Alpha Data

1. Company Overview & Earnings Context

Alpha Data PJSC is one of the UAE's leading digital transformation and systems integration companies, providing AI, cloud, cybersecurity, managed services, IT infrastructure and talent solutions across the UAE and Saudi Arabia. During H1 2026, the company delivered another strong financial performance, driven by accelerating demand for AI-driven infrastructure, cloud migration, cybersecurity and digital transformation projects. Revenue reached a record first-half level, while the company maintained disciplined cost control, improved cash generation and reaffirmed its full-year 2026 guidance.

2. Financial Performance Snapshot

• Revenue: AED 1.46 Billion (+11.7% YoY)

• Gross Profit: AED 193.6 Million (+4.3% YoY)

• Gross Margin: 13.29%

• Profit Before Tax: AED 88.1 Million (+3.8% YoY)

• Net Profit: AED 79.9 Million (+3.9% YoY)

• Earnings Per Share (EPS): AED 0.08 (Unchanged YoY)

Compared with H1 2025:

• Revenue increased 11.7% to AED 1.46 billion.

• Gross profit increased 4.3% to AED 193.6 million.

• Profit before tax increased 3.8% to AED 88.1 million.

• Net profit increased 3.9% to AED 79.9 million.

• EPS remained unchanged at AED 0.08.

3. Operational Highlights & Key Metrics

• Total Assets: AED 1.28 Billion

• Total Equity: AED 319 Million

• Cash & Bank Balances: AED 78.6 Million

• Operating Cash Flow: AED 44.5 Million

• Free Cash Flow: AED 43.5 Million

• Current Ratio: 1.40x

• Quick Ratio: 0.67x

• Debt-to-Equity Ratio: 0.07x

• Net Working Capital: AED 280 Million

• Dividend Paid During H1 2026: AED 65 Million

• Closing Net Cash Position: AED 57.6 Million

4. Key Performance Drivers

Alpha Data's H1 2026 performance was driven by accelerating demand for AI-driven infrastructure, cloud migration, managed services and cybersecurity solutions, with growth across all three business segments. The Solutions business remained the largest contributor, while the Talent segment delivered the fastest growth at 32.3% year-on-year. The company also maintained strong cost discipline, with administrative expenses growing significantly slower than revenue, while operating cash flow improved sharply as working capital normalized during the second quarter.

5. Outlook & Forward Guidance

Management reaffirmed its FY2026 guidance, expecting low-to-mid teens revenue growth, while maintaining a 6.0% profit before tax margin. The company expects continued momentum from AI-led solutions, cloud adoption, cybersecurity projects, managed services and digital transformation initiatives, supported by a strong project pipeline, deeper vendor partnerships and continued expansion of its In-Country Value (ICV) capabilities across its core markets.

6. Investor Takeaway

Alpha Data delivered another resilient first-half performance, combining double-digit revenue growth with disciplined execution, improving cash generation and a strong balance sheet. Backed by accelerating demand for AI and digital transformation projects, a healthy project pipeline and reaffirmed full-year guidance, the company remains well positioned to sustain long-term growth while continuing to generate value for shareholders.