Atea delivers strong Q1 as hardware demand fuels growth
Cybersecurity, AI and the Windows 11 refresh are set to deliver long-term momentum
Norway-based IT solutions provider Atea has reported rising figures in Q1, driven by demand across hardware, infrastructure, AI and security.
Revenue increased 12.9 per cent to NOK 9.65bn (£769.7m), up from NOK 8.55bn in Q1 FY25.
Gross profit grew six per cent to NOK 2.8bn, compared with NOK 2.7bn the year prior.
Hardware sales were reportedly a major factor behind this evolution, rising 18.9 per cent on the back of demand for PCs and datacentre equipment.
“Demand for hardware continues to be healthy and we’ve seen purchase orders in expectation of supply constraints later in the year,” said Atea CFO Robert Giori, in an earnings call.
“Some of these orders were delivered and recognised in Q1, but most of the order volume is still in the backlog and will be delivered in future quarters.”
EBIT jumped around 69 per cent to NOK 476m (Q1 FY25: NOK 281m), boosted by a NOK 152m gain from the sale of shares in AppXite SIA.
The company divested 51 per cent of its shares in the Lithuanian subsidiary to London-HQ software group Aries Global in February.
It also sold a two per cent stake to AppXite’s MD Nicolas Albana in January.
The group now intends to use the subsidiary as a distributor for Atea for Microsoft and other software vendors in the second half of the year.
Excluding this gain, EBIT in Q1 FY26 stood at NOK 324m, up 15.4 per cent year on year.
Breakdown per region
In Norway, the firm’s home market and largest region, revenue leapt 19.9 per cent to NOK 2.5bn.
Products earnings soared 27.8 per cent to NOK 1.9bn, while services turnover increased 2.1 per cent to NOK 660m.
The company recorded growth across the Nordics, with top line up 13.8 per cent in Sweden (SEK 3.5bn), 8.2 per cent in Denmark (DKK 1.4bn) and 6.3 per cent in Finland (€77.6m).
Product sales drove momentum across all three countries, offsetting a decline in services.
The Baltics also went through a positive trajectory, with turnover reaching €40m, an 8.9 per cent rise from Q1 FY25, supported by demand for datacentre hardware in the private sector, software and cloud tied to large public sector agreements in Lithuania and Estonia as well as services, including consulting and subcontracted work.
Defence, Windows 11 refresh and AI drive growth
Atea pointed to a set of structural drivers that continue to underpin demand across the IT infrastructure market.
Defence spending reportedly remains a key long-term tailwind, with CEO Steinar Sønsteby noting during the call that the sector has been contributing to the group’s performance in Q1 and is expected to remain a sustained driver amid ongoing geopolitical tensions.
Cybersecurity is also projected to support demand, with Sønsteby highlighting a shift towards a more strategic approach.
“When we talk about IT security, we’re not talking about a best-of-breed point solution. We’re talking about a holistic, strategic view on how to secure your digital world.”
AI is another important factor, although its full impact is anticipated to play out over time.
“The AI wave will change most of the things around you. It just takes a little longer than the most optimistic people are thinking.”
At the same time, infrastructure refresh cycles linked to the end of life of legacy systems are forecasted to provide an additional boost.
“Windows 10 goes end of life. A lot of our customers need to upgrade some of their infrastructure, specifically their PCs, to take advantage of Windows 11,” said the CEO.
He also flagged constraints around global compute capacity as a factor shaping the pace of growth.
Outlook
Moving forward, Atea projects continued growth in sales and EBIT in Q2 2026, supported by a strong order backlog and trends seen in the first quarter.
On the other hand, the company noted more limited visibility on customer demand in the second half of the year amid ongoing macroeconomic and geopolitical uncertainty.
Over the full year, it expects its market position to strengthen, supported by continued top line rise, expansion into higher-margin products and services as well as ongoing investment in vendor partnerships and capabilities.