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

U.K. (FTSE) Software Industry Analysis

UpdatedFeb 19, 2026
DataAggregated Company Financials
Companies49
  • 7D-2.9%
  • 3M-20.1%
  • 1Y-32.6%
  • YTD-17.0%

Over the last 7 days, the Software industry has dropped 2.9%, driven by Pinewood Technologies Group declining 33%. However, the industry is down 33% over the past year. 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
Thu, 19 Feb 2026UK£12.6bUK£4.5bUK£432.1m31.4x29.1x2.8x
Sat, 17 Jan 2026UK£15.5bUK£4.5bUK£430.4m32.3x35.9x3.4x
Mon, 15 Dec 2025UK£15.6bUK£4.5bUK£421.8m33.3x36.9x3.5x
Wed, 12 Nov 2025UK£16.3bUK£4.4bUK£430.6m35.2x37.8x3.7x
Fri, 10 Oct 2025UK£16.3bUK£4.4bUK£437.6m30.8x37.2x3.7x
Sun, 07 Sep 2025UK£16.2bUK£4.4bUK£438.6m37.6x36.9x3.7x
Tue, 05 Aug 2025UK£17.0bUK£4.4bUK£430.3m34.4x39.6x3.9x
Thu, 03 Jul 2025UK£17.8bUK£4.7bUK£392.0m37.1x45.4x3.8x
Sat, 31 May 2025UK£18.6bUK£4.8bUK£400.7m32.5x46.4x3.8x
Mon, 28 Apr 2025UK£17.7bUK£4.8bUK£371.8m30.3x47.5x3.7x
Wed, 26 Mar 2025UK£18.1bUK£4.8bUK£367.9m30.1x49.2x3.8x
Fri, 21 Feb 2025UK£19.5bUK£4.8bUK£307.1m32x63.6x4.1x
Sun, 19 Jan 2025UK£19.7bUK£4.8bUK£304.1m28.7x64.8x4.1x
Tue, 17 Dec 2024UK£19.8bUK£4.8bUK£320.3m37x61.8x4.2x
Thu, 14 Nov 2024UK£17.6bUK£4.7bUK£210.6m35.6x83.4x3.8x
Sat, 12 Oct 2024UK£16.7bUK£4.7bUK£204.0m32.8x81.7x3.6x
Mon, 09 Sep 2024UK£20.5bUK£5.2bUK£276.6m36.8x74.3x4x
Wed, 07 Aug 2024UK£21.0bUK£5.3bUK£256.5m37.8x82x4x
Fri, 05 Jul 2024UK£22.0bUK£5.3bUK£261.6m39.1x84x4.1x
Sun, 02 Jun 2024UK£21.4bUK£5.3bUK£163.1m38.4x131.2x4.1x
Tue, 30 Apr 2024UK£22.1bUK£5.2bUK£89.3m39.6x247.1x4.2x
Thu, 28 Mar 2024UK£21.8bUK£5.2bUK£73.5m37.5x296.8x4.2x
Sat, 24 Feb 2024UK£21.0bUK£5.2bUK£66.0m35.8x318.5x4.1x
Mon, 22 Jan 2024UK£42.1bUK£10.1bUK£71.1m37.8x592.6x4.2x
Wed, 20 Dec 2023UK£42.4bUK£10.1bUK£72.2m36.1x587x4.2x
Fri, 17 Nov 2023UK£39.9bUK£10.1bUK£127.5m32.9x312.8x4x
Sun, 15 Oct 2023UK£40.0bUK£10.1bUK£129.6m30.9x308.8x4x
Tue, 12 Sep 2023UK£41.0bUK£10.0bUK£143.1m34.5x286.5x4.1x
Thu, 10 Aug 2023UK£40.0bUK£10.0bUK£94.2m35.8x424.5x4x
Sat, 08 Jul 2023UK£40.6bUK£10.6bUK£129.0m35.7x314.7x3.8x
Mon, 05 Jun 2023UK£40.8bUK£10.6bUK£39.2m36.6x1041.1x3.9x
Wed, 03 May 2023UK£40.0bUK£10.7bUK£110.0m36.4x364x3.7x
Fri, 31 Mar 2023UK£39.4bUK£10.6bUK£293.5m33.1x134.1x3.7x
Sun, 26 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 178.4x202420252026
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 29.1x which is lower than its 3-year average PE of 178x.
  • 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 Market1.85%
Tech2.87%
Software-2.90%
Systems Software0.59%
Application Software-2.93%
Industry PE
  • Investors are most optimistic about the Application Software industry even though it's trading below its 3-year average PE ratio of 90.3x.
    • 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
BYIT Bytes Technology GroupUK£2.991.4%
+UK£9.5m		-33.2%PE13.2x
RM. RMUK£1.023.6%
+UK£3.4m		-9.7%PS0.6x
QTX Quartix TechnologiesUK£2.871.4%
+UK£1.9m		88.2%PE26.4x
ALT Altitude GroupUK£0.2410.9%
+UK£1.8m		-7.9%PE43.2x
PEB Pebble Beach Systems GroupUK£0.206.4%
+UK£1.5m		158.1%PS2.1x

Latest News

SGE
UK£8.01
Sage Group
7D
-1.4%
1Y
-39.3%

SGE: Embedded Banking Partnerships Will Support Further Share Price Upside

The analyst price target for Sage Group has been adjusted to £1,250 from £1,350, as analysts refine fair value, discount rate, growth, margin and P/E assumptions in light of recent mixed research that includes both upgrades and a reduced target. Analyst Commentary Recent research on Sage Group reflects a mix of optimism on growth prospects and caution on valuation and execution, which helps explain the adjustment in the consensus price target.
PINE
UK£3.07
Pinewood Technologies Group
7D
-32.7%
1Y
-9.3%
PEB
UK£0.20
Pebble Beach Systems Group
7D
6.4%
1Y
158.1%
GBG
UK£1.95
GB Group
7D
-8.0%
1Y
-45.4%
ALT
UK£0.24
Altitude Group
7D
10.9%
1Y
-7.9%
PR1
UK£0.024
Pri0r1ty Intelligence Group
7D
23.1%
1Y
-56.4%
ALFA
UK£1.86
Alfa Financial Software Holdings
7D
-2.0%
1Y
-23.3%
QTX
UK£2.87
Quartix Technologies
7D
1.4%
1Y
88.2%

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
-5.8%
1Y
-29.4%

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.
ZOO
UK£0.16
ZOO Digital Group
7D
9.6%
1Y
-43.2%
RM.
UK£1.02
RM
7D
3.6%
1Y
-9.7%
NET
UK£1.23
Netcall
7D
-3.5%
1Y
9.3%
ESYS
UK£0.18
essensys
7D
10.8%
1Y
-51.4%

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
CER
UK£15.80
Cerillion
7D
-1.9%
1Y
-3.4%

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
DOTD
UK£0.57
dotdigital Group
7D
-14.5%
1Y
-38.9%
BYIT
UK£2.99
Bytes Technology Group
7D
1.4%
1Y
-33.2%