Bytes Technology Group (LON:BYIT) Announces Earnings Results

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

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 BYIT stock traded up GBX 14 on Tuesday, hitting GBX 332. 3,535,940 shares of the stock traded hands, compared to its average volume of 3,236,889. The company has a debt-to-equity ratio of 3.98, a current ratio of 1.05 and a quick ratio of 0.98. Bytes Technology Group has a 52 week low of GBX 232.92 and a 52 week high of GBX 553. The firm has a 50 day simple moving average of GBX 298.54 and a two-hundred day simple moving average of GBX 327.17. The firm has a market cap of £784.75 million, a price-to-earnings ratio of 15.53, a PEG ratio of 2.27 and a beta of 0.68.

Analysts Set New Price Targets

A number of equities analysts recently issued reports on the stock. UBS Group reissued a “neutral” rating and issued a GBX 305 price objective on shares of Bytes Technology Group in a report on Monday. Jefferies Financial Group reiterated a “hold” rating and issued a GBX 320 price target on shares of Bytes Technology Group in a research 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 investment analyst has rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to data from MarketBeat.com, Bytes Technology Group has an average 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.