Highlights

  • FY26 gross sales increased 12.7% to A$3.39 billion, while statutory Revenue rose 6.4% to A$907.3 million.
  • NPAT increased 13.1% to A$54.5 million and Basic Earnings Per Share rose 13.0% to 35.16 cents.
  • The fully franked full-year Dividend increased 13.0% to 31.75 cents per share, with a 90.3% payout ratio.
  • Recurring gross sales represented about 70% of total gross sales, supporting visibility across software and managed services.
  • FY27 priorities include a dedicated AI Practice and Investment in a new sovereign security operations capability in Australia.

Data#3 Limited (ASX:DTL) is an Australian IT services and solutions provider that helps organisations address Business challenges through technology spanning cloud, cyber security, data and AI, infrastructure and managed services. Its FY26 result showed growth across sales and earnings, while management set out FY27 priorities aimed at expanding higher-value services and recurring income.

FY26 Earnings Increased Across Key Measures

For the year ended 30 June 2026, gross sales increased 12.7% to A$3.39 billion and statutory revenue rose 6.4% to A$907.3 million. Gross Profit increased 5.3% to A$305.2 million, while net profit before tax rose 14.0% to A$78.8 million. NPAT increased 13.1% to A$54.5 million. The faster rise in earnings than statutory revenue indicates that operating efficiency contributed alongside top-line expansion.

Dividend Growth Accompanied Higher Earnings

Basic earnings per share increased 13.0% to 35.16 cents. Data#3 declared total fully franked FY26 dividends of 31.75 cents per share, also up 13.0%, including a final dividend of 18.25 cents. The Payout Ratio was 90.3%, meaning most reported earnings were returned to shareholders rather than retained. The company also reported no borrowings, which supports financial flexibility despite the high payout.

Recurring Revenue Remains Central to the Model

Recurring gross sales, mainly from Software Solutions and Managed Services, accounted for about 70% of total gross sales. This mix helps reduce reliance on one-off hardware projects and gives the business a larger base of repeat customer activity. Software, infrastructure and services remain the main operating areas, with customer spending influenced by procurement cycles, budget approvals and the timing of larger technology projects.

FY27 Focus Moves Toward AI and Cyber Security

Management plans to establish a dedicated AI Practice and customer-facing AI delivery teams during FY27. The strategy also includes investment in a new 24/7 sovereign security operations capability in Australia, alongside continued work in cloud, data, infrastructure and managed services. Data#3 did not provide specific numerical FY27 earnings guidance and continues to expect earnings to be weighted toward the second half of the financial year.

Execution Factors to Monitor

Data#3 remains exposed to customer procurement timing, global Supply conditions and changes in major technology vendor programmes. A large dividend payout also leaves a smaller proportion of earnings available for internally funded expansion. The FY27 investment programme will therefore be assessed through its ability to convert AI, cyber security and managed-services Demand into sustainable gross profit and earnings growth without materially increasing financial risk.

Key Insights

Data#3 entered FY27 after reporting higher FY26 sales, profit and dividends, with recurring gross sales remaining a major part of its operating model. The next phase centres on expanding AI, cyber security and managed-services capability while maintaining efficiency. Progress will depend on customer technology budgets, vendor relationships, project timing and the rate at which new service offerings contribute to earnings.