Computacenter shares hit an all-time high on Thursday after the IT services group said first-half profit would roughly double on surging AI and hyperscale demand.
Computacenter plc (L.CCC) shares jumped to a new all-time high on Thursday after the FTSE 100 technology and services group said second-quarter trading had come in ahead of expectations, prompting it to guide first-half adjusted pre-tax profit to roughly double last year’s £81.5m.
Shares were trading up around 11% at 4,597p by mid-morning on Thursday, having earlier touched an all-time high above 4,700p. The stock had closed at 4,136p on Wednesday and traded as low as 2,092p last July, meaning it has more than doubled over the past year.
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Hyperscale demand drives the beat
In a trading update published before Thursday’s market open, Computacenter said the second quarter delivered “a further strong performance… ahead of our expectations, following an excellent first quarter.” North America saw stronger-than-expected volume growth from hyperscale customers, lifting both its Technology Sourcing and Professional Services divisions. The UK also grew strongly in Technology Sourcing, including further AI-related projects, while Germany posted good growth in Technology Sourcing even as Professional Services there stayed subdued.
The company’s committed product order backlog was “well ahead” of the £7.1bn reported at the end of December, reflecting strong order intake during the half. For the full year, Computacenter said results should come in “comfortably ahead” of market expectations, even allowing for a tougher comparative in the second half. Company-compiled analyst consensus currently puts full-year adjusted pre-tax profit at £313.7m, with estimates ranging from £305m to £324.3m. Half-year results are due on 8 September.
This is the second profit upgrade from Computacenter in as many quarters. In April, the company said it expected to beat its annual profit forecasts as customers brought forward hardware orders amid data centre and AI-related supply shortages, according to Reuters; shares jumped as much as 6.3% to 3,552p that day.
Computacenter will report full first-half results on 8 September, when markets will look for more detail on margins and the durability of hyperscale demand into the second half. With guidance raised twice in three months on the back of AI infrastructure spending, the question now is how long that cycle can keep outpacing expectations.