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U.K. (FTSE) IT Industry Analysis

UpdatedJan 20, 2026
DataAggregated Company Financials
Companies20
  • 7D-3.2%
  • 3M1.3%
  • 1Y11.0%
  • YTD3.1%

Over the last 7 days, the IT industry has dropped 3.2%, driven by pullbacks in Softcat and Computacenter of 4.0% and 3.5%, respectively. On the other hand Smarter Web is actually up 26%. In the past year, the industry has gained 11%. As for the next few years, earnings are expected to grow by 17% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Tue, 20 Jan 2026UK£8.5bUK£10.7bUK£267.3m22.3x31.7x0.8x
Thu, 18 Dec 2025UK£8.5bUK£10.7bUK£267.5m23.1x31.8x0.8x
Sat, 15 Nov 2025UK£8.3bUK£10.8bUK£269.0m24.5x31x0.8x
Mon, 13 Oct 2025UK£8.4bUK£10.4bUK£266.3m27.8x31.5x0.8x
Wed, 10 Sep 2025UK£8.2bUK£9.5bUK£272.6m26x29.9x0.9x
Fri, 08 Aug 2025UK£7.6bUK£9.5bUK£272.7m24.1x28x0.8x
Sun, 06 Jul 2025UK£8.0bUK£9.5bUK£328.4m25.1x24.3x0.8x
Tue, 03 Jun 2025UK£8.6bUK£9.5bUK£311.1m25.1x27.8x0.9x
Thu, 01 May 2025UK£8.1bUK£9.6bUK£330.5m17.7x24.6x0.9x
Sat, 29 Mar 2025UK£8.1bUK£9.6bUK£330.5m20.1x24.6x0.9x
Mon, 24 Feb 2025UK£7.8bUK£9.0bUK£333.3m22.9x23.6x0.9x
Wed, 22 Jan 2025UK£7.7bUK£9.0bUK£332.0m24.2x23.3x0.9x
Fri, 20 Dec 2024UK£8.0bUK£9.0bUK£338.2m26.2x23.6x0.9x
Sun, 17 Nov 2024UK£8.5bUK£9.0bUK£327.4m27.1x25.9x0.9x
Tue, 15 Oct 2024UK£10.5bUK£9.7bUK£294.1m23.5x35.6x1.1x
Thu, 12 Sep 2024UK£10.5bUK£9.7bUK£333.5m25.9x31.5x1.1x
Sat, 10 Aug 2024UK£11.2bUK£10.1bUK£361.0m27.1x31x1.1x
Mon, 08 Jul 2024UK£11.8bUK£10.2bUK£383.0m26.6x30.8x1.2x
Wed, 05 Jun 2024UK£11.6bUK£10.2bUK£380.6m29.1x30.5x1.1x
Fri, 03 May 2024UK£9.9bUK£10.2bUK£374.7m27.8x26.5x1x
Sun, 31 Mar 2024UK£10.4bUK£10.4bUK£353.9m27.9x29.3x1x
Tue, 27 Feb 2024UK£10.9bUK£10.8bUK£359.5m26.1x30.3x1x
Thu, 25 Jan 2024UK£11.0bUK£12.8bUK£376.3m26x29.3x0.9x
Sat, 23 Dec 2023UK£10.9bUK£12.8bUK£379.8m24.2x28.6x0.8x
Mon, 20 Nov 2023UK£10.6bUK£13.4bUK£384.2m24.6x27.6x0.8x
Wed, 18 Oct 2023UK£10.7bUK£13.4bUK£371.5m25.7x28.9x0.8x
Fri, 15 Sep 2023UK£11.3bUK£13.4bUK£389.0m27.8x29x0.8x
Sun, 13 Aug 2023UK£11.0bUK£12.5bUK£404.5m27x27.1x0.9x
Tue, 11 Jul 2023UK£10.7bUK£12.5bUK£412.2m25.8x26.1x0.9x
Thu, 08 Jun 2023UK£11.1bUK£12.5bUK£424.1m26.4x26.1x0.9x
Sat, 06 May 2023UK£11.5bUK£12.4bUK£422.6m26.6x27.3x0.9x
Mon, 03 Apr 2023UK£11.7bUK£12.4bUK£422.4m27.8x27.7x0.9x
Wed, 01 Mar 2023UK£36.7bUK£22.0bUK£1.8b28.9x20x1.7x
Fri, 27 Jan 2023UK£36.0bUK£21.9bUK£1.8b28.2x20x1.6x
Price to Earnings Ratio

