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

U.K. (FTSE) Tech Sector Analysis

UpdatedMar 18, 2026
DataAggregated Company Financials
Companies114
  • 7D-2.7%
  • 3M-4.4%
  • 1Y1.2%
  • YTD-3.5%

Over the last 7 days, the Tech industry has dropped 2.7%, driven by Halma declining 3.3%. Over the last year, the industry has been flat overall. Earnings are forecast to grow by 17% annually.

Sector Valuation and Performance

Has the U.K. Tech Sector valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Wed, 18 Mar 2026UK£43.0bUK£23.7bUK£994.0m28.7x43.3x1.8x
Fri, 13 Feb 2026UK£43.1bUK£22.3bUK£1.0b31.2x42.9x1.9x
Sun, 11 Jan 2026UK£46.5bUK£22.3bUK£1.0b29.3x46.3x2.1x
Tue, 09 Dec 2025UK£47.7bUK£22.6bUK£861.4m27.6x55.3x2.1x
Thu, 06 Nov 2025UK£52.0bUK£23.6bUK£893.0m29.8x58.3x2.2x
Sat, 04 Oct 2025UK£53.9bUK£23.5bUK£893.0m31.1x60.4x2.3x
Mon, 01 Sep 2025UK£50.7bUK£22.7bUK£1.1b29.7x48.3x2.2x
Wed, 30 Jul 2025UK£51.9bUK£22.7bUK£1.2b30.3x42.3x2.3x
Fri, 27 Jun 2025UK£53.5bUK£22.9bUK£1.2b31.2x43.2x2.3x
Sun, 25 May 2025UK£49.5bUK£23.0bUK£1.3b27.8x39.6x2.1x
Tue, 22 Apr 2025UK£45.6bUK£23.0bUK£1.3b23.2x36.1x2x
Thu, 20 Mar 2025UK£48.4bUK£23.1bUK£1.3b23x38.4x2.1x
Sat, 15 Feb 2025UK£52.6bUK£22.6bUK£1.2b27.2x42.3x2.3x
Mon, 13 Jan 2025UK£50.0bUK£22.6bUK£1.2b27.4x40.5x2.2x
Wed, 11 Dec 2024UK£51.5bUK£22.6bUK£1.3b28.9x40.9x2.3x
Fri, 08 Nov 2024UK£47.7bUK£22.4bUK£1.1b27x41.9x2.1x
Sun, 06 Oct 2024UK£49.4bUK£22.9bUK£1.1b26.3x44.6x2.2x
Tue, 03 Sep 2024UK£55.6bUK£23.9bUK£1.3b27.7x43.5x2.3x
Thu, 01 Aug 2024UK£57.7bUK£24.1bUK£1.3b28.5x44.3x2.4x
Sat, 29 Jun 2024UK£58.0bUK£24.3bUK£1.2b27.9x49.4x2.4x
Mon, 27 May 2024UK£55.4bUK£23.9bUK£1.1b30.3x52.2x2.3x
Wed, 24 Apr 2024UK£51.9bUK£24.1bUK£943.5m28.1x55x2.2x
Fri, 22 Mar 2024UK£53.8bUK£24.1bUK£875.4m28.7x61.5x2.2x
Sun, 18 Feb 2024UK£53.0bUK£24.4bUK£908.2m29x58.4x2.2x
Tue, 16 Jan 2024UK£72.5bUK£31.4bUK£947.2m26.2x76.5x2.3x
Thu, 14 Dec 2023UK£72.3bUK£31.4bUK£952.2m26.9x76x2.3x
Sat, 11 Nov 2023UK£68.4bUK£31.9bUK£1.0b26.8x67.8x2.1x
Mon, 09 Oct 2023UK£69.6bUK£31.9bUK£989.1m26.3x70.3x2.2x
Wed, 06 Sep 2023UK£71.3bUK£30.8bUK£1.0b28.4x70.3x2.3x
Fri, 04 Aug 2023UK£71.3bUK£30.8bUK£1.0b29.3x69.2x2.3x
Sun, 02 Jul 2023UK£73.9bUK£31.1bUK£1.1b29.6x69x2.4x
Tue, 30 May 2023UK£73.4bUK£31.0bUK£954.2m30.7x77x2.4x
Thu, 27 Apr 2023UK£72.7bUK£30.8bUK£1.3b31.1x56.7x2.4x
Sat, 25 Mar 2023UK£71.4bUK£31.5bUK£1.3b29.4x54.6x2.3x
Price to Earnings Ratio

54.6x


Total Market Cap: UK£71.4bTotal Earnings: UK£1.3bTotal Revenue: UK£31.5bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Tech Sector Price to Earnings3Y Average 53.5x202420252026
Current Industry PE
  • Investors are pessimistic on the British Information Technology 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 43.3x which is lower than its 3-year average PE of 53.5x.
  • The 3-year average PS ratio of 2.2x is higher than the industry's current PS ratio of 1.8x.
Past Earnings Growth
  • The earnings for companies in the Information Technology industry have declined 8.7% per year over the last three years,
  • Revenues have also declined 9.1% per year.
  • This means overall sales from these companies are declining and profits are subsequently falling as well.

