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Australian (ASX) IT Industry Analysis

UpdatedMar 19, 2026
DataAggregated Company Financials
Companies19
  • 7D1.6%
  • 3M-0.8%
  • 1Y-0.6%
  • YTD-3.8%

The IT industry is up 1.6% in the last week, with NEXTDC up 5.4%. In the same time, Appen was down 13%. Overall in the last year, the industry is flat. Earnings are forecast to grow by 6.7% annually.

Industry Valuation and Performance

Has the Australian IT Industry valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 19 Mar 2026AU$14.1bAU$3.0b-AU$124,894,921.0243.9x-112.6x4.6x
Sat, 14 Feb 2026AU$15.1bAU$2.9b-AU$98,020,013.5039.9x-153.9x5.3x
Mon, 12 Jan 2026AU$14.7bAU$2.9b-AU$99,666,217.0043x-147.9x5.1x
Wed, 10 Dec 2025AU$15.5bAU$2.9b-AU$100,178,375.0041.3x-154.4x5.3x
Fri, 07 Nov 2025AU$16.5bAU$2.9b-AU$100,839,008.3040.9x-163.9x5.7x
Sun, 05 Oct 2025AU$17.8bAU$2.9b-AU$89,977,156.8040.9x-198.1x6.2x
Tue, 02 Sep 2025AU$17.5bAU$2.9b-AU$83,028,947.5038.3x-210.4x6x
Thu, 31 Jul 2025AU$15.7bAU$2.8b-AU$87,917,103.5033.3x-178.5x5.5x
Sat, 28 Jun 2025AU$15.4bAU$2.8b-AU$89,741,013.5036.1x-171.9x5.5x
Mon, 26 May 2025AU$14.4bAU$2.8b-AU$89,923,095.4040.8x-160x5.2x
Wed, 23 Apr 2025AU$11.9bAU$2.8b-AU$90,387,304.2037.9x-131.4x4.2x
Fri, 21 Mar 2025AU$14.3bAU$2.8b-AU$90,941,553.5039x-156.8x5.1x
Sun, 16 Feb 2025AU$15.9bAU$2.7b-AU$198,487,831.3078.7x-80.1x5.8x
Tue, 14 Jan 2025AU$15.2bAU$2.6b-AU$192,927,713.2073.8x-78.8x5.8x
Thu, 12 Dec 2024AU$15.9bAU$2.6b-AU$188,042,604.4072.3x-84.7x6.1x
Sat, 09 Nov 2024AU$16.8bAU$2.6b-AU$181,862,201.6066.3x-92.3x6.4x
Mon, 07 Oct 2024AU$16.9bAU$2.6b-AU$174,907,698.6063.2x-96.4x6.5x
Wed, 04 Sep 2024AU$15.3bAU$2.6b-AU$170,704,850.6058.4x-89.7x5.9x
Fri, 02 Aug 2024AU$16.6bAU$4.4b-AU$218,801,831.2038.2x-75.7x3.8x
Sun, 30 Jun 2024AU$15.2bAU$4.4b-AU$214,952,455.8037.4x-70.6x3.5x
Tue, 28 May 2024AU$15.2bAU$4.4b-AU$215,531,042.9032.6x-70.6x3.5x
Thu, 25 Apr 2024AU$14.6bAU$4.4b-AU$219,616,576.3040.5x-66.4x3.3x
Sat, 23 Mar 2024AU$15.3bAU$4.4b-AU$219,226,915.6040.8x-69.7x3.5x
Mon, 19 Feb 2024AU$13.4bAU$4.4b-AU$455,509,350.0028.7x-29.4x3.1x
Wed, 17 Jan 2024AU$12.2bAU$4.4b-AU$454,863,289.0034x-26.8x2.7x
Fri, 15 Dec 2023AU$11.9bAU$4.4b-AU$447,956,010.0033.7x-26.5x2.7x
Sun, 12 Nov 2023AU$11.5bAU$4.5b-AU$468,287,461.0030.3x-24.5x2.5x
Tue, 10 Oct 2023AU$11.4bAU$4.5b-AU$468,423,968.0029.2x-24.4x2.5x
Thu, 07 Sep 2023AU$12.2bAU$4.5b-AU$465,893,993.0022.6x-26.2x2.7x
Sat, 05 Aug 2023AU$12.0bAU$4.3b-AU$457,847,439.0024.9x-26.3x2.8x
Mon, 03 Jul 2023AU$9.6bAU$3.9b-AU$464,320,059.0017.5x-20.8x2.5x
Wed, 31 May 2023AU$9.4bAU$3.9b-AU$471,191,791.0018.2x-20x2.4x
Fri, 28 Apr 2023AU$8.0bAU$3.9b-AU$469,848,136.0024.6x-17x2x
Sun, 26 Mar 2023AU$7.3bAU$3.9b-AU$468,755,115.0022.7x-15.5x1.9x
Price to Earnings Ratio

