Datatec shares surge nearly 10% on strong interim performance forecast

In a display of market confidence, the share price of Datatec, a JSE- and US-listed international information and communications technology (ICT) company, surged by 9.9% on Tuesday following the release of a trading statement heralding a strong performance across all its divisions in the first half of the 2026 financial year.

By midday, shares were trading at R66.39, marking a substantial 75.49% increase over the past year.

Datatec, which operates inmore than 50 countries supported by more than 11 000 partners, attributed the interim performance to the impressive results of its subsidiaries. Westcon, a leader in technology distribution and financial services, showcased an expanding margin along with strong profit growth.

Meanwhile, Logicalis International demonstrated improved operational leverage, resulting in notably enhanced profitability through its collaborations with industry giants like Cisco, HPE, Microsoft, and IBM.

A noteworthy highlight came from Logicalis Latin America, which has successfully transformed its operations following recent restructuring efforts. This division saw significant advancements in its cloud services, security data analytics, and generative AI offerings.

In a bid to enhance transparency and align more closely with peer reporting standards, Datatec's board is revising how it presents its underlying earnings. The company will now report underlying earnings excluding share-based payments from the 2026 financial year onwards. This calculated move aims to provide a clearer picture of its financial standing and performance to stakeholders.

The preliminary projections for the upcoming interim results are promising. Datatec anticipates headline earnings per share to exceed 100%, rising to between 21 and 23 US cents, a significant increase from 10.5 US cents in the same timeframe last year.

Additionally, earnings per share is expected to range between 21 and 23 US cents, representing an increase of between 85.8 percent and 103.5 percent.

Underlying earnings per share are also set for a robust rise, projected to land between 18 and 20 US cents, marking an increase of 33.3% to 48.1% compared to the first half of the 2025 financial year.

The company plans to release its detailed results on or around October 30, 2025. The optimism surrounding these results is bolstered by the previous financial year, during which all divisions recorded increased profitability and cash generation, laying a promising groundwork for ongoing success.

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