Highlights

  • Data#3 now projects 1H FY27 pre-tax profit of A$52 million to A$57 million, up 55% to 70%.
  • Gross profit is expected to grow around 20% at the midpoint, alongside forecast interest income of about A$8.8 million.
  • FY26 net profit after tax rose 13.1% to A$54.5 million on record gross sales of A$3.4 billion.
  • The IT solutions provider will host an investor day in Sydney on 25 November 2026.

Less than a month after flagging a strong start to FY27, Data#3 (ASX:DTL) went further at its 28 October 2026 annual general meeting, upgrading its first-half projection to pre-tax profit of A$52 million to A$57 million.

That range represents growth of 55% to 70% on the A$33.5 million reported for the first half of FY26, a period weighed down by changes to Microsoft partner incentives.

One-Off Deals Lift the First Half

On 1 October, the company told investors it expected first-half profit before tax to exceed the prior corresponding period by more than 40%, with Gross Profit more than 15% higher. It pointed to several larger one-off transactions, stronger activity across Infrastructure and Software Solutions, the timing of planned Investment and about A$1.5 million of unexpected interest income.

At the AGM, chief executive Brad Colledge lifted the outlook, saying gross profit growth should be around 20% at the midpoint. He cautioned that the projection depends on supply-chain conditions and the timing of customer purchasing decisions and deliveries. Because of the one-off transactions, FY27 profit is expected to be weighted to the first half, with growth in the second half and full year at a more normalised rate.

Record Gross Sales in FY26

For FY26, the year to 30 June 2026, gross sales rose 12.7% to A$3.4 billion and statutory Revenue increased 6.4% to A$907.3 million. Profit before tax grew 14.0% to A$78.8 million, and net profit after tax rose 13.1% to A$54.5 million. Fully franked dividends totalled 31.75 cents per share, up 13.0%.

Infrastructure Solutions was the standout, with management profit up more than 78% to A$31.2 million on Windows 11 upgrades, device refreshes and data centre sales. Services profit declined 12.6% as Project Services contracted. The company ended the year debt-free, with A$326.0 million in cash, although Operating Cash Flow fell to A$23.3 million because of the timing of customer receipts around year-end.

AI, Security and the Government Panel

Data#3 was appointed by the Digital Transformation Agency as sole panel provider of Microsoft products and services to the Australian Government, a five-year arrangement it describes as the largest contract in its history. For FY27, it is investing in a dedicated AI Practice with customer-facing delivery squads and plans a 24x7 Sovereign Security Operations Centre to meet data residency requirements.

The board also began a new strategic planning cycle in October 2026, aimed at growth in FY28 and beyond.

Investor Day and February Result

Colledge and chief financial officer Cherie O'Riordan will present strategy, investment initiatives and vendor and customer updates at an investor day in Sydney on 25 November 2026. First-half results and the Interim Dividend are scheduled for 22 February 2027, subject to completion of the interim accounts and audit review.

Shares were priced at A$14.61 on 2 November 2026, down 1.02% on the day, giving a Market Capitalisation of A$2.27 billion and a 12-month gain of 65.65%.