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Australian (ASX) Tech Sector Analysis

UpdatedMar 06, 2026
DataAggregated Company Financials
Companies110
  • 7D-2.1%
  • 3M-22.0%
  • 1Y-25.9%
  • YTD-17.5%

Over the last 7 days, the Tech industry has dropped 2.1%, driven by pullbacks in Life360 and NEXTDC of 10% and 6.3%, respectively. In contrast, Technology One has gained 5.5%. The industry has fallen 29% in the last year. As for the next few years, earnings are expected to grow by 22% per annum.

Sector Valuation and Performance

Has the Australian Tech Sector valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Fri, 06 Mar 2026AU$81.8bAU$15.4bAU$570.2m24.7x143.5x5.3x
Sun, 01 Feb 2026AU$92.0bAU$14.5bAU$500.7m40.3x183.7x6.3x
Tue, 30 Dec 2025AU$99.9bAU$14.6bAU$506.9m40.6x197.1x6.8x
Thu, 27 Nov 2025AU$103.8bAU$14.7bAU$508.8m42.4x204x7.1x
Sat, 25 Oct 2025AU$125.3bAU$14.5bAU$487.2m38.1x257.2x8.6x
Mon, 22 Sep 2025AU$129.8bAU$14.5bAU$507.1m38.9x256x8.9x
Wed, 20 Aug 2025AU$130.7bAU$14.2bAU$407.4m40.3x320.8x9.2x
Fri, 18 Jul 2025AU$127.2bAU$14.1bAU$374.1m38.1x339.9x9x
Sun, 15 Jun 2025AU$121.5bAU$14.0bAU$374.4m39.6x324.6x8.7x
Tue, 13 May 2025AU$110.2bAU$13.8bAU$316.0m44.6x348.9x8x
Thu, 10 Apr 2025AU$90.5bAU$14.1bAU$252.1m34.9x359.2x6.4x
Sat, 08 Mar 2025AU$104.6bAU$13.9bAU$247.9m38.9x422.1x7.5x
Mon, 03 Feb 2025AU$123.5bAU$13.6bAU$57.7m61.4x2137.9x9.1x
Wed, 01 Jan 2025AU$120.4bAU$13.5bAU$51.9m60.3x2318.1x8.9x
Fri, 29 Nov 2024AU$123.5bAU$13.5bAU$70.7m64.5x1744.9x9.2x
Sun, 27 Oct 2024AU$110.1bAU$13.2b-AU$2,495,507.4861.2x-44137.7x8.3x
Tue, 24 Sep 2024AU$115.5bAU$13.2bAU$4.1m63.9x28197.8x8.7x
Thu, 22 Aug 2024AU$107.9bAU$13.3b-AU$99,556,094.9255.9x-1084.3x8.1x
Sat, 20 Jul 2024AU$107.5bAU$15.3b-AU$333,586,884.6252x-322.2x7x
Mon, 17 Jun 2024AU$104.8bAU$15.4b-AU$331,489,747.8452.7x-316.3x6.8x
Wed, 15 May 2024AU$103.1bAU$15.2b-AU$569,297,513.3453.9x-181.1x6.8x
Fri, 12 Apr 2024AU$100.4bAU$15.3b-AU$643,387,776.7351.5x-156x6.6x
Sun, 10 Mar 2024AU$105.0bAU$16.2b-AU$665,774,659.6050.8x-157.8x6.5x
Tue, 06 Feb 2024AU$87.5bAU$16.0b-AU$1,303,691,979.0849.7x-67.1x5.5x
Thu, 04 Jan 2024AU$87.4bAU$17.1b-AU$1,591,629,552.0041.2x-54.9x5.1x
Sat, 02 Dec 2023AU$83.1bAU$17.1b-AU$1,601,111,972.0040.3x-51.9x4.9x
Mon, 30 Oct 2023AU$78.1bAU$17.0b-AU$1,741,631,073.0038.6x-44.8x4.6x
Wed, 27 Sep 2023AU$84.6bAU$17.0b-AU$1,732,414,318.0041.7x-48.8x5x
Fri, 25 Aug 2023AU$90.9bAU$16.9b-AU$1,564,869,556.0028.3x-58.1x5.4x
Sun, 23 Jul 2023AU$88.2bAU$15.9b-AU$1,512,173,759.0030.5x-58.3x5.5x
Tue, 20 Jun 2023AU$88.5bAU$15.9b-AU$1,522,485,771.0028x-58.2x5.6x
Thu, 18 May 2023AU$78.2bAU$15.8b-AU$1,525,854,091.0026.7x-51.2x4.9x
Sat, 15 Apr 2023AU$76.7bAU$15.7b-AU$1,532,377,035.0030.7x-50.1x4.9x
Mon, 13 Mar 2023AU$91.2bAU$22.2b-AU$1,701,534,762.0031.1x-53.6x4.1x
Price to Earnings Ratio

-53.6x


Total Market Cap: AU$91.2bTotal Earnings: -AU$1,701,534,762.00Total Revenue: AU$22.2bTotal Market Cap vs Earnings and Revenue0%0%0%
Australian Tech Sector Price to Earnings3Y Average -325.5x202420252026
Current Industry PE
  • Investors are optimistic on the Australian Information Technology industry, and appear confident in long term growth rates.
  • The industry is trading at a PE ratio of 138x which is higher than its 3-year average PE of -326x.
  • The 3-year average PS ratio of 6.9x is higher than the industry's current PS ratio of 5.1x.
Past Earnings Growth
  • Total earnings for the Information Technology industry have gone up over the last three years and the industry is now profitable.
  • Revenues have declined 12% per year.
  • This means that less sales are being generated overall, but since the cost of doing business is lower, profits have been increasing.

