Data#3 Limited (ASX: DTL) reported fiscal 2026 revenue of AUD 3.4 billion, a 12.7% year-over-year increase, while earnings before interest and tax rose 16.6% to AUD 69.8 million. The company’s net profit before tax climbed 14.0% to AUD 78.8 million, with basic earnings per share up 13.0% to 35.16 cents.
The Melbourne-based IT services provider attributed growth to strong demand for AI solutions, which surged more than 100%, and a 29% increase in Microsoft Azure public cloud consumption. Security solutions revenue rose 21%, while infrastructure solutions gross sales climbed 14.1% to AUD 651.1 million, driven by a 19% increase in data center sales. Software solutions gross sales reached AUD 2.3 billion, up 14.1%, though gross profit in the segment grew 7.6%.
Recurring revenue accounted for 70% of total sales, and the EBITDA margin expanded to 8.4% from 7.8% in fiscal 2025. The company maintained zero borrowings with AUD 326 million in cash, generating AUD 10.1 million in interest income from average daily balances of AUD 276 million. Dividends rose 13.0% to a total of 31.75 cents per share, fully franked, with a payout ratio of 90.3%.
Customer satisfaction metrics improved, with the overall score reaching 4.36 out of 5, while ease of working and account representation scores also increased. Data#3 retained top partner awards from Microsoft, Cisco, HP and Veeam, and was ranked eighth in Australia’s Best Places to Work in Tech.
Looking ahead, management expects staff costs to rise up to 10% in fiscal 2027, with a net profitability impact of approximately AUD 2 million from investments in a 24/7 sovereign security operations center and a dedicated AI practice. Interest income is projected at AUD 11.1 million, assuming stable cash rates. The company’s shares rose 13.92% to AUD 10.72, within a 52-week range of AUD 6.42 to AUD 10.78.
