Computacenter’s (LON:CCC) H1 2026 results have highlighted the growing importance of AI infrastructure to the FTSE 100 technology group. Computacenter’s first-half results were considerably stronger than investors had expected delivering adjusted operating profit up 87% and its order backlog reaching £9.3bn.
The big story is North America, where hyperscaler and AI datacentre demand is driving explosive growth. But with the shares already having risen sharply, investors now need to decide whether the earnings upgrade justifies a premium valuation.
Computacenter investor relations
| Computacenter (LON:CCC) | Price: £53.45 (~-5%) | Market cap: ~£5.73bn |
Computacenter H1 2026: the key numbers
Computacenter’s first-half results were considerably stronger than expected. Revenue jumped 71.6% to £6.85bn, while adjusted operating profit rose 86.5% to £153.1m. Adjusted PBT increased 87% to £152.4m and adjusted diluted EPS rose 94.1% to 101.9p.
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The standout number, however, may be the £9.3bn committed product order backlog, up 323% year-on-year and 29.5% from the end of 2025 on a constant-currency basis. Much of this demand is coming from North America and technology infrastructure, including AI data-centre deployments.
| Computacenter H1 2026 | H1 2026 | YoY |
| Revenue | £6.85bn | +71.6% |
| Gross profit | £657.9m | +30.5% |
| Adjusted operating profit | £153.1m | +86.5% |
| Adjusted PBT | £152.4m | +87.0% |
| Adjusted diluted EPS | 101.9p | +94.1% |
| Interim dividend | 27.1p | +14.8% |
| Adjusted net funds | £308.7m | +11.0% |
| Product order backlog | £9.3bn | +323% |
Major earnings upgrade
The biggest catalyst for the shares is the outlook. Computacenter now expects 2026 adjusted PBT to be at least £380m, versus company-compiled analyst consensus of £340.9m before the results — an upgrade of about 11.5%. The £380m figure is a minimum rather than a precise forecast.
That is particularly significant because investors are increasingly judging Computacenter as an AI infrastructure growth story rather than simply a traditional IT reseller.
Computacenter’s place in the AI ecosystem
Computacenter is not an AI chip designer like Nvidia or Broadcom, nor a hyperscaler like Microsoft, Amazon or Alphabet.
Its role is further down the infrastructure chain: it helps customers source, integrate, deploy and manage the technology infrastructure needed to run modern computing environments.
A simplified AI infrastructure chain is:
AI chips → servers/networking/storage → Computacenter sourcing & integration → data centres → AI applications
AI requires huge quantities of physical infrastructure, including servers, networking, racks, power, cooling, cabling and storage. Computacenter’s North American Professional Services operation is increasingly involved in deploying this infrastructure. Management highlighted significantly higher data-centre deployment workloads, alongside integrated rack design, deployment and cabling capabilities.
This creates an attractive potential progression:
AI data-centre investment → hardware demand → deployment work → Professional Services → higher-value revenue.
North America is the growth engine
North America was the standout performer. Operating profit rose 148.4% in constant currency, with the region accounting for 62% of adjusted operating profit before central costs, compared with 44% a year earlier.
CEO Mike Norris called North America ‘the standout performer’, driven by hyperscale, neocloud and enterprise customers.
That suggests Computacenter is benefiting from the huge capital-spending cycle surrounding AI, rather than relying purely on conventional corporate IT budgets.
The UK also performed strongly, with revenue up 136.4% and adjusted operating profit increasing 52.6% to £26.4m. However, AI-related hardware growth came with margin pressure: group gross margin fell from 12.6% to 9.6%, highlighting the lower margins associated with high-volume technology sourcing.
For investors, this means the longer-term investment case depends partly on converting today’s hardware boom into higher-margin services growth.
Why the £9.3bn backlog matters
The order backlog provides an important degree of earnings visibility.
At £9.3bn, it is more than three times the level a year earlier. Stifel argued before the results that the backlog had ‘risen to a new record level and is not simply being worked down.’
That matters because the biggest risk to AI infrastructure stocks is eventually excessive capacity or slowing capital expenditure.
A large committed backlog gives Computacenter greater protection against a sudden slowdown in new orders, although it does not eliminate the longer-term risk.
