Softcat (SCTS.L), a leading IT services provider, announced on Wednesday an increase in its full-year operating profit growth forecast. This positive revision is attributed to the growing demand for artificial intelligence and automation solutions.
Shares of the British firm saw a significant surge following the announcement, rising as much as 12.5% to 1825 pence, which placed the company at the top of the FTSE midcap index.
Softcat reported a 10.4% increase in operating profit, reaching 73.7 million pounds ($95.5 million) for the six months that ended in January. Building on this performance, the company projects full-year growth within a low double-digit percentage range. The upgraded guidance surpasses the firm’s previous forecast of high single-digit profit growth.
Analysts at J.P. Morgan commented, “We expect the upgraded guidance to predominantly account for the better-than-expected H125 performance.”
Based on estimates compiled from a company poll of brokerages, analysts were predicting Softcat’s operating profit to increase between 3% and 12% for the full year.
Graham Charlton, Softcat’s CEO, stated, “Our existing capabilities and continued investment mean we are well positioned to support the evolving technological needs of our customers, enabling us to sustainably grow market share.”
Across the technology sector, firms are experiencing a boost in demand for AI applications and automation technologies. This surge is driven by organizations seeking to enhance operational efficiency.
($1 = 0.7715 pounds)
