Japan’s Largest Companies 2025: Rare Interest Rate Hikes Lead To A Volatile Year

Japan’s stock market has been on a roller-coaster ride over the past 12 months. Its benchmark Nikkei index reached an all-time high in July 2024, driven by corporate governance reforms and robust company earnings, then crashed more than 25% in less than four weeks on a surprise interest rate hike by the Bank of Japan. Though the index rebounded shortly after, its gains were trimmed in early 2025 as U.S. President Donald Trump ignited his trade war.

Japan has 180 companies on this year’s Forbes Global 2000 ranking of the world’s largest public corporations, down slightly from 182 in 2024, making it the third most-represented country after the U.S. and China. The list weighs market value, revenue, profit and assets equally, using the latest 12 months of data as of April 25.

Toyota Motor, the highest-ranking Japanese company, is in a sector particularly hard hit by Trump’s sweeping tariffs. The U.S. in early April imposed a 25% tax on foreign-made cars, followed in early May by the same levy on auto parts, a blow to Japan’s mainstay industry and its export-led economy. The world’s top-selling carmaker slipped three places to No. 14 after its stock tumbled 22% over the year. Though its revenues and profits in the year through December were roughly flat at $309 billion and $34 billion, respectively, Toyota warned that the tariffs would result in a $1.3 billion hit to operating profit in April and May.

Some of Toyota Motor’s peers suffered even steeper declines. Nissan Motor, long plagued by deteriorating financials, sank 366 spots to No. 707 after its profit in the 12 months through December plunged 76% to $702.6 million. After the cut-off date for the list, the automaker posted a $4.7 billion loss for the three months ended March. Nissan is struggling to restructure after merger talks with larger rival Honda Motor collapsed in February. The failed tie-up, together with the tariffs, relegated Honda to No. 117 from No. 91 as its stock fell 17% over the year. Mitsubishi Motors, whose biggest shareholder is Nissan, tumbled 379 places to No. 1,562 as its shares skidded almost 10%.

Companies in the AI space were a bright spot. Billionaire Masayoshi Son’s SoftBank investment powerhouse climbed 331 spots to No. 130 on a 425% surge in 12-month profit through December to $5.6 billion, driven partly by increases in the value of portfolio companies such as ByteDance, the Chinese parent of TikTok. SoftBank is ramping up its AI bet, with plans to invest up to $30 billion in U.S.-based ChatGPT maker OpenAI while also investing $100 billion to build AI infrastructure stateside as part of its Stargate Project joint venture with OpenAI and Oracle.

The AI boom also lifted Advantest, the world’s largest semiconductor testing equipment maker by market share and a supplier to AI-chip giant Nvidia. It scaled 509 places to No. 1,231 as its profit in the year through March more than doubled to $1.1 billion on a 52% surge in sales to $5.1 billion.

Other notable climbers included companies in the defense industry. IHI Corp, Mitsubishi Heavy Industries (MHI) and Kawasaki Heavy Industries (KHI) were among the best performers on the Nikkei over the year as Japan ramped up military spending. IHI, an engineering company that makes everything from turbines for power plants to rocket systems for space travel, debuted on the Global 2000 at No. 1,349 after its stock skyrocketed 176%. A more than doubling in MHI stock elevated the company 75 spots to No. 372 while KHI vaulted 513 places to No. 1,331 on a 52% share increase.