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

Bytes Technology Group (LON:BYIT) released its quarterly earnings results on Tuesday. The company reported GBX 21.40 EPS for the quarter, Digital Look Earnings reports. Bytes Technology Group had a return on equity of 60.89% and a net margin of 24.31%.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 Stock Performance

Shares of LON BYIT traded up GBX 12.75 during mid-day trading on Tuesday, reaching GBX 330.75. 2,884,979 shares of the company were exchanged, compared to its average volume of 3,229,574. The company has a quick ratio of 0.98, a current ratio of 1.05 and a debt-to-equity ratio of 3.98. Bytes Technology Group has a twelve month low of GBX 232.92 and a twelve month high of GBX 553. The stock has a market capitalization of £781.79 million, a P/E ratio of 15.47, a P/E/G ratio of 2.27 and a beta of 0.68. The company’s 50-day simple moving average is GBX 298.54 and its 200-day simple moving average is GBX 327.17.

Analyst Upgrades and Downgrades

Several equities research analysts have recently weighed in on the company. UBS Group reissued a “neutral” rating and set a GBX 305 target price on shares of Bytes Technology Group in a research report on Monday. Jefferies Financial Group reissued a “hold” rating and issued a GBX 320 target price on shares of Bytes Technology Group in a report on Tuesday. Finally, Shore Capital Group reiterated a “hold” rating on shares of Bytes Technology Group in a research note on Wednesday, March 25th. One equities research analyst has rated the stock with a Buy rating and five have given a Hold rating to the company. According to data from MarketBeat, Bytes Technology Group currently has a consensus rating of “Hold” and a consensus target price of GBX 422.17.

About Bytes Technology Group

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.