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U.K. (FTSE) Tech Sector Analysis

UpdatedMay 26, 2026
DataAggregated Company Financials
Companies115
  • 7D3.1%
  • 3M17.2%
  • 1Y17.8%
  • YTD17.0%

In the last week, the Tech industry is up 3.1%, with Halma up 3.7%. This takes the industry's 12 month performance to a gain of 18%. As for the next few years, earnings are expected to grow by 17% per annum.

Sector Valuation and Performance

Has the U.K. Tech Sector valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Tue, 26 May 2026UK£51.8bUK£24.1bUK£1.1b25.6x49.2x2.1x
Thu, 23 Apr 2026UK£49.2bUK£24.0bUK£1.0b32.1x47.6x2.1x
Sat, 21 Mar 2026UK£41.7bUK£24.0bUK£972.8m28.4x42.8x1.7x
Mon, 16 Feb 2026UK£44.0bUK£22.3bUK£1.0b31.2x43.8x2x
Wed, 14 Jan 2026UK£46.6bUK£22.3bUK£1.0b29.4x46.4x2.1x
Fri, 12 Dec 2025UK£47.1bUK£22.6bUK£863.6m29.8x54.6x2.1x
Sun, 09 Nov 2025UK£50.1bUK£23.6bUK£894.6m29.7x56.1x2.1x
Tue, 07 Oct 2025UK£53.1bUK£23.5bUK£892.7m30.9x59.4x2.3x
Thu, 04 Sep 2025UK£50.4bUK£22.7bUK£1.0b29.9x48.1x2.2x
Sat, 02 Aug 2025UK£51.1bUK£22.7bUK£1.2b29.8x41.6x2.3x
Mon, 30 Jun 2025UK£53.3bUK£22.9bUK£1.2b32.2x43.2x2.3x
Wed, 28 May 2025UK£50.1bUK£23.0bUK£1.2b28.3x40.4x2.2x
Fri, 25 Apr 2025UK£46.1bUK£23.0bUK£1.3b23.4x36.6x2x
Sun, 23 Mar 2025UK£47.8bUK£23.0bUK£1.2b23.1x38.3x2.1x
Tue, 18 Feb 2025UK£52.6bUK£22.6bUK£1.2b26.9x42.3x2.3x
Thu, 16 Jan 2025UK£50.3bUK£22.6bUK£1.2b26.6x40.7x2.2x
Sat, 14 Dec 2024UK£51.0bUK£22.6bUK£1.3b29.1x40.6x2.3x
Mon, 11 Nov 2024UK£47.5bUK£22.4bUK£1.1b27.2x41.7x2.1x
Wed, 09 Oct 2024UK£48.8bUK£22.9bUK£1.1b26.6x44x2.1x
Fri, 06 Sep 2024UK£54.1bUK£23.9bUK£1.3b26.6x42.4x2.3x
Sun, 04 Aug 2024UK£55.6bUK£24.1bUK£1.3b27.2x43.6x2.3x
Tue, 02 Jul 2024UK£57.7bUK£24.3bUK£1.2b27.8x49.2x2.4x
Thu, 30 May 2024UK£54.5bUK£23.9bUK£1.1b29.5x51.4x2.3x
Sat, 27 Apr 2024UK£52.7bUK£23.9bUK£960.8m27.7x54.8x2.2x
Mon, 25 Mar 2024UK£53.4bUK£24.1bUK£872.9m29.3x61.1x2.2x
Wed, 21 Feb 2024UK£52.8bUK£24.4bUK£908.3m31.1x58.1x2.2x
Fri, 19 Jan 2024UK£72.7bUK£31.4bUK£946.2m26.2x76.9x2.3x
Sun, 17 Dec 2023UK£73.0bUK£31.4bUK£952.2m27.4x76.7x2.3x
Tue, 14 Nov 2023UK£67.9bUK£31.9bUK£1.0b26.8x67.3x2.1x
Thu, 12 Oct 2023UK£69.4bUK£31.9bUK£990.4m26.7x70x2.2x
Sat, 09 Sep 2023UK£72.6bUK£30.9bUK£1.1b28x68.5x2.3x
Mon, 07 Aug 2023UK£71.5bUK£30.7bUK£1.0b29.1x69.3x2.3x
Wed, 05 Jul 2023UK£73.6bUK£31.2bUK£1.1b29x68.3x2.4x
Fri, 02 Jun 2023UK£74.3bUK£30.9bUK£953.3m30.7x77.9x2.4x
Price to Earnings Ratio

77.9x


Total Market Cap: UK£74.3bTotal Earnings: UK£953.3mTotal Revenue: UK£30.9bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Tech Sector Price to Earnings3Y Average 52.5x202420252026
Current Industry PE
  • Investors are pessimistic on the British Information Technology 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 49.2x which is lower than its 3-year average PE of 52.5x.
  • The industry is trading close to its 3-year average PS ratio of 2.2x.
Past Earnings Growth
  • The earnings for companies in the Information Technology industry have grown 3.4% per year over the last three years.
  • Meanwhile revenues for these companies have declined 7.9% 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 sector?

