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

U.K. (FTSE) IT Industry Analysis

UpdatedFeb 16, 2026
DataAggregated Company Financials
Companies20
  • 7D-2.9%
  • 3M-8.5%
  • 1Y-7.2%
  • YTD-9.0%

Over the last 7 days, the IT industry has dropped 2.9%, driven by Computacenter declining 3.0%. Meanwhile, TPXimpact Holdings actually outperformed within the industry, gaining 24% in the last week. However, the industry is down 7.2% over the past year. Looking forward, earnings are forecast to grow by 18% annually.

Industry Valuation and Performance

Has the U.K. IT Industry valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Mon, 16 Feb 2026UK£7.4bUK£10.7bUK£267.3m23.4x27.8x0.7x
Wed, 14 Jan 2026UK£8.7bUK£10.7bUK£267.3m22.9x32.6x0.8x
Fri, 12 Dec 2025UK£8.6bUK£10.8bUK£261.7m23.2x32.9x0.8x
Sun, 09 Nov 2025UK£8.2bUK£10.8bUK£273.8m25.5x30.1x0.8x
Tue, 07 Oct 2025UK£8.5bUK£10.4bUK£266.3m27.8x31.8x0.8x
Thu, 04 Sep 2025UK£7.8bUK£9.5bUK£272.7m24.8x28.6x0.8x
Sat, 02 Aug 2025UK£7.7bUK£9.6bUK£277.1m24.4x27.7x0.8x
Mon, 30 Jun 2025UK£8.2bUK£9.5bUK£329.0m25.1x25x0.9x
Wed, 28 May 2025UK£8.6bUK£9.5bUK£311.1m25.3x27.5x0.9x
Fri, 25 Apr 2025UK£7.9bUK£9.6bUK£330.6m17x23.8x0.8x
Sun, 23 Mar 2025UK£8.3bUK£9.6bUK£330.5m20.9x25.2x0.9x
Tue, 18 Feb 2025UK£8.1bUK£9.0bUK£333.3m21.6x24.3x0.9x
Thu, 16 Jan 2025UK£7.8bUK£9.0bUK£335.5m24.5x23.3x0.9x
Sat, 14 Dec 2024UK£8.2bUK£9.0bUK£337.7m28.3x24.3x0.9x
Mon, 11 Nov 2024UK£8.5bUK£9.0bUK£324.2m28x26.1x0.9x
Wed, 09 Oct 2024UK£10.5bUK£9.7bUK£294.1m23.9x35.8x1.1x
Fri, 06 Sep 2024UK£10.9bUK£10.1bUK£360.9m26.6x30.3x1.1x
Sun, 04 Aug 2024UK£11.2bUK£10.2bUK£358.5m27.1x31.3x1.1x
Tue, 02 Jul 2024UK£11.9bUK£10.2bUK£383.0m26.6x30.9x1.2x
Thu, 30 May 2024UK£11.6bUK£10.2bUK£380.6m28.7x30.4x1.1x
Sat, 27 Apr 2024UK£9.9bUK£10.2bUK£374.8m27.7x26.3x1x
Mon, 25 Mar 2024UK£10.2bUK£10.5bUK£352.7m26.6x28.9x1x
Wed, 21 Feb 2024UK£10.8bUK£10.8bUK£359.4m24.9x30x1x
Fri, 19 Jan 2024UK£10.6bUK£12.8bUK£376.2m25.2x28.3x0.8x
Sun, 17 Dec 2023UK£10.4bUK£12.8bUK£379.5m23.5x27.4x0.8x
Tue, 14 Nov 2023UK£10.3bUK£13.4bUK£380.0m24.7x27x0.8x
Thu, 12 Oct 2023UK£10.9bUK£13.4bUK£371.5m26x29.3x0.8x
Sat, 09 Sep 2023UK£11.4bUK£12.6bUK£389.5m28x29.2x0.9x
Mon, 07 Aug 2023UK£10.9bUK£12.5bUK£404.9m26.6x27x0.9x
Wed, 05 Jul 2023UK£11.1bUK£12.5bUK£427.6m26.3x25.9x0.9x
Fri, 02 Jun 2023UK£11.3bUK£12.5bUK£424.0m26.3x26.6x0.9x
Sun, 30 Apr 2023UK£11.8bUK£12.4bUK£422.8m26.6x27.8x0.9x
Tue, 28 Mar 2023UK£11.6bUK£13.2bUK£422.4m27.5x27.4x0.9x
Thu, 23 Feb 2023UK£37.4bUK£22.0bUK£1.8b28.5x20.4x1.7x
Price to Earnings Ratio

20.4x


Total Market Cap: UK£37.4bTotal Earnings: UK£1.8bTotal Revenue: UK£22.0bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. IT Industry Price to Earnings3Y Average 28.1x202420252026
Current Industry PE
  • Investors are relatively neutral on the British IT industry at the moment, indicating that they anticipate long term growth rates to remain steady.
  • The industry is trading close to its 3-year average PE ratio of 28.1x.
  • The industry is trading close to its 3-year average PS ratio of 0.93x.
Past Earnings Growth
  • The earnings for companies in the IT industry have declined 47% per year over the last three years,
  • Revenues have also declined 21% 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 industry?

