Record result: Is this high-performing ASX tech share on your watchlist?

Up 30% in a year and more upside on the cards.

| More on:
A man sits thoughtfully on the couch with a laptop on his lap.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

IT services and solutions provider Data#3 Ltd (ASX: DTL) has posted record sales of $3 billion for FY25, up 9% on the previous year.

The Brisbane-based company's software solutions division provided the lion's share of the record sales figure, contributing $2 billion.

The division enjoyed increased demand for security, cloud, and Adobe products, which helped drive its yearly sales 10.9% higher.

Data#3's managed services division also saw solid growth with sales of $54.8 million, up 25% on the previous year.

The company stated that a series of "large" contracts, particularly in the resources sector, came into fruition during FY25, boosting sales.

Data#3 Chief Executive Officer Brad Colledge said the company outperformed the forecast growth rate for the Australian technology market amid significant challenges.

Our Net Profit Before Tax (NPBT) of $69.1 million is up 11.4% this financial year, driven by growth in gross profit of over 7% and improved operational efficiency achieved through automation and a restructure of our Infrastructure Solutions business during the first half.

The company also declared a final fully franked dividend of 15 cents per share, representing a 10.2% increase on the previous corresponding period.

A good year

The ASX tech company's share price has been mounting a solid recovery throughout 2025 but remains a long way from its all-time high.

At the start of 2024, Data#3 shares were trading at around $9.78 each before they came crashing back to earth.

A year later, at the start of 2025, Data#3 shares had lost 37% of their value as they dropped to $6.15.

But 2025 has been a different story for Data#3 and its shareholders.

The company's share price is up more than 30% so far this year.

And Data#3 shares are showing little sign of slowing down.

Looking ahead

Colledge said Data#3's outlook remains positive as the company's strategic priorities for FY26 include further investments in lifecycle services.

While we expect Software Solutions growth to be under pressure in the short term as we manage through the Microsoft channel incentive transitions, we should see continued growth in our Infrastructure Solutions and Services businesses.
 
There is opportunity across end user compute, the network and server and storage. Our managed service offerings continue to mature, providing the opportunity for more recurring revenue and all our offerings, across all lines of business, will benefit from the evolution and growth of AI.

However, consistent with the company's previous practice, Data#3 is not providing specific FY26 guidance at this stage.

Motley Fool contributor Steve Holland has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Technology Shares

A female superhero dressed in shiny green with a mask leaps in the sky with leg and arm outstretched in a leaping action.
Technology Shares

This ASX All Ords stock jumped 50% in 2025, tipped to climb another 23%

Here's Macquarie's outlook on the soaring stock.

Read more »

Ship carrying cargo
Technology Shares

Macquarie tips 50% upside for Wisetech Global shares

Wisetech is on a mission to reshape global logistics, and it can actually do that, the team at Macquarie says.

Read more »

A man in a business suit rides a graphic image of an arrow that is rebounding on a graph.
Technology Shares

How on earth has the WiseTech Global share price exploded 20% in 17 days?

Michael Jordan would be proud of this stock's rebound.

Read more »

A woman works on an openface tech wall, indicating share price movement for ASX tech shares
Technology Shares

Why has this booming ASX tech stock dropped 27% in the last month?

Acquisition and outlook concerns cause market anxiety.

Read more »

A bearded man holds both arms up diagonally and points with his index fingers to the sky with a thrilled look on his face over these rising Tassal share price
Technology Shares

Guess which ASX tech stock could rise 40% in 2026

Bell Potter has good things to say about this tech stock.

Read more »

A mother and her young son are lying on the floor of their lounge sharing a tech device.
Technology Shares

After tanking 26% in a month should you buy Life360 shares now?

A leading investment expert offers his outlook on Life360 shares.

Read more »

man using laptop happy at rising share price
Technology Shares

Why this exciting ASX tech stock is rocketing 18% today

Let's see why this stock is getting a lot of attention from investors today.

Read more »

a person holds their head in their hands as they slump forward over a laptop computer which features a thick red downward arrow zigzagging downwards across the screen.
Share Fallers

Why did the DroneShield share price crash 48% in November?

Investors pummelled DroneShield shares in November. Let’s see why.

Read more »