Cohort (LSE:CHRT), the defence and security technology group, reported full-year results on 15 July 2026 that beat market expectations, combining double-digit growth in Revenue and Earnings with a larger Dividend and an upbeat medium-term outlook. For investors tracking the FTSE AIM All Share Index, it remains one of the more substantial defence names in the market.

What the company does

Cohort is a group of technology businesses serving defence, security and related government customers, principally in the United Kingdom but with growing exposure overseas. Its subsidiaries Supply systems, electronics, communications, intelligence and engineering services, and the group describes Demand as being tied to geopolitical tension. Its financial year ends in April, so the results announced in July covered the twelve months to 30 April 2026.

Latest results

According to the results published on 15 July 2026, revenue rose to £306.4m from £270.0m a year earlier, an increase of roughly 13%. Adjusted operating profit climbed about 32% to £36.3m from £27.5m, while adjusted Earnings Per Share increased around 14% to 60.82p from 53.46p. Order intake for the year was £314.2m, up 10%, which LSE:CHRT described as supporting a record closing order book.

A trading update on 27 May 2026 had already flagged results ahead of estimates.

Dividend and financial picture

The board raised the final dividend by 10% to 12.10p, taking the total for the year to 17.90p, also 10% higher. Shares were trading at about 1,290p in London on the day the results were reported, down marginally on the session.

Outlook

Management said it expects double-digit earnings growth in the financial year to April 2027 and in each of the following two years. It also indicated that operating Margin should reach the low teens in FY27 and the mid teens by the end of the decade. The company pointed to healthy demand linked to the conflicts in Ukraine and the Middle East, tensions in the Asia-Pacific region and shifts in United States policy, all of which have encouraged governments to increase defence budgets.

Sector and index context

European and UK defence spending has become a prominent theme for stock markets, and Cohort sits alongside a small number of defence and security suppliers on AIM. LSE:CHRT's size, with sales above £300m, places it well above the typical junior-market company, and it is regarded as one of the larger constituents of the FTSE AIM All Share Index among industrial and technology businesses.

Key risks

Defence contracts can be lumpy, with timing of orders and deliveries affecting reported profit in any given half-year. Reliance on government customers brings exposure to budget decisions, procurement delays and political change. Growth ambitions for margins depend on delivery performance on complex programmes, and any cost overruns could weigh on earnings. Currency movements may also affect overseas contracts, and a rise in the share price after solid results can leave less room for disappointment.

What to watch next

Investors will look for any trading commentary issued alongside the annual general meeting, and then for interim results covering the six months to 31 October 2026, the timing of which LSE:CHRT will confirm. Key items will be conversion of the record order book into revenue, progress towards the targeted margin improvement, and any further acquisitions or contract awards. Any updates on UK and allied defence budgets will also be closely followed.