Datatec said it is positioning its global divisions to capture growing demand for artificial intelligence infrastructure, even as the company stops short of developing AI models or investing in its own data centres and graphics processing units (GPUs), according to Daily Maverick.
What the results show
The Johannesburg-listed technology group, which operates in 50 countries and employs about 11,000 people, reported improved returns for the financial year ended February 2026. The company’s published results for that period show:
- Revenue up 3.3%
- Adjusted EBITDA up 17.8%
- HEPS (headline earnings per share) up 56.5%
Daily Maverick attributed the EBITDA rise to a higher gross margin and a change in the service mix, while the large increase in HEPS was linked to lower net finance costs.
| Metric | Change |
|---|---|
| Revenue | +3.3% |
| Adjusted EBITDA | +17.8% |
| HEPS | +56.5% |
How Datatec positions itself in the AI chain
Datatec does not design AI models or build its own GPU-powered data centres. Instead, it focuses on the parts of the technology chain that help organisations implement AI solutions — the integration, hybrid cloud arrangements and end-user devices that let a model deliver value inside a company or government department.
Two of its divisions were singled out in investor presentations and reporting:
- Logicalis — handles integration and management of technology solutions for global clients, generating revenue from projects and seeking to grow the share of recurring income.
- Westcon — a distribution arm that supplies hardware and software. Its performance depends on equipment sales volumes and software revenues.
Datatec described these parts of its business as participants in an “AI infrastructure wave” and is orienting strategies around hybrid cloud adoption and device requirements that follow AI deployments.
Market reaction and ownership
Investors have shown appetite for the stock: over the past year the share price climbed by nearly 30%. The group’s price-to-earnings ratio was reported at 11.4, with a market capitalisation of about R19 billion. Founder and chief executive Jens Montanana holds close to 20% of the company’s shares, Daily Maverick reported.
Datatec has already completed the next reporting period, the six months to August 2026, with the company expected to publish those results at the end of October.
Why this matters for South Africa
Datatec’s approach is relevant for South African organisations weighing AI adoption. Many local enterprises and government entities lack the capital or scale to run their own GPU farms; they will instead rely on hybrid cloud services, systems integrators and distributors to make AI models operational and to deliver predictable, recurring services.
For the tech sector, a shift from one-off project revenue to recurring managed services can stabilise cash flows and change hiring profiles — more systems engineers, cloud specialists and service-account teams rather than purely transactional sales staff. For investors, the recent uplift in margins may also signal higher-value contracts and improved pricing, not just volume-based growth.
How quickly Datatec can convert interest in AI into steady, recurring revenue will be a key metric to watch in the group’s next results. The company’s public framing of its role as an enabler — rather than a creator — of AI models underlines a broader industry pattern where systems integrators and distributors fill the gap between cutting-edge model development and everyday, budget‑conscious users.
"Datatec is riding the 'AI infrastructure wave'," the company said in investor materials reported by Daily Maverick.
For South African organisations contemplating AI projects, the practical takeaway is that the market for skills and integration services matters as much as model performance — and companies such as Datatec aim to be the bridge between advanced AI and the environments where it must function reliably.
