How Dicker Data’s AI and Windows 10 Push Fueled 15.7% Sales Growth

Strong Revenue Growth Amid Shifting Market Dynamics

Dicker Data Limited has delivered a compelling half-year result for the six months ending 30 June 2025, showcasing a 15.7% increase in gross sales to $1.84 billion. This growth was broad-based across product categories, with particularly strong momentum in software sales, which surged 20.9%, and hardware sales, which rose 14.3%. The company’s strategic pivot towards higher-value enterprise solutions, including AI-driven offerings, underpinned this performance despite a slight compression in gross profit margins to 13.5% from 14.3% the previous year.

Profitability and Cost Management

Net profit after tax rose 11.1% to $39.4 million, reflecting disciplined cost control and operational efficiency. Operating expenses increased by just 2.8%, translating to a lower expense ratio of 7.6% of sales compared to 8.3% in the prior period. Employee costs rose moderately due to superannuation levy changes and stable headcount, but other operating costs saw a slight decline. The company also benefited from reduced finance costs, aided by lower interest rates and prudent debt management.

Market Leadership in AI and Windows 10 Refresh

Dicker Data’s leadership in emerging technology markets was evident, with the company maintaining its position as the leading distributor of Microsoft Copilot in Australia and New Zealand for the tenth consecutive month. The firm’s role as distributor for Australia’s first sovereign AI factory, A1-F1, in Melbourne contributed significantly to the half-year results, with further stages expected to bolster future growth. Additionally, the Windows 10 refresh cycle accelerated, particularly in enterprise and mid-market segments, driving double-digit growth in device sales during H1 FY25.

Balance Sheet and Dividend Highlights

The company’s balance sheet remains robust, with total assets rising to $1.18 billion and net tangible assets per share increasing to 90 cents. Cash reserves grew to $64 million, supported by strong operating cash flow of $49 million. Debt levels were well managed, with total borrowings increasing slightly but net debt decreasing to $299.5 million. Dicker Data declared fully franked dividends of 22 cents per share, reflecting confidence in ongoing cash generation and shareholder returns.

Outlook and Strategic Positioning

Looking ahead, Dicker Data is poised to capitalize on sustained demand for AI and advanced IT solutions, with new vendor partnerships including cybersecurity leader CrowdStrike and others enhancing its portfolio. The company’s focus on enterprise customers and emerging technologies positions it well to navigate competitive pressures and margin challenges. While small businesses remain cautious, the extended Windows 10 refresh opportunity offers a runway for continued growth over the next year.