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U.K. (FTSE) Software Industry Analysis

UpdatedJan 20, 2026
DataAggregated Company Financials
Companies49
  • 7D-4.4%
  • 3M-7.6%
  • 1Y-17.8%
  • YTD-0.2%

Over the last 7 days, the Software industry has dropped 3.0%, driven by a pullback from Sage Group of 4.6%. Meanwhile, Zoyo actually outperformed within the industry, gaining 90% in the last week. However, the industry is down 17% over the past year. As for the next few years, earnings are expected to grow by 16% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Tue, 20 Jan 2026UK£15.2bUK£4.5bUK£430.4m33x35.4x3.4x
Thu, 18 Dec 2025UK£15.6bUK£4.5bUK£421.9m33.2x37.1x3.5x
Sat, 15 Nov 2025UK£15.9bUK£4.4bUK£430.1m33.8x36.9x3.6x
Mon, 13 Oct 2025UK£16.4bUK£4.4bUK£437.6m31.1x37.5x3.7x
Wed, 10 Sep 2025UK£16.3bUK£4.4bUK£438.7m37.3x37.2x3.7x
Fri, 08 Aug 2025UK£17.2bUK£4.3bUK£430.0m35.7x39.9x3.9x
Sun, 06 Jul 2025UK£17.9bUK£4.7bUK£391.8m37x45.6x3.8x
Tue, 03 Jun 2025UK£18.6bUK£4.8bUK£405.6m33.1x45.8x3.8x
Thu, 01 May 2025UK£18.3bUK£4.8bUK£372.0m31.2x49.1x3.8x
Sat, 29 Mar 2025UK£18.1bUK£4.8bUK£365.6m29x49.6x3.8x
Mon, 24 Feb 2025UK£19.5bUK£4.8bUK£307.1m32.2x63.5x4.1x
Wed, 22 Jan 2025UK£19.7bUK£4.8bUK£304.7m28.3x64.8x4.1x
Fri, 20 Dec 2024UK£19.7bUK£4.8bUK£319.7m35.2x61.7x4.1x
Sun, 17 Nov 2024UK£17.6bUK£4.7bUK£210.7m35.3x83.3x3.7x
Tue, 15 Oct 2024UK£16.7bUK£4.7bUK£204.0m32.8x81.7x3.6x
Thu, 12 Sep 2024UK£20.6bUK£5.2bUK£278.2m35.8x74x4x
Sat, 10 Aug 2024UK£20.8bUK£5.3bUK£258.2m37.2x80.7x4x
Mon, 08 Jul 2024UK£22.1bUK£5.3bUK£261.5m38.9x84.4x4.1x
Wed, 05 Jun 2024UK£21.4bUK£5.3bUK£163.0m41.5x131.2x4.1x
Fri, 03 May 2024UK£22.4bUK£5.3bUK£105.7m37.5x211.7x4.3x
Sun, 31 Mar 2024UK£21.9bUK£5.2bUK£77.9m37.7x281.5x4.2x
Tue, 27 Feb 2024UK£20.9bUK£5.2bUK£66.0m35.4x316.9x4.1x
Thu, 25 Jan 2024UK£42.3bUK£10.1bUK£71.3m38.5x593.1x4.2x
Sat, 23 Dec 2023UK£42.4bUK£10.1bUK£72.2m36.9x587.9x4.2x
Mon, 20 Nov 2023UK£39.9bUK£10.1bUK£131.9m33.7x302.7x4x
Wed, 18 Oct 2023UK£40.0bUK£10.1bUK£129.6m30.9x308.9x4x
Fri, 15 Sep 2023UK£41.1bUK£10.0bUK£130.8m33.8x314.3x4.1x
Sun, 13 Aug 2023UK£40.0bUK£10.0bUK£97.5m35.6x409.9x4x
Tue, 11 Jul 2023UK£40.6bUK£10.6bUK£129.1m35.6x314.3x3.8x
Thu, 08 Jun 2023UK£40.8bUK£10.6bUK£235.8m37.5x173.1x3.9x
Sat, 06 May 2023UK£40.1bUK£10.7bUK£109.6m36.2x366x3.8x
Mon, 03 Apr 2023UK£39.4bUK£10.6bUK£299.9m35.8x131.2x3.7x
Wed, 01 Mar 2023UK£39.6bUK£10.3bUK£297.1m34.3x133.2x3.8x
Fri, 27 Jan 2023UK£39.4bUK£10.3bUK£301.1m33x130.9x3.8x
Price to Earnings Ratio

130.9x


Total Market Cap: UK£39.4bTotal Earnings: UK£301.1mTotal Revenue: UK£10.3bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Software Industry Price to Earnings3Y Average 181.2x202420252026
Current Industry PE
  • Investors are pessimistic on the British Software industry, indicating that they anticipate long term growth rates will be lower than they have historically.
  • The industry is trading at a PE ratio of 35.9x which is lower than its 3-year average PE of 181x.
  • The 3-year average PS ratio of 3.9x is higher than the industry's current PS ratio of 3.4x.
Past Earnings Growth
  • The earnings for companies in the Software industry have grown 13% per year over the last three years.
  • Meanwhile revenues for these companies have declined 24% per year.
  • This means that less sales are being generated overall, but since cost of doing business is lower, profits have been increasing.

