Softcat lifts profit guidance after AI-driven first-half surge

Softcat ( (GB:SCT) ) has issued an update.

Softcat reported an exceptionally strong first half to 31 January 2026, with gross invoiced income up 33.3%, gross profit rising 22.6% and underlying operating profit increasing 27.3%, supported by robust cash generation and a net cash position of £206m. Growth was broad-based across technologies and customer segments, boosted by larger solutions projects and some order pull-forward due to memory shortages, and underpinned by recent investments in headcount, systems and data, along with an 11.2% higher interim dividend and completion of a £45m share buyback.

Management highlighted surging customer demand for AI-enabled infrastructure as a key driver, with AI-related needs in storage, compute, networking, devices, security and data governance playing directly to Softcat’s strengths and enhanced data and AI consulting capability from Oakland. On the back of this momentum, the company upgraded full-year guidance for underlying operating profit growth from low to high single digits, while cautioning that tougher comparatives and ongoing memory supply constraints could temper the pace in the second half, though the group sees significant long-term opportunity from the early-stage AI adoption cycle.

The most recent analyst rating on (GB:SCT) stock is a Hold with a £1248.00 price target. To see the full list of analyst forecasts on Softcat stock, see the GB:SCT Stock Forecast page.

Spark’s Take on SCT Stock

According to Spark, TipRanks’ AI Analyst, SCT is a Outperform.

Softcat’s strong financial performance and positive corporate events are the most significant factors driving the score. However, technical indicators suggest caution due to bearish trends, and the valuation is moderate. The absence of recent earnings call data limits insights into management’s current outlook.

To see Spark’s full report on SCT stock, click here.

More about Softcat

Softcat is a UK-based provider of IT infrastructure products and services, supplying technologies across storage, compute, networking, security and end-user devices to organisations of all sizes. The group focuses on advising customers on modern infrastructure and AI-ready architectures, leveraging broad vendor relationships, technical expertise and a growing consulting capability following the acquisition of Oakland.

Average Trading Volume: 730,157

Technical Sentiment Signal: Sell

Current Market Cap: £2.26B

For an in-depth examination of SCT stock, go to TipRanks’ Overview page.