Data#3 (ASX:DTL): Can Another Record Year of IT Solutions Growth Maintain This S&P/ASX 300 Technology Company's Momentum?

Sonal Goyal

30 September 2026 06:10 PM AEST

Data#3 (ASX:DTL): Can Another Record Year of IT Solutions Growth Maintain This S&P/ASX 300 Technology Company's Momentum?

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Data#3 Limited (ASX:DTL), an Australian IT services and solutions provider, delivered another record financial result for the year ended 30 June 2026. In a market release dated 24 August 2026, the Brisbane-based company reported gross sales of $3.4 billion, up 12.7% on the prior year, and net profit after tax (NPAT) of $54.5 million, up 13.1%. The result outpaced Australian IT industry growth of approximately 8.9%, according to Gartner estimates, and was underpinned by Demand for cloud, security, AI-related infrastructure, and Microsoft Azure subscriptions across the company's Software Solutions, Infrastructure Solutions, and Services divisions.

About Data#3

Data#3 Limited is a leading Australian IT services and solutions provider headquartered in Toowong, Brisbane. Founded in 1977 and listed on the ASX in 1997, the company delivers an integrated array of technology solutions spanning cloud, modern workplace, security, data analytics, and connectivity. Data#3 serves customers across government, regulated industries, and the enterprise sector through consulting, project services, managed services, and technology supply. The company has more than 1,400 staff and operates from 12 locations across Australia and Fiji.

FY26 Results — Released 24 August 2026

Data#3's gross sales of $3,385 million in FY26 represented growth of 12.7% on the prior year's $3,003 million. Statutory Revenue (after IFRS adjustments for principal versus agent classification) was $907.3 million, up 6.4%. Gross Profit rose 5.3% to $305.2 million, with a total gross Margin on gross sales of 9.0%.

Software Solutions delivered record gross sales of $2.3 billion, up more than 14% on FY25, driven by demand for security products, cloud, and Microsoft Azure subscriptions. Infrastructure Solutions gross sales increased more than 14%, supported by ongoing demand for end-user devices, enterprise networking, and data centre solutions. Services gross sales grew 3.6%, with growth in Managed Services and Maintenance Services supported by contract renewals and new contract wins.

EBIT rose 16.6% to $69.8 million and net profit before tax (NPBT) increased 14.0% to $78.8 million. NPAT of $54.5 million was 13.1% above the prior year's $48.2 million. Return on Equity remained at 57.3%, consistent with FY25. Basic Earnings Per Share increased 13.0% to 35.16 cents. The company ended the year with no borrowings and a strong balance sheet.

For FY27, Data#3 plans to establish a dedicated AI Practice and customer-facing AI delivery pods to serve demand for artificial intelligence solutions across Software, Infrastructure, and Services. The company also intends to invest in a new 24/7 Sovereign Security Operations Centre (SOC) in Australia to meet growing government and regulated industry demand for locally governed security services.

Dividend

Data#3's directors declared a fully franked final Dividend of 18.25 cents per share, representing an increase of 13.0% for the full year on the prior corresponding period. The full-year dividend of 31.75 cents per share was at a Payout Ratio of 90.3% of NPAT. The final dividend was paid on 30 September 2026, with a Record Date of 16 September 2026.

Industry Context

The Australian IT market continued to grow in FY26, underpinned by enterprise and government Investment in digital transformation, cybersecurity, AI, and cloud infrastructure. Data#3's gross sales growth of 12.7% substantially exceeded estimated industry growth of 8.9%, reflecting the company's strong vendor relationships — particularly with Microsoft — and its position across key demand areas including AI-ready infrastructure, Azure cloud adoption, and managed security services. The AI investment cycle is creating both demand for new solutions and internal productivity improvements, which the company has identified as an important theme for FY27 and beyond.

Risks and Uncertainties

Data#3's Business is sensitive to changes in customer procurement cycles and broader economic confidence, with earnings historically skewed to the second half of the financial year (typically May and June). The company's strong Microsoft channel relationship means any adverse changes to Microsoft's partner channel program or commission structures could affect margins. Global Supply chain conditions — particularly for hardware in the Infrastructure Solutions division — remain a variable. The company did not provide specific FY27 guidance, consistent with prior practice. International expansion of the Services business increases geographic and regulatory complexity.

FAQs

Q: What were Data#3's FY26 gross sales?

A: Data#3 reported record FY26 gross sales of $3.4 billion, up 12.7% on the prior year.

Q: What dividend did Data#3 declare for FY26?

A: A fully franked full-year dividend of 31.75 cents per share was declared, up 13.0%, with a final dividend of 18.25 cents per share paid on 30 September 2026.

Q: What is Data#3's FY27 AI strategy?

A: Data#3 plans to establish a dedicated AI Practice and customer-facing AI delivery pods, alongside a new 24/7 Sovereign Security Operations Centre in Australia.

Q: Which business segment drove the most growth for Data#3 in FY26?

A: Both Software Solutions and Infrastructure Solutions each delivered gross sales growth of more than 14%, while Services grew 3.6%.

Q: What ASX ticker does Data#3 trade under?

A: Data#3 Limited trades on the Australian Securities Exchange under the ticker DTL.

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