Softcat PLC

Latest Results (18.09.2026):

Softcat PLC — results for the six months ended 31 January 2026 (H1 FY26): the group reported strong top‑line and profit growth driven by higher hardware volumes and expansion in software and services. Gross invoiced income rose to £2.01bn (+33.3%), gross profit was £269.9m (+22.6%) and underlying operating profit grew to £93.8m (+27.3%). Statutory operating profit was £85.2m, profit after tax £65.4m and basic EPS 32.8p. Cash generation was robust, with underlying cash conversion of 147.6% and a closing cash balance of £206.0m. Management issued an interim dividend of 9.9p and completed a £45m share buyback; they now expect high single‑digit growth in underlying operating profit for FY2026.

Key financials

GII £2.0086bn (+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%); profit after tax £65.4m (+13.9%); basic EPS 32.8p (+14.3%).

Margin and mix

Gross profit margin on GII fell to 13.4% (down 1.2 ppt) due mainly to dilutive, lower‑margin larger solutions projects and a higher mix of hardware (hardware GII +78.7%). Admin costs rose 20.2% (investments in headcount, IT and property) but operating profit to gross profit ratio improved to 34.8% (+1.3 ppt).

Cash, returns and capital allocation

Strong cash generation: underlying operating cash conversion 147.6% (102.4% excluding a large upfront customer payment), closing cash £206.0m. During H1 Softcat returned cash via dividends and a buyback — interim dividend 9.9p (+11.2%) and a £45m share buyback completed in February 2026.

Customers and productivity

Customers delivering ≥£1k GP numbered 10,417 (+3.5%); gross profit per customer £52.2k (+19.0%). Growth came from new customers and higher spend from existing customers, with particularly strong enterprise and mid‑market performance.

Operational drivers

Hardware demand (including pull‑forward due to memory shortages) and growth in cybersecurity licensing and Microsoft CSP deals underpinned revenue and GP growth. Average headcount 2,863 (+10.5%) to support growth and investments.

Strategy and AI opportunity

Management highlights AI as a structural demand driver — increasing infrastructure complexity and capacity needs — and is deploying AI tools internally (e.g., CatNav, analytics) to boost sales and operations. Strategy remains focused on customer acquisition, selling more to existing customers and reinvesting in people and systems.

Outlook and risks

Guidance upgraded: Softcat now expects high single‑digit growth in underlying operating profit for FY2026 (previously low single‑digit). Risks include a tougher H2 comparator (large solutions in H2 FY25) and continued uncertainty around memory shortages impacting timing and mix of orders.