Softcat’s CEO claimed it has “never been more relevant” as it surprised even itself by topping the £2bn sales mark in its first half.
In a set of numbers that were “significantly ahead of expectations at the beginning of the year”, Softcat saw first-half gross invoiced income, gross profit and underlying operating profit power up 33.3%, 22.6% and 27.3% year on year to £2.01bn, £269.9m and £93.8m, respectively.
That’s an acceleration in growth even on its bumper fiscal 2025.
The LSE-listed giant chalked up the numbers to “broad-based growth”, although noted that it also benefited from a pull forward of some customer orders due to memory shortages.
AI is a “direct stimulus” to all five of Softcat’s technology towers, “playing directly to Softcat’s core strengths as a trusted advisor”, CEO Graham Charlton said in his results commentary.
“The trusted advice and exceptional customer service we provide, underpinned by the broadest and deepest technical skills and capabilities in our market, have never been more relevant and I’m delighted with the momentum we’re carrying into the second half,” he stated.
Buoyed by its performance in the six-month period ending 31 January 2026, Softcat hoisted its full-year underlying operating profit guidance from “low single-digit” to “high single-digit” growth.
Although that may seem modest, Charlton stressed that Softcat faces a “tougher comparison” in the second half as it laps some larger solutions projects bagged last year.
“In addition, the net impact of ongoing memory shortages in this next period remains uncertain,” he added, referencing the supply constraints that are wreaking havoc among partners.
Softcat gets the cream
Breaking down Softcat’s first-half performance, hardware GII flew up 78.7% to £583.6m, while software GII and services GII advanced 18.6% and 29% to £1.12bn and £306.7m, respectively.
Customer numbers leapt 3.5% to 10,400, with gross profit per customer improving 19% to £52,200.
Softcat pegged its total addressable market in the UK and Ireland at over £87bn, estimating it serves 20% of its target customers in the UK with an average 20-25% wallet share.
Charlton claimed the market had “stabilised” over the past 12 months “as interest rates and inflation have moderated and pent-up IT investment has slowly started to be released”.
Having recently mooted a potential US acquisition, Softcat stressed it “retains the option” to add technical/services capability or expand its international reach via “highly selective and targeted acquisitions”.
“While customers remain judicious with their spending, AI readiness and the industry-wide supply challenges for memory and related hardware products are stimulating demand,” Charlton stated.
“Uncertainty about how the component shortages will impact lead times and pricing over the next 12-18 months persists, but we remain best-placed to support customers with valuable technical advice, breadth of vendor reach and flexible financial solutions.”
