Dicker Data Posts 54% Profit Surge on $2.1 Billion H1 Revenue Boost

Robust Growth Amid Technology Refresh and AI Demand

Dicker Data (ASX:DDR) has delivered a commanding performance in the first half of FY26, reporting a 54.1% surge in net profit after tax to $60.7 million on the back of a 14.2% lift in gross revenue to $2.1 billion. This growth outpaces Gartner’s industry forecast, reflecting the company’s ability to capitalise on accelerated technology refresh cycles, AI infrastructure investments, and sustained software demand.

Gross profit climbed 23% to $205.6 million, with margins expanding to 14.6% on a statutory basis (9.8% on gross sales), supported by strategic stock purchases and proactive buying strategies. EBITDA rose 37.3% to $103.5 million, while profit before tax jumped 50.1% to $86.4 million, translating to a PBT margin of 4.1%, up from 3.1% a year ago.

Australian Business Drives Earnings Momentum

The Australian segment was the standout contributor, with gross revenue growing 18.2% to $1.83 billion and gross profit increasing 29% to $183.9 million. Operating profit before tax jumped 55.9% to $82.5 million, underpinned by elevated demand for endpoint devices, software, and data centre refreshes. Improved operating leverage and disciplined cost management further bolstered profitability.

Conversely, New Zealand faced softer market conditions, with gross revenue declining 7.6% to $269.4 million and profit before tax falling 17.6% to $4 million. The decline was compounded by adverse foreign exchange impacts. Despite this, the New Zealand team maintained tight expense control amid supply constraints.

AI and Software Fueling Strategic Expansion

Dicker Data’s software segment posted an 18% increase in gross sales to $635.1 million, now representing over 30% of total sales. AI-related sales hit a record $50 million in the half, driven by the company’s ‘AI Accelerate’ initiative, which brings together major vendors like Dell Technologies, HPE, Cisco, Lenovo, and NVIDIA to support enterprise AI adoption.

The company also broadened its vendor portfolio, adding names such as CrowdStrike, VAST, ADATA, and others, enhancing its cybersecurity, AI, and data management capabilities. This diversification supports the company’s positioning as a trusted partner in complex technology solutions.

Balance Sheet Strength and Dividend Policy

Strategic investments in inventory increased stock holdings by $107 million to $419.4 million, mitigating supply chain uncertainties. Net working capital rose accordingly, while net debt slightly decreased to $291.3 million. A significant accounting policy change revalued land and buildings, adding $107.3 million to property, plant, and equipment and boosting equity.

Dicker Data maintained its dividend discipline, paying fully franked dividends totaling 23 cents per share in H1 FY26, with a Dividend Reinvestment Plan offering a 1% discount, encouraging shareholder participation.

Upgraded FY26 Guidance Reflects Confidence Amid Pricing Pressures

Reflecting the strong H1 momentum, management raised FY26 guidance, forecasting gross revenue between $4.3 billion and $4.4 billion (11%–14% growth) and profit before tax between $162 million and $165 million, implying a margin of approximately 3.8%. The outlook anticipates continued demand for data centre refresh, software, and AI projects in H2 FY26, although growth in endpoint solutions is expected to moderate.

Management cautions that pricing pressures from component and supply chain constraints may dampen unit demand and increase inventory replenishment costs in the second half. Nonetheless, the company expects to sustain momentum, supported by a diversified vendor base and ongoing investment in strategic growth initiatives.