Industry Trends

Which industries have driven the changes within the Australian Tech sector?

AU Market-2.64%
Tech-2.09%
Semiconductors0.66%
Electronic Equipment and Components-0.47%
Communications-0.62%
Software-1.19%
IT-6.85%
Tech Hardware-16.67%
Industry PE
  • Investors are most optimistic about the Electronic Equipment and Components industry which is trading above its 3-year average PE ratio of 114x.
    • Analysts are expecting annual earnings growth of 17.5%, which is lower than the prior year's growth of 26.3% per year.
Forecasted Growth
  • Analysts are most optimistic on the Communications industry, expecting annual earnings growth of 106% over the next 5 years.
  • In contrast, the IT industry is expected to see its earnings grow by 15% per year over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

CompanyLast Price7D1YValuation
TNE Technology OneAU$26.305.5%
+AU$447.2m		-10.4%PE62.4x
XRO XeroAU$83.891.9%
+AU$270.3m		-51.2%PE63.4x
CDA CodanAU$37.182.6%
+AU$171.0m		134.4%PE52.6x
ELS ElsightAU$5.1013.1%
+AU$129.7m		1,469.2%PE105.6x
BVS Bravura SolutionsAU$2.145.9%
+AU$53.8m		-13.7%PE24.7x

Latest News

DDR
AU$8.61
Dicker Data
7D
-17.1%
1Y
-1.4%
NXT
AU$13.44
NEXTDC
7D
-6.3%
1Y
-4.3%

NEXTDC's profit margin is expected to change by 7.55% in the next 5 years

NEXTDC Limited is a leading Australian digital infrastructure provider that develops and operates high-performance data centres across major cities. The company supports enterprise clients, government agencies and hyperscale cloud providers through colocation services, interconnection networks and direct cloud on-ramps to platforms such as AWS, Microsoft Azure and Google Cloud.
EIQ
AU$0.69
Echo IQ
7D
9.5%
1Y
155.6%
360
AU$21.54
Life360
7D
-10.3%
1Y
-3.1%
ELS
AU$5.10
Elsight
7D
13.1%
1Y
1,469.2%
XRO
AU$83.89
Xero
7D
1.9%
1Y
-51.2%

XERO Limited's Technical Analysis

1. Momentum & Trend Indicators The MACD is positive at 0.42, suggesting bullish momentum, yet the share price (A$122.35) is just above the 20-day EMA(121.06) and below the 50-day SMA(120.80) – a tug-of-war that keeps the overall trend “neutral-to-bullish”.
TNE
AU$26.30
Technology One
7D
5.5%
1Y
-10.4%

TNE: Higher Growth Assumptions And Margins Will Support Future Upside

Analysts have trimmed their price target on Technology One to A$32.23 from A$34.87. This reflects updated assumptions around a slightly higher discount rate, modestly stronger revenue growth at 14.47%, a marginally higher profit margin of 25.71%, and a lower future P/E of 57.47x.
WTC
AU$47.57
WiseTech Global
7D
-2.9%
1Y
-48.1%
MAQ
AU$61.76
Macquarie Technology Group
7D
-7.6%
1Y
-9.2%
CAT
AU$3.64
Catapult Sports
7D
2.0%
1Y
-4.7%

CAT: Next Generation Performance Platform Will Support Outperformance Over The Coming Year

Analysts have reduced their Catapult Sports fair value estimate from A$6.28 to A$6.10, reflecting slightly softer assumptions on long term profit margins and revenue growth, together with a higher implied future P/E multiple. What's in the News Catapult announced Perch P2, the next generation of its athlete performance ecosystem focused on velocity based training for programming and assessing athlete readiness and training.
SDR
AU$3.14
SiteMinder
7D
-10.0%
1Y
-34.9%
FCL
AU$2.41
FINEOS Corporation Holdings
7D
-9.1%
1Y
41.8%
PPS
AU$0.76
Praemium
7D
6.3%
1Y
2.0%
MP1
AU$7.93
Megaport
7D
-13.0%
1Y
-28.5%
CDA
AU$37.18
Codan
7D
2.6%
1Y
134.4%

CDA: Premium P/E Will Likely Strain On Reliance On Two Growth Engines

Narrative Update on Codan Analysts have lifted their price target for Codan by A$1.22 to reflect a slightly higher fair value estimate, supported by expectations that Minelab Africa and the Unmanned segment can continue to outperform and support a premium P/E multiple. Analyst Commentary Goldman Sachs has resumed coverage on Codan with a Buy rating and an A$38.50 price target, pointing to what it sees as a supportive medium term growth profile and the potential for Minelab Africa and the Unmanned segment to keep outperforming expectations.
BVS
AU$2.14
Bravura Solutions
7D
5.9%
1Y
-13.7%

BVS: Canaccord Upgrade And Dividend Payouts Will Support Forward Share Performance

Analysts have trimmed their fair value estimate for Bravura Solutions from A$2.77 to about A$2.68, reflecting updated assumptions around growth, margins and the P/E multiple following recent research that includes a Canaccord upgrade. Analyst Commentary Bullish Takeaways Bullish analysts view the recent upgrade as support for the updated fair value range around A$2.68, suggesting that current assumptions on earnings and the P/E multiple are better aligned with their research.