SCT: Higher P/E And Lower Margins Will Continue To Mask Weakening Earnings Quality

The market starts to assume Softcat grows again, even as expectations for its profitability slip and investors pay more for each pound of future earnings. That mix can make results look better on paper while the underlying quality of the business quietly weakens.

4 views

Shared on 07 Jun 26

Fair value Increased 12%

SCT: Higher Interim Dividend Will Continue To Mask Weakening Earnings Quality

Softcat lifts its interim dividend, but the update flags that the business’s earnings may be getting less reliable beneath the surface. Analysts also raise what they think the shares are worth after tweaking their expectations for sales, profit, and what investors might be willing to pay for the company in future.

1 view

Shared on 24 May 26

SCT: Rising Dividend Will Continue To Mask Weakening Earnings Quality

Softcat raises its interim dividend again, giving shareholders more cash back even as questions linger about how strong the underlying business really is. The latest analyst assumptions also lean on slightly better profitability and a lower return hurdle, which helps support the current view of what the shares are worth.

2 views

Shared on 02 May 26

SCT: Rich Dividend Payout Will Continue To Mask Weak Earnings Power

Analysts have raised their Softcat price target by £0.10 to reflect slightly higher assumed revenue growth and a marginally higher forward P/E. This is partly offset by a small reduction in expected profit margins and a modest increase in the discount rate.

3 views

Shared on 18 Apr 26

Fair value Decreased 17%

SCT: Softer Revenue Outlook Will Limit Appeal Of Dividend Returns

Analysts have reduced their Softcat price target from £14.50 to £12.10. This reflects updated views on softer revenue growth assumptions, a slightly higher discount rate, and a lower future P/E multiple, partly offset by a modestly improved profit margin outlook.

1 view

Shared on 20 Feb 26

SCT: Buybacks And Dividends Will Drive Attractive Future Return Profile

Analysts have kept their Softcat price target broadly unchanged at £14.50, citing relatively stable assumptions for the discount rate, revenue growth, profit margin and future P/E, which together point to a similar assessment of long term value. What's in the News Softcat began a share repurchase program on January 8, 2026, following approval at the December 15, 2025 AGM.

5 views

Shared on 06 Feb 26

SCT: Buybacks And Dividends Will Support Attractive Future Return Profile

Analysts have lifted their price target for Softcat to £14.50, reflecting slightly higher assumed revenue growth, a small improvement in profit margin, and a marginally lower discount rate, alongside a similar future P/E expectation. What's in the News Softcat began a share repurchase program on 8 January 2026, authorized to buy back up to 19,994,626 shares, with repurchased shares either cancelled or held in treasury (AGM resolution, 15 December 2025).

6 views

Shared on 23 Jan 26

SCT: Buybacks And Dividends Will Shape Future Fairly Valued Share Appeal

Analysts have nudged their price target on Softcat slightly higher to reflect modest adjustments to the discount rate, revenue growth assumptions, profit margin and future P/E expectations, indicating a marginally more constructive view on the company’s valuation drivers. What's in the News Softcat began a share repurchase program on January 8, 2026, following shareholder approval at the December 15, 2025 AGM.

1 view

Shared on 09 Jan 26

Fair value Increased 3.57%

SCT: Dividend Returns And Steady Outlook Will Shape Future Share Appeal

Analysts have raised their Softcat price target from £14.00 to £14.50, reflecting updated assumptions on discount rates, revenue growth, profit margins and future price-to-earnings (P/E) expectations. What's in the News Approval of a final dividend of 20.4 pence per ordinary share at the 15 December 2025 AGM.

5 views

Tech Competition And Cloud Shifts Will Erode Margins

SCT: Higher P/E And Lower Margins Will Continue To Mask Weakening Earnings Quality

SCT: Higher Interim Dividend Will Continue To Mask Weakening Earnings Quality

SCT: Rising Dividend Will Continue To Mask Weakening Earnings Quality

SCT: Rich Dividend Payout Will Continue To Mask Weak Earnings Power

SCT: Softer Revenue Outlook Will Limit Appeal Of Dividend Returns

SCT: Buybacks And Dividends Will Drive Attractive Future Return Profile

SCT: Buybacks And Dividends Will Support Attractive Future Return Profile

SCT: Buybacks And Dividends Will Shape Future Fairly Valued Share Appeal

SCT: Dividend Returns And Steady Outlook Will Shape Future Share Appeal

Fair Value vs Share Price

Recent News & Updates

Recent updates

Stay ahead on Softcat

Company analysis

CEO & management