20x


Total Market Cap: UK£36.0bTotal Earnings: UK£1.8bTotal Revenue: UK£21.9bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. IT Industry Price to Earnings3Y Average 27.8x202420252026
Current Industry PE
  • Investors are optimistic on the British IT industry, and appear confident in long term growth rates.
  • The industry is trading at a PE ratio of 31.7x which is higher than its 3-year average PE of 27.8x.
  • The industry is trading close to its 3-year average PS ratio of 0.95x.
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 Market0.77%
Tech-2.39%
IT-3.18%
Internet Services and Infrastructure-0.024%
Data Processing Services-0.38%
IT Consulting-3.34%
Industry PE
  • Investors are most optimistic about the Data Processing Services industry which is trading above its 3-year average PE ratio of 6.6x.
    • Analysts are expecting annual earnings growth of 56.6% 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 57% over the next 5 years.
  • In contrast, the Internet Services and Infrastructure industry is expected to see its earnings decline by 2.2% 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
SWC Smarter WebUK£0.537.1%
+UK£12.2m		n/aPE-317.2x
FDM FDM Group (Holdings)UK£1.417.3%
+UK£10.5m		-46.1%PE10x

Latest News

CCC
UK£30.38
Computacenter
7D
-3.9%
1Y
45.6%
CLBS
UK£1.40
Celebrus Technologies
7D
-6.7%
1Y
-41.7%

Celebrus Technologies plc's (LON:CLBS) Business Is Trailing The Market But Its Shares Aren't

Jan 10
Celebrus Technologies plc's (LON:CLBS) Business Is Trailing The Market But Its Shares Aren't
TIA
UK£0.78
Tialis Essential IT
7D
-6.1%
1Y
192.5%

Further Upside For Tialis Essential IT PLC (LON:TIA) Shares Could Introduce Price Risks After 28% Bounce

Jan 09
Further Upside For Tialis Essential IT PLC (LON:TIA) Shares Could Introduce Price Risks After 28% Bounce
SCT
UK£13.99
Softcat
7D
-4.4%
1Y
-6.4%

SCT: Dividend Returns And Steady Outlook Will Shape Future Share Appeal

Analysts have raised their Softcat price target from £14.00 to £14.50, reflecting updated assumptions on discount rates, revenue growth, profit margins and future price-to-earnings (P/E) expectations. What's in the News Approval of a final dividend of 20.4 pence per ordinary share at the 15 December 2025 AGM.
FDM
UK£1.41
FDM Group (Holdings)
7D
7.3%
1Y
-46.1%
MTEC
UK£0.34
Made Tech Group
7D
-5.5%
1Y
38.0%

Made Tech Group Plc's (LON:MTEC) Shares Leap 27% Yet They're Still Not Telling The Full Story

Jan 04
Made Tech Group Plc's (LON:MTEC) Shares Leap 27% Yet They're Still Not Telling The Full Story
ING
UK£0.97
Ingenta
7D
-9.3%
1Y
40.6%

Ingenta plc (LON:ING) Surges 25% Yet Its Low P/E Is No Reason For Excitement

Jan 04
Ingenta plc (LON:ING) Surges 25% Yet Its Low P/E Is No Reason For Excitement
NCC
UK£1.35
NCC Group
7D
-1.3%
1Y
-2.9%
KNOS
UK£9.47
Kainos Group
7D
-6.7%
1Y
16.7%

Kainos Group plc's (LON:KNOS) 28% Jump Shows Its Popularity With Investors

Dec 10
Kainos Group plc's (LON:KNOS) 28% Jump Shows Its Popularity With Investors
SWC
UK£0.53
Smarter Web
7D
7.1%
1Y
n/a