Westcon-Comstor has reported solid FY26 growth, underpinned by continued momentum across Asia-Pacific (APAC) and an accelerated shift towards software, services and recurring revenue.
The global distributor recorded gross sales of US$5.74 billion for the year ended 28 February 2026, up 9.6 per cent year-on-year, while gross profit rose 13.1 per cent to US$499.2 million.
Margins also improved, with gross margin increasing to 25.8 per cent and adjusted EBITDA climbing 15 per cent to US$172.4 million, reflecting momentum in high-value areas.
APAC performance tracked closely with global growth, with Australia delivering a strong result in line with broader regional trends.
“Australia performed strongly and in line with the broader APAC region, which continues to see solid momentum. Growth locally reflects consistent demand across our core technology domains, with Australia tracking closely to other major markets in the region,” Westcon-Comstor Australia managing director Phil Cameron said.
Security, cloud and emerging AI-driven solutions were key contributors to growth locally, reflecting a broader global pivot towards higher-value offerings.
“Our top-line revenue has grown 14 per cent year-on-year and we’ve seen particularly strong performance across security and cloud, alongside growing demand for AI-led solutions,” Cameron said. “These areas are aligned to where we continue to see expansion globally, driven by the shift towards higher-value software, services, and lifecycle engagements.”
Globally, cybersecurity remained the largest growth engine, with gross sales increasing 12.4 per cent to US$3.02 billion, representing 52 per cent of total gross sales. The distributor attributed this to “sustained demand for advanced, multivendor security solutions” and increasing complexity in customer environments across regions, including APAC.
At the same time, Westcon-Comstor’s evolving business model towards software and services, was helping to reduce exposure to structural pricing and volatility in hardware markets across its ecosystem.
Non-hardware sales, including software and services, rose to 71 per cent of total gross sales, up from 68 per cent in FY25, while recurring revenue increased 12.8 per cent to US$3.89 billion, accounting for 68 per cent of total sales.
“Australia is broadly aligned to the global trajectory, with non-hardware now representing a significant majority of our business,” Cameron said. “We’ve seen a steady shift towards software and services over recent years, reflecting changing customer buying patterns.”
However, there has been some renewed demand for hardware, particularly in large-scale infrastructure-led and networking projects, he added.
CEO David Grant said the results highlight execution against strategic priorities and the benefits of moving towards a more predictable, services-led model.
“FY26 was another year of strong execution, with progress across our key financial and strategic priorities,” Grant said. “We have delivered sustained growth in gross sales while significantly increasing profitability and expanding margins.
“Our continued shift towards lifecycle selling, software and services is strengthening the resilience of our business and aligning us to areas of the market with more predictable demand.”
Grant also pointed to the role of distribution in helping partners manage ongoing hardware price volatility, while positioning for future growth areas such as AI and platform-based delivery models.
“Distribution can play a central role in helping partners navigate the volatility we’re seeing in hardware pricing, providing the insight, intelligence and agility to manage risk and maintain momentum,” he said.
“Looking to the future we see huge opportunities in AI and automation, along with platform and marketplace-led motions, as we enable partners to turn capability into packaged, scalable offerings that drive repeatable revenue.”
The growing role of marketplaces and platforms is also becoming more prominent in Australia, according to Cameron.
“Marketplaces will play an increasingly central role. As customers shift towards consumption-based and subscription models, platforms are critical in enabling simplified procurement, lifecycle management, and scaling vendor programmes,” Cameron said.
“In Australia, this aligns closely with our cloud growth, where marketplace capabilities help partners transact more efficiently, access new revenue streams, and better support evolving customer buying motions.”
From a financial perspective, CFO and COO Callum McGregor said profitability gains outpaced revenue growth, driven by disciplined execution and improved sales mix.
“Our performance in FY26 demonstrates the continued success and resilience of our business, and our ability to sustain growth despite a challenging macroeconomic backdrop,” McGregor said. “Profitability has grown ahead of gross sales, supported by improved mix and disciplined execution.”
“We have further increased the proportion of recurring and non-hardware gross sales, strengthening predictability and positioning us for continued growth. With strong fundamentals, a healthy pipeline and a future-ready business model, we are well placed to build on this momentum in FY27 and beyond.”
Looking ahead, Westcon-Comstor’s Australian strategy will centre on security, AI and partner enablement as it continues the shift towards recurring, services-led revenue.
“Our focus remains consistent and centred on three areas: Security and AI-led growth; partner-first enablement; and data-led insights and demand,” Cameron said.
“These priorities underpin our broader strategy to accelerate the shift to software, services, and recurring revenue.”
With years of experience covering the latest technology trends and business news across the IT channel, Julia Talevski has been keeping the IT industry connected in Australia and New Zealand. She is currently the editor for ARN and Reseller News, responsible for keeping the community engaged at every touch point through our newsletters, websites and main events such as EDGE, WIICTA and Innovation Awards.
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