• Gross Sales $1.5B, up 9.2%
• Gross Profit $144.0M, up 0.3%
• NPBT $33.5M, up 4.5%

Data#3 Ltd, an ASX-listed IT services and solutions provider, presented its 1H FY26 interim results briefing. The company reported gross sales of $1.5B, up 9.2% from the prior corresponding period (PCP). Gross profit increased 0.3% to $144.0M, while net profit before tax grew 4.5% to $33.5M. Earnings per share rose 3.6% to 14.95 cents, and dividends per share increased 3.1% to 13.50 cents. The company highlighted key operational updates, including receiving numerous industry awards and certifications, such as Cisco Global and APJC Services and Software Excellence and Collaboration Partner of the Year, and Microsoft Country Partner of the Year. Data#3 also made progress on its sustainability goals, with science-based target setting in progress to guide the development of its decarbonisation strategy.The company's business units performed well, with the End User Computing & Data Centre segment growing over 30% and the company leveraging its own AI capabilities to deliver internal business value and customer engagements. The Services business unit saw mixed results, with Consulting gaining momentum, Maintenance Services remaining solid, and Project Services and People Solutions facing challenges. The Infrastructure Solutions business experienced strong growth in End User Compute and Data Centre sales, while the Software Solutions unit saw growth in security products, cloud subscriptions, and non-Microsoft vendors.The company maintained effective working capital management, with a closing cash balance of $125.4M and an average daily cash balance of $347M. The internal cost ratio improved to 81.2%, reflecting the company's focus on operational efficiency.Looking ahead, the company expects continued growth opportunities in the Australian technology industry, driven by trends in areas such as communication services, devices, software, data centres, and IT services. The company's strategic priorities include developing customer-centric solutions, enhancing the customer experience, driving operational excellence, and engaging its people and communities.

The company is not providing specific FY26 guidance, but expects a sales peak in the months of May and June and earnings skewed to the second half of the year. The company's goal remains to continue delivering sustainable earnings growth for its shareholders, consistent with its long-term strategy.

The company sees an active market and a strong solutions portfolio providing opportunities for further growth. The company remains focused on delivering sustainable earnings growth for its shareholders.