Industry Trends

Which industries have driven the changes within the U.K. Tech sector?

GB Market-0.46%
Tech-2.68%
Tech Hardware8.12%
Software-0.63%
Communications-1.56%
Electronic Equipment and Components-3.43%
Semiconductors-4.72%
IT-5.21%
Industry PE
  • Investors are most optimistic about the Tech Hardware industry which is trading above its 3-year average PE ratio of 1kx.
    • Analysts are expecting annual earnings growth of 21.3%, which is higher than its past year's earnings decline of 29.1% per year.
Forecasted Growth
  • Analysts are most optimistic on the Communications industry, expecting annual earnings growth of 35% over the next 5 years.
  • This is better than its past earnings decline of 4.1% per year.
  • In contrast, the Semiconductors industry is expected to see its earnings decline by 40% 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
SGE Sage GroupUK£8.602.2%
+UK£159.1m		-26.5%PE21.5x
RPI Raspberry Pi HoldingsUK£3.4716.3%
+UK£94.1m		-40.1%PE94.5x
SWC Smarter WebUK£0.3310.7%
+UK£11.3m		n/aPE71.5x
XAR XaarUK£1.154.5%
+UK£3.9m		94.6%PS1.4x
GBG GB GroupUK£2.020.7%
+UK£3.5m		-33.3%PE52.3x

Latest News

ALFA
UK£1.59
Alfa Financial Software Holdings
7D
-18.1%
1Y
-29.3%
CCC
UK£29.46
Computacenter
7D
-7.8%
1Y
13.7%
KNOS
UK£7.50
Kainos Group
7D
-5.6%
1Y
3.2%
OXIG
UK£24.75
Oxford Instruments
7D
-3.5%
1Y
30.0%

OXIG: Higher Fair Value And Raised Broker Levels Will Support Repricing

Analysts have lifted their fair value estimate for Oxford Instruments from £27.00 to £30.00, reflecting updated assumptions around revenue growth, profit margins and a slightly higher discount rate. This follows recent price target increases from £2,675 at Deutsche Bank and a further £400 uplift highlighted in recent Street research.
HLMA
UK£37.94
Halma
7D
-3.3%
1Y
43.5%

HLMA: Stable Assumptions And Lower Risk Will Support Premium Future P/E

Analysts have increased their price target on Halma by £4.50, citing updated assumptions on discount rates, profit margins and future P/E levels. Analyst Commentary Bullish Takeaways Bullish analysts link the £4.50 price target uplift to revised discount rate assumptions, suggesting they see Halma's cash flows as less risky than before, which supports a higher valuation multiple.
RPI
UK£3.47
Raspberry Pi Holdings
7D
16.3%
1Y
-40.1%

RPI: On-Device AI Expansion Will Meet Stable Margins And Muted Repricing

Analysts have slightly revised their fair value assumptions for Raspberry Pi Holdings, with the latest work on discount rates, revenue growth, profit margins and future P/E multiples feeding through to a modest change in the implied long term price target for the shares, expressed in £ terms. What's in the News Raspberry Pi Holdings launched the Raspberry Pi AI HAT+ 2, an add on board for Raspberry Pi 5 that expands the company's on device AI capabilities, following the earlier Pi AI HAT+ introduced in October 2024 (Key Developments).
SATS
UK£0.0024
Satsuma Technology
7D
8.3%
1Y
-63.8%
RSW
UK£38.65
Renishaw
7D
-3.1%
1Y
41.1%

RSW: Future Spectroscopy Collaboration Will Support Stronger Long Term Earnings Multiple

Analysts have lifted their price target on Renishaw from £43.00 to £47.50, reflecting updated assumptions on revenue growth, margins, and the future P/E they see as appropriate for the shares. What's in the News Renishaw has issued earnings guidance for FY2026, indicating expected full year revenue in a range of £740m to £780m.
NCC
UK£1.19
NCC Group
7D
-9.0%
1Y
-14.8%
SGE
UK£8.60
Sage Group
7D
2.2%
1Y
-26.5%

SGE: Upgrades And Execution Will Shape Future Upside Potential

Analysts have nudged their blended price target for Sage Group to £1,425, up £25, citing what they see as attractively priced growth and slight tweaks to assumptions around the discount rate, revenue growth, margins and future P/E. Analyst Commentary Recent research points to what some analysts see as attractively priced growth for Sage Group at current share levels, with price targets such as £1,425 being cited as consistent with this view.
GBG
UK£2.02
GB Group
7D
0.7%
1Y
-33.3%

GBG: Index Additions Will Support Confidence In Future Earnings Potential

Analysts have trimmed their price target on GB Group by £0.40. This reflects updated assumptions that include a higher discount rate, revised revenue growth and profit margin expectations, and a lower future P/E multiple.
APTD
UK£2.30
Aptitude Software Group
7D
1.8%
1Y
-24.6%
SWC
UK£0.33
Smarter Web
7D
10.7%
1Y
n/a
BIG
UK£0.91
Big Technologies
7D
-13.0%
1Y
20.6%
XAR
UK£1.15
Xaar
7D
4.5%
1Y
94.6%
CTAI
UK£0.0039
Catenai
7D
56.0%
1Y
105.3%