Computacenter outperforms in Q1 trading update driven by hyperscale demand
AI projects and services momentum fuelled UK performance
Computacenter reported performance ahead of the prior year and “well above” expectations in its Q1 trading update, despite a decline in managed services.
Technology sourcing revenue reportedly soared, driven by hyperscale customers in both North America and the UK.
Services top line was also ahead of last year, reflecting organic momentum in professional services, again led by North America, offsetting a decline in managed services.
The UK recorded momentum in technology sourcing, including AI-related project completions and further development in professional services.
Computacenter UK ranks number two on CRN’s Top VARs list.
Technology sourcing fuelled an earnings rise in Germany, while professional services remained subdued so far.
The region already experienced difficulties in H1 last year, with turnover dropping 2.6 per cent due to lower public sector activity.
Western Europe (France, Belgium, the Netherlands and Switzerland) delivered a small improvement year-on-year.
This follows a “poor” performance in France across FY25, partly reflecting reduced hardware volumes in the public sector, which led the organisation to set out plans to improve its operations in the country.
Outside EMEA, North America delivered an “excellent” Q1, reflecting a solid product order backlog of £7.1bn at the end of FY25 and stronger-than-expected hyperscale customer volume growth, benefiting both technology sourcing and professional services.
Computacenter also completed the buyout of AgreeYa for $120m (£88.95m) in January to boost its professional services capabilities in North America and India.
The memory crunch impacting the industry also affected the group’s results, leading some customers to order IT products further in advance than usual to secure supply.
Moving forward, Computacenter expects to deliver a much stronger H1 performance than previously projected but remains mindful of the uncertain macroeconomic and geopolitical environment for the second half of the year.
While the company remains cautious, it expects to deliver full-year results ahead of market expectations.