Bytes Technology Group (LON:BYIT) Posts Quarterly Earnings Results

Bytes Technology Group (LON:BYIT) announced its earnings results on Tuesday. The company reported GBX 21.40 earnings per share for the quarter, Digital Look Earnings reports. Bytes Technology Group had a net margin of 24.31% and a return on equity of 60.89%. The business had revenue of £220.56 million during the quarter.

Here are the key takeaways from Bytes Technology Group’s conference call:

• Bytes said it enters FY2027 with good sales momentum and expects high single-digit to low double-digit gross profit growth, with H1 likely stronger than H2.
• FY2026 gross income rose 11.5% and gross profit increased 2.5% to GBP 167.3 million, but operating profit fell 4.6% to GBP 62.7 million due to Microsoft incentive changes and continued investment.
• The company highlighted strong cash generation with cash conversion of 105% and ended the year debt-free with GBP 98.6 million of cash after returning GBP 74 million to shareholders.
• Microsoft incentive changes were a major headwind in FY2026, reducing margin and holding back growth in the first half, though management said the impact is now annualized and growth improved in H2.
• Bytes emphasized its strategic shift toward services, AI, cloud, and cybersecurity, noting services gross profit grew 38% and that it is seeing demand for higher-value advisory, implementation, and managed services.

Bytes Technology Group Price Performance

Shares of Bytes Technology Group stock opened at GBX 335.20 on Wednesday. Bytes Technology Group has a 52 week low of GBX 232.92 and a 52 week high of GBX 549. The company has a current ratio of 1.05, a quick ratio of 0.98 and a debt-to-equity ratio of 3.98. The stock has a market cap of £792.31 million, a PE ratio of 15.68, a price-to-earnings-growth ratio of 2.27 and a beta of 0.68. The company’s 50-day moving average price is GBX 299.11 and its two-hundred day moving average price is GBX 326.89.

Wall Street Analyst Weigh In

A number of equities analysts have weighed in on BYIT shares. UBS Group reissued a “neutral” rating and issued a GBX 305 price objective on shares of Bytes Technology Group in a research report on Monday. Shore Capital Group reaffirmed a “hold” rating on shares of Bytes Technology Group in a report on Wednesday, March 25th. Berenberg Bank decreased their target price on Bytes Technology Group from GBX 390 to GBX 360 and set a “hold” rating for the company in a research report on Wednesday. Finally, Jefferies Financial Group reiterated a “hold” rating and set a GBX 320 price objective on shares of Bytes Technology Group in a research note on Tuesday. One investment analyst has rated the stock with a Buy rating and five have given a Hold rating to the stock. According to MarketBeat.com, the stock has an average rating of “Hold” and an average target price of GBX 417.17.

Bytes Technology Group Company Profile

With a 40-year track record, Bytes Technology Group is one of the UK and Ireland’s leading software, security, AI and cloud services specialists. We enable effective and cost-efficient technology sourcing, adoption and management across software, security, hardware, and AI and cloud services.

Our strong relationships with many of the world’s largest software companies enable our specialist staff to deliver the latest technology to a diverse and embedded customer base. This has resulted in our long track record of strong financial performance.