How Data#3’s $3B Sales Surge Sets Stage for AI-Driven Growth
Data#3 Limited reported a robust FY25 with $3 billion in gross sales and an 11.4% rise in net profit before tax, underpinned by cloud, security, and AI demand. The company’s FY26 strategy focuses on customer experience and operational excellence amid evolving IT sector trends.
- FY25 gross sales reached $3.0 billion, up 9%
- Net profit before tax increased 11.4% to $69.1 million
- Growth driven by cloud, security, and AI-related solutions
- Sustainability initiatives and multiple vendor awards highlighted
- FY26 outlook emphasizes AI, customer experience, and operational efficiency
Strong Financial Performance in FY25
Data#3 Limited, a leading IT services and solutions provider listed on the ASX 200, has announced solid financial results for the fiscal year ending 2025. The company posted gross sales of $3.0 billion, marking a 9% increase over the previous year. Net profit before tax rose by 11.4% to $69.1 million, reflecting improved operating leverage and effective cost management despite wage inflation and increased IT investments.
Underlying this growth was a 7.3% rise in gross profit to nearly $290 million, supported by gains across its core business segments – services, infrastructure solutions, and software solutions. Notably, the software segment benefited from strong demand for security products, cloud subscriptions, and Adobe licenses, particularly within the education and public sectors.
Operational Highlights and Market Position
Data#3’s operational updates reveal a company adept at navigating sector challenges. The services division saw mixed results, with consulting impacted by political and economic headwinds, while managed services experienced growth driven by large contract wins, especially in the resources sector. Infrastructure solutions rebounded in the second half of the year, aided by device refresh cycles and Windows 11 upgrades.
The company also launched an Australian-based Security Operations Centre powered by SecurityHQ and expanded its AI capabilities, engaging in over 100 customer projects related to AI adoption. These initiatives align with Data#3’s vision to harness people and technology for a better future, emphasizing innovation in cloud, modern workplace, security, connectivity, data, and AI solutions.
Sustainability and Vendor Recognition
Data#3 continues to prioritize sustainability, progressing with science-based target setting to guide its decarbonization strategy. The company has been recognized repeatedly for its leadership in environmental efforts, including awards from Frost & Sullivan and Schneider Electric. Additionally, Data#3 received multiple vendor accolades such as Cisco Customer Experience Partner of the Year for the Asia-Pacific region and HP’s Greater Asia Partner of the Year.
Looking Ahead – FY26 Strategy and Market Trends
While Data#3 refrained from providing specific FY26 financial guidance, it outlined strategic priorities focused on enhancing customer experience, operational excellence, and community engagement. The company plans to deepen its AI-driven solutions, leveraging Microsoft Copilot and Azure technologies, and continue its transition toward hybrid cloud and security services.
Industry forecasts suggest Australian IT spending will grow by 8.7% in 2025, with software and data center investments leading the way. Data#3’s positioning in these growth areas, combined with its strong vendor partnerships and operational agility, sets the stage for sustained performance amid evolving market dynamics.
Bottom Line?
Data#3’s FY25 momentum and AI-focused strategy position it well, but investors will watch closely for how external factors and vendor changes impact FY26.
Questions in the middle?
- How will Microsoft’s channel incentive changes affect Data#3’s software segment in FY26?
- Can Data#3 sustain margin improvements amid rising wage and licensing costs?
- What impact will geopolitical and economic uncertainties have on large infrastructure projects?
