Softcat (LON:SCT) reported fiscal 2026 growth ahead of its initial expectations, with gross profit rising 24.7% to £616.3 million and underlying operating profit increasing 19.4% to £215.1 million, as demand remained strong across its IT infrastructure portfolio. Chief Executive Officer Graham Char
Softcat (LON:SCT) reported fiscal 2026 growth ahead of its initial expectations, with gross profit rising 24.7% to £616.3 million and underlying operating profit increasing 19.4% to £215.1 million, as demand remained strong across its IT infrastructure portfolio.
Chief Executive Officer Graham Char
Softcat LON: SCT reported fiscal 2026 growth ahead of its initial expectations, with gross profit rising 24.7% to £616.3 million and underlying operating profit increasing 19.4% to £215.1 million, as demand remained strong across its IT infrastructure portfolio.
Chief Executive Officer Graham Charlton described the results as “an exceptional set of annual results,” citing broad-based growth, market-share gains and continued investment in the company’s people, systems and capabilities. The company also highlighted its recently announced acquisition of GDT, which management said would expand its international offering and add infrastructure and networking capabilities.
Revenue Growth Supported by Hardware, Services and Software
Gross invoiced income rose 30.5% to £4.7 billion during the year. Hardware gross invoiced income increased 41.6%, supported by data center and networking sales, including larger solutions projects and customer orders brought forward amid memory shortages. Services grew 30.1%, while software increased 25.3%, aided by cybersecurity, licensing and Microsoft cloud service provider activity.
Revenue increased 35.4%, with hardware accounting for a greater proportion because it is reported on a gross basis under IFRS 15. Gross profit margin as a percentage of gross invoiced income declined by 60 basis points, reflecting a shift toward lower-margin products, changes to Microsoft enterprise agreements and the lower-margin effect of large projects.
Gross profit growth was strongest in the corporate business, where enterprise and small and medium-sized customers posted strong double-digit growth. Public-sector gross profit rose by high single digits. Data center infrastructure, networking, security and client devices were among the major technology contributors.
The company’s customer base grew 3.4% to more than 10,500 recurring customers. Gross profit per customer rose 20.6% to £58,500. Among customers generating at least £1,000 in annual gross profit, the number of customers increased 7.1% and gross profit per customer rose 16.5% to £70,000.
Charlton told analysts that growth from existing customers was driven primarily by Softcat displacing competing providers, rather than simply benefiting from larger customer IT budgets. He said the company’s approach has been to establish an initial presence with customers before expanding its share of their infrastructure spending over time.
Averytin News Financial update.