Computacenter Outlook Brightens on Strong Demand Momentum

Highlights

• Strong quarterly trading driven by hyperscale demand

• Technology Sourcing and Services show solid expansion

• Outlook upgraded amid steady order backlog

Computacenter’s latest update reflects robust demand trends, strong regional contributions, and a confident outlook supported by continued investment in technology infrastructure and services.

Computacenter Gains Momentum as Demand Strengthens

Computacenter PLC (LSE:CCC) has delivered a strong start to the year, supported by rising demand across its core business segments. Activity across the LSE & FTSE stock market continues to reflect resilience, with the company benefiting from increased spending on digital infrastructure and enterprise solutions.

The company’s latest update highlights notable progress in both Technology Sourcing and Services, driven by sustained demand from hyperscale customers and ongoing digital transformation initiatives across major markets.

Technology Sourcing Drives Growth

Technology Sourcing emerged as a key contributor during the period, supported by higher demand from hyperscale customers, particularly across North America and the United Kingdom. These customers, often large-scale cloud and data-driven enterprises, continue to invest heavily in infrastructure to support evolving digital ecosystems.

This segment benefited from early product orders placed by customers aiming to secure supply amid ongoing hardware component constraints. This trend has helped maintain a strong order pipeline and ensured steady business momentum.

The continued relevance of enterprise IT infrastructure has also reinforced demand for hardware, software, and integrated solutions, positioning the company to capture further opportunities across the FTSE 100 and broader market segments.

Services Segment Shows Resilience

The Services division also recorded encouraging progress, with Professional Services delivering strong organic growth. This performance helped offset softer activity in Managed Services, which experienced a moderate decline.

Professional Services remained a key pillar of growth, supported by demand for consulting, implementation, and project-based solutions. Businesses continue to prioritise digital transformation, cybersecurity, and cloud migration, driving sustained demand for expertise in these areas.

The Services business complements Technology Sourcing by enabling end-to-end solutions, enhancing customer engagement and strengthening long-term relationships across the FTSE 350 landscape.

Regional Performance Highlights

North America Leads the Way

North America delivered an exceptional performance, supported by a strong product order backlog carried into the year. Increased activity from hyperscale customers contributed to higher volumes, benefiting both Technology Sourcing and Professional Services.

This region continues to act as a major growth engine, driven by innovation, large-scale infrastructure investments, and evolving enterprise requirements.

United Kingdom Shows Strong Progress

The United Kingdom also recorded solid growth, particularly in Technology Sourcing. AI-related project completions played a meaningful role in supporting demand, reflecting the growing adoption of advanced technologies across industries.

Professional Services continued to expand, indicating sustained demand for advisory and implementation services.

Germany and Western Europe Maintain Stability

Germany reported steady progress, supported primarily by Technology Sourcing, although Professional Services activity remained relatively subdued. Western Europe delivered modest improvement, reflecting a stable yet cautious business environment.

These regions remain important contributors, with ongoing opportunities linked to enterprise digitisation and infrastructure upgrades, including companies within the FTSE AIM 50 segment.

Strong Order Backlog Supports Visibility

A key highlight from the update is the company’s strong committed product order backlog. This backlog provides visibility into future revenue streams and underscores continued customer demand.

Early ordering patterns, influenced by supply chain considerations, have further strengthened this backlog. Customers appear focused on ensuring continuity of operations by securing necessary technology components in advance.

This trend not only supports near-term performance but also provides a stable foundation for continued growth.

Outlook Upgraded Amid Positive Momentum

Computacenter has upgraded its outlook for the upcoming period, reflecting confidence in ongoing demand trends and operational performance.

The company now expects a stronger performance in the near term than previously anticipated. For the full year, expectations have been revised upward, supported by sustained demand across key segments and regions.

However, the outlook remains subject to broader macroeconomic and geopolitical conditions, which could influence enterprise spending patterns.

Key Growth Drivers Shaping the Business

Several factors continue to support the company’s growth trajectory:

Hyperscale Customer Demand

Large-scale technology companies continue to invest in infrastructure, driving consistent demand for sourcing and services.

Digital Transformation Trends

Organisations across industries are accelerating digital adoption, increasing demand for IT solutions and professional services.

AI and Cloud Adoption

Growing interest in artificial intelligence and cloud technologies is creating new opportunities, particularly in project-based services.

Supply Chain Dynamics

Early ordering trends have strengthened the order backlog, providing greater visibility and stability.

Industry Context and Market Position

The broader technology services industry continues to evolve, with increasing focus on scalability, efficiency, and innovation. Companies operating within the LSE & FTSE stock market are adapting to changing customer needs, with demand shifting towards integrated solutions.

Computacenter’s ability to combine Technology Sourcing with Services positions it well within this landscape. Its diversified geographic presence and strong customer relationships further support its competitive position.

Challenges to Monitor

While the outlook remains positive, certain factors could influence future performance:

• Macroeconomic uncertainty impacting enterprise spending

• Geopolitical developments affecting global markets

• Supply chain disruptions impacting hardware availability

• Shifts in customer demand patterns

Strategic Direction and Focus

The company continues to focus on strengthening its core capabilities while adapting to emerging trends. Key areas of focus include:

• Expanding service offerings aligned with digital transformation

• Enhancing relationships with hyperscale customers

• Leveraging technology innovation to drive efficiency

• Maintaining a strong order pipeline