Computacenter couldn’t have responded better to fears of an AI slowdown that has rocked global equity markets in recent weeks than by issuing an upbeat trading update underpinned by soaring demand and higher orders.
Computacenter raised its full-year profit guidance after a strong third quarter, as demand from hyperscale and cloud customers for AI infrastructure continued to power its growth.
The technology products and services provider said its technology sourcing revenue grew strongly, driven by hyperscale and “neocloud” customers in North America and the UK, while its services business also grew.
North America led the way with record project completions. Its committed product order backlog jumped to a record £12.6bn, from £9.3bn three months earlier, pointing to strong future demand.
Computacenter said it now expected full-year adjusted pre-tax profit of no less than £425m, well above the £387m analysts had forecast. It said it had also made a strong start to the final quarter.
The firm joined the FTSE 100 earlier this year and for a period was the best-performing constituent on a year-to-date basis. Shares have since fallen from highs around 6,000p amid growing fears of an AI slowdown.
Computacenter shares were 5% higher in the early stages of Monday’s trading as the trading update spurred traders to buy the dip.