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U.K. (FTSE) Software Industry Analysis

UpdatedJul 21, 2026
DataAggregated Company Financials
Companies50
  • 7D-0.3%
  • 3M-4.2%
  • 1Y-30.9%
  • YTD-15.7%

Over the last 7 days, the Software industry has remained flat, although notably Pinewood Technologies Group gained 6.1%. As for the longer term, the industry has declined 31% in the last year. 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
Tue, 21 Jul 2026UK£12.3bUK£4.6bUK£365.8m19.8x33.6x2.7x
Thu, 18 Jun 2026UK£12.1bUK£4.6bUK£376.3m20.5x32x2.6x
Sat, 16 May 2026UK£12.8bUK£4.5bUK£444.1m23.6x28.9x2.8x
Mon, 13 Apr 2026UK£12.0bUK£4.5bUK£435.6m31.8x27.6x2.7x
Wed, 11 Mar 2026UK£12.7bUK£4.5bUK£431.2m29.2x29.4x2.8x
Fri, 06 Feb 2026UK£13.6bUK£4.5bUK£429.8m31.6x31.7x3x
Sun, 04 Jan 2026UK£15.3bUK£4.5bUK£433.5m32.7x35.3x3.4x
Tue, 02 Dec 2025UK£15.7bUK£4.5bUK£421.4m33.1x37.2x3.5x
Thu, 30 Oct 2025UK£16.5bUK£4.4bUK£435.5m30.8x37.9x3.8x
Sat, 27 Sep 2025UK£15.9bUK£4.4bUK£440.7m30.2x36.1x3.6x
Mon, 25 Aug 2025UK£16.2bUK£4.4bUK£437.4m37.3x37.1x3.7x
Wed, 23 Jul 2025UK£18.2bUK£4.5bUK£397.6m35.2x45.9x4.1x
Fri, 20 Jun 2025UK£18.7bUK£4.7bUK£401.6m35.1x46.7x4x
Sun, 18 May 2025UK£18.9bUK£4.9bUK£401.3m33.5x47x3.9x
Tue, 15 Apr 2025UK£17.2bUK£4.8bUK£372.6m27x46x3.6x
Thu, 13 Mar 2025UK£17.9bUK£4.8bUK£313.0m29.9x57.2x3.7x
Sat, 08 Feb 2025UK£19.8bUK£4.8bUK£306.2m32.9x64.5x4.1x
Mon, 06 Jan 2025UK£19.6bUK£4.8bUK£305.1m30.9x64.1x4.1x
Wed, 04 Dec 2024UK£19.9bUK£4.8bUK£322.5m34.8x61.8x4.2x
Fri, 01 Nov 2024UK£16.8bUK£4.7bUK£207.2m34.2x81x3.6x
Sun, 29 Sep 2024UK£20.7bUK£5.1bUK£286.0m34.4x72.4x4.1x
Tue, 27 Aug 2024UK£20.9bUK£5.2bUK£245.3m38.3x85x4x
Thu, 25 Jul 2024UK£21.4bUK£5.3bUK£254.3m38.3x84.2x4.1x
Sat, 22 Jun 2024UK£22.0bUK£5.3bUK£267.0m40.7x82.4x4.1x
Mon, 20 May 2024UK£22.0bUK£5.3bUK£164.2m38.2x134.2x4.2x
Wed, 17 Apr 2024UK£21.1bUK£5.2bUK£90.6m37.9x233.4x4x
Fri, 15 Mar 2024UK£22.0bUK£5.2bUK£69.4m36.5x317.4x4.2x
Sun, 11 Feb 2024UK£21.2bUK£5.2bUK£65.8m37.3x321.9x4.1x
Tue, 09 Jan 2024UK£42.1bUK£10.1bUK£71.1m36.4x591.5x4.1x
Thu, 07 Dec 2023UK£41.7bUK£10.2bUK£72.0m34.2x579.2x4.1x
Sat, 04 Nov 2023UK£39.6bUK£10.1bUK£125.9m32.7x314.4x3.9x
Mon, 02 Oct 2023UK£40.4bUK£10.1bUK£130.9m34.4x308.6x4x
Wed, 30 Aug 2023UK£40.0bUK£10.0bUK£101.1m33.8x396x4x
Fri, 28 Jul 2023UK£40.6bUK£10.6bUK£122.3m36.7x331.7x3.8x
Price to Earnings Ratio

331.7x


Total Market Cap: UK£40.6bTotal Earnings: UK£122.3mTotal Revenue: UK£10.6bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Software Industry Price to Earnings3Y Average 140.9x202420252026
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 33.6x which is lower than its 3-year average PE of 141x.
  • The 3-year average PS ratio of 3.8x is higher than the industry's current PS ratio of 2.7x.
Past Earnings Growth
  • The earnings for companies in the Software industry have grown 44% 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 Market0.26%
Tech-0.30%
Software-0.32%
Application Software-0.26%
Systems Software-7.98%
Industry PE
  • Investors are most optimistic about the Application Software industry even though it's trading below its 3-year average PE ratio of 42.5x.
    • Analysts are expecting annual earnings growth of 16.9%, which is higher than its past year's earnings decline of 6.5% per year.
Forecasted Growth
  • Analysts are most optimistic on the Systems Software industry, expecting annual earnings growth of 107% 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
PINE Pinewood Technologies GroupUK£3.066.1%
+UK£20.1m		-38.6%PE7x
NET NetcallUK£1.196.3%
+UK£11.9m		-2.5%PE84.6x
ADVT AdvancedAdvTUK£1.654.8%
+UK£9.9m		-10.8%PE47.2x
DOTL Dotlines GlobalUK£0.1112.5%
+UK£7.6m		-73.2%n/a
QTX Quartix TechnologiesUK£2.254.7%
+UK£4.8m		-7.4%PE17.1x

