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U.K. (FTSE) Software Industry Analysis

UpdatedFeb 18, 2026
DataAggregated Company Financials
Companies49
  • 7D-6.1%
  • 3M-20.2%
  • 1Y-32.8%
  • YTD-17.1%

Over the last 7 days, the Software industry has dropped 6.2%, driven by a pullback from Sage Group of 5.7%. In contrast, Pebble Beach Systems Group has gained 14%. Overall the industry is down 33% in 12 months. Earnings are forecast to grow by 17% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Wed, 18 Feb 2026UK£12.6bUK£4.5bUK£432.2m31x29.1x2.8x
Fri, 16 Jan 2026UK£15.3bUK£4.5bUK£430.4m32.3x35.6x3.4x
Sun, 14 Dec 2025UK£15.6bUK£4.5bUK£421.8m33.3x36.9x3.5x
Tue, 11 Nov 2025UK£16.0bUK£4.4bUK£430.6m35.5x37.2x3.7x
Thu, 09 Oct 2025UK£16.3bUK£4.4bUK£437.7m31x37.2x3.7x
Sat, 06 Sep 2025UK£16.2bUK£4.4bUK£438.6m37.6x36.9x3.7x
Mon, 04 Aug 2025UK£17.1bUK£4.4bUK£430.2m34.5x39.8x3.9x
Wed, 02 Jul 2025UK£18.7bUK£4.7bUK£392.4m37.2x47.5x4x
Fri, 30 May 2025UK£18.5bUK£4.8bUK£400.7m32.9x46.2x3.8x
Sun, 27 Apr 2025UK£17.7bUK£4.8bUK£371.8m30.3x47.5x3.7x
Tue, 25 Mar 2025UK£18.0bUK£4.7bUK£366.9m29.2x48.9x3.8x
Thu, 20 Feb 2025UK£19.8bUK£4.8bUK£307.0m32.6x64.4x4.1x
Sat, 18 Jan 2025UK£19.7bUK£4.8bUK£304.2m28.7x64.8x4.1x
Mon, 16 Dec 2024UK£19.9bUK£4.8bUK£320.0m37.1x62.1x4.2x
Wed, 13 Nov 2024UK£17.5bUK£4.7bUK£204.7m36x85.3x3.7x
Fri, 11 Oct 2024UK£16.5bUK£4.7bUK£199.4m32x82.7x3.5x
Sun, 08 Sep 2024UK£20.5bUK£5.2bUK£276.6m36.8x74.3x4x
Tue, 06 Aug 2024UK£20.9bUK£5.3bUK£256.4m37.7x81.5x4x
Thu, 04 Jul 2024UK£22.0bUK£5.3bUK£260.7m39.2x84.4x4.1x
Sat, 01 Jun 2024UK£21.4bUK£5.3bUK£163.1m38.4x131.1x4.1x
Mon, 29 Apr 2024UK£22.2bUK£5.2bUK£89.6m38.3x247.4x4.2x
Wed, 27 Mar 2024UK£22.0bUK£5.2bUK£73.5m36.8x299.8x4.2x
Fri, 23 Feb 2024UK£21.1bUK£5.2bUK£66.0m35.6x319.6x4.1x
Sun, 21 Jan 2024UK£42.1bUK£10.1bUK£71.1m37.8x592.6x4.2x
Tue, 19 Dec 2023UK£42.2bUK£10.1bUK£72.1m35.7x585.2x4.2x
Thu, 16 Nov 2023UK£39.9bUK£10.1bUK£127.5m32.9x312.8x4x
Sat, 14 Oct 2023UK£40.0bUK£10.1bUK£129.6m30.9x308.8x4x
Mon, 11 Sep 2023UK£40.9bUK£10.0bUK£143.1m34.8x286x4.1x
Wed, 09 Aug 2023UK£39.9bUK£10.0bUK£94.2m36x423.1x4x
Fri, 07 Jul 2023UK£40.7bUK£10.6bUK£128.7m35.7x316.4x3.9x
Sun, 04 Jun 2023UK£40.8bUK£10.6bUK£39.2m36.6x1041.1x3.9x
Tue, 02 May 2023UK£40.1bUK£10.7bUK£109.7m36.4x365.1x3.7x
Thu, 30 Mar 2023UK£39.0bUK£10.6bUK£306.1m32.4x127.5x3.7x
Sat, 25 Feb 2023UK£39.4bUK£10.3bUK£297.6m34.7x132.5x3.8x
Price to Earnings Ratio

