The latest trading updates from 9 July 2026 reinforced that both Computacenter (LON:CCC) and Bytes Technology (LON:BYIT) continue to benefit from long-term digital transformation and AI infrastructure spending. Because both companies remain among the highest-quality technology businesses on the UK market. However, while both companies remain well positioned, the market’s reaction highlighted the different stages of their growth stories.
Computacenter delivered another confident trading statement, building on its exceptionally strong first quarter, while Bytes Technology reassured investors at its AGM that demand remains healthy despite a more measured spending environment among some customers. Basically, investors viewed both updates positively, with Computacenter attracting particular enthusiasm thanks to continued momentum from hyperscale AI infrastructure projects.
| Computacenter (LON:CCC) | Price: £45.76 (~+10%) | Market cap: ~£4.86bn |
| Bytes Technology (LON:BYIT) | Price: 405p (~+3%) | Market cap: ~£942.70m |
| Metric | Computacenter | Bytes Technology |
| Core business | Enterprise IT infrastructure & services | Software licensing & cloud solutions |
| Primary customers | Large enterprises, public sector, hyperscalers | Corporate and public sector organisations |
| AI exposure | High | Medium-High |
| Dividend profile | Growing ordinary dividend | Progressive dividend policy |
| Balance sheet | Strong net cash | Net cash |
| Growth driver | AI infrastructure, cloud, networking | Microsoft cloud, security, AI software |
What did management say?
Computacenter
Management said trading remains strong across all major regions.
The biggest growth driver continues to be North American hyperscale customers investing heavily in AI infrastructure. Equally, UK operations also benefited from AI-related projects and strong professional services demand.
Management highlighted:
- exceptionally strong product order backlog
- AI infrastructure deployments
- customers ordering hardware earlier because of component shortages
- confidence that 2026 profits should comfortably exceed previous market expectations assuming macro conditions remain stable.
Bytes Technology
Bytes used its AGM to reiterate that trading remains in line with expectations.
Management continues to see healthy demand for:
- Microsoft Azure
- Microsoft Copilot
- cybersecurity
- software asset management
- cloud migration
The company also highlighted the benefits of its new operating structure separating private and public sector activities following the Phoenix integration.
Market reaction
The market appeared more enthusiastic towards Computacenter, its shares rallying ~11% in early trading.
Its update reinforced confidence that the company is becoming one of the biggest indirect beneficiaries of global AI infrastructure investment.
However, Bytes received a more measured response, reflecting that its update largely confirmed existing expectations rather than materially upgrading guidance.
Consequently, Bytes’ shares rose >3%, encouraging but less spectacular.
What analysts are focusing on
Computacenter
Analysts continue to highlight:
- hyperscale datacentre investment
- accelerating AI server deployments
- expanding professional services
- improving North American profitability
- growing recurring services revenue
The biggest debate is whether today’s exceptionally strong AI infrastructure spending proves sustainable beyond 2026.
Bytes Technology
Analysts remain attracted by:
- consistently high cash generation
- asset-light business model
- high returns on capital
- strong Microsoft partnership
- expanding AI software opportunity
However, software licensing remains somewhat dependent on corporate IT budgets, making earnings marginally more cyclical than investors sometimes assume.
Key demand drivers
| Demand driver | Computacenter | Bytes |
| AI datacentres | ★★★★★ | ★★★ |
| Microsoft AI/Copilot | ★★★ | ★★★★★ |
| Cloud migration | ★★★★ | ★★★★★ |
| Cybersecurity | ★★★★ | ★★★★★ |
| Enterprise networking | ★★★★★ | ★★ |
| Professional services | ★★★★★ | ★★★ |
*Star ratings are the assessment of the author only.
The best global AI stocks beyond expensive US mega-cap market
Opportunities
Computacenter
Near-term
- AI server deployments remain exceptionally strong.
- Large hyperscale cloud spending continues.
- Strong order backlog supports earnings visibility.
- Services revenues continue growing.
Longer-term
Computacenter could become one of Europe’s biggest beneficiaries of AI infrastructure spending as enterprises upgrade networking, storage and datacentre capacity.
Bytes Technology
Near-term
- Microsoft Copilot adoption is accelerating.
- Software subscription revenues remain resilient.
- Cybersecurity demand continues to increase.
- Public sector spending appears stable.
Longer-term
The company is well placed to benefit as businesses continue shifting towards cloud-based software, AI productivity tools and subscription licensing.
Risks
| Computacenter | Bytes |
| AI spending slows | Enterprise IT spending weakens |
| Hardware shortages | Lower Microsoft licensing growth |
| Public sector delays | Vendor concentration (Microsoft) |
| Margin pressure | Corporate budget caution |
| Currency movements | Competitive pricing |
Valuation comparison
| Metric | Computacenter | Bytes Technology |
| Expected earnings growth | High (~15%) | Mid-range (~7%-8%) |
| Dividend yield | ~2% | ~4.5% |
| Net cash | Yes | Yes |
| Cash generation | Excellent | Excellent |
| Valuation | Premium (~20x) | Premium (~17.5) |
*Approximate forward metrics based on current market consensus and share prices, which change over time.
Which looks better positioned?
Computacenter currently has the stronger growth outlook thanks to its direct exposure to global AI infrastructure investment. The company is benefiting from hyperscale cloud providers spending billions on servers, networking equipment and associated services, and management’s confidence suggests this momentum is continuing into the second half of 2026.
Bytes Technology, by contrast, arguably offers a more predictable, cash-generative business model. It is less exposed to large hardware projects but stands to benefit as organisations adopt AI software such as Microsoft Copilot, expand cloud usage and invest in cybersecurity.
Investor verdict
Both companies remain among the highest-quality technology businesses on the UK market, with strong balance sheets, attractive cash generation and supportive long-term trends.
- Computacenter may appeal more to investors seeking exposure to the AI infrastructure build-out and potentially faster earnings growth, albeit with greater sensitivity to enterprise hardware spending.
- Bytes Technology may suit investors looking for steadier compounding, resilient recurring software demand and an attractive, progressive dividend supported by robust cash flows.
For diversified UK retail investors, the two companies are complementary rather than direct substitutes: Computacenter offers greater leverage to AI infrastructure, while Bytes provides exposure to the software, cloud and cybersecurity layers of the same digital transformation trend.
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