Investors are giving Dicker Data Ltd (ASX: DDR) a closer look on Wednesday after a busy AGM update.
The ASX tech distributor is up a sizeable 8.19% to $9.64 at the time of writing.
Today's buying follows fresh commentary on FY25 earnings, dividends, and the company's early FY26 trading.
Nonetheless, it has still been an uneven year for the stock.
Dicker Data shares are down around 6% in 2026, even after today's rally. But zoom out a little further, and the shares are up about 16% over the past 12 months.
The company sits in the middle of the technology supply chain, distributing hardware, software, cloud, access control, surveillance, and emerging technology products.
It also works with more than 10,000 reseller partners across Australia and New Zealand.
So, what has investors buying today?
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FY25 numbers beat guidance
The company told shareholders that FY25 was a strong year, with results exceeding its guidance range.
Gross revenue rose 14.9% to $3.9 billion, helped by growth in software, endpoint solutions, PC refresh, and infrastructure.
Recurring gross sales increased 22.4% to $1.1 billion.
EBITDA lifted 6.1% to $159.4 million, while net profit before tax surged 8.8% to $124.7 million.
Earnings per share (EPS) came in at 47.4 cents, up 8.6% on the previous corresponding period.
It is worth noting that the Australia business did most of the heavy lifting.
Australian gross revenue rose 17.2% to $3.28 billion, while New Zealand gross revenue increased 3.6% to $581.2 million.
Dicker Data also pointed to a healthier balance sheet, with net debt falling by $12.8 million to $93 million.
Dividends stay in focus
Income investors also had something to cheer about in today's update.
Dicker Data said its final FY25 dividend of 11.5 cents per share was paid in March.
That took total dividends in respect of FY25 to 44.5 cents per share.
The company has also revised its dividend policy to a payout range of 80% to 100% of net profit after tax.
The first interim FY26 dividend of 11.5 cents per share was declared on 12 May and is due to be paid on 2 June.
Why investors are getting excited
The strongest part of today's update was the FY26 trading commentary.
Dicker Data said unaudited gross revenue for the first 4 months of FY26 rose 13.4% to $1.27 billion.
The company said the result was driven by elevated endpoint, software, and data centre refresh demand.
Net profit before tax jumped 45.5% to $47.3 million.
Management said this reflected margin improvement and the sale of existing inventory during the period.
The company also expects FY26 results to reflect strong year-to-date momentum, with growth across key areas.
