Cybersecurity Boosts Westcon-Comstor’s Profitability

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Westcon-Comstor Reports Robust Sales Growth, Driven by Cybersecurity

Sales attributed to cybersecurity have surged, with Westcon-Comstor announcing a remarkable growth of 16% to reach US$1.45 billion, accounting for 52% of total gross sales.

Westcon-Comstor’s first-half results underscore significant growth, driven by an escalating focus on cybersecurity. Gross sales experienced an impressive increase of 9.8%, totaling US$2.78 billion.

This growth trajectory is further supported by a pronounced shift towards software and services, which are increasingly becoming sources of recurring revenue.

The cybersecurity segment has proven to be particularly robust, manifesting a sales increase of 16% to US$1.45 billion (compared to US$1.25 billion in H1 FY25). This sector now represents 52% of total gross sales, an uptick from 49% a year prior.

The rising demand from channel partners and end customers has propelled Westcon-Comstor to deliver exceptional technical expertise and value-added services, while simultaneously expanding its vendor portfolio.

Moreover, sales from networking and cloud services—other key technological domains for Westcon-Comstor—also exhibited year-on-year growth. Sales from software soared by 30%, reaching US$1.14 billion (up from US$879 million in H1 FY25), now accounting for 48% of total sales alongside cloud solutions, while hardware contributed 29%.

Regionally, both the Asia-Pacific and Europe, Middle East, and Africa (MEA) regions have experienced pronounced growth.

David Grant, CEO of Westcon-Comstor, asserts that the technology company is strategically positioned to drive partner success while innovating distribution for the future.

Cybersecurity has now become an undeniable boardroom priority, with cloud adoption creating new avenues for artificial intelligence in networking.

Westcon-Comstor possesses the capability, solutions, and reach to empower our partners and vendors for unparalleled results amidst rapid technological evolution and transformative business models, Grant articulated.

Callum McGregor, Chief Financial Officer and Chief Operating Officer, highlighted that the first half of FY26 exemplifies sustained growth achieved consistently over recent years.

“With a thriving sales pipeline, robust vendor partnerships, and opportunities for expansion in services and other lucrative sectors, we look forward to the latter half of the year with optimism.

Regardless of the prevailing macroeconomic conditions, our unwavering focus remains on fostering partner and vendor success while preparing a future-ready IT channel,” McGregor stated.

From a regional perspective, Patrick Aronson, APAC Executive Vice President and Chief Marketing Officer, believes that the results for the first half in Asia-Pacific illustrate the impressive execution by diverse teams and a strategy that evidently resonates.

We have been deliberate in our investments—focusing on our data platform, premier cybersecurity, networking, and cloud vendor portfolio, as well as partner development.

This strategic focus is yielding tangible benefits, facilitating profitable growth for our partners while establishing predictability in a volatile landscape, Aronson emphasized.

Phil Cameron, Managing Director of Westcon-Comstor in Australia, noted that the Australian market, integral to the APAC region, has maintained its momentum with substantial growth.

We have recorded a commendable gross revenue increase of 20% year-on-year in the first half, primarily driven by heightened demand for cybersecurity and networking solutions.

A hooded figure at a laptop with a question mark over their face, set against a backdrop of digital numbers.

Our commitment to assisting partners in meeting their customers’ requirements in these essential sectors remains steadfast.

Our results indicate that our data-driven approach is effectively supporting partners and vendors in navigating a complex market, and we intend to build upon this success, Cameron remarked.

For the six months ending August 31, 2025 (H1 FY26), gross profit has risen by 13.8% to US$246 million, with gross margin expanding to 25.1%. Adjusted EBITDA has seen a year-on-year increase of 7.3% to US$76.4 million, with the adjusted EBITDA margin climbing to 7.8%.

Source link: Crnasia.com.

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