Cost-cutting is back in the headlines, with British American Tobacco announcing plans to remove about 9,000 roles and push more work to outsourcing partners as it reshapes itself around smoke free products. When a large company like BAT starts talking about automation, digital tools and efficiency, it often puts similar pressure on other big corporates to review their own spending. This article looks at 3 large cap stocks that are exposed to the same efficiency and restructuring theme highlighted by the BAT news and explores how that backdrop could potentially help or hurt long term investors.

BILL Holdings (BILL)

Overview: BILL Holdings runs a cloud based financial operations platform that helps small and midsize businesses automate invoices, payments, and expenses so they can cut back office costs, manage cash flow and connect more efficiently with suppliers and customers.

Operations: BILL Holdings currently generates about US$1.6b in revenue from its Software & Programming segment.

Market Cap: US$3.5b

Investors looking at cost cutting and efficiency themes may find BILL Holdings compelling because its tools sit directly in the workflows that large companies are trying to streamline, from accounts payable automation to AI driven spend control. Management has been reshaping the business with workforce reductions, office closures and tighter project selection, aiming to lift margins while still investing heavily in an AI native product roadmap and embedded finance partnerships. At the same time, the stock trades at a P/S of 2.2x, at a level that is below many software peers. The catch is that recent profit margins are thin, earnings have been volatile and funding relies entirely on external borrowings, so understanding whether the efficiency push really sticks is critical.

BILL Holdings looks like an efficiency engine hiding in plain sight. With AI native products, workforce cuts, and a 2.2x P/S all pulling in different directions, the real story sits in the 3 key rewards and 2 important warning signs

Commvault Systems (CVLT)

Overview: Commvault Systems provides cyber resiliency software that helps enterprises back up, secure, and quickly recover critical data and applications across on premise and cloud environments, including tools to respond to ransomware and other cyber incidents.

Operations: Commvault Systems generates about US$1.2b in revenue from its Software & Programming segment, with roughly US$631.0m from the United States and US$552.7m from other regions.

Market Cap: US$5.8b

Commvault Systems operates in the slipstream of the cost cutting theme, selling automation and cyber recovery tools that help large enterprises protect data while reducing downtime and complexity. Its growing subscription and SaaS mix, deep cloud partnerships with players such as Microsoft Azure and Google Cloud, and broad international footprint support the case for more stable recurring revenue. At the same time, the stock trades on a very high P/E, recent margins have softened and earnings include a large one off loss, while management is using debt, heavy buybacks and executive pay at the high end of peers. That mix of demand drivers, efficiency focus and financial stretch makes the overall risk reward profile worth a closer look.

Commvault Systems looks like efficiency insurance for large enterprises, yet that high P/E, debt use and big buybacks raise real questions about how the story balances out, which is exactly what the 2 key rewards and 2 important warning signs

Softcat (LSE:SCT)

Overview: Softcat is a United Kingdom based IT solutions provider that helps businesses and public sector organisations design, buy, implement, and manage technology across areas like hybrid cloud, cybersecurity, networking, data, automation, and AI, often acting as a single partner for complex infrastructure needs.

Operations: Softcat generates about £1.8b in revenue from its value added IT reseller and IT infrastructure solutions activities, almost entirely in the United Kingdom.

Market Cap: £3.6b

Investors focusing on cost cutting and efficiency may wish to monitor Softcat, as it sits at the centre of how large organisations modernise IT, tighten security, and use data and AI to do more with less, while running a relatively asset light, service heavy model. Reported earnings growth of 12.5% over the past year, high quality profits, and a reported 49.3% return on equity indicate a business that has converted this positioning into attractive economics, even as net margins moved from 12% to 8.1% and the current share price sits above some fair value estimates. A key consideration is whether Softcat’s efficiency programs, internal system upgrades, and expanding service mix justify paying a P/E of 25.2x, and how much cushion that leaves if costs or UK public sector demand are weaker than anticipated.

Softcat’s 49.3% return on equity and 25.2x P/E suggest something in this model is either underappreciated or overstretched, and the 3 key rewards and 2 important warning signs could be the clue investors are missing right now.

The three stocks in this article are just a starting point, and the full Cost-Cutting and Efficiency-Focused Large Cap Stocks screener surfaced 41 more large caps where cost-cutting, efficiency drives, or restructuring are central to the story. Use Simply Wall St to identify and analyze the specific catalysts, financial health metrics, and narratives that matter most so you can focus on the highest conviction efficiency plays.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.