(Reuters) -British firm Softcat lifted its annual profit growth forecast for the third time in six months on Thursday, driven by execution of larger contracts in the fourth quarter. The IT services
Softcat Raises Annual Profit Outlook for Third Time in Six Months
(Reuters) -British IT firm Softcat lifted its annual profit growth forecast for the third time in six months on Thursday, driven by execution of larger contracts in the fourth quarter.
Shares rose 2.3% to 1,600 pence in morning trade and were among the top gainers on the FTSE mid-cap index.
The IT services and infra provider is benefitting from a broader shift in customer spending, as rising corporate investment in artificial intelligence and automation fuels demand, helping the firm sustain growth beyond recurring and one-off projects.
The company now estimates mid-teens percentage growth in operating profit for the year ended July 2025, compared with its earlier forecast of a low-teens percentage increase.
Excluding the boost from major projects this year, Softcat expects its operating profit to grow at a high single-digit rate in fiscal year 2026.
On average, analysts expect the company to post operating profit of 174.2 million pounds ($235.3 million) in fiscal 2025, rising to 188.9 million pounds in fiscal 2026, according to data compiled by LSEG.
Softcat reported an operating profit of 154.1 million pounds in fiscal 2024.
The Marlow-headquartered company is set to report its preliminary annual results on October 22.
($1 = 0.7402 pounds)
(Reporting by DhanushVignesh Babu in Bengaluru; Editing by Sumana Nandy)