Industry Trends

Which industries have driven the changes within the U.K. Tech industry?

GB Market0.77%
Tech-2.39%
Software-4.37%
Systems Software11.08%
Application Software-4.46%
Industry PE
  • Investors are most optimistic about the Application Software industry even though it's trading below its 3-year average PE ratio of 111x.
    • Analysts are expecting annual earnings growth of 15.6%, which is higher than its past year's earnings growth of 7.7% per year.
Forecasted Growth
  • Analysts are most optimistic on the Systems Software industry, expecting annual earnings growth of 61% over the next 5 years.
  • In contrast, the Application Software industry is expected to see its earnings grow by 16% 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
ZOYO ZoyoUK£0.4790.0%
+UK£33.4m		n/an/a
CER CerillionUK£15.304.8%
+UK£20.9m		-1.3%PE27.2x
PINE Pinewood Technologies GroupUK£3.582.9%
+UK£11.5m		2.7%PE66.3x
CNS Corero Network SecurityUK£0.1310.6%
+UK£6.4m		-26.8%PS3.8x
AOM ActiveOpsUK£2.512.9%
+UK£5.0m		141.3%PS4.8x

Latest News

CER
UK£15.30
Cerillion
7D
4.8%
1Y
-1.3%

Cerillion Plc's (LON:CER) 26% Share Price Surge Not Quite Adding Up

Jan 20
Cerillion Plc's (LON:CER) 26% Share Price Surge Not Quite Adding Up
ZOYO
UK£0.47
Zoyo
7D
90.0%
1Y
n/a
SKL
UK£0.77
Skillcast Group
7D
4.1%
1Y
85.5%

The Price Is Right For Skillcast Group plc (LON:SKL)

Jan 15
The Price Is Right For Skillcast Group plc (LON:SKL)
CNS
UK£0.13
Corero Network Security
7D
10.6%
1Y
-26.8%

CNS: Future DDoS Contract Wins Will Drive Rerating Potential

Analysts have trimmed their price target for Corero Network Security to approximately £0.14 per share from about £0.19, citing updated assumptions around higher projected revenue growth, a slightly different discount rate, modestly adjusted profit margins, and a lower expected future P/E multiple. What's in the News Reaffirmed guidance for the year ending December 31, 2025, with expected revenue in a range of $24.0m to $25.5m, compared with reported revenue of $24.6m for FY 2024 (Corporate guidance).
AOM
UK£2.51
ActiveOps
7D
2.9%
1Y
141.3%

AOM: Scalable Model Will Support £100 Million ARR And Higher Margins

Analysts have maintained their fair value estimate for ActiveOps at £3.17 per share, making only small adjustments to inputs such as the discount rate and future P/E, which they describe as refinements rather than a change in view. What's in the News ActiveOps is holding an analyst and investor day focused on how its Decision Intelligence products are used to manage service operations, with management outlining plans to deepen relationships with enterprise customers across key verticals and expand market presence through partners (Key Developments).
SAAS
UK£0.93
Microlise Group
7D
-2.6%
1Y
1.1%

SAAS: Stable Profitability And 2025 Revenue Guidance Will Support Future Returns

Analysts have kept their fair value estimate for Microlise Group steady at £1.52, with only marginal tweaks to inputs like the discount rate and future P/E. This reflects fine tuning of their models rather than a shift in conviction.
SGE
UK£10.36
Sage Group
7D
-6.2%
1Y
-21.6%

Sage Group's (LON:SGE) Shareholders Will Receive A Bigger Dividend Than Last Year

Jan 07
Sage Group's (LON:SGE) Shareholders Will Receive A Bigger Dividend Than Last Year
ACSO
UK£2.61
accesso Technology Group
7D
-7.1%
1Y
-47.4%

When Should You Buy accesso Technology Group plc (LON:ACSO)?

Jan 06
When Should You Buy accesso Technology Group plc (LON:ACSO)?
IGP
UK£1.16
Intercede Group
7D
-8.3%
1Y
-40.5%
DOTD
UK£0.65
dotdigital Group
7D
1.6%
1Y
-19.5%
PINE
UK£3.58
Pinewood Technologies Group
7D
2.9%
1Y
2.7%
ALFA
UK£2.08
Alfa Financial Software Holdings
7D
-3.0%
1Y
3.2%
GBG
UK£2.33
GB Group
7D
-5.5%
1Y
-30.8%
BYIT
UK£3.40
Bytes Technology Group
7D
-6.7%
1Y
-20.9%
BGO
UK£0.79
Bango
7D
-9.2%
1Y
-28.0%
CRTA
UK£0.24
Cirata
7D
18.4%
1Y
12.6%