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

U.K. (FTSE) IT Industry Analysis

UpdatedFeb 26, 2026
DataAggregated Company Financials
Companies21
  • 7D-1.8%
  • 3M-11.8%
  • 1Y-4.6%
  • YTD-9.3%

Over the last 7 days, the IT industry has dropped 1.8%, driven by a pullback from Softcat of 3.7%. Meanwhile, Beeks Financial Cloud Group actually outperformed within the industry, gaining 5.5% in the last week. However, the industry is down 4.6% over the past year. Looking forward, 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
Thu, 26 Feb 2026UK£7.5bUK£10.7bUK£268.9m27.1x27.9x0.7x
Sat, 24 Jan 2026UK£8.7bUK£10.7bUK£267.3m23.9x32.6x0.8x
Mon, 22 Dec 2025UK£8.5bUK£10.7bUK£267.3m23.1x31.8x0.8x
Wed, 19 Nov 2025UK£8.2bUK£10.8bUK£267.3m24.2x30.6x0.8x
Fri, 17 Oct 2025UK£8.3bUK£10.4bUK£266.2m27.6x31.4x0.8x
Sun, 14 Sep 2025UK£8.0bUK£10.4bUK£260.3m25.5x30.6x0.8x
Tue, 12 Aug 2025UK£7.7bUK£9.5bUK£272.7m23.7x28.1x0.8x
Thu, 10 Jul 2025UK£8.0bUK£9.5bUK£328.4m25.1x24.5x0.8x
Sat, 07 Jun 2025UK£8.7bUK£9.5bUK£311.1m25.5x27.9x0.9x
Mon, 05 May 2025UK£8.4bUK£9.6bUK£330.5m19.2x25.3x0.9x
Wed, 02 Apr 2025UK£8.1bUK£9.6bUK£330.5m19.3x24.4x0.8x
Fri, 28 Feb 2025UK£7.7bUK£9.0bUK£333.3m23.3x23x0.9x
Sun, 26 Jan 2025UK£7.9bUK£9.0bUK£332.1m24.2x23.6x0.9x
Tue, 24 Dec 2024UK£8.0bUK£9.0bUK£337.2m25.8x23.8x0.9x
Thu, 21 Nov 2024UK£8.4bUK£9.0bUK£327.4m26.6x25.5x0.9x
Sat, 19 Oct 2024UK£10.6bUK£9.7bUK£294.5m24.3x36x1.1x
Mon, 16 Sep 2024UK£10.7bUK£9.7bUK£333.5m26.2x32.1x1.1x
Wed, 14 Aug 2024UK£11.2bUK£10.1bUK£361.0m27.3x31.2x1.1x
Fri, 12 Jul 2024UK£11.6bUK£10.2bUK£385.5m26.6x30.1x1.1x
Sun, 09 Jun 2024UK£11.6bUK£10.2bUK£380.5m29.1x30.5x1.1x
Tue, 07 May 2024UK£10.1bUK£10.2bUK£374.7m28.3x26.8x1x
Thu, 04 Apr 2024UK£10.3bUK£10.4bUK£353.9m27.9x29.2x1x
Sat, 02 Mar 2024UK£10.8bUK£10.8bUK£359.5m25.7x30x1x
Mon, 29 Jan 2024UK£11.1bUK£12.8bUK£366.8m25.5x30.2x0.9x
Wed, 27 Dec 2023UK£10.9bUK£12.8bUK£376.6m24.2x28.8x0.8x
Fri, 24 Nov 2023UK£10.4bUK£13.4bUK£388.9m26.7x26.9x0.8x
Sun, 22 Oct 2023UK£10.6bUK£13.4bUK£371.7m25.9x28.5x0.8x
Tue, 19 Sep 2023UK£11.0bUK£13.4bUK£389.1m27.1x28.4x0.8x
Thu, 17 Aug 2023UK£10.8bUK£12.5bUK£407.1m27x26.4x0.9x
Sat, 15 Jul 2023UK£11.1bUK£12.5bUK£400.3m26.9x27.8x0.9x
Mon, 12 Jun 2023UK£11.2bUK£12.5bUK£423.9m26.3x26.4x0.9x
Wed, 10 May 2023UK£11.4bUK£12.4bUK£421.9m26.6x27.1x0.9x
Fri, 07 Apr 2023UK£11.5bUK£12.4bUK£422.4m27x27.3x0.9x
Sun, 05 Mar 2023UK£36.8bUK£22.3bUK£2.0b28.4x18.6x1.6x
Price to Earnings Ratio

18.6x


Total Market Cap: UK£36.8bTotal Earnings: UK£2.0bTotal Revenue: UK£22.3bTotal 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 49% per year over the last three years,
  • Revenues have also declined 22% 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 Market1.13%
Tech0.55%
IT-1.79%
Internet Services and Infrastructure-0.014%
IT Consulting-1.89%
Data Processing Services-4.23%
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 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
CCC ComputacenterUK£31.422.6%
+UK£83.9m		45.5%PE20.6x
KNOS Kainos GroupUK£7.627.0%
+UK£57.7m		6.4%PE29.3x
SCT SoftcatUK£11.380.6%
+UK£13.7m		-26.3%PE16.8x
NCC NCC GroupUK£1.373.6%
+UK£11.7m		6.9%PS1.7x
TPX TPXimpact HoldingsUK£0.4218.3%
+UK£6.1m		71.4%PS0.5x

Latest News

MTEC
UK£0.40
Made Tech Group
7D
10.3%
1Y
44.1%
CCC
UK£31.42
Computacenter
7D
2.6%
1Y
45.5%
TPX
UK£0.42
TPXimpact Holdings
7D
18.3%
1Y
71.4%
ING
UK£1.33
Ingenta
7D
19.4%
1Y
105.4%
SWC
UK£0.33
Smarter Web
7D
-3.4%
1Y
n/a
SCT
UK£11.38
Softcat
7D
0.6%
1Y
-26.3%

SCT: Buybacks And Dividends Will Drive Attractive Future Return Profile

Analysts have kept their Softcat price target broadly unchanged at £14.50, citing relatively stable assumptions for the discount rate, revenue growth, profit margin and future P/E, which together point to a similar assessment of long term value. What's in the News Softcat began a share repurchase program on January 8, 2026, following approval at the December 15, 2025 AGM.
NCC
UK£1.37
NCC Group
7D
3.6%
1Y
6.9%

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£2.17
Beeks Financial Cloud Group
7D
0.7%
1Y
-25.9%
IOM
UK£0.16
iomart Group
7D
-4.8%
1Y
-61.0%
KNOS
UK£7.62
Kainos Group
7D
7.0%
1Y
6.4%
CLBS
UK£1.28
Celebrus Technologies
7D
-2.7%
1Y
-46.7%
FDM
UK£1.43
FDM Group (Holdings)
7D
-0.1%
1Y
-35.7%
NARF
UK£0.004
Narf Industries
7D
-11.1%
1Y
-13.6%
GST
UK£0.0037
GSTechnologies
7D
-12.9%
1Y
-77.9%

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£1.18
Redcentric
7D
-2.5%
1Y
-0.8%
SYS
UK£0.14
SysGroup
7D
-3.4%
1Y
-31.7%