Is that this UK know-how firm set for FTSE 100 inclusion?
Softcat, the UK’s largest reseller of IT transport systems know-how and companies, seems on observe to enter the FTSE 100 as earnings and earnings proceed to develop by the deployment and use of AI.
The firm upgraded its full-year revenue expectations for the second time in three months earlier this yr, citing sustained demand for AI-enabled transport systems and a tailwind from an industry-wide reminiscence scarcity.
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Softcat has a narrative just like Computacenter, which entered the FTSE 100 this yr: a long-time steady, rising industry has been supercharged by new know-how.
In a buying and selling replace for the third quarter to 30 April 2026, the Marlow-based group stated it now expects mid-teens development in underlying working revenue for the complete yr, having guided to excessive single-digit development on the half-year in March and low single-digit development earlier than that.
What Softcat does
Softcat sits between the global community’s largest know-how distributors and the organisations that purchase from them. It sources, advises on, implements and manages IT transport systems for round 10,400 prospects, spanning small companies by to giant enterprises throughout the company and public sectors.
Its proposition runs from the datacentre to the sting and covers hybrid platforms, the trendy office, cyber safety, networking and, more and more, information, automation and AI.
Softcat works with greater than 400 distributors, together with Microsoft, Hewlett Packard Enterprise, Cisco, Dell, NVIDIA, AWS and Google, permitting its account managers to promote throughout {hardware}, software program and companies relatively than push a single product line.
That vendor-agnostic place, mixed with a big and diversified buyer base, is central to the corporate’s aggressive argument. Alongside its core UK and Ireland operations, the group runs places of work within the US and Singapore, in addition to a handful of global branches.
Top line development
For the six months to 31 January 2026, gross invoiced revenue rose 33.3% to £2.01bn and gross revenue climbed 22.6% to £269.9m. Underlying working revenue was up 27.3% at £93.8m, and underlying fundamental earnings per share elevated 25.8% to 36.1p. The interim dividend was lifted 11.2% to 9.9p.
Hardware led the cost, with gross invoiced revenue up 78.7% as bigger, lower-margin options initiatives and a few order pull-forward from reminiscence shortages flattered the highest line. Services and software program grew 29.0% and 18.6%, respectively.
AI has been an integral think about serving to enhance monetary efficiency.
Management outlines AI present ‘two distinct’ alternatives for Softcat. First, what it sells: AI workloads place heavier calls for on compute, storage, networking and safety; second, the way it sells, by inner instruments reminiscent of its CatNav gross sales navigator and a rising set of analytics and automation brokers.
A ten-year observe file of compound development and a progressive dividend coverage focusing on 40–50% of post-tax revenue would make this a welcome addition to the FTSE 100, which lacks know-how corporations.
Despite having a market cap of £3.6bn, nearly the identical as Burberry and barely greater than Persimmon, it’s unlikely to enter the FTSE 100 in September’s rejig as Softcat doesn’t fairly have the valuation wanted to get it there simply but. However, a great set of ends in the approaching months may see Softcat be a part of the FTSE 100 earlier than lengthy.
