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U.K. (FTSE) IT Industry Analysis

UpdatedFeb 20, 2026
DataAggregated Company Financials
Companies20
  • 7D2.4%
  • 3M-8.5%
  • 1Y-3.3%
  • YTD-7.9%

Over the last 7 days, the IT industry has risen 2.4%, driven by gains from Computacenter of 6.3%. Meanwhile, FDM Group (Holdings) actually underperformed within the industry, shrinking 11% in the last week. In the past year, the industry is down 3.3%. Earnings are forecast to grow by 17% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Fri, 20 Feb 2026UK£7.5bUK£10.7bUK£267.3m23.8x28.2x0.7x
Sun, 18 Jan 2026UK£8.7bUK£10.7bUK£267.3m22.6x32.5x0.8x
Tue, 16 Dec 2025UK£8.6bUK£10.7bUK£267.5m23.3x32.2x0.8x
Thu, 13 Nov 2025UK£8.3bUK£10.8bUK£269.0m24.6x31x0.8x
Sat, 11 Oct 2025UK£8.4bUK£10.4bUK£266.3m27.8x31.5x0.8x
Mon, 08 Sep 2025UK£7.9bUK£9.5bUK£272.7m25.4x29.1x0.8x
Wed, 06 Aug 2025UK£7.7bUK£9.5bUK£272.7m24.1x28.2x0.8x
Fri, 04 Jul 2025UK£7.9bUK£9.5bUK£328.4m25.2x24.2x0.8x
Sun, 01 Jun 2025UK£8.6bUK£9.5bUK£311.1m25x27.7x0.9x
Tue, 29 Apr 2025UK£8.0bUK£9.6bUK£330.6m17.6x24.1x0.8x
Thu, 27 Mar 2025UK£8.3bUK£9.6bUK£330.5m20.5x25x0.9x
Sat, 22 Feb 2025UK£7.8bUK£9.0bUK£333.3m22.9x23.6x0.9x
Mon, 20 Jan 2025UK£7.9bUK£9.0bUK£335.5m24.6x23.5x0.9x
Wed, 18 Dec 2024UK£8.1bUK£9.0bUK£337.7m27.3x23.8x0.9x
Fri, 15 Nov 2024UK£8.6bUK£9.0bUK£327.4m27.7x26.2x1x
Sun, 13 Oct 2024UK£10.5bUK£9.7bUK£294.1m23.5x35.6x1.1x
Tue, 10 Sep 2024UK£10.6bUK£9.7bUK£333.5m26x31.7x1.1x
Thu, 08 Aug 2024UK£11.1bUK£10.2bUK£359.5m26.9x31x1.1x
Sat, 06 Jul 2024UK£11.8bUK£10.2bUK£383.0m26.6x30.8x1.2x
Mon, 03 Jun 2024UK£11.6bUK£10.2bUK£380.6m28.7x30.5x1.1x
Wed, 01 May 2024UK£9.9bUK£10.2bUK£374.7m27.6x26.5x1x
Fri, 29 Mar 2024UK£10.4bUK£10.4bUK£353.9m27.9x29.3x1x
Sun, 25 Feb 2024UK£11.0bUK£10.8bUK£359.4m25.5x30.5x1x
Tue, 23 Jan 2024UK£10.9bUK£12.8bUK£376.3m25.7x28.9x0.9x
Thu, 21 Dec 2023UK£10.8bUK£12.8bUK£379.7m24x28.6x0.8x
Sat, 18 Nov 2023UK£10.6bUK£13.4bUK£384.2m24.6x27.6x0.8x
Mon, 16 Oct 2023UK£10.7bUK£13.4bUK£371.6m25.8x28.7x0.8x
Wed, 13 Sep 2023UK£11.1bUK£13.3bUK£401.0m27.4x27.6x0.8x
Fri, 11 Aug 2023UK£10.8bUK£12.5bUK£404.7m26.7x26.8x0.9x
Sun, 09 Jul 2023UK£10.8bUK£12.5bUK£412.1m26x26.2x0.9x
Tue, 06 Jun 2023UK£11.2bUK£12.5bUK£424.1m26.6x26.4x0.9x
Thu, 04 May 2023UK£11.7bUK£12.4bUK£423.0m26.8x27.6x0.9x
Sat, 01 Apr 2023UK£11.7bUK£13.1bUK£420.2m27.8x27.8x0.9x
Mon, 27 Feb 2023UK£36.9bUK£22.0bUK£1.8b28.5x20.1x1.7x
Price to Earnings Ratio

20.1x


Total Market Cap: UK£36.9bTotal 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 0.92x.
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 Market1.89%
Tech2.65%
IT2.41%
Data Processing Services4.00%
IT Consulting2.70%
Internet Services and Infrastructure-2.50%
Industry PE
  • Investors are most optimistic about the Data Processing Services industry which is trading above its 3-year average PE ratio of 6.9x.
    • 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 28% 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
CCC ComputacenterUK£30.626.3%
+UK£190.9m		39.3%PE20.1x
KNOS Kainos GroupUK£7.121.8%
+UK£13.1m		-5.4%PE27.4x
TPX TPXimpact HoldingsUK£0.359.2%
+UK£2.8m		29.1%PS0.4x
CLBS Celebrus TechnologiesUK£1.325.2%
+UK£2.5m		-45.8%PE17.9x
RCN RedcentricUK£1.210.6%
+UK£1.2m		3.4%PE69x

Latest News

NCC
UK£1.32
NCC Group
7D
-0.6%
1Y
1.1%

Cyber Demand And Escode Regulation Will Support Resilient Earnings And Balance Sheet

Catalysts About NCC Group NCC Group provides cyber security and software resilience services to help clients improve operational resilience across sectors and regions. What are the underlying business or industry changes driving this perspective?
BKS
UK£2.15
Beeks Financial Cloud Group
7D
-5.7%
1Y
-28.3%
IOM
UK£0.17
iomart Group
7D
1.2%
1Y
-51.3%
TPX
UK£0.35
TPXimpact Holdings
7D
9.2%
1Y
29.1%

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£30.62
Computacenter
7D
6.3%
1Y
39.3%
MTEC
UK£0.36
Made Tech Group
7D
-0.7%
1Y
22.9%
KNOS
UK£7.12
Kainos Group
7D
1.8%
1Y
-5.4%
SCT
UK£11.31
Softcat
7D
-0.2%
1Y
-29.0%

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£1.32
Celebrus Technologies
7D
5.2%
1Y
-45.8%
FDM
UK£1.43
FDM Group (Holdings)
7D
-10.6%
1Y
-36.7%
NARF
UK£0.0045
Narf Industries
7D
9.8%
1Y
28.6%
ING
UK£1.11
Ingenta
7D
5.2%
1Y
63.2%
GST
UK£0.0043
GSTechnologies
7D
-17.5%
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
RCN
UK£1.21
Redcentric
7D
0.6%
1Y
3.4%
SYS
UK£0.14
SysGroup
7D
-6.5%
1Y
-32.6%
SWC
UK£0.34
Smarter Web
7D
-0.1%
1Y
n/a