Data#3 Lifts Profit Guidance Again

The Brisbane IT reseller raised its first-half FY27 profit before tax outlook to $52m-$57m after a strong start to the year.

Updated on Nov. 2, 2026 in Stock Picks

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Data#3 upgraded its first-half FY27 profit before tax guidance to $52m-$57m on 28 October, following a second guidance upgrade earlier in the month. The company reported gross profit growth above 15% and profit before tax more than 40% higher than the prior year.

Why it matters

The upgrade signals sustained momentum for the software and hardware reseller after a long run of strong earnings growth. Its share price has roughly doubled since Macquarie initiated coverage, which leaves valuation as the main obstacle to a Buy rating among covered brokers.

Shares are trading around $15, roughly double the $7.52 level at Macquarie's initiation, and the October 28 guidance upgrade included an estimated $8m one-off gross profit contribution. Whether the share price can hold depends on how much of the earnings uplift proves repeatable.

The players

Data#3

Data#3 is a Brisbane-headquartered software and hardware reseller and provider of value-added IT services, and it has been a closely watched ASX-listed technology company.

Macquarie

Macquarie is an Australian investment bank whose research arm initiated coverage of Data#3 and highlighted its revenue growth and margin record.

Morgan Stanley

Morgan Stanley is a global investment bank whose analysts suggested that positive momentum in IT spending may extend into the second half of FY27.

The details

Data#3 management lifted first-half profit guidance twice in October, citing stronger profit growth tied to the timing of technology and reinvestment spending. Around $1.5m of additional interest income from favourable cash flow timing also contributed to the revised outlook.

Between FY19 and FY24, Data#3 delivered 19% compound annual earnings growth and distributed 91% of profit as fully franked dividends.
Around 14 months before the article date, Macquarie initiated coverage of the company.
In early November 2026, management reported a strong start to FY27 and guided to higher profit.
In October 2026, management upgraded profit before tax guidance twice.
On 28 October 2026, management raised first-half FY27 profit before tax guidance to $52m-$57m.

Market Dynamics

The upgrade extends a multi-year run of earnings growth that Data#3 recorded between FY19 and FY24, when it delivered 19% compound annual earnings growth. Whether that trajectory continues will show if the company's profit expansion is durable rather than a cyclical spike in IT spending.

Investors weighing a position in Data#3 face a stock that has roughly doubled since Macquarie's coverage began, so the entry price now matters more than it did at $7.52. Shareholders also benefit from the company's high dividend payout, which distributed 91% of profit over FY19-FY24.

The takeaway

Guidance upgrades can reflect timing effects as well as durable growth, so investors should separate one-off gains such as the $8m transaction from recurring earnings. Watching whether second-half results match the upgraded outlook will show how much of the momentum is sustainable.