FTSE 250 technology stock Softcat (LSE: SCT) has underperformed recently. Over the year, its share price has fallen about 25%.

After this drop, I think there could be an investment opportunity to consider here. Because right now, this stock appears to offer the winning combination of growth, dividends, and value.

AI demand is fueling growth

Softcat – which helps organisations with IT – posted its results for the six-month period ended 31 January 2026 this morning (18 March) and they were strong.

For the period, gross profit (its primary measure of income) was up 22.6% year on year to £269.9m. Meanwhile, underlying basic earnings per share was up 25.8% to 36.1p.

Driving this growth was high demand for AI infrastructure from customers. “AI is reshaping customer priorities at pace, and organisations of all sizes are now prioritising the building of the data, infrastructure and security foundations needed to deploy it effectively and at scale,” wrote CEO Graham Charlton in the results.

In terms of guidance, this was better than expected. Looking ahead, the company now expects high single-digit growth in underlying operating profit in FY2026, up from low single-digit growth previously.

It’s worth noting that the company said we’re still only in the early stages of the AI adoption cycle. It believes AI could create significant long-term opportunities for the group.

Rising dividends

On the back of this strong H1 performance, Softcat raised its half-year dividend by 11.2% to 9.9p per share. For the full year, analysts expect a total payout of about 50p per share.

Now, this dividend forecast could turn out to be too high. However, if the company was to declare that level of dividend income, investors would be looking at a yield of about 4% at today’s share price.

Value on offer

Zooming in on the valuation, it looks very reasonable to me after the recent share price dip. Currently, analysts are expecting earnings per share of approximately 71p for the financial year ending 31 July and 78p for the following financial year.

That puts the forward-looking price-to-earnings (P/E) ratio at around 17, falling to 16 using next year’s earnings forecast. These aren’t high multiples considering the growth being generated.

Attractive risk/reward proposition

As for risks, there are a few to be aware of. One is that growth here can be a little bit lumpy.

Recent performance, for example, has been boosted by larger projects and the pull forward of memory orders (there are shortages in the memory market right now). Looking ahead, growth may not be as strong.

Another issue is that despite recent international expansion, the company is still very UK-focused. This means it’s vulnerable to an economic slowdown in this country (which is a possibility).

Overall though, I like the risk/reward proposition at today’s share price. I believe Softcat shares are worth a look right now.