Softcat (LON:SCT) Releases Earnings Results

Softcat (LON:SCT) announced 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 Price Performance

Shares of LON:SCT opened at GBX 1,781 on Wednesday. The company has a quick ratio of 1.38, a current ratio of 1.25 and a debt-to-equity ratio of 13.07. The company has a market cap of £3.83 billion, a P/E ratio of 25.41, a PEG ratio of 11.51 and a beta of 0.58. Softcat has a 52 week low of GBX 1,083 and a 52 week high of GBX 2,134. The company has a 50-day moving average price of GBX 1,943.73 and a 200 day moving average price of GBX 1,734.73.

Insider Buying and Selling

In other news, insider Kathryn Mecklenburgh purchased 176 shares of the firm’s stock in a transaction dated Monday, September 7th. The shares were acquired at an average price of GBX 2,045 per share, with a total value of £3,599.20. Also, insider Graham Charlton bought 176 shares of the stock in a transaction on Monday, September 7th. The stock was purchased at an average cost of GBX 2,045 per share, for a total transaction of £3,599.20. Over the last 90 days, insiders purchased 384 shares of company stock worth $749,739. Company insiders own 2.91% of the company’s stock.

Wall Street Analysts Forecast Growth

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