Softcat (LON:SCT) Issues Quarterly Earnings Results

Softcat (LON:SCT) posted its earnings results on Wednesday. The company reported GBX 75.80 EPS for the quarter, Digital Look Earnings reports. Softcat had a net margin of 8.06% and a return on equity of 45.16%.

Here are the key takeaways from Softcat’s conference call:

• Softcat reported an exceptional FY 2026, with gross profit up 24.7% to £616.3 million and underlying operating profit up 19.4% to £215.1 million. Customer growth accelerated to more than 10,500, while gross profit per customer increased 20.6%.
• Underlying operating costs rose 27.7%, faster than gross profit, reducing the operating-profit-to-gross-profit ratio to 34.9% from 36.4%. Profitability was also affected by lower-margin product mix, Microsoft licensing changes, large lower-margin projects and one-off employee, advisory and incentive costs.
• For FY 2027, management expects high-single-digit underlying operating profit growth excluding GDT, with gross profit growth modestly moderated by tougher comparisons, the absence of unusually large projects and prior-year memory-related order pull-forward. Non-underlying costs are expected to rise roughly two to two-and-a-half times because of GDT acquisition and integration expenses.
• Management sees substantial long-term demand from AI-driven infrastructure investment, including data centers, networking, security, cloud and services. The GDT acquisition is expected to add U.S. and Americas fulfillment, infrastructure expertise and global cross-selling opportunities, although estimated post-deal leverage will initially rise to 1.3x net debt to EBITDA.

Softcat Stock Performance

LON:SCT opened at GBX 1,670.99 on Thursday. Softcat has a fifty-two week low of GBX 1,083 and a fifty-two week high of GBX 2,134. The firm has a market capitalization of £3.59 billion, a PE ratio of 23.84, a PEG ratio of 11.51 and a beta of 0.58. The company has a debt-to-equity ratio of 13.07, a quick ratio of 1.38 and a current ratio of 1.25. The stock’s fifty day moving average is GBX 1,940.87 and its 200 day moving average is GBX 1,739.06.

Insiders Place Their Bets

In other news, insider Kathryn Mecklenburgh bought 176 shares of the firm’s stock in a transaction on Monday, September 7th. The stock was acquired at an average cost of GBX 2,045 per share, with a total value of £3,599.20. Also, insider Graham Charlton acquired 176 shares of the business’s stock in a transaction that occurred on Monday, September 7th. The shares were acquired at an average cost of GBX 2,045 per share, for a total transaction of £3,599.20. In the last quarter, insiders acquired 384 shares of company stock worth $749,739. Insiders own 2.91% of the company’s stock.

Key Stories Impacting Softcat

Here are the key news stories impacting Softcat this week:

• Positive Sentiment: Strong fiscal 2026 performance: Softcat reported a 35.4% increase in revenue and a 19.4% rise in profit for the year ended July 31, 2026. The results reportedly exceeded expectations, supporting the company’s record of robust execution. Softcat FY2026 profits rise 19.4% as revenue grows 35.4%
• Positive Sentiment: Shareholder returns increased: The company lifted its dividend after reporting the better-than-expected profit growth, providing a further positive signal for income-focused investors. Softcat lifts dividend as profit growth beats expectations
• Positive Sentiment: U.S. expansion: Softcat is moving into the U.S. market through a deal with GDT, creating a potential long-term growth opportunity and broadening its geographic reach. Softcat posts double-digit profit growth and moves into U.S. market with GDT deal
• Neutral Sentiment: Softcat reported earnings of GBX 75.80 per share, with a 45.16% return on equity and an 8.06% net margin, highlighting strong profitability. Softcat earnings report and conference call
• Negative Sentiment: FY2027 growth is expected to slow: Management’s outlook pointed to more moderate growth, prompting investors to discount the strong backward-looking results and driving the shares lower. Softcat shares fall as outlook points to slower growth
• Negative Sentiment: Jefferies reaffirmed its “hold” rating and set a GBX 1,700 price target, indicating limited near-term upside based on its valuation assessment. Softcat fiscal 2026 results

Wall Street Analyst Weigh In

Several research firms have issued reports on SCT. Berenberg Bank upped their target price on shares of Softcat from GBX 1,950 to GBX 2,400 and gave the company a “buy” rating in a research note on Monday, September 21st. Jefferies Financial Group reissued a “hold” rating and issued a GBX 1,700 target price on shares of Softcat in a research report on Wednesday. JPMorgan Chase & Co. raised their price objective on shares of Softcat from GBX 1,950 to GBX 2,300 and gave the stock an “overweight” rating in a report on Monday, September 7th. Finally, Deutsche Bank Aktiengesellschaft lowered Softcat to a “hold” rating and boosted their price target for the company from GBX 1,800 to GBX 2,140 in a report on Wednesday, August 26th. Four equities research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, Softcat presently has a consensus rating of “Hold” and a consensus price target of GBX 1,993.75.

Softcat Company Profile

Softcat plc operates as a value-added IT reseller and IT infrastructure solutions provider in the United Kingdom. The company advices, procures, designs, implements, and manages technology, such as software licensing, workplace technology, networking, security, and cloud and datacenter for businesses and public sector organizations. It also offers public cloud, collaboration, connectivity, data centre and private cloud, devices, and financial solution services. In addition, the company provides IT asset management, lifecycle solutions, modern management, security, software licensing, supply chain operation, and virtual desktop and application.