GB Market1.42%
Tech3.14%
Semiconductors9.28%
IT8.34%
Tech Hardware6.36%
Electronic Equipment and Components2.80%
Software0.30%
Communications-5.93%
Industry PE
  • Investors are most optimistic about the Communications industry which is trading above its 3-year average PE ratio.
    • Analysts are expecting annual earnings growth of 26.3%, which is higher than its past year's earnings growth of 5.8% per year.
Forecasted Growth
  • Analysts are most optimistic on the Semiconductors industry, expecting annual earnings growth of 31% over the next 5 years.
  • This is better than its past earnings decline of 13% per year.
  • In contrast, the IT industry is expected to see its earnings grow by 13% 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
HLMA HalmaUK£45.643.7%
+UK£619.3m		56.4%PE49.7x
SCT SoftcatUK£16.2715.7%
+UK£433.8m		-8.6%PE22.6x
CCC ComputacenterUK£42.106.6%
+UK£272.9m		64.7%PE28.7x
RSW RenishawUK£52.356.4%
+UK£227.7m		100.6%PE51.4x
RPI Raspberry Pi HoldingsUK£7.4916.5%
+UK£205.3m		39.0%PE90.3x

Latest News

SCT
UK£16.27
Softcat
7D
15.7%
1Y
-8.6%
Narrative Update • May 24

SCT: Rising Dividend Will Continue To Mask Weakening Earnings Quality

Analysts have nudged their Softcat price target to £12.10. This reflects slightly lower assumed discount rates and future P/E, alongside modestly stronger projected profit margins and a small adjustment to expected revenue trends.
SGE
UK£8.79
Sage Group
7D
-3.2%
1Y
-29.6%
IQE
UK£0.46
IQE
7D
17.0%
1Y
318.2%
CCC
UK£42.10
Computacenter
7D
6.6%
1Y
64.7%
RSW
UK£52.35
Renishaw
7D
6.4%
1Y
100.6%
Narrative Update • May 21

RSW: Higher Earnings Guidance And Margin Assumptions Will Support Future P/E Re-Rating

Analysts have lifted their fair value estimate for Renishaw from £50.00 to £60.00, citing updated assumptions around revenue growth, profit margins and future P/E multiples in recent Street research and price target revisions. Analyst Commentary Bullish Takeaways Recent Street research includes a price target uplift of 210 GBp, which supports the higher fair value range and reflects confidence in Renishaw's ability to justify a stronger valuation through its revenue and margin profile.
ALFA
UK£1.55
Alfa Financial Software Holdings
7D
-1.0%
1Y
-34.6%
New Narrative • May 20

Cloud Migration And Regulatory Costs Will Pressure Margins Yet Strengthen Long Term Recurring Revenues

Catalysts About Alfa Financial Software Holdings Alfa Financial Software Holdings provides enterprise software for asset and automotive finance providers, with a growing focus on subscription and cloud delivery models. What are the underlying business or industry changes driving this perspective?
KNOS
UK£8.81
Kainos Group
7D
4.1%
1Y
20.0%
SWC
UK£0.31
Smarter Web
7D
-6.3%
1Y
-69.1%
BYIT
UK£3.57
Bytes Technology Group
7D
-1.1%
1Y
-28.1%
Narrative Update • May 15

BYIT: UBS Downgrade And Lower P/E Will Pressure Future Returns

Analysts have reduced their fair value estimate for Bytes Technology Group from £3.80 to £2.56, citing a higher required discount rate, more conservative profit margin assumptions and a lower future P/E multiple, partly reflected in a recent UBS downgrade referenced in Street research. Analyst Commentary Bearish analysts have pointed to the recent fair value cut, from £3.80 to £2.56, as a sign that the risk and reward profile for Bytes Technology Group looks less compelling on their models.
RPI
UK£7.49
Raspberry Pi Holdings
7D
16.5%
1Y
39.0%
HLMA
UK£45.64
Halma
7D
3.7%
1Y
56.4%
New Narrative • May 13

AI Data Center Reliance And Heavy Investment Will Heighten Future Earnings Risk

Catalysts About Halma Halma is a group of companies that supplies safety, environmental and healthcare technologies to customers worldwide. What are the underlying business or industry changes driving this perspective?
PINE
UK£2.51
Pinewood Technologies Group
7D
-3.5%
1Y
-33.1%
FTC
UK£3.79
Filtronic
7D
-15.7%
1Y
211.9%
ENSI
UK£0.94
EnSilica
7D
-11.1%
1Y
188.6%
Narrative Update • May 03

EnSilica (🇺🇸 ENSIF, 🇬🇧 ENSI, 🇪🇺 F0Z) – Why this semiconductor specialist could be worth over £5.00 / $6.79 a share by 2030

As some readers may recall, last September I made the bold assertion that EnSilica could be worth 13x its share price at the time. Back then the company was valued at 38.5p (≈$0.52) a share and following a series of positive developments since, it is now trading on the OTC Markets at $1.07 (≈79p).
OXIG
UK£31.54
Oxford Instruments
7D
11.1%
1Y
73.1%
Narrative Update • Apr 23

OXIG: Rebased P/E Assumptions And Margin Outlook Will Guide Future Repricing

Analysts have lifted their price target on Oxford Instruments by £2.20 to reflect updated assumptions around slightly higher profit margins, a modestly adjusted discount rate, and a lower forward P/E multiple, informed by recent Jefferies and JPMorgan research. Analyst Commentary Recent Street research on Oxford Instruments points to supportive sentiment around the shares, with bullish analysts revisiting their valuation work and adjusting price targets higher.
BIG
UK£1.02
Big Technologies
7D
-1.4%
1Y
-5.6%