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

U.K. (FTSE) Software Industry Analysis

UpdatedFeb 13, 2026
DataAggregated Company Financials
Companies49
  • 7D-6.4%
  • 3M-19.6%
  • 1Y-31.6%
  • YTD-16.0%

Over the last 7 days, the Software industry has dropped 3.4%, driven by a pullback from Sage Group of 8.9%. Overall the industry is down 31% in 12 months. As for the next few years, earnings are expected to grow by 17% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Fri, 13 Feb 2026UK£12.7bUK£4.5bUK£432.3m31.3x29.5x2.8x
Sun, 11 Jan 2026UK£15.7bUK£4.5bUK£430.4m33x36.5x3.5x
Tue, 09 Dec 2025UK£15.5bUK£4.5bUK£421.5m33.4x36.9x3.5x
Thu, 06 Nov 2025UK£16.6bUK£4.4bUK£430.4m35.2x38.6x3.8x
Sat, 04 Oct 2025UK£17.2bUK£4.4bUK£439.9m31x39x3.9x
Mon, 01 Sep 2025UK£16.1bUK£4.4bUK£436.5m37.7x36.8x3.7x
Wed, 30 Jul 2025UK£17.7bUK£4.4bUK£428.0m35.8x41.3x4x
Fri, 27 Jun 2025UK£18.6bUK£4.7bUK£392.4m35.7x47.4x4x
Sun, 25 May 2025UK£18.6bUK£4.8bUK£400.8m32.4x46.4x3.8x
Tue, 22 Apr 2025UK£17.3bUK£4.8bUK£373.4m26.9x46.3x3.6x
Thu, 20 Mar 2025UK£17.8bUK£4.7bUK£366.4m28.5x48.5x3.7x
Sat, 15 Feb 2025UK£19.7bUK£4.8bUK£306.9m32.4x64.2x4.1x
Mon, 13 Jan 2025UK£19.3bUK£4.8bUK£301.4m30.5x64.1x4.1x
Wed, 11 Dec 2024UK£19.9bUK£4.8bUK£320.6m36.2x62.2x4.2x
Fri, 08 Nov 2024UK£17.2bUK£4.7bUK£206.5m36.4x83.4x3.7x
Sun, 06 Oct 2024UK£16.5bUK£4.7bUK£199.1m31.6x82.7x3.5x
Tue, 03 Sep 2024UK£21.1bUK£5.2bUK£267.4m38.2x78.8x4.1x
Thu, 01 Aug 2024UK£22.0bUK£5.3bUK£256.4m40.6x85.8x4.2x
Sat, 29 Jun 2024UK£22.0bUK£5.3bUK£260.4m39.8x84.4x4.1x
Mon, 27 May 2024UK£21.8bUK£5.3bUK£163.2m38.4x133.6x4.1x
Wed, 24 Apr 2024UK£21.3bUK£5.2bUK£92.0m36.5x231.6x4.1x
Fri, 22 Mar 2024UK£22.0bUK£5.2bUK£72.3m36.7x304.3x4.2x
Sun, 18 Feb 2024UK£21.0bUK£5.2bUK£65.8m37.3x320x4.1x
Tue, 16 Jan 2024UK£42.3bUK£10.1bUK£71.1m36.6x594.4x4.2x
Thu, 14 Dec 2023UK£42.4bUK£10.2bUK£72.1m33.1x587.8x4.2x
Sat, 11 Nov 2023UK£39.9bUK£10.1bUK£126.9m31.9x314x3.9x
Mon, 09 Oct 2023UK£40.2bUK£10.1bUK£128.7m36.3x312x4x
Wed, 06 Sep 2023UK£40.2bUK£10.0bUK£102.2m34x393.2x4x
Fri, 04 Aug 2023UK£39.7bUK£10.0bUK£94.1m33.9x422.2x4x
Sun, 02 Jul 2023UK£41.1bUK£10.6bUK£125.5m37.2x328x3.9x
Tue, 30 May 2023UK£40.2bUK£10.6bUK£39.2m35.2x1024.7x3.8x
Thu, 27 Apr 2023UK£39.7bUK£10.6bUK£291.1m37x136.5x3.8x
Sat, 25 Mar 2023UK£39.1bUK£10.6bUK£310.8m32.5x126x3.7x
Mon, 20 Feb 2023UK£39.6bUK£10.3bUK£296.6m35.1x133.5x3.8x
Price to Earnings Ratio

