Data#3 (ASX:DTL) expects fiscal first-half consolidated net profit before tax to increase more than 40% from a year earlier, as gross sales and earnings so far are tracking ahead of expectations, according to a Thursday filing with the Australian bourse.

The company noted that its AU$33.5 million profit before tax for the first half of fiscal 2026 was impacted by certain Microsoft incentive changes.

The results for the first half of fiscal 2027 are expected to be positively impacted by one-off larger transactions, increased activity across its infrastructure and software business, and the timing of planned investment spend.

The expected result also includes about AU$1.5 million of interest income above expectations, driven by favorable cash flow timing in the fiscal first quarter, the company said.

Data#3 shares surged 16% in recent Thursday trade.