Softcat stock weighs GDT deal against higher profit outlook

Published on 10/03/2026 at 21:11 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Softcat agreed to buy GDT for USD 1.05 billion on September 17, 2026, while FY2026 underlying operating profit growth guidance rose from mid-teens to high-teens. Results are due October 14.

Aquarellmalerei eines modernen Bürogebäudes in einer englischen Landschaft — Softcat plc (GB00BYZ2B577) hat seinen Hauptsitz in einer englischen Kleinstadt, künstlerisch dargestellt als sanftes Aquarellgemälde, Illustration mit AI erstellt.

Softcat (ISIN GB00BYZDVK82) was last at GBp 1,866 on the LSE on October 2, 2026 at 4:36 p.m. London time, up 0.54 percent from GBp 1,856. The central catalyst is the planned USD 1.05 billion acquisition of US IT provider GDT and the accompanying upgrade to Softcat's FY2026 operating profit outlook.

GDT expands the US footprint

According to TradingView on September 17, 2026, Softcat agreed to pay USD 1.05 billion, or GBP 785 million, for GDT. The transaction is expected to deliver high single-digit to low double-digit underlying EPS accretion in the first full fiscal year and to lift net debt leverage to 1.3 times at closing.

The same announcement raised FY2026 underlying operating profit growth guidance from mid-teens to high-teens and placed cash conversion toward the top of the 85 percent to 95 percent range. Softcat also expects the acquisition to close by the end of Q1 2027, subject to regulatory approvals.

Profit growth provides the base

Historical FY2025 figures show the earnings base behind the deal. Softcat reported revenue of GBP 1,458.4 million in FY2025 versus GBP 962.6 million in FY2024, while underlying operating profit increased to GBP 180.1 million from GBP 154.1 million.

Underlying basic EPS also rose to GBp 69.5 from GBp 59.7, and cash conversion stood at 95.6 percent versus 95.9 percent in FY2024. These figures are historical, while the September guidance provides the more relevant forward reference for the October results.

Analyst target stays above market

MarketBeat reported on September 21, 2026 that Berenberg raised its Softcat price target from GBp 1,950 to GBp 2,400 and maintained a Buy rating. The target revision followed the GDT announcement, but the acquisition also introduces execution, leverage and foreign exchange risks.

Softcat's FY2026 preliminary results are scheduled for October 14, 2026, giving investors a dated checkpoint for cash conversion and the upgraded profit outlook.

Stock remains below yearly high

At GBp 1,866 on the LSE on October 2, 2026, Softcat stock stood 12.6 percent below its 52-week high of GBp 2,134 and above its 52-week low of GBp 1,083. The session volume was 401,237 shares, while the deal's financial effects remain the key issue for the next results release.