133.5x


Total Market Cap: UK£39.6bTotal Earnings: UK£296.6mTotal Revenue: UK£10.3bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Software Industry Price to Earnings3Y Average 179x202420252026
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 30.0x 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 2.9x.
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 Market1.21%
Tech-0.058%
Software-6.40%
Systems Software-1.67%
Application Software-6.43%
Industry PE
  • Investors are most optimistic about the Application Software industry even though it's trading below its 3-year average PE ratio of 94.7x.
    • Analysts are expecting annual earnings growth of 16.9%, 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 17% 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
CER CerillionUK£16.251.6%
+UK£7.5m		-2.4%PE28.9x
NET NetcallUK£1.292.8%
+UK£6.0m		14.2%PE54.1x
ALT Altitude GroupUK£0.2513.6%
+UK£2.2m		-5.7%PE44.5x
ELCO ElecoUK£1.450.7%
+UK£1.3m		0.3%PE32.6x
QTX Quartix TechnologiesUK£2.850.7%
+UK£968.6k		78.1%PE26.2x

Latest News

ALT
UK£0.25
Altitude Group
7D
13.6%
1Y
-5.7%
PR1
UK£0.021
Pri0r1ty Intelligence Group
7D
27.3%
1Y
-58.0%
ALFA
UK£1.88
Alfa Financial Software Holdings
7D
-5.7%
1Y
-22.8%
GBG
UK£2.04
GB Group
7D
-7.1%
1Y
-43.4%
ELCO
UK£1.45
Eleco
7D
0.7%
1Y
0.3%
QTX
UK£2.85
Quartix Technologies
7D
0.7%
1Y
78.1%

QTX: Shares Will Rise As Single Dividend Structure Increases Payout Clarity

Analysts have revised their price target for Quartix Technologies to reflect updated assumptions for the discount rate, revenue growth, profit margin and future P/E. The new target implies a valuation that is in line with their latest fair value estimate of £3.60 per share.
SAAS
UK£0.81
Microlise Group
7D
-6.4%
1Y
-31.1%

SAAS: High P/E And 2025 Guidance Will Support Future Returns

Analysts have trimmed their fair value estimate for Microlise Group from £1.54 to £1.46, citing slightly higher discount rate assumptions and a lower future P/E multiple in their updated model. What's in the News Microlise Group issued earnings guidance for fiscal 2025, giving you a clearer view of what management currently expects.
ARC
UK£0.81
Arcontech Group
7D
6.5%
1Y
-24.5%
OMG
UK£0.54
Oxford Metrics
7D
-8.4%
1Y
-4.6%
SGE
UK£7.94
Sage Group
7D
-8.9%
1Y
-39.7%
PINE
UK£4.55
Pinewood Technologies Group
7D
-2.2%
1Y
37.9%
NET
UK£1.29
Netcall
7D
2.8%
1Y
14.2%
CER
UK£16.25
Cerillion
7D
1.6%
1Y
-2.4%

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
SKL
UK£0.71
Skillcast Group
7D
-7.7%
1Y
68.2%

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

Jan 15
The Price Is Right For Skillcast Group plc (LON:SKL)
BYIT
UK£2.91
Bytes Technology Group
7D
-5.3%
1Y
-35.0%
CTAI
UK£0.0024
Catenai
7D
2.1%
1Y
54.8%