Thus far, 2025 has proved a depressing yr for tech shares. However Softcat (LSE:SCT) sprung again to life immediately (Wednesday) after the FTSE 250 share upgraded revenue expectations for the complete yr.

At £18.18 per share, Softcat’s share price is up 12% in midweek buying and selling, and again inside hanging distance of final June’s file peaks of £18.55.

Like different tech shares, the data know-how (IT) specialist stays on the mercy of broader financial situations and doubtlessly crushing international commerce tariffs.

However given its robust momentum, ought to buyers think about shopping for Softcat shares immediately?

Report earnings

Softcat — an professional in a number of IT segments together with networking, cyber safety, and cloud computing — noticed gross invoiced revenue leap 19.3% within the six months to December, to £1.51bn. Income, in the meantime, rose 16.8% over the interval, to £545.6m.

The corporate says these will increase mirrored “broad-based success throughout know-how areas and prospects“. Its buyer base rose 1.4% over the interval to round 10,300.

Income additionally hit new file half-year peaks, with gross revenue and working revenue up 12.1% and 10.4% respectively, at £220.2m and £73.7m.

This estimate-topping efficiency means Softcat immediately upgraded its full-year forecasts.

For the 12 months to June, it says “we proceed to count on to ship one other yr of double-digit gross revenue progress… with working revenue progress now anticipated to be low double-digit, up from excessive single-digit beforehand“.

Room for progress

Softcat’s momentum stays spectacular regardless of the difficult financial backcloth. Its success has been helped by ongoing recruitment — and particularly in its technical, specialist, and gross sales assist departments — to nurture relationships with current prospects.

Group head rely grew 6% within the first half, and Softcat is tipping full-year progress of 6% to eight%.

Encouragingly for buyers, Softcat has stated it’s concentrating on “additional focused strategic funding to underpin future progress“. A robust steadiness sheet provides the corporate loads of scope to flex its muscle tissue and develop employees numbers.

Money conversion rose to 110.9% within the first half from 101.1% a yr earlier. This in flip meant money and money equivalents elevated by £28.5m over the interval, to £141m.

Softcat’s determination to boost the interim dividend 4.7%, to eight.9p per share, additional underlines its robust monetary foundations.

Costly however distinctive

Softcat, then, clearly has the wind in its sails. Nevertheless it’s vital to contemplate that its share price’s excessive valuation has elevated additional following Wednesday’s leap.

Metropolis analysts assume group earnings will rise 8% in monetary 2025, that means the agency trades on a ahead price-to-earnings (P/E) ratio of 28.3 instances. That’s greater than double the FTSE 250 common, and will depart Softcat shares weak to a correction if market jitters resurface.

But regardless of this, I consider the enterprise is price critical consideration from long-term buyers. Given its robust file of success throughout the private and non-private sectors, and expectations of additional progress within the digital economic system, it’s nonetheless one among London’s most tasty progress shares in my ebook.