132.5x


Total Market Cap: UK£39.4bTotal Earnings: UK£297.6mTotal Revenue: UK£10.3bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Software Industry Price to Earnings3Y Average 178.5x202420252026
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 28.8x which is lower than its 3-year average PE of 179x.
  • The 3-year average PS ratio of 3.9x is higher than the industry's current PS ratio of 2.8x.
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 Market1.65%
Tech1.42%
Software-6.10%
Systems Software0.51%
Application Software-6.15%
Industry PE
  • Investors are most optimistic about the Application Software industry even though it's trading below its 3-year average PE ratio of 91.1x.
    • Analysts are expecting annual earnings growth of 16.4%, 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 62% 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
PEB Pebble Beach Systems GroupUK£0.2113.5%
+UK£3.1m		171.0%PS2.2x
BGO BangoUK£0.774.8%
+UK£2.7m		-22.7%PS1.5x
ALT Altitude GroupUK£0.2512.7%
+UK£2.0m		-6.4%PE43.9x
RM. RMUK£1.012.0%
+UK£2.0m		-7.8%PS0.6x
ESYS essensysUK£0.1915.4%
+UK£1.6m		-49.3%PS0.6x

Latest News

PINE
UK£3.07
Pinewood Technologies Group
7D
-33.2%
1Y
-10.5%
PEB
UK£0.21
Pebble Beach Systems Group
7D
13.5%
1Y
171.0%
GBG
UK£2.02
GB Group
7D
-10.2%
1Y
-44.2%
ALT
UK£0.25
Altitude Group
7D
12.7%
1Y
-6.4%
ALFA
UK£1.86
Alfa Financial Software Holdings
7D
-6.1%
1Y
-23.3%
TRCS
UK£3.25
Tracsis
7D
1.6%
1Y
-9.7%

TRCS: M&A Pipeline And Buybacks Will Support Future Share Upside

Analysts have nudged their price target on Tracsis higher to £6.18, a small adjustment that reflects updated assumptions on the discount rate and future P/E while keeping fair value estimates broadly unchanged. What's in the News Management reiterated that mergers and acquisitions remain a key part of Tracsis's growth plans, with a focus on disciplined bolt on deals that are fully integrated into a single group structure.
SGE
UK£7.98
Sage Group
7D
-5.7%
1Y
-39.6%
ZOO
UK£0.15
ZOO Digital Group
7D
5.5%
1Y
-44.4%
RM.
UK£1.01
RM
7D
2.0%
1Y
-7.8%
ESYS
UK£0.19
essensys
7D
15.4%
1Y
-49.3%

essensys plc's (LON:ESYS) Prospects Need A Boost To Lift Shares

Jan 24
essensys plc's (LON:ESYS) Prospects Need A Boost To Lift Shares
BGO
UK£0.77
Bango
7D
4.8%
1Y
-22.7%
CER
UK£16.10
Cerillion
7D
-1.2%
1Y
-5.3%

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
ADVT
UK£1.55
AdvancedAdvT
7D
-7.5%
1Y
6.9%
IGP
UK£1.24
Intercede Group
7D
1.6%
1Y
-29.0%
DOTD
UK£0.58
dotdigital Group
7D
-13.9%
1Y
-37.7%
BYIT
UK£2.90
Bytes Technology Group
7D
-4.7%
1Y
-34.9%