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U.K. (FTSE) IT Industry Analysis

UpdatedJan 31, 2026
DataAggregated Company Financials
Companies20
  • 7D0.06%
  • 3M1.4%
  • 1Y6.7%
  • YTD6.1%

The IT industry has been flat over the last week, but Kainos Group has lost 4.5%. The past year has been better, since the industry has gained 6.7% in that time. 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
Sun, 01 Feb 2026UK£8.7bUK£10.7bUK£267.4m24.8x32.6x0.8x
Tue, 30 Dec 2025UK£8.4bUK£10.7bUK£267.3m23.1x31.4x0.8x
Thu, 27 Nov 2025UK£8.3bUK£10.8bUK£267.4m23.9x31.2x0.8x
Sat, 25 Oct 2025UK£8.6bUK£10.8bUK£273.8m27.1x31.2x0.8x
Mon, 22 Sep 2025UK£7.9bUK£10.4bUK£261.0m24.6x30.4x0.8x
Wed, 20 Aug 2025UK£7.7bUK£9.5bUK£272.7m23.6x28.1x0.8x
Fri, 18 Jul 2025UK£8.0bUK£9.5bUK£334.2m19.5x24x0.8x
Sun, 15 Jun 2025UK£8.7bUK£9.5bUK£311.1m26x28x0.9x
Tue, 13 May 2025UK£8.7bUK£9.6bUK£329.1m20.4x26.4x0.9x
Thu, 10 Apr 2025UK£7.3bUK£9.6bUK£330.5m20x22x0.8x
Sat, 08 Mar 2025UK£8.0bUK£9.0bUK£333.4m23.8x23.9x0.9x
Mon, 03 Feb 2025UK£8.2bUK£9.0bUK£332.0m23.3x24.7x0.9x
Wed, 01 Jan 2025UK£8.1bUK£9.0bUK£337.2m25.7x24.1x0.9x
Fri, 29 Nov 2024UK£8.3bUK£9.0bUK£331.2m29.8x25.2x0.9x
Sun, 27 Oct 2024UK£8.7bUK£9.0bUK£322.5m24.2x27.1x1x
Tue, 24 Sep 2024UK£10.8bUK£9.7bUK£293.5m24.9x36.7x1.1x
Thu, 22 Aug 2024UK£11.6bUK£10.1bUK£361.0m28.5x32.1x1.1x
Sat, 20 Jul 2024UK£11.5bUK£10.2bUK£385.5m27.7x29.8x1.1x
Mon, 17 Jun 2024UK£11.6bUK£10.2bUK£381.2m26.6x30.5x1.1x
Wed, 15 May 2024UK£10.4bUK£10.2bUK£374.0m28.6x27.9x1x
Fri, 12 Apr 2024UK£10.4bUK£10.4bUK£355.1m28.6x29.2x1x
Sun, 10 Mar 2024UK£10.7bUK£10.8bUK£359.4m25.6x29.7x1x
Tue, 06 Feb 2024UK£10.8bUK£10.8bUK£359.4m25.6x30.2x1x
Thu, 04 Jan 2024UK£10.6bUK£12.8bUK£376.5m23.7x28.1x0.8x
Sat, 02 Dec 2023UK£10.4bUK£13.4bUK£389.4m24.1x26.8x0.8x
Mon, 30 Oct 2023UK£10.2bUK£13.4bUK£375.6m25.2x27.1x0.8x
Wed, 27 Sep 2023UK£10.9bUK£13.4bUK£388.9m25.8x28x0.8x
Fri, 25 Aug 2023UK£10.5bUK£12.5bUK£406.6m26.4x25.9x0.8x
Sun, 23 Jul 2023UK£11.4bUK£12.5bUK£400.4m27x28.6x0.9x
Tue, 20 Jun 2023UK£11.4bUK£12.5bUK£425.3m26.5x26.9x0.9x
Thu, 18 May 2023UK£11.5bUK£12.5bUK£420.5m26.8x27.3x0.9x
Sat, 15 Apr 2023UK£11.8bUK£12.4bUK£422.8m27x27.9x0.9x
Mon, 13 Mar 2023UK£36.7bUK£22.3bUK£2.0b27.3x18x1.7x
Wed, 08 Feb 2023UK£37.8bUK£21.9bUK£1.8b27.9x20.8x1.7x
Price to Earnings Ratio

