Highlights

  • Data#3 (ASX:DTL) is scheduled to release FY26 audited results on 24 August 2026.
  • The company reported first-half FY26 gross sales of A$1.54 billion, up 9.2% year on year.
  • First-half FY26 Gross Profit was A$144.0 million, while EBIT increased 6.2% to A$27.6 million.
  • Data#3 maintained a debt-free Balance Sheet and increased its Interim Dividend to 13.50 cents per share.

Data#3 (ASX:DTL) is approaching its FY26 results announcement with investor attention focused on gross profit conversion, software Margin recovery and technology Demand trends. The IT services and solutions provider has continued expanding sales volumes while managing changes in vendor incentives and operating conditions.

What happened

Data#3 confirmed on 8 July 2026 that it will release audited FY26 results on 24 August 2026, with chief executive Brad Colledge and chief financial officer Cherie O’Riordan scheduled to present the results.

The company reported FY25 Revenue of A$3.0 billion.

The latest reported financial results were first-half FY26 results released on 23 February 2026. Data#3 reported gross sales of A$1,542.3 million, up 9.2% year on year, while statutory revenue increased 8.1% to A$423.1 million.

Gross profit was A$144.0 million, broadly unchanged with growth of 0.3%. Earnings Before Interest and Tax (EBIT) increased 6.2% to A$27.6 million, while net profit after tax increased 3.7% to A$23.2 million.

Basic earnings per share increased 3.6% to 14.95 cents, and the interim dividend increased 3.1% to 13.50 cents per share.

Management highlighted several FY26 themes, including the Windows 11 refresh cycle, AI-enabled device demand, Software Solutions recovery following Microsoft incentive changes and mixed conditions across services divisions.

The numbers investors need to know

The difference between gross sales and statutory revenue remains an important feature of Data#3’s Business model. During first-half FY26, gross sales of A$1,542.3 million translated into statutory revenue of A$423.1 million, reflecting the significant agency-based component of the business.

Gross profit of A$144.0 million provides a more relevant measure of underlying commercial performance. While sales volumes increased 9.2%, gross profit increased only 0.3%, highlighting pressure on retained margins.

EBIT of A$27.6 million represented approximately one-fifth of gross profit, while the interim dividend of 13.50 cents per share compared with earnings per share of 14.95 cents reflected a high payout ratio.

Data#3 maintained a debt-free balance sheet during the first half of FY26.

The company has historically generated stronger earnings in the second half of the financial year, with sales activity typically weighted towards May and June.

Business outlook and key considerations

Data#3’s FY26 results will provide further visibility on second-half gross profit performance, software margin recovery and demand trends across technology solutions.

The company expects Infrastructure Solutions to benefit from the Windows 11 refresh cycle and AI-enabled devices, while Software Solutions was expected to return to gross profit growth following Microsoft incentive changes.

Key areas to monitor include vendor relationships, gross margin trends, services performance, dividend policy and FY27 operating conditions.

Bull case

Data#3 enters FY26 results with several structural demand drivers, including enterprise technology refresh cycles, AI-enabled devices and ongoing software adoption.

The company’s debt-free balance sheet, dividend history and established customer base provide financial flexibility. Management has indicated that Software Solutions should return to gross profit growth as Microsoft incentive changes become embedded.

If gross profit conversion improves while sales growth continues, Data#3 could demonstrate stronger Operating Leverage through future technology cycles.

Bear case and risks

Data#3 remains exposed to vendor economics, particularly changes in partner incentives that can affect margins despite higher sales volumes.

The first-half FY26 result showed gross sales growth of 9.2% while gross profit increased only 0.3%, highlighting the importance of maintaining margin quality.

Additional risks include weaker corporate technology spending, challenges in Project Services and recruitment, reliance on key vendors, and a high dividend Payout Ratio limiting retained Capital for investment.

What comes next

The key milestone is Data#3’s FY26 results announcement on 24 August 2026.

Investors will monitor second-half gross profit growth, Software Solutions performance, Infrastructure Solutions margins, final dividend details, cash position and management commentary on FY27 conditions.

As Data#3 does not provide formal earnings guidance, the outlook commentary from management will be important in assessing future operating expectations.

Conclusion

Data#3 (ASX:DTL) enters its FY26 results period with a focus on whether revenue growth can translate into improved margin performance. The company has continued expanding sales volumes while navigating changes in vendor incentives and technology market conditions.

The upcoming results will provide clarity on second-half execution, software recovery and future demand trends. Maintaining gross profit growth alongside sales expansion remains the key Factor for the company’s next phase of performance.