The Data#3 Ltd (ASX: DTL) share price is in focus after the company reported a 6.3% rise in revenue to $917.4 million and a 13.1% jump in net profit to $54.5 million for FY26.
What did Data#3 Ltd report?
- Revenue up 6.3% to $917.4 million
- Net profit after tax (NPAT) up 13.1% to $54.5 million
- Gross sales and other revenue up 12.7% to $3.39 billion
- Basic earnings per share up 13.0% to 35.16 cents
- Total fully franked dividends up 13.0% to 31.75 cents per share
- Final dividend of 18.25 cents per share declared
What else do investors need to know?
Data#3 delivered another record performance in FY26, building on its long history of consistent growth in both sales and earnings. The company improved its financial position thanks to strong cash flow and a disciplined approach to managing costs.
Demand remained resilient, particularly in public sector and infrastructure solutions, despite some customers delaying technology spending decisions. Recurring gross sales, especially through Software Solutions and Managed Services, now account for 70% of total gross sales.
The company completed a board renewal process at the start of the financial year, adding new directors Diana Eilert and Laurence Baynham. The business also received multiple partner and industry awards, including recognition as Microsoft Country Partner of the Year and HP Amplify Impact Partner of the Year.
What did Data#3 Ltd management say?
Brad Colledge, Managing Director and Chief Executive Officer said:
Data#3 is pleased to report another strong financial result for FY26, with record gross sales of $3.4 billion and earnings before tax up 14% to $78.8 million. This performance reinforces our agility and the continued strength of our people, strategy and business model. Our disciplined focus on cost management and ongoing alignment of our cost base to market demand also saw improved operating leverage and net profit margins this financial year.
What’s next for Data#3 Ltd?
Looking forward, Data#3 aims to accelerate growth in AI, cyber security, cloud, data, and managed services. The company will continue investing in its AI Practice, modernising infrastructure offerings, and expanding managed security services, including launching a new Sovereign Security Operations Centre.
With its strong customer base, vendor partnerships, and solid balance sheet, management remains confident Data#3 can deliver sustainable earnings growth. The FY27 plan places further focus on advisory and managed services, improving operational efficiency, and responding to the changing landscape in digital transformation and compliance needs.
Data#3 Limited share price snapshot
Over the past 12 months, the Data#3 share price has outperformed the S&P/ASX 200 index (ASX: XJO) with a 14% gain, reflecting the company’s robust financial performance and ongoing demand for technology solutions in the Australian market.
The post Data#3 posts double-digit profit growth in FY26 earnings appeared first on The Motley Fool Australia.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Data#3. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.