20.8x


Total Market Cap: UK£37.8bTotal Earnings: UK£1.8bTotal Revenue: UK£21.9bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. IT Industry Price to Earnings3Y Average 28x202420252026
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 32.6x which is higher than its 3-year average PE of 27.9x.
  • The industry is trading close to its 3-year average PS ratio of 0.94x.
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 Market0.65%
Tech-1.91%
IT0.064%
IT Consulting0.11%
Internet Services and Infrastructure-0.86%
Data Processing Services-4.68%
Industry PE
  • Investors are most optimistic about the Data Processing Services industry which is trading above its 3-year average PE ratio of 6.7x.
    • 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 growth to stay flat over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

CompanyLast Price7D1YValuation
SCT SoftcatUK£14.302.4%
+UK£60.0m		-10.8%PE21.3x
FDM FDM Group (Holdings)UK£1.6111.8%
+UK£18.6m		-31.3%PE11.4x
BKS Beeks Financial Cloud GroupUK£2.383.3%
+UK£5.7m		-16.4%PE54.6x
NCC NCC GroupUK£1.401.3%
+UK£5.5m		-1.7%PS1.8x
TRD Triad GroupUK£2.917.8%
+UK£3.7m		-18.0%PE27.7x

Latest News

TIA
UK£0.63
Tialis Essential IT
7D
-22.8%
1Y
98.4%
KNOS
UK£9.00
Kainos Group
7D
-4.5%
1Y
10.0%
NCC
UK£1.40
NCC Group
7D
1.3%
1Y
-1.7%
FDM
UK£1.61
FDM Group (Holdings)
7D
11.8%
1Y
-31.3%
TPX
UK£0.23
TPXimpact Holdings
7D
12.2%
1Y
-35.2%

TPX: Higher Profit Margins Will Support A More Attractive Future P E

Analysts have trimmed their fair value estimate for TPXimpact Holdings from £0.67 to £0.59 per share as they update their assumptions for revenue growth, profit margins, discount rate and future P/E. This has led to a lower overall price target while still reflecting improved profitability expectations.
NARF
UK£0.0041
Narf Industries
7D
-13.7%
1Y
-3.5%
TRD
UK£2.91
Triad Group
7D
7.8%
1Y
-18.0%
SCT
UK£14.30
Softcat
7D
2.4%
1Y
-10.8%

SCT: Buybacks And Dividends Will Shape Future Fairly Valued Share Appeal

Analysts have nudged their price target on Softcat slightly higher to reflect modest adjustments to the discount rate, revenue growth assumptions, profit margin and future P/E expectations, indicating a marginally more constructive view on the company’s valuation drivers. What's in the News Softcat began a share repurchase program on January 8, 2026, following shareholder approval at the December 15, 2025 AGM.
IOM
UK£0.19
iomart Group
7D
-12.6%
1Y
-73.3%

iomart Group (LON:IOM) Use Of Debt Could Be Considered Risky

Jan 23
iomart Group (LON:IOM) Use Of Debt Could Be Considered Risky
CCC
UK£33.28
Computacenter
7D
-1.1%
1Y
42.6%
ING
UK£0.99
Ingenta
7D
-3.9%
1Y
40.1%
CLBS
UK£1.43
Celebrus Technologies
7D
1.8%
1Y
-37.2%

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
SYS
UK£0.15
SysGroup
7D
6.9%
1Y
-13.9%
BKS
UK£2.38
Beeks Financial Cloud Group
7D
3.3%
1Y
-16.4%
SWC
UK£0.43
Smarter Web
7D
-12.2%
1Y
n/a