Data#3 has guided to notably strong first half FY27 earnings growth, with consolidated net profit before tax expected to exceed 40% above the prior year comparative period of $33.5 million. This translates to anticipated first half earnings above $47 million before tax. The guidance represents a sharp acceleration from the company’s FY26 performance, which was hampered by Microsoft incentive changes announced during that period.
The earnings outperformance is underpinned by gross profit growth exceeding 15% year on year, driven by increased activity across the Infrastructure and Software Solutions divisions and the completion of several larger transactions during the first half. Beyond core business momentum, the guidance includes approximately $1.5 million in interest income above forecasts, benefiting from favourable cash flow timing in the first quarter. These tailwinds have combined to create what Data#3 characterises as a strong start to the financial year.
For investors, the guidance signals meaningful operational leverage in the business. Data#3’s service-led model appears to be gaining traction, with Infrastructure and Software Solutions both showing momentum. The gross margin expansion of over 15% indicates either improved pricing realisation, a favourable business mix shift, or both. The company’s ability to grow earnings at a significantly faster rate than revenue in the prior year, when FY26 revenue reached $3.4 billion, suggests operational efficiency improvements or better project selection at higher margins.
However, investors should note that the first half result is materially skewed by non-recurring items and one-off transactions. Data#3 explicitly flags that net profit before tax is expected to be skewed heavily to the first half, and that earnings for the full year will be sustained but not at the first half run rate. The $1.5 million interest income windfall and larger individual contract wins are unlikely to repeat at the same magnitude. This guidance pattern suggests the second half FY27 will normalise to a more modest earnings base, even if the company achieves its target of full year sustained growth.
Key developments to monitor ahead of the full results release on 22 February 2027 include the AGM scheduled for 28 October 2026, where management is expected to provide an updated business outlook. Investors should also track execution of the second half forecast to confirm whether the company’s underlying operational momentum can sustain earnings growth without reliance on the one-off items. The guidance remains subject to completion of the interim accounts and audit review. This announcement is price sensitive and has been flagged as material by the ASX.
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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