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U.K. (FTSE) IT Industry Analysis

UpdatedMar 09, 2026
DataAggregated Company Financials
Companies21
  • 7D1.9%
  • 3M-9.5%
  • 1Y-0.2%
  • YTD-3.7%

In the last week, the IT industry is up 1.9%, with Kainos Group up 8.1%. Overall in the last year, the industry is flat. Looking forward, earnings are forecast to grow by 14% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Mon, 09 Mar 2026UK£8.0bUK£10.7bUK£269.4m28.5x29.6x0.7x
Wed, 04 Feb 2026UK£8.5bUK£10.7bUK£267.4m24.6x31.7x0.8x
Fri, 02 Jan 2026UK£8.4bUK£10.7bUK£267.3m23x31.3x0.8x
Sun, 30 Nov 2025UK£8.5bUK£10.8bUK£261.9m24.2x32.5x0.8x
Tue, 28 Oct 2025UK£8.5bUK£10.8bUK£273.8m27x31x0.8x
Thu, 25 Sep 2025UK£8.1bUK£10.4bUK£261.0m24.9x31.1x0.8x
Sat, 23 Aug 2025UK£7.8bUK£9.5bUK£272.7m24.5x28.6x0.8x
Mon, 21 Jul 2025UK£7.9bUK£9.5bUK£334.2m19.6x23.7x0.8x
Wed, 18 Jun 2025UK£8.7bUK£9.5bUK£312.0m25.5x27.8x0.9x
Fri, 16 May 2025UK£8.8bUK£9.6bUK£327.5m19.3x26.9x0.9x
Sun, 13 Apr 2025UK£7.5bUK£9.6bUK£330.5m20.6x22.7x0.8x
Tue, 11 Mar 2025UK£7.8bUK£9.0bUK£333.3m21.6x23.4x0.9x
Thu, 06 Feb 2025UK£8.1bUK£9.0bUK£332.1m21.1x24.4x0.9x
Sat, 04 Jan 2025UK£8.1bUK£9.0bUK£335.6m25.8x24.1x0.9x
Mon, 02 Dec 2024UK£8.3bUK£9.0bUK£337.2m29.6x24.7x0.9x
Wed, 30 Oct 2024UK£8.9bUK£9.0bUK£322.5m23.9x27.6x1x
Fri, 27 Sep 2024UK£10.8bUK£9.7bUK£293.7m25.1x36.8x1.1x
Sun, 25 Aug 2024UK£11.5bUK£10.1bUK£361.0m28.1x31.9x1.1x
Tue, 23 Jul 2024UK£11.5bUK£10.2bUK£385.5m27.8x29.9x1.1x
Thu, 20 Jun 2024UK£11.7bUK£10.2bUK£381.2m28.1x30.8x1.1x
Sat, 18 May 2024UK£10.7bUK£10.2bUK£374.0m29.1x28.7x1.1x
Mon, 15 Apr 2024UK£10.2bUK£10.4bUK£355.1m28.1x28.7x1x
Wed, 13 Mar 2024UK£10.9bUK£10.8bUK£360.2m27.8x30.1x1x
Fri, 09 Feb 2024UK£11.0bUK£10.8bUK£359.3m25.5x30.7x1x
Sun, 07 Jan 2024UK£10.5bUK£12.8bUK£376.4m23.3x27.9x0.8x
Tue, 05 Dec 2023UK£10.0bUK£12.8bUK£385.3m22.9x26x0.8x
Thu, 02 Nov 2023UK£10.4bUK£13.4bUK£375.5m24.4x27.6x0.8x
Sat, 30 Sep 2023UK£11.1bUK£13.4bUK£373.0m26.8x29.7x0.8x
Mon, 28 Aug 2023UK£10.5bUK£12.6bUK£389.8m27.4x27.1x0.8x
Wed, 26 Jul 2023UK£11.5bUK£12.5bUK£400.1m27.2x28.6x0.9x
Fri, 23 Jun 2023UK£11.1bUK£12.5bUK£425.5m25.9x26.1x0.9x
Sun, 21 May 2023UK£11.6bUK£12.5bUK£420.4m26.7x27.6x0.9x
Tue, 18 Apr 2023UK£11.8bUK£12.4bUK£422.6m26.8x28x1x
Thu, 16 Mar 2023UK£34.5bUK£22.2bUK£2.0b24.5x17.2x1.6x
Price to Earnings Ratio

17.2x


Total Market Cap: UK£34.5bTotal Earnings: UK£2.0bTotal Revenue: UK£22.2bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. IT Industry Price to Earnings3Y Average 28.2x202420252026
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 28.2x.
  • The industry is trading close to its 3-year average PS ratio of 0.91x.
Past Earnings Growth
  • The earnings for companies in the IT industry have declined 49% 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 Market-5.72%
Tech-3.47%
IT1.89%
Data Processing Services4.99%
IT Consulting2.17%
Internet Services and Infrastructure-3.46%
Industry PE
  • Investors are most optimistic about the Data Processing Services industry which is trading above its 3-year average PE ratio of 7.0x.
    • Analysts are expecting annual earnings growth of 59.2% 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 29% 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
KNOS Kainos GroupUK£8.169.7%
+UK£84.1m		17.1%PE31.3x
SCT SoftcatUK£11.672.3%
+UK£51.0m		-23.5%PE17.2x
CCC ComputacenterUK£32.301.3%
+UK£42.0m		36.6%PE21.2x
NCC NCC GroupUK£1.323.4%
+UK£9.5m		0.8%PS1.6x
NARF Narf IndustriesUK£0.005311.6%
+UK£933.6k		41.3%PS3.1x

Latest News

SCT
UK£11.67
Softcat
7D
2.3%
1Y
-23.5%

SCT: Buybacks And Rising Dividends Will Drive Strong Future Returns

Analysts have trimmed their fair value estimate for Softcat from £18.27 to £17.43, citing slightly higher discount rate assumptions, marginally adjusted profit margin expectations, and a modestly different future P/E outlook. What's in the News Softcat plc began a share repurchase program on January 8, 2026, following approval at the December 15, 2025 AGM, with authority to buy back up to 19,994,626 shares, to be either cancelled or held as treasury shares (Key Developments).
NCC
UK£1.32
NCC Group
7D
3.4%
1Y
0.8%
MTEC
UK£0.38
Made Tech Group
7D
-4.4%
1Y
44.8%
CCC
UK£32.30
Computacenter
7D
1.3%
1Y
36.6%
TPX
UK£0.37
TPXimpact Holdings
7D
-3.1%
1Y
57.4%
SWC
UK£0.30
Smarter Web
7D
-7.6%
1Y
n/a
BKS
UK£2.04
Beeks Financial Cloud Group
7D
-1.7%
1Y
-27.7%
KNOS
UK£8.16
Kainos Group
7D
9.7%
1Y
17.1%
CLBS
UK£1.28
Celebrus Technologies
7D
-2.7%
1Y
-42.5%
TIA
UK£0.60
Tialis Essential IT
7D
-4.0%
1Y
60.0%
FDM
UK£1.36
FDM Group (Holdings)
7D
-1.0%
1Y
-38.4%
NARF
UK£0.0053
Narf Industries
7D
11.6%
1Y
41.3%
RCN
UK£1.17
Redcentric
7D
-4.9%
1Y
-3.1%