Softcat Upgrades Annual Profit Forecast Amid Rising AI Demand

British IT firm Softcat has revised its annual profit growth forecast for the third time in just six months. The company announced this update on Thursday, attributing the increase to the successful execution of larger contracts in the fourth quarter. Following the announcement, shares rose by 2.3 percent to 1,600 pence, making them among the top gainers on the FTSE mid-cap index.

The firm is benefiting from a notable shift in customer spending patterns. As corporate investment in artificial intelligence and automation rises, demand for IT services has surged. This trend is helping Softcat maintain growth beyond traditional recurring and one-off projects. The company now projects a mid-teens percentage growth in operating profit for the fiscal year ending in July 2025, an upgrade from its previous estimate of a low-teens percentage increase.

Looking ahead, Softcat anticipates that, excluding the effects of major projects this year, its operating profit will grow at a high single-digit rate in the fiscal year 2026. Analysts, on average, expect the company to report an operating profit of £174.2 million (approximately $235.3 million) for fiscal 2025, increasing to £188.9 million in fiscal 2026, according to data compiled by LSEG. For context, Softcat reported an operating profit of £154.1 million in fiscal 2024.

The company, headquartered in Marlow, plans to disclose its preliminary annual results on October 22, 2025. This forthcoming report will provide further insights into how Softcat navigates the evolving landscape of technology services and the impact of increased investment in automation and AI on its financial performance.