Softcat, the UK’s largest reseller of IT infrastructure technology and services, appears on track to enter the FTSE 100 as revenue and profits continue to grow through the deployment and use of AI.
The company upgraded its full-year profit expectations for the second time in three months earlier this year, citing sustained demand for AI-enabled infrastructure and a tailwind from an industry-wide memory shortage.
Softcat has a story similar to Computacenter, which entered the FTSE 100 this year: a long-time stable, growing business has been supercharged by new technology.
In a trading update for the third quarter to 30 April 2026, the Marlow-based group said it now expects mid-teens growth in underlying operating profit for the full year, having guided to high single-digit growth at the half-year in March and low single-digit growth before that.
What Softcat does
Softcat sits between the world’s largest technology vendors and the organisations that buy from them. It sources, advises on, implements and manages IT infrastructure for around 10,400 customers, spanning small businesses through to large enterprises across the corporate and public sectors.
Its proposition runs from the datacentre to the edge and covers hybrid platforms, the modern workplace, cyber security, networking and, increasingly, data, automation and AI.
Softcat works with more than 400 vendors, including Microsoft, Hewlett Packard Enterprise, Cisco, Dell, NVIDIA, AWS and Google, allowing its account managers to sell across hardware, software and services rather than push a single product line.
That vendor-agnostic position, combined with a large and diversified customer base, is central to the company’s competitive argument. Alongside its core UK and Ireland operations, the group runs offices in the US and Singapore, as well as a handful of international branches.
Top line growth
For the six months to 31 January 2026, gross invoiced income rose 33.3% to £2.01bn and gross profit climbed 22.6% to £269.9m. Underlying operating profit was up 27.3% at £93.8m, and underlying basic earnings per share increased 25.8% to 36.1p. The interim dividend was lifted 11.2% to 9.9p.
Hardware led the charge, with gross invoiced income up 78.7% as larger, lower-margin solutions projects and some order pull-forward from memory shortages flattered the top line. Services and software grew 29.0% and 18.6%, respectively.
AI has been an integral factor in helping boost financial performance.
Management outlines AI provide ‘two distinct’ opportunities for Softcat. First, what it sells: AI workloads place heavier demands on compute, storage, networking and security; second, how it sells, through internal tools such as its CatNav sales navigator and a growing set of analytics and automation agents.
A ten-year track record of compound growth and a progressive dividend policy targeting 40–50% of post-tax profit would make this a welcome addition to the FTSE 100, which lacks technology companies.
Despite having a market cap of £3.6bn, almost the same as Burberry and slightly more than Persimmon, it is unlikely to enter the FTSE 100 in September’s rejig as Softcat doesn’t quite have the valuation needed to get it there just yet. However, a good set of results in the coming months could see Softcat join the FTSE 100 before long.