Dicker Data posts strong 2025 financials, led by AI, Windows 10 refresh and software demand

Shifting revenue mix between enterprise and SMB customers sees changing profit margin.

Dicker Data has posted strong financial results for its 2025 financial year. Combined Australian and New Zealand revenue was up 14.9 percent, led by software growth, the Windows 10 refresh cycle and cloud, cybersecurity and data centre demand.

Within the strong headline figures, gross profit margin fell slightly from 9.6 percent in 2024 to 9 percent due to the higher proportion of enterprise and AI to the business’ bottom line.

Fiona Brown, executive chair and MD, Dicker Data, said large-scale AI and infrastructure deployments are currently more fulfilment-oriented and therefore typically lower margin in nature.

The company expects this to shift as more mid-market and SMB customers accelerate AI adoption. “That shift plays more directly to our strengths and typically supports higher margin outcomes,” she told CRN Australia.

“While mix will remain a factor in the near term, our expectation is that margins on AI-related opportunities will improve over time as the market matures and becomes more services and solution-led,” she added.

Lower interest rates and average drawn debt lifted profit before tax from 10.1 percent to 124.7m, although this excludes one-off operating costs of $2.5m in December 2025.

However, profit before tax margin was 3.2 percent and has trended down in the five years from 2021 when it was 4.3 percent.

The sales breakdown shows a shifting revenue base. “Mission-critical” software, cloud and productivity and cybersecurity solutions all saw double-digital growth in 2025. At the same time, services fell 10.4 percent.

Brown explained there’s a continued move toward software-driven and recurring consumption models, “alongside strong infrastructure demand linked to AI and data centre refresh cycles”.

Dicker Data has added a range of new new logos, including CrowdStrike, Vocus, Arctera, Asustor, Omnissa and Vast. It is targeting growth through high-demand categories like cybersecurity and AI, among others.

“The additions we’ve made over the past 12 months strengthen our ability to support partners across emerging technology areas, while also increasing the depth of solutions we can bring to market,” Brown said.

Dicker Data expects the strong demand across key areas to continue into 2026, although the company expects the Windows 10 refresh demand to flatten as the cycle plays out.

Looking ahead, higher costs are expected in some components as vendor price changes and supply chain constraints are felt.

At the same time, demand remains strong across SMB and mid-market segments and Dicker Data expects an uptick in revenue as market conditions improve.

“As that segment moves back into higher growth, and as AI becomes more accessible to customers in these segments, we would expect a more balanced mix over time,” Brown stated.