Strong H1 and positive outlook drive upgrades

Datatec reported strong growth in underlying volume, gross profit and adjusted EBITDA in H126, driving a 43% year-on-year increase in underlying EPS (uEPS). The company has benefited from growing demand for cybersecurity and the start of technology refreshes driven by AI adoption. These structural growth drivers support a positive outlook for the remainder of FY26 and into FY27, with management sounding the most optimistic it has in recent years. We have upgraded our forecasts to reflect better operational performance and the positive demand environment, lifting uEPS by 18.2% for FY26, 21.9% for FY27 and 24.6% for FY28.