Key highlights

  • Data#3 expects 1H FY27 Gross Profit more than 15% ahead of 1H FY26, per its 1 October 2026 release.
  • Net profit before tax is expected to be more than 40% above the 1H FY26 figure of $33.5 million, which was affected by Microsoft incentive changes.
  • The company said first-half profit is expected to be skewed to the first half of FY27.

On 21 October 2026, Data#3 Ltd (ASX:DTL) shares were higher by 0.96% at $13.205 during the trading session. Benchmarks for the session included the S&P/ASX 200 Info Tech [XIJ] at 1,614.00, lower by 3.38% or 56.50 points, and the S&P/ASX 200 [XJO] at 8,811.10, lower by 0.066% or 5.80 points, at 3:12 pm GMT+11. On Wall Street on Tuesday, the Dow Jones Industrial Average climbed 1.02% to 52,495.88 and the S&P 500 gained 0.28% to 7,712.57, while the Nasdaq Composite fell about 0.02% to 26,424.82, with several large technology shares retreating as investors weighed valuations and upcoming results. Data#3 is a Brisbane-based IT services and solutions provider that reported $3.4 billion of Revenue in FY26.

What Data#3 does

Data#3 Limited is a leading Australian IT services and solutions provider that helps customers with cloud, modern workplace, security, data and analytics, and connectivity solutions. It delivers them using consulting, project services and support services alongside technology from major vendors. The company was listed on the ASX in 1997, is headquartered in Brisbane, has more than 1,400 staff and facilities across 12 locations in Australia and Fiji, and reported revenues of $3.4 billion in FY26.

First-half FY27 guidance

In a market release dated 1 October 2026, Data#3 said it had experienced a start to FY27 with gross sales and Earnings ahead of expectations. Gross profit for the first half is expected to be more than 15% ahead of 1H FY26, and consolidated net profit before tax is expected to be more than 40% above the first-half FY26 figure of $33.5 million, which was affected by previously announced Microsoft incentive changes.

Drivers and timing

The company attributed the expected result to some one-off, larger transactions, increased activity across Infrastructure and Software Solutions, and the timing of planned Investment spend. It also includes approximately $1.5 million of interest income above expectations, driven by favourable Cash Flow timing in Q1 FY27.

Data#3 said that, because the first half includes the benefit of significant non-recurring items, net profit before tax is expected to be skewed to the first half of FY27, and that it expects to deliver sustained earnings growth for the full year as planned.

Upcoming dates

The company said the final interim result remains subject to the execution and timing of forecast Business through to 31 December 2026, completion of the interim accounts and audit review. It will provide a business update at its AGM on 28 October 2026 and expects to release 1H FY27 results and announce the Interim Dividend on 22 February 2027.

Sector context

Technology shares are being assessed against earnings and valuations. During the session, the S&P/ASX 200 Info Tech index was at 1,614.00, down 3.38%, and the broader S&P/ASX 200 was at 8,811.10. In the United States, the Nasdaq is described as sensitive to corporate earnings and forward guidance and to artificial intelligence infrastructure spending. IT services and reseller businesses depend on vendor programs, customer technology budgets and large project timing, and the release refers specifically to changes in Microsoft incentives in the prior period.

Risks and uncertainties

The guidance is subject to execution and timing of business through 31 December 2026 and to the completion of accounts and audit review. The company states that the first-half figure includes one-off, larger transactions and additional interest income, which may not recur, and that profit is expected to be weighted to the first half. Vendor incentive changes, customer spending and project timing can affect results, and the guidance relates to profit before tax rather than a final reported result.

Catalysts to watch

Items to watch include the AGM business update on 28 October 2026, the 1H FY27 result and interim dividend on 22 February 2027, and the second-half earnings profile relative to the first half.

Wrapping up

Data#3’s 1 October 2026 update indicated higher first-half gross profit and profit before tax, with the caveat that the half includes non-recurring items. The AGM and half-year result are the next dated milestones.