UK technology services provider Softcat has reported a 24.7% increase in annual gross profit, supported by strong customer demand for IT infrastructure, software, and services.
Gross profit reached £616.3m for the financial year ended 31 July 2026, compared with £494.3m a year earlier. Underlying operating profit increased 19.4% to £215.1m, while statutory operating profit rose 13.6% to £196.4m.
The results reflect increased spending by corporate customers on technology infrastructure and larger IT projects, alongside further development of Softcat’s services portfolio.
Gross invoiced income increased 30.5% to £4.72bn, while statutory revenue rose 35.4% to £1.98bn. The different figures reflect the accounting treatment used for products and services where the company operates as either a principal supplier or an agent.
Software gross invoiced income increased 25.3%, hardware rose 41.6%, and services grew 30.1%, demonstrating broad demand across the business.
Softcat also increased the value of its relationships with existing customers. Gross profit per customer rose 20.6% to approximately £58,500, while its customer base expanded 3.4% to around 10,500.
The figures indicate that providing a wider range of technology products and services to established customers has been an important contributor to growth.
Businesses are investing in increasingly complex technology environments, combining cloud infrastructure, networking, cybersecurity, software management, and artificial intelligence applications.
These investments often involve several interconnected systems, creating demand for advisers and service providers capable of supporting procurement, implementation, and ongoing management.
Softcat continued investing in its own infrastructure during the year, including staff, technical capabilities, offices, and internal systems.
Non-underlying costs reached £18.7m, principally reflecting expenditure associated with a new sales system. Those costs contributed to statutory operating profit growing more slowly than the underlying measure.
Cash and cash equivalents increased to £199.9m from £182.3m a year earlier, while underlying cash conversion was 93.6%.
The company completed a £45m share buyback during the year and proposed a full-year ordinary dividend of 31.5p per share, up 7.5%.
International expansion and future growth
The results follow Softcat’s previously announced agreement to acquire US technology services company GDT for approximately $1.05bn, equivalent to £785m at the exchange rate used in the announcement.
The transaction is intended to strengthen Softcat’s international service capabilities and expand its presence in the American market, particularly among multinational corporate customers.
It was announced after the financial year-end and therefore did not contribute to the latest annual results. Completion remains subject to regulatory approvals and other customary conditions.
The proposed acquisition is a substantial development for a company whose growth has historically centred on expanding customer relationships and technical expertise within its existing markets.
Combining the businesses would create opportunities to support customers across a wider geographic footprint, although integration will introduce additional operational and financial complexity.
For its 2027 financial year, Softcat expects high single-digit growth in underlying operating profit, excluding any contribution from GDT.
That would represent a moderation from the latest year’s 19.4% growth, following a particularly strong two-year period. The outlook also reflects continued investment in capabilities needed to support future expansion.
Softcat’s results illustrate how technology expenditure can remain substantial even when businesses are scrutinising discretionary budgets. Infrastructure modernisation, security, software management, and larger transformation projects can require continued spending over several years.
The company’s ability to maintain growth will depend on sustaining customer demand and managing the costs of its expanding operations. The proposed GDT acquisition will add another significant element to that strategy if completed.
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