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Softcat Shares Jump on Strong Results, Eyes Further Market Share Gains

Softcat plc (LSE: SCT.L) has announced a record-breaking performance for the year ended July 31, 2025, fueled by robust growth and strategic investments.

The IT infrastructure provider reported impressive gains across key financial metrics, positioning itself for continued expansion in a growing market.

Gross invoiced income jumped 26.8% to £3,617.0 million, while revenue, reported under IFRS 15, surged 51.5% to £1,458.4 million.

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Gross profit climbed 18.3% to £494.3 million, and underlying operating profit increased 16.9% to £180.1 million. Basic earnings per share rose 11.6% to 66.6p.

The company’s strong cash conversion rate of 95.6% resulted in closing net cash and cash equivalents of £182.3 million, up from £158.5 million in the previous year.

Softcat is rewarding shareholders with a final ordinary dividend of 20.4p, bringing the full-year dividend to 29.3p, a 10.2% increase. A special dividend of 16.1p will also be distributed.

These results reflect the continued strength of Softcat’s core business and the successful execution of larger solutions projects, particularly in the second half of the year.

The company has also made significant investments in IT, data, digital projects, and its workforce to support future growth. The acquisition of Oakland, a data and AI consultancy, further enhances Softcat’s capabilities in a high-demand area.

Key Growth Drivers:

  • Strong Base Business: Consistent performance across technologies and customer segments.
  • Large Solutions Projects: Successful execution of complex projects driving significant revenue.
  • Strategic Investments: Focused spending on IT infrastructure, data capabilities, and workforce development.

CEO Graham Charlton stated, “I’m very pleased to report another record performance for Softcat… The strength of our business model and our consistent strategic execution underpin our continuing ability to scale and invest for future growth,” reinforcing the company’s commitment to sustainable expansion.

Softcat anticipates delivering low double-digit gross profit growth and high single-digit underlying operating profit growth in FY2026, excluding the impact of large projects in FY2025.

Including these projects, the company expects high single-digit gross profit growth and low single-digit growth in underlying operating profit. Growth in underlying operating profit in FY2026 is expected to be first-half weighted due to the phasing of large projects.

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The AskTraders Analyst Team features experts in technical and fundamental analysis, as well as traders specializing in stocks, forex, and cryptocurrency.