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U.K. (FTSE) Software Industry Analysis

UpdatedFeb 21, 2026
DataAggregated Company Financials
Companies49
  • 7D-0.7%
  • 3M-17.5%
  • 1Y-30.9%
  • YTD-15.9%

In the last week, the Software industry is flat overall, with Pinewood Technologies Group standing out by going down 28%. As for the longer term, the industry has declined 31% in the last year. Looking forward, earnings are forecast to grow by 16% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sun, 22 Feb 2026UK£12.7bUK£4.5bUK£432.1m31.1x29.5x2.8x
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
Price to Earnings Ratio

133.2x


Total Market Cap: UK£39.6bTotal Earnings: UK£297.1mTotal Revenue: UK£10.3bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Software Industry Price to Earnings3Y Average 178.1x202420252026
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 29.5x 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 Market2.09%
Tech1.07%
Software-0.73%
Systems Software-0.043%
Application Software-0.74%
Industry PE
  • Investors are most optimistic about the Application Software industry even though it's trading below its 3-year average PE ratio of 88.8x.
    • Analysts are expecting annual earnings growth of 15.8%, 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
SGE Sage GroupUK£8.191.5%
+UK£109.6m		-36.9%PE20.6x
ALFA Alfa Financial Software HoldingsUK£1.902.6%
+UK£14.2m		-21.6%PE19x
ACSO accesso Technology GroupUK£2.865.9%
+UK£6.0m		-42.2%PE14x
PEB Pebble Beach Systems GroupUK£0.1915.2%
+UK£3.1m		145.2%PS2x
PULS Pulsar GroupUK£0.452.3%
+UK£1.4m		-7.2%PS1x

Latest News

PULS
UK£0.45
Pulsar Group
7D
2.3%
1Y
-7.2%
QTX
UK£2.75
Quartix Technologies
7D
-6.1%
1Y
85.2%
PINE
UK£3.13
Pinewood Technologies Group
7D
-28.3%
1Y
-10.1%

AI-Focused Dealership Systems Face Execution Risks Yet May Ultimately Reward Patience

Catalysts About Pinewood Technologies Group Pinewood Technologies Group provides automotive retail software and AI driven tools to dealer groups across multiple regions, including the U.K., Europe, Japan, South Africa and North America. What are the underlying business or industry changes driving this perspective?
SGE
UK£8.19
Sage Group
7D
1.5%
1Y
-36.9%

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.
SWG
UK£0.47
Shearwater Group
7D
6.9%
1Y
24.0%
PEB
UK£0.19
Pebble Beach Systems Group
7D
15.2%
1Y
145.2%
GBG
UK£2.00
GB Group
7D
-0.7%
1Y
-42.5%
ALFA
UK£1.90
Alfa Financial Software Holdings
7D
2.6%
1Y
-21.6%
AOM
UK£2.66
ActiveOps
7D
-2.6%
1Y
157.0%

AOM: Scalable Model And Decision Intelligence Will Support £100 Million ARR

Analysts have left their price target for ActiveOps unchanged at £3.17, citing only small tweaks to assumptions on discount rate, revenue growth, profit margin and future P/E, rather than any shift in their core view of the company. Valuation Changes Fair Value: Fair value estimate remains unchanged at £3.17 per share.
DSG
UK£0.12
Dillistone Group
7D
19.5%
1Y
58.1%
ACSO
UK£2.86
accesso Technology Group
7D
5.9%
1Y
-42.2%
NET
UK£1.19
Netcall
7D
-6.7%
1Y
5.8%
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£15.50
Cerillion
7D
-4.3%
1Y
-6.6%

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£1.50
AdvancedAdvT
7D
-4.8%
1Y
-9.1%
DOTD
UK£0.59
dotdigital Group
7D
-6.0%
1Y
-35.2%