Data#3 Limited (ASX:DTL): What Does the FY27 Trading Update Signal After FY26 Earnings Growth?

Aditi Sarkar

27 October 2026 10:21 PM AEDT

Data#3 Limited (ASX:DTL): What Does the FY27 Trading Update Signal After FY26 Earnings Growth?

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Highlights

Data#3 Limited (ASX:DTL) reported FY26 gross sales of AUD 3.39bn, up 12.7% YoY.
FY26 statutory revenue increased 6.4% to AUD 907.3mn and NPAT rose 13.1% to AUD 54.5mn.
Its October update projected H1 FY27 gross profit growth exceeding 15% YoY, subject to final results.
An investor day is scheduled for 25 November 2026, following the 28 October annual general meeting.

Data#3 Limited (ASX:DTL) supplies technology products, software and professional services to Australian organisations, including public-sector and enterprise customers. Its August FY26 financial results showed higher gross sales and earnings, while an October 2026 trading update outlined an anticipated increase in first-half FY27 profitability. Together, the announcements place attention on the company’s infrastructure and software activities, its evolving services offering and the timing of customer purchasing decisions. The October forecast remains preliminary rather than a completed half-year result.

Company Business

Data#3 Limited (ASX:DTL) operates across Infrastructure Solutions, Software Solutions and Services. Infrastructure covers end-user devices, networking, data-centre products and related technology deployments. Software includes cloud subscriptions, security and other enterprise licensing arrangements. Services combines advisory work, projects, support, maintenance, managed services and staffing. Headquartered in Brisbane, it operates across Australia and Fiji.

Gross sales encompass transactions as principal or agent, whereas statutory revenue applies accounting presentation rules. These measures therefore describe different aspects of Data#3’s operating activity, especially software transactions.

Recent Development

In its August 2026 FY26 announcement, Data#3 Limited (ASX:DTL) identified Infrastructure Solutions as a major contributor, with gross sales rising more than 14% as demand developed for end-user computing, enterprise networking and data-centre systems. Software Solutions recorded gross sales of approximately AUD 2.3bn, also more than 14% higher, reflecting cloud and security subscriptions. Services gross sales increased 3.6%, with managed services and maintenance contributing through renewals and new contracts.

On 1 October 2026, Data#3 released an H1 FY27 trading update indicating that gross profit for the six months ending 31 December 2026 was expected to be more than 15% above the comparable period. It anticipated net profit before tax more than 40% higher than the H1 FY26 base of AUD 33.5mn. These expectations remained subject to forecast transactions being completed, period-end accounting and review. An investor day announced for 25 November provides another scheduled opportunity to discuss operating priorities.

Financial Performance and Sector Context

For FY26, Data#3 Limited (ASX:DTL) recorded gross sales of AUD 3,385.3mn against AUD 3,003.4mn in FY25, representing 12.7% YoY growth. Statutory revenue advanced to AUD 907.3mn from AUD 853.0mn, an increase of 6.4%. Gross profit reached AUD 305.2mn, compared with AUD 289.7mn, while EBIT rose 16.6% to AUD 69.8mn. Net profit before tax increased 14.0% to AUD 78.8mn and NPAT increased 13.1% to AUD 54.5mn.

The gross-profit margin measured against gross sales declined to 9.0% from 9.6%, showing that sales growth did not translate uniformly into gross margin expansion. Basic earnings per share increased 13.0% to 35.16 cents. The fully franked annual dividend totalled 31.75 cents per share, up from 28.10 cents, with a reported payout ratio of 90.3%. Data#3 reported no borrowings at year-end; it did not issue a specific full-year FY27 numerical guidance figure in August.

Risks to Consider

Data#3 Limited (ASX:DTL) faces timing risks when customer procurement decisions and contract completions shift between reporting periods. Vendor rebate and incentive structures may change profitability without equivalent changes in gross sales. A lower gross-profit margin, competition for enterprise contracts and requirements to recruit skilled service staff also warrant monitoring. Investment in new security and AI capabilities may introduce implementation and operating costs before additional recurring income is realised.

What to Watch Next

The annual general meeting scheduled for 28 October and investor day scheduled for 25 November 2026 are near-term events. Data#3 Limited (ASX:DTL) has also outlined plans for a dedicated AI Practice, expanded customer-facing delivery capability and investment in an Australian sovereign security operations centre during FY27. The eventual H1 FY27 result will clarify whether October’s preliminary expectations were achieved and how one-off items, service margins and ongoing operations contributed. Reporting on cloud subscriptions and managed-services contracts will also be relevant.

Key Insights

Data#3 Limited (ASX:DTL) exited FY26 with higher gross sales, statutory revenue and profit, although its gross-profit margin relative to sales narrowed. October’s H1 FY27 update pointed to improved near-term earnings but was subject to finalisation. Subsequent disclosures will show whether infrastructure demand, subscription activity and investment in services support the company’s operating objectives across FY27.

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