Softcat (SCT) H1 2026 earnings summary

Executive summary

• Delivered exceptional first half FY26 results with gross profit up 22.6% and underlying operating profit up 27.3% year-over-year, outperforming expectations and prompting an upgrade to full-year profit guidance.

• Growth was broad-based across all technologies and customer groups, with notable strength in the corporate segment and continued investment in people, systems, and digital transformation.

• AI adoption is accelerating demand for infrastructure, security, and consulting, transforming internal operations and supported by the acquisition of Oakland.

• Customer base expanded to over 10,400, with high satisfaction scores (NPS: 64 for customers, 56 for employees).

• Market conditions have stabilized with moderating inflation and interest rates, but memory shortages and supply chain uncertainties persist.

Financial highlights

• Gross invoiced income rose 33.3% year-over-year to over £2bn; revenue increased 53.5% to £837.5m.

• Gross profit increased 22.6% to £269.9m; underlying operating profit up 27.3% to £93.8m, excluding £8.5m in non-underlying costs.

• Underlying basic EPS up 25.8% to 36.1p; interim dividend increased 11.2% to 9.9p per share.

• Cash balance at period end was £206m, up £65m year-on-year, with underlying cash conversion at 147.6%.

• Gross profit per customer up 19% to £52.2k; customer count up 3.5% to 10,417.

Outlook and guidance

• Upgraded guidance to high single-digit growth in underlying operating profit for FY26, up from low single-digit.

• Management remains cautious on H2 due to tougher comparatives, ongoing memory shortages, and macroeconomic/geopolitical uncertainties.