IT services provider Softcat raised its full-year operating profit growth forecast, attributing this upward revision to increased demand for artificial intelligence and automation. The British firm's shares surged by 12.5% to 1825 pence, outperforming the FTSE midcap index.
Softcat reported a 10.4% increase in operating profit to 73.7 million pounds ($95.5 million) for the six months ending in January and anticipates full-year growth in the low double-digit percentage range, surpassing its earlier projection of high single-digit profit growth.
Analysts from J.P. Morgan noted, "We expect the upgraded guidance to predominantly account for the better-than-expected H125 performance." Market expectations, based on a company-compiled poll of brokerage estimates, foresaw Softcat's full-year operating profit to rise between 3% and 12%.
Softcat's CEO, Graham Charlton, 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."
The surge in demand for AI applications and automation has been beneficial for technology companies that aim to enhance efficiency.