-15.5x


Total Market Cap: AU$7.3bTotal Earnings: -AU$468,755,115.00Total Revenue: AU$3.9bTotal Market Cap vs Earnings and Revenue0%0%0%
Australian IT Industry Price to Earnings3Y Average -90.4x202420252026
Current Industry PE
  • Investors are relatively neutral on the Australian IT industry at the moment, indicating that they anticipate long term growth rates to remain steady.
  • The industry is trading close to its 3-year average PS ratio of 4.3x.
Past Earnings Growth
  • The earnings for companies in the IT industry have improved over the last three years.
  • Meanwhile revenues for these companies have declined 7.9% per year.
  • This means that less sales are being generated overall, but since the cost of doing business is lower, losses have been shrinking.

Industry Trends

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

AU Market-1.51%
Tech-4.47%
IT1.64%
Internet Services and Infrastructure2.90%
Data Processing Services-2.18%
IT Consulting-5.59%
Industry PE
  • Investors are most optimistic about the IT Consulting industry which is trading above its 3-year average PE ratio of 29.0x.
    • Analysts are expecting annual earnings growth of 30.0%, which is higher than its past year's earnings growth of 12.2% per year.
Forecasted Growth
  • Analysts are most optimistic on the IT Consulting industry, expecting annual earnings growth of 30% over the next 5 years.
  • This is better than its past earnings growth rate of 12% per year.
  • In contrast, the Internet Services and Infrastructure industry is expected to see its earnings grow by 3.0% 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
NXT NEXTDCAU$13.385.4%
+AU$435.8m		1.3%PS18.9x
STH StepChange HoldingsAU$0.124.3%
+AU$831.2k		n/aPS0.8x
SPX SpendaAU$0.0020%
AU$690.0k		-75.0%PS1.1x

Latest News

DTL
AU$6.98
Data#3
7D
-0.7%
1Y
-7.1%

DTL: Fully Franked Dividend And Refined Assumptions Will Support Bullish Outlook

Analysts have kept their A$ fair value estimate for Data#3 unchanged, pointing to updated assumptions for the discount rate, revenue growth, profit margin and future P/E that refine rather than redirect their view on the stock. What's in the News Data#3 Limited declared an ordinary fully franked interim dividend of A$0.135 per share for the six months ended 31 December 2025, with an ex date of 16 March 2026, a record date of 17 March 2026, and payment on 31 March 2026 (Key Developments).
APX
AU$1.46
Appen
7D
-12.9%
1Y
21.8%

APX: Fiscal 2026 Earnings Guidance Will Support Long Term Upside

Analysts have maintained their A$2.35 price target on Appen, with small tweaks to assumptions on discount rate, revenue growth, profit margin and future P/E contributing to a broadly unchanged view of fair value. What's in the News Appen issued group earnings guidance for fiscal 2026, with expected revenue in a range of $270 million to $300 million, giving investors a reference point for sizing the business over the next couple of years (Key Developments).
ITS
AU$0.43
Infotrust
7D
-9.5%
1Y
-14.0%
KYP
AU$0.14
Kinatico
7D
-17.1%
1Y
-17.1%

KYP: Future Returns Should Rise As Core Assumptions Remain Supportive

Analysts have kept Kinatico's fair value estimate steady at A$0.43 per share, with only small tweaks to the discount rate, revenue growth, profit margin and future P/E inputs. This reflects fine tuning of assumptions rather than a fundamental shift in their view.
NXT
AU$13.38
NEXTDC
7D
5.4%
1Y
1.3%
MP1
AU$7.44
Megaport
7D
-0.9%
1Y
-30.4%

MP1: New Partnerships And Guidance Will Support Higher Future Earnings Multiple

Analysts now see Megaport's fair value at A$10.00, down from A$11.21. This reflects updated views on a slightly higher discount rate, softer revenue growth assumptions, narrower profit margins and a higher future P/E multiple.
SPX
AU$0.002
Spenda
7D
0%
1Y
-75.0%
WRK
AU$0.11
Wrkr
7D
-4.3%
1Y
103.7%
FCT
AU$0.003
FirstWave Cloud Technology
7D
-25.0%
1Y
-80.0%
MAQ
AU$64.13
Macquarie Technology Group
7D
-1.1%
1Y
-7.6%
STH
AU$0.12
StepChange Holdings
7D
4.3%
1Y
n/a