Serco outlines medium term strategy, shares in focus on the LSE

By Stefan Krueger, Long-Term & Business Model desk. Reviewed prior to publication on 2026-06-22, 17:09.

Serco Group plc (GB0033055624) detailed a medium term strategy built around disciplined growth, margin resilience and capital returns following its 2025 full year results. The outsourcing specialist’s shares continue to trade on the London Stock Exchange in a sector dominated by public service contractors such as Capita and Mitie.

What Serco’s recent numbers show

Serco reported 2025 revenue of about £4.9 billion, an increase of roughly 3 percent at constant currency compared with the prior year, driven mainly by defense and citizen services contracts that offset declines in immigration-related work in the UK and Australia, according to its full year results announcement.The 2025 full year results announcement on Investegate

Underlying operating profit for 2025 came in at roughly £272 million, representing a 1 percent increase at constant currency and highlighting stable margins despite contract mix changes in key geographies, as management outlined in the same release.Serco’s 2025 results commentary

Analyst views and sector positioning

According to a recent overview of Serco Group plc stock, the average analyst target price clusters around 215 pence, implying an upside potential of roughly the high teens in percentage terms from trading levels cited near 182 pence in that report.Analyst target compilation for Serco

Peel Hunt is described in that analysis as one of the more optimistic houses with a target of 245 pence, pointing to expected market share gains in US defense and growth in citizen services across the Middle East, while HSBC is characterized as more cautious with a 190 pence target because of the company’s exposure to UK government spending cycles.Peel Hunt and HSBC target range discussion

How Serco earns its revenue

Serco primarily generates revenue by operating long term public service contracts for governments and other public sector bodies, including defense support, transport operations, healthcare support and citizen services such as contact centers and visa processing, with a large portion of work in the UK, North America, the Middle East and Asia Pacific as described on its corporate website.Serco’s business overview

Where the shares trade today

The Serco Group plc shares (GB0033055624) trade on the London Stock Exchange under the ticker SRP, with intraday prices quoted in pence sterling and a market capitalization in the low single digit billions of pounds according to recent London quotation data accessed on a major UK brokerage platform.Latest Serco share quote on a UK broker

Disclaimer: This article is for informational purposes only and does not constitute investment advice, a recommendation to buy or sell securities, or any other form of financial guidance. All data are based on publicly available sources believed to be reliable but may be subject to change.