Data#3’s FY26 results showcase solid operational momentum, with gross sales rising 12.7% to $3.4 billion while net profit before tax climbed 14% to $78.8 million. The IT services provider delivered results above the Australian industry average, underpinned by record performances across infrastructure solutions, software solutions, business applications, and managed services segments. This performance reflects both sustained demand for digital transformation services and successful execution against strategic initiatives.
The company’s recurring gross sales ratio improved to 72% from 69% in FY25, a meaningful shift toward more predictable revenue streams that typically offer higher margins and demonstrate stronger customer retention. This transition reflects strategic focus on recurring software and managed service offerings rather than transactional hardware sales, providing greater visibility and stability to future earnings.
Customer satisfaction scores rose to 4.36 out of 5 from 4.32, with particularly strong improvements in ease of working with Data#3 at 4.44 and quality of account representation at 4.48. These metrics suggest Data#3 is successfully operationalizing its customer-centric strategy, a critical competitive advantage in enterprise IT services where switching costs and satisfaction drive retention and upsell opportunities.
Data#3’s exposure to cloud and artificial intelligence themes delivered outsized growth this year. Public cloud Azure revenue grew 29%, security solutions increased 21%, and AI services more than doubled. Device as a Service also surged over 100%, demonstrating customer appetite for managed endpoint solutions. These growth rates significantly outpace the overall business expansion, indicating successful execution against high-growth technology vectors.
Microsoft’s strong FY26 performance provides positive read-through for Data#3’s outlook. Microsoft’s Azure business passed the US$100 billion annual run-rate mark, while AI and Copilot adoption is accelerating globally. Data#3 was recognized as Microsoft’s Country Partner of the Year, positioning it to capture a disproportionate share of consumption growth as enterprise customers scale Azure and AI deployments. Basic earnings per share increased to 35.16 cents from 31.10 cents, while dividends per share grew to 31.75 cents from 28.10 cents.
Looking ahead, Data#3’s leverage to cloud infrastructure, security solutions, and AI services positions it favorably for continued growth. Key metrics to monitor include the trajectory of Azure consumption across the customer base, the pace of AI services adoption, and whether Data#3 can sustain its recurring revenue mix expansion. This announcement is price sensitive and has been flagged as material by the ASX.
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About DTL (ASX: DTL)
DTL is listed on the Australian Securities Exchange (ASX: DTL).
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