Alpha Data

1. Company Overview & Earnings Context

Alpha Data PJSC reported strong Q1 2026 results, supported by continued demand for digital transformation, AI-driven infrastructure, cybersecurity, managed services, cloud migration, and enterprise technology solutions across the UAE and regional markets.

The company continued expanding across its Solutions, Services, and Talent segments while maintaining strong operational momentum and reiterating its FY2026 guidance backed by a solid project backlog and pipeline visibility.

2. Financial Performance Snapshot

Revenue: AED 649.8M (+9.3% YoY)
Gross profit: AED 91.2M (+6.5% YoY)
Profit before tax: AED 39.1M (+11.3% YoY)
Net profit after tax: AED 35.5M (+11.2% YoY)
EPS: AED 0.04 per share
Gross margin: 14.0%
PBT margin: 6.0%

Compared to Q1 2025:

• Revenue increased from AED 594.4M to AED 649.8M

• Gross profit increased from AED 85.7M to AED 91.2M

• Profit before tax increased from AED 35.1M to AED 39.1M

• Net profit increased from AED 31.9M to AED 35.5M

Additional balance sheet highlights:

• Total assets reached AED 1.34B

• Total equity increased to AED 335.0M

• Cash & bank balances stood at AED 95.1M

• Net working capital increased to AED 312M

3. Operational Highlights & Key Metrics

• Solutions segment revenue reached AED 536M (+7.3% YoY)

• Services segment revenue increased to AED 74M (+7.9% YoY)

• Talent segment revenue surged 51.9% YoY to AED 40M

• Saudi Arabia revenue increased 81% YoY to AED 10.5M

• Group backlog remained strong at approximately AED 1.25B

• Services segment maintained the highest gross margin at 32.7%

• Talent segment contribution to group revenue increased to 6.1%

• Current ratio stood at 1.39x

Segment profitability:

• Solutions gross margin: 11.4%

• Services gross margin: 32.7%

• Talent gross margin: 14.5%

4. Key Performance Drivers

• Strong enterprise demand for AI-led infrastructure and cloud transformation projects supported revenue growth

• Cybersecurity, managed services, and digital infrastructure demand remained resilient across core markets

• Talent outsourcing business expanded significantly due to increased regional demand for specialized resources

• Continued expansion in Saudi Arabia supported regional diversification and growth

• Operational discipline helped profit growth outpace revenue growth during the quarter

Operational observations:

• The company maintained strong backlog visibility with active project execution across multiple segments

• Services remained the group’s highest-margin business segment

• Management continued focusing on AI, cloud, cybersecurity, and annuity-based revenue streams

• The company remained in a net cash position despite temporary working capital build-up during the quarter

5. Outlook & Forward Guidance

• Management reiterated FY2026 guidance with expected low-to-mid teens revenue growth

• Profit before tax margin guidance remains above 6% for FY2026

• The company expects continued momentum across AI, cloud, cybersecurity, and digital infrastructure projects

• Regional expansion and higher In-Country Value (ICV) participation are expected to support future opportunities

• Management expects working capital normalization and improved cash generation through the remainder of 2026

The company also reaffirmed its commitment to dividend distribution in line with its IPO guidance shared in 2025.

6. 🧾 Investor Takeaway

Alpha Data delivered another quarter of steady growth, supported by strong demand for AI-driven infrastructure, cybersecurity, cloud transformation, and enterprise technology services. The company’s expanding regional presence, growing backlog, and exposure to long-term digital transformation trends continue to strengthen its positioning within the UAE technology sector.