Softcat reports strong annual growth and expects profit to rise further

what happened

UK IT reseller Softcat reported a strong full-year performance, according to Sharecast. For the year to the end of July, gross invoiced income rose 30.5% to £4.7bn, helped by broad-based demand and larger solutions projects. Gross profit, the company's main income measure, increased 24.7% to £616.3m, while underlying operating profit climbed 19.4% to £215.1m.

The company said growth also benefited from customer orders brought forward because of memory shortages and a positive contribution from vendor rebates. It declared a final ordinary dividend of 21.6p, bringing the full-year payout to 31.5p, up 7.5% on the previous year.

Looking ahead, and excluding recently acquired US multi-vendor IT solutions provider GDT, Softcat expects high single-digit underlying operating profit growth in 2027, slightly ahead of gross profit growth. Chief executive Graham Charlton said: "Softcat delivered outstanding performance in FY2026."

why it matters

The results point to solid demand for IT services and hardware, and the 2027 outlook rests on a strong base after two years of very strong growth. Investors tracking UK technology distributors will watch whether the pull-forward of customer orders affects demand in coming periods.

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