Highlights

  • Data#3 shares fell 13.08% to AUD 7.91 despite growth in gross sales and revenue.
  • Infrastructure Solutions and Software Solutions achieved strong growth, offsetting weaker Services performance.
  • Interim dividend increased to 13.50 cents per share, with NPAT up 3.7% to AUD 23.2 million.

Shares of Data#3 Ltd (ASX:DTL) fell 13.08% to AUD 7.91 by 3:10 pm on 23 February 2026, following the release of its half-year financial results for the six months ended 31 December 2025. The market reaction came despite growth in gross sales and statutory revenue, as investors weighed mixed results across the company’s Services and Software divisions.

1H FY26 Results Show Revenue Growth

Data#3 reported gross sales of AUD 1.54 billion, up 9.2% on the previous corresponding period, while statutory revenue rose 8.1% to AUD 423.1 million. Gross profit edged higher by 0.3% to AUD 144 million, supported by Infrastructure sales that grew nearly 18% and record Software Solutions gross sales of AUD 1.1 billion, driven by demand for security products and cloud subscriptions.

Key profit measures included:

  • EBIT: AUD 27.6 million (+6.2% YoY)
  • NPBT: AUD 33.5 million (+4.5% YoY)
  • NPAT: AUD 23.2 million (+3.7% YoY)
  • Basic EPS: 14.95 cents (+3.6%)

The company also declared a fully franked interim dividend of 13.50 cents per share, up 3.1% from the previous period, payable on 31 March 2026.

Mixed Performance Across Services

While the Infrastructure and Software divisions delivered growth, the Services business showed mixed results. Managed Services achieved significant contract renewals and new wins, but Project Services and People Solutions were affected by softer labour market conditions and reduced demand for contractors.

Managing Director Brad Colledge noted that ongoing internal efficiencies, automation, and cost management helped maintain profitability despite challenges in specific units.

Outlook and AI Opportunities

Data#3 is focusing on growth opportunities across AI-enabled devices, multi-cloud solutions, and data centre capabilities. The adoption of Microsoft Copilot and Azure AI, alongside increased AI integration in operations, is expected to support scalable growth and enhance customer service.

Supply chain pressures, particularly for memory chips, could accelerate customer orders, benefiting near-term Infrastructure sales. The company anticipates that the Software business will return to gross profit growth in H2 FY26.

The decline in Data#3’s share price on 23 February 2026 reflects market reaction to uneven segment performance and investor caution, despite overall growth in revenue, profit, and dividends. The company’s focus on AI, cloud, and infrastructure solutions may drive continued momentum through the second half of FY26.

Frequently Asked Questions (F&Q)

  1. Why did Data#3 shares fall 13% today?
    The decline followed the release of 1H FY26 results, highlighting mixed performance across Services and Software divisions, despite overall revenue and profit growth.
  2. Which segments performed strongly in 1H FY26?
    Infrastructure Solutions grew nearly 18%, while Software Solutions delivered record gross sales of AUD 1.1 billion, driven by cloud and security products.
  3. What is Data#3’s dividend for the half-year?
    Data#3 declared a fully franked interim dividend of 13.50 cents per share, up 3.1% from the previous period, payable on 31 March 2026.