Data#3 Expects 20% Gross Profit Growth in First Half of FY2027
Key Facts
Data#3 raised its expectations for the first half of FY2027, estimating gross profit growth of about 20% at the midpoint of its forecast, with interest income expected to be close to A$8.8 million. Management gave these estimates in the minutes of its annual general meeting, published via Stock Analysis. It said earnings for the financial year are likely to be weighted toward the first half because of large one-off transactions announced to the market earlier in October. This expected distribution means first-half strength does not necessarily reflect the usual growth pace for the rest of the year. The company said it expects growth to continue in the second half and across the full year, but at a more usual rate than first-half growth.
Management attributed the first-half weighting to those transactions, without describing them as having been completed during October. The chief executive said this pattern is "exceptional at the moment." He added that the company does not expect some of the large one-off benefits to recur in the second half. Data#3 is targeting second-half growth compared with the strong second half of the previous year. This places the full-year outlook in the context of an exceptional contribution at the start of the financial year and a strong operating comparison in its later period.
FY2026 results show the company entered the new year after growth in sales and earnings. Total sales rose 12.7% to A$3.4 billion, and statutory revenue increased 6.4% to A$907.3 million. Pre-tax profit also climbed 14% to A$78.8 million. These results provide a backdrop for comparing performance in the new year, while management's expectations for full-year growth remain more moderate than its first-half growth outlook. The figures distinguish between total sales, statutory revenue and pre-tax profit, each of which increased in the previous financial year.
Services businesses recorded mixed performance in FY2026: Business Aspect consulting grew by more than 22%, and maintenance services rose 11.5%. By contrast, project services fell 15.3% and workforce solutions declined 8.7%. Management attributed weakness in the latter two businesses to extended procurement processes and weaker business confidence, which affected the timing of client decisions. It also cited fewer large infrastructure projects in some states and a difficult labor market. The divergence highlights that growth in consulting and maintenance units did not prevent declines in other businesses tied to projects and workforce solutions.
Management said earnings expectations remain exposed to changes in global supply-chain conditions, vendor program updates and the timing of client purchasing decisions. It added that product delivery schedules and the completion stages of services projects could also affect results. At the annual general meeting, the board approved a new capital management framework. The framework aims to preserve financial flexibility, fund operating needs and investments supporting organic growth, and deliver returns to shareholders. It also takes account of seasonal working-capital needs, market opportunities and strategic growth initiatives.
In trading on 28 October 2026, Data#3 shares closed at A$14.97, up 7.8% from the previous close, according to the company's investor relations center. The move came on the day the meeting minutes were published, including the outlook update and new capital framework. The company set 22 February 2027 as the date for announcing its half-year results and interim dividend. That announcement will provide actual figures for the period management expects to benefit from gross profit growth and interest income. It will also be the next announced date for assessing how the outlook is reflected in the company's results and distributions.