Earnings call transcript: Data3 surges on strong H2 2026 results

Data3 shares surged 13.92% to $10.72 following the release of its strong FY2026 earnings report. The IT services company reported a 12.7% increase in gross sales to AUD 3.4 billion, driven by robust demand for AI, cloud, and security services, as well as growth in AI solutions and Device as a Service. Earnings growth outpaced sales growth, with EBIT increasing 16.6% and basic EPS rising 13%.

The company's cash balance stood at AUD 326 million with no borrowings, and it raised its final dividend by 13% to AUD 0.1825 a share. Data3's FY2026 was described as a record year, with strong performance across infrastructure, software, and services, and a notable gap between sales growth and profit growth, indicative of operating leverage.

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