Softcat PLC

Latest Results (17.05.2026):

Softcat PLC — Half Year (H1) FY2026 results (six months to 31 January 2026): the business delivered an exceptional first half with broad-based growth. Gross invoiced income (GII) rose 33.3% to £2,008.6m, gross profit increased 22.6% to £269.9m and underlying operating profit rose 27.3% to £93.8m. Reported revenue under IFRS 15 was £837.5m (up 53.5%). Underlying basic EPS was 36.1p (statutory basic EPS 32.8p). Strong cash generation (closing cash £206.0m; underlying cash conversion 147.6%) supported an interim dividend increase to 9.9p and a £45m share buyback (completed February 2026). The Board upgraded FY2026 underlying operating profit guidance to high single‑digit growth (from low single‑digit).

Headline financials

GII £2,008.6m (+33.3%); revenue £837.5m (+53.5%); gross profit £269.9m (+22.6%); underlying operating profit £93.8m (+27.3%); statutory operating profit £85.2m (+15.6%). Underlying basic EPS 36.1p (statutory 32.8p).

Revenue mix & IFRS 15 effect

Hardware GII led growth (hardware GII +78.7%; hardware revenue +79.1%) driven by datacentre, networking and larger solutions projects. Software and services also grew (software GII +18.6%, services GII +29.0%). Note: reported revenue is affected by principal/agent judgements under IFRS 15, so GII is used to show underlying billed activity.

Profitability and margins

Gross profit margin on GII declined modestly to 13.4% (H1 FY2025: 14.6%) reflecting some lower‑margin larger solutions projects, but underlying operating profit margin improved slightly in absolute terms due to leverage on gross profit and disciplined cost management.

Cash, working capital and balance sheet

Closing cash and equivalents £206.0m (H1 FY2025: £141.0m). Underlying cash conversion 147.6% (benefited from a £42.4m advanced customer payment; excluding that receipt conversion would be 102.4%). Inventory and contract fulfilment movements reflect timing on a large order carried over from FY2025.

Capital allocation — dividend and buyback

Interim ordinary dividend 9.9p (+11.2% y/y), payable 20 May 2026. £45m share buyback programme announced and completed (3,352,161 shares repurchased, ~1.67% of issued share capital at start of programme).

Investments and one‑offs

Non‑underlying costs £8.5m in H1 (mainly £7.0m of major system development for new cloud sales and HR systems; plus Oakland acquisition accounting items). Management continues to invest in systems, data & digital, people and office network to support AI and scale.

Customer KPIs and market drivers

Customer base 10.4k (+3.5%); gross profit per customer £52.2k (+19.0%). Management cites strong demand driven by AI readiness, security, data centre and networking needs and the Oakland acquisition enhancing data/AI consulting capability.

Outlook

Board upgrades FY2026 underlying operating profit growth guidance to high single‑digit (from low single‑digit), while noting tougher H2 comparatives and ongoing memory supply uncertainty. Management emphasises long‑term AI‑driven opportunity and continued investment in operational transformation.