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U.K. (FTSE) IT Industry Analysis

UpdatedFeb 06, 2026
DataAggregated Company Financials
Companies20
  • 7D-9.1%
  • 3M-4.8%
  • 1Y-2.8%
  • YTD-4.6%

Over the last 7 days, the IT industry has dropped 9.1%, driven by a pullback from Softcat of 14%. As for the longer term, the industry's performance has been flat for the past year. 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
Fri, 06 Feb 2026UK£7.8bUK£10.7bUK£267.3m23.9x29.3x0.7x
Sun, 04 Jan 2026UK£8.2bUK£10.7bUK£267.3m22.7x30.8x0.8x
Tue, 02 Dec 2025UK£8.5bUK£10.8bUK£261.9m24.2x32.4x0.8x
Thu, 30 Oct 2025UK£8.5bUK£10.8bUK£273.8m26.8x30.9x0.8x
Sat, 27 Sep 2025UK£8.2bUK£10.4bUK£265.7m27.4x30.8x0.8x
Mon, 25 Aug 2025UK£7.8bUK£9.5bUK£272.7m24.5x28.6x0.8x
Wed, 23 Jul 2025UK£7.8bUK£9.5bUK£332.6m19.9x23.5x0.8x
Fri, 20 Jun 2025UK£8.6bUK£9.5bUK£312.0m25.4x27.5x0.9x
Sun, 18 May 2025UK£8.8bUK£9.6bUK£327.5m19.2x26.8x0.9x
Tue, 15 Apr 2025UK£7.7bUK£9.6bUK£330.6m20.6x23.3x0.8x
Thu, 13 Mar 2025UK£7.6bUK£9.0bUK£333.4m21.6x22.9x0.9x
Sat, 08 Feb 2025UK£8.0bUK£9.0bUK£333.2m21.3x24x0.9x
Mon, 06 Jan 2025UK£8.1bUK£9.0bUK£335.6m25.8x24.1x0.9x
Wed, 04 Dec 2024UK£8.3bUK£9.0bUK£337.2m29.7x24.6x0.9x
Fri, 01 Nov 2024UK£8.9bUK£9.0bUK£322.5m24.6x27.5x1x
Sun, 29 Sep 2024UK£10.9bUK£9.7bUK£293.6m25.6x37.1x1.1x
Tue, 27 Aug 2024UK£11.5bUK£10.1bUK£361.0m28.1x31.9x1.1x
Thu, 25 Jul 2024UK£11.4bUK£10.2bUK£385.5m27x29.5x1.1x
Sat, 22 Jun 2024UK£12.0bUK£10.2bUK£381.2m28.4x31.5x1.2x
Mon, 20 May 2024UK£10.7bUK£10.2bUK£374.0m29.1x28.7x1.1x
Wed, 17 Apr 2024UK£10.2bUK£10.4bUK£355.1m27.9x28.7x1x
Fri, 15 Mar 2024UK£10.9bUK£10.8bUK£348.4m28.1x31.3x1x
Sun, 11 Feb 2024UK£11.0bUK£10.8bUK£359.3m25.7x30.6x1x
Tue, 09 Jan 2024UK£10.7bUK£12.8bUK£376.4m25.1x28.3x0.8x
Thu, 07 Dec 2023UK£10.1bUK£12.8bUK£379.4m23.1x26.5x0.8x
Sat, 04 Nov 2023UK£10.7bUK£13.4bUK£379.8m24.9x28.2x0.8x
Mon, 02 Oct 2023UK£11.1bUK£13.4bUK£373.0m26.8x29.7x0.8x
Wed, 30 Aug 2023UK£10.8bUK£12.6bUK£389.9m27.6x27.8x0.9x
Fri, 28 Jul 2023UK£11.3bUK£12.5bUK£404.4m27.1x28x0.9x
Sun, 25 Jun 2023UK£11.0bUK£12.5bUK£425.4m25.8x26x0.9x
Tue, 23 May 2023UK£11.7bUK£12.5bUK£424.5m26.7x27.5x0.9x
Thu, 20 Apr 2023UK£11.7bUK£12.4bUK£422.5m25.8x27.6x0.9x
Sat, 18 Mar 2023UK£34.7bUK£22.6bUK£2.0b23.8x17.2x1.5x
Mon, 13 Feb 2023UK£37.9bUK£22.0bUK£1.8b27.9x20.7x1.7x
Price to Earnings Ratio

20.7x


Total Market Cap: UK£37.9bTotal Earnings: UK£1.8bTotal Revenue: UK£22.0bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. IT Industry Price to Earnings3Y Average 28x202420252026
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 28.0x.
  • 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 Market0.74%
Tech-4.33%
IT-9.15%
Internet Services and Infrastructure1.52%
Data Processing Services-1.95%
IT Consulting-9.71%
Industry PE
  • Investors are most optimistic about the Data Processing Services industry which is trading above its 3-year average PE ratio of 6.8x.
    • 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 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
BKS Beeks Financial Cloud GroupUK£2.443.6%
+UK£5.8m		-19.1%PE56x
RCN RedcentricUK£1.232.9%
+UK£5.6m		2.5%PE70.2x
TPX TPXimpact HoldingsUK£0.2610.6%
+UK£2.3m		-3.7%PS0.3x
MTEC Made Tech GroupUK£0.392.6%
+UK£1.5m		25.8%PE40.7x
GST GSTechnologiesUK£0.00611.1%
+UK£1.4m		-63.1%PS8.9x

Latest News

CLBS
UK£1.23
Celebrus Technologies
7D
-15.5%
1Y
-44.3%
TPX
UK£0.26
TPXimpact Holdings
7D
10.6%
1Y
-3.7%

TPXimpact Holdings plc's (LON:TPX) Shares Bounce 26% But Its Business Still Trails The Industry

Feb 05
TPXimpact Holdings plc's (LON:TPX) Shares Bounce 26% But Its Business Still Trails The Industry
CCC
UK£30.72
Computacenter
7D
-6.6%
1Y
35.9%

Some Shareholders Feeling Restless Over Computacenter plc's (LON:CCC) P/E Ratio

Feb 05
Some Shareholders Feeling Restless Over Computacenter plc's (LON:CCC) P/E Ratio
KNOS
UK£7.72
Kainos Group
7D
-14.4%
1Y
-4.7%
TIA
UK£0.63
Tialis Essential IT
7D
-22.4%
1Y
92.3%
NCC
UK£1.33
NCC Group
7D
-5.5%
1Y
-7.3%
FDM
UK£1.55
FDM Group (Holdings)
7D
-5.0%
1Y
-35.4%
SCT
UK£12.11
Softcat
7D
-13.6%
1Y
-24.5%

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£0.20
iomart Group
7D
4.5%
1Y
-66.7%

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

Jan 23
iomart Group (LON:IOM) Use Of Debt Could Be Considered Risky
ING
UK£1.05
Ingenta
7D
3.4%
1Y
47.9%
GST
UK£0.006
GSTechnologies
7D
11.1%
1Y
-63.1%

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£1.23
Redcentric
7D
2.9%
1Y
2.5%
MTEC
UK£0.39
Made Tech Group
7D
2.6%
1Y
25.8%

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
BKS
UK£2.44
Beeks Financial Cloud Group
7D
3.6%
1Y
-19.1%
AIQ
UK£0.04
AIQ
7D
14.3%
1Y
0%
SWC
UK£0.31
Smarter Web
7D
-27.3%
1Y
n/a