14th Oct 2026 08:51
(Alliance News) - Softcat PLC on Wednesday reported higher annual profit, beating expectations, as it benefited from artificial intelligence and memory chip demand.
The Marlowe, England-based IT infrastructure products and services provider said pretax profit for the year ended July 31 rose 14% to GBP202.8 million from GBP178.2 million a year earlier.
Revenue increased 35% to GBP1.98 billion from GBP1.46 billion. Underlying operating profit rose 19% to GBP215.1 million from GBP180.1 million, beating company-compiled consensus of GBP208.0 million.
"Softcat delivered outstanding performance in FY2026, continuing the momentum established in the first half. Growth in gross profit and underlying operating profit came in significantly ahead of our expectations at the start of the year," Chief Executive Officer Graham Charlton said.
"AI is one of several factors making IT infrastructure more critical, complex and strategically important for our customers' operations. While applications evolve and embed AI functionality, infrastructure foundations are being developed to cope with the rise in demand for compute, storage, faster and more resilient networks, better data architecture, greater security and stronger governance. At the same time, memory chip supply constraints have added complexity to pricing, availability and planning. This is exactly the sort of environment in which Softcat's strengths shine brightest."
Softcat increased its final dividend by 5.9% to 21.60 pence per share from 20.40p.
The total ordinary dividend was 31.50p, up 7.5% from 29.30p. Softcat did not declare a special dividend, following a 16.10p payout of this kind in financial 2025.
Looking ahead, Softcat said it expects to deliver high single-digit growth in underlying operating profit in financial 2027. Company-compiled consensus stands at GBP216.9 million, representing growth of 0.8% from the year just ended.
After the year end, Softcat acquired US-based multi-vendor IT solutions provider General Datatec LP for about GBP785 million. Softcat described the acquisition as a "significant strategic step" that will enhance its US capabilities and strengthen its international customer service.
Shares in Softcat were down 7.2% at 1,785.00p on Wednesday morning in London. They are up more than 40% over the past six months, however.
By Niall Holden, Alliance News reporter
Comments and questions to [email protected]
Copyright 2026 Alliance News Ltd. All Rights Reserved.
Related Shares:
Softcat