Data#3 sees a strong start as first-half profit growth accelerates
3 min read
12:00pm on Thursday 1st of October, 2026 AEST ~12pm, 1st Oct, 26
Data#3 expects first-half FY27 profit before tax to rise more than 40% year on year, with gross profit also tracking more than 15% higher. The stronger result will be helped by large transactions, infrastructure activity and a temporary interest income boost, but the company expects earnings to be weighted toward the first half.
- 1H FY27 gross profit expected to rise more than 15%
- Profit before tax expected to exceed $46.9 million
- Approximately $1.5 million of additional interest income
- Large transactions and investment timing provide one-off support
- Full-year earnings growth expected, but skewed toward 1H
First-half profit forecast rises above $46.9 million
Data#3 Limited (ASX:DTL) has started FY27 well enough to forecast a more than 40% increase in first-half profit before tax, taking the expected result above the $46.9 million mark implied by last year’s $33.5 million base. Gross profit is also expected to be more than 15% ahead of 1H FY26.
The Brisbane-based IT services provider said gross sales and earnings were ahead of expectations, with stronger activity across its Infrastructure and Software Solutions operations. The comparison is also favourable because the prior corresponding period was affected by previously announced changes to Microsoft incentives.
Large transactions and interest income lift the result
Data#3 cautioned that the first-half outcome will not be a clean measure of its underlying run rate. Some larger transactions are expected to contribute positively, while the timing of planned investment spending has also benefited the period.
Approximately $1.5 million of interest income is running above expectation, driven by favourable cash-flow timing in the first quarter. That contribution is material to the interim comparison, but it is not presented as a recurring operating improvement.
FY27 earnings expected to favour the first half
Management expects full-year net profit before tax to deliver sustained growth as planned, while warning that earnings will be skewed towards the first half because of significant and non-recurring items. The statement therefore combines a strong near-term trading signal with a less even earnings profile across the year.
The forecast remains subject to business execution through 31 December, completion of the interim accounts and the audit review. Data#3 is due to provide a business update at its 2026 AGM on 28 October, with the interim result and dividend announcement scheduled for 22 February 2027. The key question is whether Infrastructure and Software Solutions activity can carry enough momentum into the second half to offset the fading benefit of one-off transactions, investment timing and excess interest income.
Bottom Line?
The first-half upgrade is substantial, but the quality and repeatability of the earnings uplift will matter more than the headline growth rate when Data#3 reports in February.
Questions in the middle?
- How much of the first-half profit uplift will remain after the larger non-recurring transactions fall away?
- Can Infrastructure and Software Solutions activity sustain earnings momentum through the second half?
- What interim dividend will Data#3 declare alongside the result on 22 February 2027?
