Mayank Bansal, CFA
Mayank Bansal is a CFA Charterholder and heads the Equity Research team at Kapitales Research, with over 5 years of experience analysing global equity markets. He leads fundamental, data-driven research combining rigorous financial analysis with macro trends.
Data#3 Upgrades FY27 First-Half Profit Forecast Following Strong Trading Momentum
Highlights:
Upgraded Profit Outlook Announced at AGM
Data#3 Limited (ASX: DTL) announced an improved first-half FY27 earnings outlook at its Annual General Meeting on 28 October 2026, reflecting stronger trading momentum and improved visibility over the first six months of the financial year. Data#3 Limited was trading at AU$14.920, up AU$1.029 or 7.42%, according to the supplied market data. Managing Director and Chief Executive Officer Brad Colledge said the company now expects first-half profit before tax to range between AU$52 million and AU$57 million. This represents an increase of 55% to 70% compared with the AU$33.5 million recorded in the previous corresponding period.
The revised projection incorporates anticipated gross profit growth of approximately 20% at the midpoint and forecast interest income of around AU$8.8 million. However, management cautioned that supply-chain conditions, vendor program changes, customer purchasing decisions, product deliveries and services project milestones could influence the final result.
The company also expects earnings to be weighted towards the first half of FY27, partly due to several significant transactions announced earlier in October. Although growth is anticipated to continue during the second half and across the full financial year, management expects a more normalised pace compared with the first-half forecast.
FY26 Results Demonstrate Consistent Growth
The company reported record gross sales of AU$3.4 billion for FY26, marking a 12.7% increase on the previous year and outperforming Australian IT market growth of 8.9%. Statutory revenue rose 6.4% to AU$907.3 million, while gross profit increased 5.3% to AU$305.2 million. Earnings before interest and tax climbed 16.6% to AU$69.8 million, and profit before tax advanced 14% to AU$78.8 million. Net profit after tax reached AU$54.5 million, up 13.1% year on year.
Fully franked dividends totalled 31.75 cents per share, representing an increase of 13% and a payout ratio of 90.3%. The company maintained a debt-free balance sheet, with cash of AU$326 million as at 30 June 2026.
Recurring gross sales accounted for 70% of the FY26 total, compared with 69% a year earlier, supported by subscription-based and as-a-service offerings.
AI and Cybersecurity Remain Strategic Priorities
Data#3 plans to accelerate growth in its services business through an integrated solutions model, stronger sales execution and closer alignment with customer requirements. Investments in a dedicated AI Practice and customer-facing AI delivery teams are also planned. The company intends to complement its existing security capabilities with a 24-hour sovereign Security Operations Centre to address customer requirements for local data governance and regulatory alignment.
Outlook and Conclusion
Data#3's upgraded first-half forecast highlights the strength of its current trading momentum. Continued execution across technology solutions, AI, cloud and cybersecurity will be important as the company pursues sustainable earnings growth through FY27. The company expects to release its half-year results on 22 February 2027.
Note: All data presented is based on information available at the time of writing.
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