GB Market0.59%
Tech1.98%
IT-2.92%
IT Consulting-2.90%
Internet Services and Infrastructure-3.26%
Data Processing Services-7.09%
Industry PE
  • Investors are most optimistic about the Data Processing Services industry which is trading above its 3-year average PE ratio of 6.8x.
    • Analysts are expecting annual earnings growth of 59.0% and investors are willing to pay a premium for that growth.
Forecasted Growth
  • Analysts are most optimistic on the Data Processing Services industry, expecting annual earnings growth of 59% over the next 5 years.
  • In contrast, the Internet Services and Infrastructure industry is expected to see its earnings decline by 3.2% 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
TPX TPXimpact HoldingsUK£0.3224.2%
+UK£5.9m		19.6%PS0.4x
FDM FDM Group (Holdings)UK£1.581.3%
+UK£2.2m		-32.8%PE11.1x
TRD Triad GroupUK£3.003.8%
+UK£1.9m		-20.0%PE28.5x
CLBS Celebrus TechnologiesUK£1.252.0%
+UK£983.7k		-43.8%PE17.3x
ING IngentaUK£1.063.4%
+UK£528.4k		55.9%PE8.5x

Latest News

BKS
UK£2.28
Beeks Financial Cloud Group
7D
-3.4%
1Y
-24.0%
NCC
UK£1.34
NCC Group
7D
-0.7%
1Y
-1.6%

NCC: Share Buybacks And New Contracts Will Support Future Upside

Analysts have reduced their price target on NCC Group from £1.75 to about £1.61, citing updated assumptions around revenue growth, profit margins, discount rates and future P/E multiples. What's in the News NCC has secured an additional project for BAE Systems Hagglunds in Ornskoldsvik, Sweden, covering new modern office and work space, with an approximate contract value of SEK 250 million.
IOM
UK£0.16
iomart Group
7D
-15.9%
1Y
-54.0%
TPX
UK£0.32
TPXimpact Holdings
7D
24.2%
1Y
19.6%

TPX: Higher Profit Margins And Lower Required Return Will Support Future Upside

Analysts have nudged their price target on TPXimpact Holdings to £0.59 per share, reflecting updated assumptions around the discount rate, profit margins and future P/E. These changes leave their fair value estimate broadly unchanged.
CCC
UK£29.30
Computacenter
7D
-5.1%
1Y
31.6%
MTEC
UK£0.37
Made Tech Group
7D
-3.2%
1Y
15.5%
KNOS
UK£7.12
Kainos Group
7D
-4.9%
1Y
-10.8%
SCT
UK£11.43
Softcat
7D
-0.3%
1Y
-31.2%

SCT: Buybacks And Dividends Will Support Attractive Future Return Profile

Analysts have lifted their price target for Softcat to £14.50, reflecting slightly higher assumed revenue growth, a small improvement in profit margin, and a marginally lower discount rate, alongside a similar future P/E expectation. What's in the News Softcat began a share repurchase program on 8 January 2026, authorized to buy back up to 19,994,626 shares, with repurchased shares either cancelled or held in treasury (AGM resolution, 15 December 2025).
CLBS
UK£1.25
Celebrus Technologies
7D
2.0%
1Y
-43.8%
FDM
UK£1.58
FDM Group (Holdings)
7D
1.3%
1Y
-32.8%
TRD
UK£3.00
Triad Group
7D
3.8%
1Y
-20.0%
ING
UK£1.06
Ingenta
7D
3.4%
1Y
55.9%
GST
UK£0.0045
GSTechnologies
7D
-16.7%
1Y
-73.3%

Here's Why We're A Bit Worried About GSTechnologies' (LON:GST) Cash Burn Situation

Jan 14
Here's Why We're A Bit Worried About GSTechnologies' (LON:GST) Cash Burn Situation
RCGH
UK£0.016
RC365 Holding
7D
10.3%
1Y
0%
SWC
UK£0.36
Smarter Web
7D
0.3%
1Y
n/a