Datatec Group has delivered a sharp acceleration in earnings for the year ended 28 February 2026, with the JSE-listed international technology distribution and services group benefiting from enterprise AI infrastructure investment and continued cybersecurity expansion across its global operations.
Group gross invoiced income – Datatec’s preferred measure of channel activity, equivalent to gross sales before net-accounting adjustments for software resales – rose 9.3% to US$8.46-billion (FY2025: $7.73-billion). Adjusted earnings before interest, taxation, depreciation and amortisation increased 17.8% to $290.1-million.
The headline financial metrics show significant operating leverage. Underlying earnings per share grew 35% to 48.2 US cents, headline EPS rose 56.5% to 39.9c, and profit after tax climbed to $108.7-million from $69.3-million.
Datatec, led by long-serving group CEO Jens Montanana, said on Tuesday it had declared a final cash dividend of R2.25/share, taking the total FY2026 distribution to 24 US cents per share – up 54.8% in dollar terms on the prior year.
Westcon International, the group’s global technology distribution arm and the largest contributor to earnings, delivered the standout performance. Gross invoiced income grew 9.6% to $5.74-billion and adjusted Ebitda climbed 15% to $172.4-million.
Cybersecurity now accounts for 52% of Westcon’s category sales (FY2025: 51%), and the company said cybersecurity demand “continues to outpace broader IT spend”. Network infrastructure refresh activity, much of it driven by enterprise AI deployments, also contributed strongly.
Income mix
A $15.5-million accrual release related to the favourable resolution of multi-jurisdiction tax claims flattered the headline gross profit number – excluding the one-off, Westcon’s gross profit grew 9.6% rather than the reported 13%.
Logicalis International, which provides ICT services in North America, Europe, the Middle East, Africa and Asia-Pacific, increased adjusted Ebitda by 22% to $114.5-million on gross invoiced income up 12% to $2.15-billion. Cloud-related gross invoiced income jumped 23% to $506-million, and recurring annuity services now contribute 35% of the segment’s sales mix.
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The Latin American services business, which had struggled in recent years, also delivered a marked recovery, with adjusted Ebitda up 21% to $24.3-million. Strong growth in southern Latin America – led by Chile – offset a 39% drop in northern Latin America driven by weak Mexican order intake. Datatec said it is “re-modelling” the Mexican business.
At a group level, software and services now account for 71% of gross invoiced income (FY2025: 69%) as the mix continues to shift away from hardware. Return on invested capital improved to 21.6% from 16.5%, and group net debt reduced to $46.7-million from $52.1-million.
In a separate post-year-end development, Datatec disclosed that its Brazilian operating entity PromonLogicalis Tecnologia e Participações had won a final unappealable favourable court decision on 6 March 2026 in a long-running tax dispute first filed in 2018. The judgment, which relates to the inclusion of certain state VAT credits in Brazil’s corporate income tax base, makes $38.4-million recoverable against future federal tax liabilities.
The recoverable amount comprises $21.3-million in corporate income tax paid between 2013 and 2022, plus $17.1-million in associated interest. The credits will be utilised over the next five years. Because the court decision was handed down after the 28 February financial year-end, the recovery has not been recognised as an asset in the FY2026 audited financial statements – but the cash benefit will flow through future reporting periods as Brazilian federal tax liabilities are offset against the credit.
Datatec was cautious on the outlook, citing what it described as a “global geopolitical situation creating uncertainty in trade, energy and inflation”. It said its focus would remain on operating leverage, earnings quality and cash generation, and that “unlocking shareholder value remains a strategic priority” – a formulation that often signals further capital allocation or structural decisions ahead.
The group said AI infrastructure investment was likely to continue driving demand for networking and on-premises computing – the same forces that powered Westcon’s standout year.
Acquisitions
Around the financial year-end, Datatec made three small bolt-on acquisitions: cybersecurity distributor Real Security (acquired by Westcon’s European operations for $15.1-million in January 2026), Logicalis North America bolt-on Maple Woods ($2.9-million in February 2026) and, post year-end, German services business NetworkedAssets ($4.8-million in March 2026).
Datatec’s share price was trading 0.4% higher shortly after markets opened in Johannesburg on Tuesday, giving it a market capitalisation north of R20-billion. Over the past year, the counter has added 40%. — © 2026 NewsCentral Media