Latest News

NET
UK£1.19
Netcall
7D
6.3%
1Y
-2.5%
ADVT
UK£1.65
AdvancedAdvT
7D
4.8%
1Y
-10.8%
ACSO
UK£3.15
accesso Technology Group
7D
-1.9%
1Y
-26.9%
DOTD
UK£0.46
dotdigital Group
7D
-3.2%
1Y
-40.5%
RM.
UK£0.90
RM
7D
1.1%
1Y
-11.8%
BYIT
UK£4.18
Bytes Technology Group
7D
-1.0%
1Y
22.2%
QTX
UK£2.25
Quartix Technologies
7D
4.7%
1Y
-7.4%
GBG
UK£2.19
GB Group
7D
-1.1%
1Y
-6.2%
Narrative Update • Jul 08

GBG: US Partnership Expansion Will Support Confidence Despite Recent Price Pressure

Analysts have trimmed their price target on GB Group to £2.70 from £3.20, citing the near term impact of a £6m growth investment on the company’s valuation, while highlighting progress with key customers as support for the longer term growth case. What’s in the News for GB Group GB Group and Equifax are expanding their partnership into the United States, aiming to strengthen identity and fraud protection offerings for business customers.
PINE
UK£3.06
Pinewood Technologies Group
7D
6.1%
1Y
-38.6%
Narrative Update • Jul 06

nan

Analysts have reduced their fair value estimate for Pinewood Technologies Group from £7.92 to £6.70, citing updated assumptions for revenue growth, profit margins and a higher future P/E multiple. Together, these changes indicate a more cautious view of the company’s risk and return profile.
AOM
UK£1.98
ActiveOps
7D
-1.3%
1Y
8.2%
Analysis Article • Jul 06

ActiveOps Plc (LON:AOM) Just Released Its Full-Year Results And Analysts Are Updating Their Estimates

There's been a notable change in appetite for ActiveOps Plc ( LON:AOM ) shares in the week since its full-year report...
SGE
UK£8.35
Sage Group
7D
-1.7%
1Y
-33.5%
Narrative Update • Jun 29

SGE: AI Adoption And Capital Returns Will Support Future Share Price Upside

The updated Sage Group narrative reflects a lower implied price target, moving in line with recent Street revisions, such as JPMorgan's cut to £10.00 from £11.00 and Deutsche Bank's trim to £9.00. It also incorporates analyst views on moderating growth assumptions, a slightly higher discount rate, and a reduced future P/E multiple, offset by a small uplift in margin expectations.
CNS
UK£0.083
Corero Network Security
7D
-10.8%
1Y
-13.2%
Narrative Update • Jun 26

CNS: New Cybersecurity Partnerships And Contracts Will Support Future Rerating Potential

Analysts have lifted their fair value estimate for Corero Network Security from £0.14 to £0.20 per share, citing updated assumptions around discount rates, revenue growth, profit margins and future P/E levels. What’s in the News for Corero Network Security Corero Network Security announced a partnership with ITcare S.R.L., under which ITcare will offer Corero’s SmartWall ONE platform to help organizations defend against sophisticated DDoS attacks while maintaining business continuity and service availability.
IGP
UK£1.08
Intercede Group
7D
2.9%
1Y
-34.5%
Narrative Update • Jun 26

IGP: Post Quantum Passkey Partnerships Will Drive Future Authentication Upside

Analysts have revised their price target on Intercede Group to £1.80 from £2.25, citing updated assumptions around higher projected revenue growth, improved profit margins and a lower future P/E multiple, along with a modestly higher discount rate. What’s in the News for Intercede Group Intercede Group extended its partnership with Swissbit AG to begin active development of an end-to-end FIDO2 Passkey offering that aims to use post-quantum cryptography, combining Swissbit hardware with Intercede’s MyID product family to support phishing-resistant authentication across device issuance and management.
ALFA
UK£1.62
Alfa Financial Software Holdings
7D
0.5%
1Y
-26.8%
Narrative Update • Jun 23

ALFA: Dividend And Stable Assumptions Will Support Future Upside Potential

Analysts have kept their price target for Alfa Financial Software Holdings broadly unchanged in £ terms, indicating only marginal tweaks in key inputs such as discount rate, revenue growth, profit margin and future P/E assumptions, rather than any shift in their core view on the stock. What's in the News At its AGM held on 30 April 2026, Alfa Financial Software Holdings approved a final dividend of 1.5 pence per ordinary share, according to company meeting disclosures.
CER
UK£10.45
Cerillion
7D
-0.9%
1Y
-27.4%