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Artificial intelligence is providing a tailwind for technology hardware and software firm Dicker Data Ltd (ASX: DDR), which bounced back to double-digit growth in the first half and is expecting a solid full year.
The company on Thursday reported first-half revenue of $1.84 billion, up 15.7% from the previous corresponding period, while net profit was up 11.1% to $35.4 million.
Dicker Data shares jumped 4.3% in early trade to $9.23, with the company forecasting a solid second half, and analysts giving the result the thumbs up.
New PC buys drive sales
The company’s executive chair, Fiona Brown, said it was a “strong first half result returning the company to double-digit growth in a competitive market”.
“Our focus remains on delivering long-term shareholder value by continuously adapting and tightening our go-to-market strategies to grow revenue, optimise product mix and drive efficiency,” she said.
“Our execution across all segments was pleasing, with each key product category growing in the first half.”
The company said the strong sales numbers were driven by accelerated PC refresh and AI-driven deals invoiced in the first half.
Dicker Data said, according to data from Microsoft, it continued to lead the Australian device market in the first half of 2025, “with June marking the tenth consecutive month of growth in device sales for the company”.
“While Q4, FY24 saw the Windows 10 refresh commence (single digit device growth), it since stepped-up to double digit growth in device sales through H1 FY25,” the company said.
“This trend appears to be further accelerating, particularly as businesses in the enterprise, mid-market and heavily regulated segments mobilise ahead of the projected supply chain uncertainty that may result through the back end of this calendar year, and into 2026 as a result.”
Analysts tip more upside
Jarden analysts said it was a “strong result” from Dicker Data, and the stock “should trade up”.
“FY25 guidance is positive, with midpoint a slight upgrade to consensus and the introduction of quantitative guidance for DDR should help reduce uncertainty,” Jarden analysts said.
“Net debt improving should also be well received.”
Jarden has an $11 per share price target on the stock. Wilsons Advisory is also overweight on the stock, with an $11.07 price target.
“While it might still be a bit early in the cyclical upswing, we see the laptop refresh cycle, the upgrading of hardware relating to cloud and AI-workloads and the Microsoft Windows 10 ‘end of life’ as opportunities for sales growth,” Wilsons analysts said.