Data#3 (ASX: DTL) – Data#3 Files 2026 Annual Report

Data#3 delivered record gross sales of $3.4 billion in FY26 with earnings before tax of $78.8 million, representing 14% growth year on year. This sustained performance reflects the ASX-listed IT services and solutions provider’s ability to capture market opportunity and adapt to evolving technology priorities in an Australian market increasingly focused on digital transformation and emerging capability adoption.

The result demonstrates Data#3’s established capability to navigate challenging conditions while maintaining a track record of consistent shareholder value. Since listing in 1997, the company has grown earnings per share steadily, underpinned by a high and fully franked dividend payout ratio. Over the five years to FY26, Data#3 generated an average annual total shareholder return of 20%, reflecting both capital appreciation and consistent distributions. The Board has signalled its continued focus on maintaining attractive dividend returns while balancing necessary investment for sustainable growth and long-term value creation.

FY26 presented notable macroeconomic headwinds including inflationary pressures, geopolitical uncertainty and elevated hardware costs that prompted some customers to defer discretionary technology spending. The Services division was most affected, experiencing softer conditions that partially offset strong growth in Managed Services and Business Aspect consulting. In contrast, Infrastructure Solutions benefited from Windows 11 upgrade cycles, ongoing device refresh activity and increasing demand for data centre solutions supporting modern data and AI workloads. This divergent performance underscores how customer investment priorities have shifted toward solutions with clear productivity and security outcomes.

Software Solutions successfully navigated material changes to Microsoft partner incentive programs by expanding cloud solution provider agreements, growing Azure consumption, advancing Copilot and security offerings, and diversifying revenue across non-Microsoft vendors and advisory services. Public sector customers also increased activity as modernisation and infrastructure security programs progressed, suggesting structural demand support from government and enterprise initiatives focused on modernisation and cyber resilience. The breadth of vendor partnerships and solution offerings positions Data#3 to capture demand across multiple growth vectors.

Positioned across high-priority technology domains including AI, cyber security, cloud infrastructure and modernisation, Data#3 enters the next phase with tailwinds from structural market trends. The company’s broad customer base, strong vendor relationships and disciplined cost management provide resilience against variable macroeconomic conditions and customer procurement cycles. Investors should monitor how the company sustains momentum in Services and progresses opportunities in emerging technology domains where clear productivity and security outcomes drive customer spending decisions.

View the full ASX announcement (PDF)

About Data#3 Limited (ASX: DTL)

Data#3 Limited is an Australian enterprise IT and ICT solutions provider that specializes in consulting, procurement, project services, managed services, and resourcing. The company delivers technology solutions across hybrid cloud, modern workplace, security, data and AI, and connectivity sectors. Data#3 operates across Australia with headquarters in Queensland and regional presence in multiple states, serving customers in healthcare, government, and education sectors.

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