Softcat (LSE:SCT) reported a strong performance for the six months ending 31 January 2026, driven by robust demand across its technology portfolio and growing interest in AI-related infrastructure. Gross invoiced income rose 33.3% during the period, while gross profit increased 22.6% and underlying operating profit climbed 27.3%.
The company maintained a strong financial position, ending the half year with net cash of £206 million and generating solid operating cash flow. Growth was recorded across multiple technologies and customer segments, supported by a higher number of large solutions projects. Some orders were also brought forward as customers responded to memory supply shortages.
Softcat continued investing in its business through increased headcount, upgraded systems and enhanced data capabilities. Shareholder returns were also supported by an 11.2% rise in the interim dividend and the completion of a £45 million share buyback programme.
Management highlighted rapidly rising demand for infrastructure designed to support artificial intelligence workloads. Requirements for AI-ready environments—spanning storage, compute, networking, end-user devices, security and data governance—are providing new opportunities for the company. The firm is also benefiting from expanded consulting capabilities following its acquisition of Oakland.
Reflecting the strong first-half momentum, Softcat upgraded its full-year outlook, increasing its forecast for underlying operating profit growth from low single digits to high single digits. However, the company noted that more challenging year-on-year comparisons and ongoing memory supply constraints could moderate performance in the second half. Despite this, management sees substantial long-term potential from the early stages of enterprise AI adoption.
Softcat’s outlook is supported by strong financial performance and recent corporate actions such as dividends and share buybacks. However, technical indicators currently suggest some caution due to bearish momentum in the share price, while valuation levels appear moderate. The absence of recent earnings call commentary limits additional insight into management’s forward guidance.
More about Softcat
Softcat is a UK-based provider of IT infrastructure products and services, supplying solutions across storage, compute, networking, security and end-user devices. The company helps organisations design and deploy modern IT environments, including architectures capable of supporting artificial intelligence workloads. Softcat leverages strong vendor partnerships, technical expertise and an expanding consulting capability to serve businesses of all sizes across the UK.
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