Japan IT Services: BoJ June Tankan (summary edition) - FY3/27 software investment plans revised up

Research evidence excerpt

Japan IT Services: BoJ June Tankan (summary edition) - FY3/27 software investment plans revised up

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30 Jun 2026 22:08:35 ET │ 10 pages

Japan IT Services

BoJ June Tankan (summary edition) - FY3/27 software investment

plans revised up

Moriya Koketsu AC

CITI'S TAKE +81-3-6776-8304

The BoJ today released the summary version of its June Tankan. FY3/27 all- moriya.koketsu@citi.com

industry software investment plans (including financial institutions) were

revised up significantly to +12.4% YoY (+5.3ppt versus March survey),

maintaining strong momentum in software investment. The upward

revision came mainly from manufacturing, with plans at +21.0% YoY

(+10.7ppt), significantly exceeding the previous survey. Non-manufacturing

software investment plans remained solid at +9.6% (+4.7ppt), and financial

institutions at +9.5% (+1.5ppt). Additionally, the DI for large information

service companies remained high at 52 (+1 YoY, +0 QoQ) on an actual basis.

However, the DI for SMEs, which serve as secondary and tertiary

subcontractors in system development and are likely suffering significant

impact from AI, was weak at 21 (-5 YoY, -12 QoQ).

Software investment — FY3/27 software investment plans for all industries

(including financial institutions) improved significantly to +12.4% YoY (+5.3ppt

versus the March survey). While the market took a weak view on software investment

due to concerns about AI-driven insourcing, IT investment continues to perform

strongly, driven by modernization demand. We maintain our view that system

integrators remain essential, as enterprise AI adoption requires core systems that

serve as data infrastructure. Manufacturing plans were especially strong at +21.0%

YoY (+10.7ppt), with significant upward revisions reflecting strong business

conditions.