What management said
Mike Norris described the period as a ‘record first half’ and said the company was ‘significantly ahead’ of expectations at the beginning of the year.
The key statement for investors was:
‘We now expect adjusted PBT for full-year 2026 to be significantly ahead of current market expectations and to be no less than £380m.’
Management also said it remained ‘excited by the pace of innovation and growth in demand for technology.’
The message is clear: management believes the company is benefiting from a structural increase in technology infrastructure spending.
What analysts are saying
Broker sentiment was already bullish before the results.
Stifel upgraded Computacenter to Buy, increasing its target from £35.84 to £52.35. Analyst Peter McNally described the company as ‘somewhat uniquely positioned to deliver large projects for hyperscalers’, while warning that the shares could be ‘vulnerable to AI sentiment shifts.’
JPMorgan subsequently raised its target from £50 to £60 and retained Overweight, while UBS increased its target to £70 from £52.50 and maintained Buy. Early post-results updates reported Jefferies raising its’ targets to £65.
The significance is that brokers are increasingly responding to the potential for earnings estimates to rise, rather than simply the H1 beat.
Computacenter valuation: expensive or justified?
The shares have rerated substantially as investors have recognised the AI opportunity. At around £56 before the results, the company had a market capitalisation of roughly £5.9bn. Pre-results forecasts implied a forward PE of approximately 25x on 2026 earnings.
| Company | Approx. forward PE* | Investment profile |
| Computacenter | ~24–25x | AI infrastructure + services |
| Softcat | ~25x | IT reseller |
| Bytes Technology | ~18x | Software/IT reseller |
| Stifel target | 20x FY27 ex-cash | AI/datacentre growth |
*Based on Stockpedia rolling 12m forward basis.
Computacenter is therefore no longer obviously cheap. The bull argument is that superior earnings growth can justify a premium multiple. The bear case is that the market is already pricing in considerable AI-driven growth, leaving less room for disappointment.
Opportunities and risks
Opportunities
Continued AI spending: Further investment by hyperscalers and enterprises should support hardware sourcing and deployment.
Professional Services: Services revenue grew 9% organically, with Professional Services up 23.9%, offering the potential for a more profitable revenue mix.
US expansion: The Government Acquisitions and AgreeYa deals broaden Computacenter’s US capabilities and professional-services offering.
M&A: £308.7m of adjusted net funds provides financial flexibility for further acquisitions.
Risks
AI spending concentration: A slowdown in hyperscaler capital expenditure could have a significant impact.
Margin pressure: The fall in gross margin shows that rapid hardware growth does not automatically translate into equivalent profit growth.
Tougher H2: Management has warned that the second half faces a tougher comparison.
Valuation: The shares now require continued earnings upgrades to support their premium rating.
Customer concentration: Greater exposure to hyperscalers creates both enormous opportunity and greater sensitivity to their investment decisions.
Bull vs bear case
| 🐂 Bull case | 🐻 Bear case |
| £9.3bn backlog provides visibility | AI capex eventually slows |
| North America operating profit +148% | Greater US concentration |
| Strong hyperscaler demand | Hardware margins remain low |
| Professional Services +23.9% | Services fail to offset margin pressure |
| FY26 PBT floor raised to £380m | Tougher H2 comparison |
| Further US M&A opportunity | Valuation leaves less room for disappointment |
Investor verdict
Computacenter’s H1 2026 results materially strengthen the investment case as a genuine AI infrastructure winner — but expectations are now high.
The company is evolving from a traditional IT reseller into an increasingly important infrastructure and integration partner in the AI data-centre build-out, particularly in North America.
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The £9.3bn backlog, 148% growth in North American operating profit, expanding Professional Services business and £380m minimum FY2026 PBT outlook provide powerful evidence that the AI infrastructure opportunity is translating into earnings.
Computacenter H1 2026 results have highlighted the growing importance of AI infrastructure to the FTSE 100 technology group.
But the valuation is the catch.
Investors are no longer buying an overlooked UK technology stock. They are buying a growth story whose valuation increasingly depends on continued AI infrastructure spending and further earnings upgrades.
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