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Softcat Reports 19.4% Profit Growth and Raises Dividend Following Strong Annual Results

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SCTGBX 1,836.00 −4.57%

Softcat plc (LSE:SCT) reported strong financial growth for the year ended 31 July 2026, driven by higher spending on corporate IT infrastructure and technology solutions. Gross invoiced income climbed 30.5%, while gross profit rose 24.7%. Underlying operating profit increased 19.4%, and statutory operating profit reached £196.4 million, up 13.6% after accounting for £18.7 million in non-underlying costs related to a sales system investment. Total customer numbers grew 3.4%, while gross profit per customer expanded 20.6%.

The technology provider benefited from increasing enterprise complexity as businesses upgrade infrastructure to support artificial intelligence, cloud optimization, and cybersecurity. Softcat rewarded shareholders by raising its total annual dividend 7.5% to 31.5p per share, alongside a £45 million share buyback completed earlier in the year, bringing total cash returns to £137.5 million. Closing net cash reached £199.9 million.

Looking ahead to fiscal 2027, Softcat expects to deliver high single-digit growth in underlying operating profit, excluding any contributions from its recent post-year-end acquisition of US-based IT solutions provider GDT. Investors will monitor how integration of GDT expands the company's international capabilities alongside ongoing hardware pricing pressures caused by global memory chip supply constraints.

Key points

  • Underlying operating profit rose 19.4% for the year ended 31 July 2026, with statutory operating profit reaching £196.4 million.
  • Gross profit grew 24.7% while gross invoiced income surged 30.5%, supported by a 20.6% increase in gross profit per customer.
  • Full-year dividend increased 7.5% to 31.5p per share, helping bring total cash returned to shareholders to £137.5 million.
  • Softcat projected high single-digit underlying operating profit growth for fiscal 2027, excluding its recent US acquisition of GDT.

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Questions and answers

What were Softcat's full year financial results for 2026?

Softcat reported a 19.4% rise in underlying operating profit and a 24.7% increase in gross profit for the year ended 31 July 2026. Statutory operating profit reached £196.4 million, while gross invoiced income grew 30.5%.

How much dividend is Softcat paying for 2026?

Softcat declared a final ordinary dividend of 21.6p, bringing the full-year dividend to 31.5p per share, up 7.5% year-on-year. Including a £45 million share buyback, total cash returned to shareholders was £137.5 million.

What is Softcat's earnings outlook for fiscal 2027?

Softcat expects to deliver high single-digit underlying operating profit growth in fiscal 2027, excluding any contribution from its post-year-end acquisition of US-based GDT.