Bytes H2 FY26 Shows Strong Growth Momentum

Bytes H2 FY26 report showcases a firm stabilizing its performance after notable improvements in the latter half of fiscal year 2026. The trading update for the year ending in February indicates a gross profit increase of approximately 6% year-on-year for January and February, against a robust benchmark set in FY25. As BTG has previously highlighted, the company faced challenges from adjustments in Microsoft’s enterprise incentives alongside its own strategic realignment in private sector sales. It’s important to point out that while the restructuring of Microsoft’s partner incentives has influenced the broader reseller landscape, the effects have not been uniform across all players. For instance, Softcat has successfully utilised its varied revenue streams to mitigate the impacts of vendor program modifications.

The Bytes H2 FY26 update presents no significant surprises; the fiscal year 2026 results align well with the forecast shared last October. BTG anticipates “double-digit” growth in Gross Invoiced Income, with gross profit projected to reach about £167 million and operating profit expected to be close to £62 million. Moving forward into FY27, BTG predicts the positive momentum witnessed in the second half will persist. It projects a growth rate in gross profit ranging from “high single-digit to low double-digit” percentages. Operating profit is expected to remain “broadly flat,” reflecting investments in strategic technological initiatives, a return to standard bonus levels, and continued investments in staffing. This signals an improvement from the downturn recorded in the first half of the fiscal year, where increasing salary costs outpaced revenue growth.

A key strategic move includes BTG’s plan to streamline its go-to-market strategy. Bytes Software Services will concentrate on the private sector, while Phoenix Software will align with public sector initiatives. This refinement not only simplifies operations but is also aimed at enhancing sector expertise by allowing both entities to focus on their respective markets. Executing this plan effectively could reinforce their positions within these sectors. For more insights on tech market updates, visit [TechCrunch](https://techcrunch.com) and [Gartner](https://www.gartner.com). Explore more strategies on maximising your marketing efforts at [Sellable Marketing](http://www.sellablemarketing.com/marketing-strategies) and learn about market analysis at [Sellable Marketing](http://www.sellablemarketing.com/market-analysis).

Source: https://www.techmarketview.com/ukhotviews/archive/2026/03/24/bytes-improves-in-h2-fy26