6%
4071
JP¥2,206.00
Plus Alpha ConsultingLtd
7D
-4.3%
1Y
-12.1%
3040
JP¥2,524.00
Soliton Systems K.K
7D
22.2%
1Y
82.0%
4074
JP¥760.00
LaKeel
7D
-19.7%
1Y
-28.6%
4443
JP¥2,013.00
Sansan
7D
3.1%
1Y
5.2%
3663
JP¥1,892.00
CELSYS
7D
-2.7%
1Y
7.1%
2326
JP¥4,480.00
Digital Arts
7D
-4.5%
1Y
-42.7%
4733
JP¥8,000.00
OBIC Business Consultants
7D
-1.4%
1Y
-9.5%
4716
JP¥9,160.00
Oracle Corporation Japan
7D
-2.0%
1Y
-43.0%
Narrative Update • Jul 24

4716: Future Returns Will Balance Higher Payouts With Moderating Profitability

Analysts have reset their fair value estimate for Oracle Corporation Japan from ¥13,000 to ¥8,700, reflecting updated assumptions around revenue growth, profit margins, and a lower future P/E multiple. What’s in the News for Oracle Corporation Japan 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.
3692
JP¥4,740.00
FFRI Security
7D
-12.7%
1Y
-35.3%