Highlights:

• Net profit climbed 54.1% as stronger margins lifted first-half earnings.
• Gross revenue reached AU$2.10 billion amid robust technology spending.
• FY26 guidance remains positive, although input costs could pressure H2 margins.

First-Half Profitability Strengthens

Dicker Data Limited (ASX: DDR) released its H1 FY26 results on 28 August 2026, showing a clear improvement across both revenue and earnings. Gross revenue increased 14.2% to AU$2.10 billion, while statutory revenue rose 13.5% to AU$1.41 billion. Net profit after tax advanced 54.1% to AU$60.7 million, reflecting a stronger sales mix, firmer margins and improved operating efficiency.

Technology Demand Supports Expansion

Growth during the half was underpinned by ongoing IT refresh activity and higher investment in software, cybersecurity, AI infrastructure and data centre solutions. Gross profit increased 23.0% to AU$205.6 million, with the gross profit margin improving to 9.8% from 9.1% a year earlier.

EBITDA rose 37.3% to AU$103.5 million, while net operating profit before tax increased 50.1% to AU$86.4 million. The profit-before-tax margin also strengthened to 4.1%, indicating that higher sales were being converted into earnings more effectively.

Australia delivered the strongest contribution, with gross revenue rising 18.2% to AU$1.83 billion. Australian gross profit increased 29.0% to AU$183.9 million, while profit before tax climbed 55.9% to AU$82.5 million.

Software and Advanced Solutions remained important growth areas, helped by demand for cloud platforms, enterprise infrastructure, cybersecurity and AI-related products. AI-linked invoiced sales exceeded AU$50 million during the first half.

Capital Position Remains Supportive

The company maintained its dividend programme, with 23.0 cents per share in fully franked dividends paid during H1 FY26. Its dividend reinvestment plan also continued with a 1% discount.

Despite higher working-capital requirements, net debt eased slightly to AU$291.3 million, while total debt also declined.

Outlook: Can Momentum Hold in H2?

Management expects software, data centre upgrades and AI-related projects to remain key growth drivers in the second half. However, endpoint demand may cool, while component pricing and supply-chain constraints could lift inventory replacement costs.

For FY26, Dicker Data is targeting gross revenue of AU$4.30 billion to AU$4.40 billion and net operating profit before tax of AU$162 million to AU$165 million.

The key test for H2 will be whether expanding AI and infrastructure demand can continue to offset lower-margin activity and rising cost pressures.

Note- All data presented is based on information available at the time of writing.

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