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Australian (ASX) IT Industry Analysis

UpdatedFeb 04, 2026
DataAggregated Company Financials
Companies19
  • 7D-2.0%
  • 3M-10.7%
  • 1Y-4.2%
  • YTD4.8%

Over the last 7 days, the IT industry has dropped 2.0%, driven by pullbacks in NEXTDC and Megaport of 3.7% and 12%, respectively. Meanwhile, Appen actually outperformed within the industry, gaining 74% in the last week. However, the industry is down 4.2% over the past year. As for the next few years, earnings are expected to grow by 13% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 05 Feb 2026AU$15.3bAU$2.9b-AU$98,233,051.6044.4x-155.9x5.3x
Sat, 03 Jan 2026AU$14.6bAU$2.9b-AU$99,668,368.9043.5x-146.4x5.1x
Mon, 01 Dec 2025AU$15.6bAU$2.9b-AU$100,621,666.4043.3x-154.8x5.4x
Wed, 29 Oct 2025AU$17.4bAU$2.9b-AU$100,585,084.1041.8x-172.6x6x
Fri, 26 Sep 2025AU$18.3bAU$2.9b-AU$82,850,339.8041x-220.3x6.3x
Sun, 24 Aug 2025AU$15.7bAU$2.9b-AU$94,293,286.7028.2x-166.2x5.5x
Tue, 22 Jul 2025AU$15.7bAU$2.8b-AU$87,815,057.6033.9x-178.6x5.5x
Thu, 19 Jun 2025AU$15.1bAU$2.8b-AU$89,957,110.7039x-168.3x5.4x
Sat, 17 May 2025AU$14.9bAU$2.8b-AU$90,285,258.3041.9x-164.9x5.3x
Mon, 14 Apr 2025AU$12.2bAU$2.8b-AU$90,923,545.4034.9x-133.8x4.3x
Wed, 12 Mar 2025AU$14.0bAU$2.8b-AU$90,931,549.0039x-154.3x5x
Fri, 07 Feb 2025AU$16.1bAU$2.8b-AU$200,597,310.1079.3x-80.1x5.8x
Sun, 05 Jan 2025AU$15.6bAU$2.6b-AU$191,188,318.4073.2x-81.8x5.9x
Tue, 03 Dec 2024AU$16.7bAU$2.6b-AU$184,915,394.6073.2x-90.3x6.4x
Thu, 31 Oct 2024AU$16.2bAU$2.6b-AU$183,074,226.7067.8x-88.7x6.2x
Sat, 28 Sep 2024AU$16.5bAU$2.6b-AU$167,688,836.0064.3x-98.7x6.4x
Mon, 26 Aug 2024AU$16.5bAU$2.6b-AU$209,087,810.6052.2x-78.7x6.3x
Wed, 24 Jul 2024AU$16.3bAU$4.4b-AU$216,133,245.8040.7x-75.6x3.7x
Fri, 21 Jun 2024AU$15.1bAU$4.4b-AU$214,893,416.3033.1x-70.4x3.5x
Sun, 19 May 2024AU$15.5bAU$4.4b-AU$214,267,597.6032.9x-72.3x3.5x
Tue, 16 Apr 2024AU$14.3bAU$4.4b-AU$220,053,468.6046.8x-64.8x3.2x
Thu, 14 Mar 2024AU$15.4bAU$4.4b-AU$216,487,482.8039.7x-71.3x3.5x
Sat, 10 Feb 2024AU$13.3bAU$4.3b-AU$461,233,425.0041.1x-28.9x3.1x
Mon, 08 Jan 2024AU$11.9bAU$4.4b-AU$448,037,914.0034x-26.6x2.7x
Wed, 06 Dec 2023AU$12.1bAU$4.4b-AU$457,593,439.0033.1x-26.4x2.7x
Fri, 03 Nov 2023AU$11.3bAU$4.5b-AU$463,182,080.0029.9x-24.4x2.5x
Sun, 01 Oct 2023AU$11.7bAU$4.5b-AU$463,627,968.0029.6x-25.2x2.6x
Tue, 29 Aug 2023AU$12.2bAU$4.5b-AU$430,574,552.0023.2x-28.4x2.7x
Thu, 27 Jul 2023AU$10.0bAU$3.9b-AU$458,508,384.0018.8x-21.8x2.6x
Sat, 24 Jun 2023AU$9.4bAU$3.9b-AU$462,667,198.0019.4x-20.3x2.4x
Mon, 22 May 2023AU$8.2bAU$3.9b-AU$464,527,025.0017x-17.8x2.1x
Wed, 19 Apr 2023AU$8.3bAU$3.9b-AU$462,596,871.0025.5x-18x2.1x
Fri, 17 Mar 2023AU$22.1bAU$10.3b-AU$623,607,795.0025.2x-35.5x2.1x
Sun, 12 Feb 2023AU$25.1bAU$9.4b-AU$17,895,492.0027.1x-1401.3x2.7x
Price to Earnings Ratio

-1401.3x


Total Market Cap: AU$25.1bTotal Earnings: -AU$17,895,492.00Total Revenue: AU$9.4bTotal Market Cap vs Earnings and Revenue0%0%0%
Australian IT Industry Price to Earnings3Y Average -104.6x202420252026
Current Industry PE
  • Investors are optimistic on the Australian IT industry, and appear confident in long term growth rates.
  • The 3-year average PS ratio of 4.2x is lower than the industry's current PS ratio of 5.3x.
Past Earnings Growth
  • The earnings for companies in the IT industry have deteriorated over the last three years.
  • Revenues have also declined 33% per year.
  • This means overall sales from these companies are declining and losses are subsequently expanding as well.

Industry Trends

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

AU Market-1.35%
Tech-5.76%
IT-2.04%
IT Consulting12.13%
Internet Services and Infrastructure-4.50%
Data Processing Services-7.04%
Industry PE
  • Investors are most optimistic about the IT Consulting industry which is trading above its 3-year average PE ratio of 25.3x.
    • Analysts expect its future annual earnings growth (26.5%) to be largely in line with prior year's earnings growth.
Forecasted Growth
  • Analysts are most optimistic on the IT Consulting industry, expecting annual earnings growth of 27% over the next 5 years.
  • This is roughly in line with its past earnings growth rate.
  • In contrast, the Data Processing Services industry is expected to see its earnings grow by 7.3% 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
APX AppenAU$1.8874.1%
+AU$212.5m		-34.7%PS1.6x
ITS InfotrustAU$0.532.9%
+AU$2.9m		-4.5%PS1x
SOC SOCOAU$0.06217.0%
+AU$1.3m		n/aPE126.5x
CYB AUCyberAU$0.0752.7%
+AU$417.5k		-44.4%PS0.7x
CGO CPT GlobalAU$0.0832.5%
+AU$83.8k		43.1%PS0.2x

Latest News

DTL
AU$9.48
Data#3
7D
-4.3%
1Y
34.5%
ATA
AU$0.61
Atturra
7D
-11.6%
1Y
-38.4%
APX
AU$1.88
Appen
7D
74.1%
1Y
-34.7%

APX: Higher Margin Outlook Will Support Improved Long Term P/E Multiple

Analysts have lifted their price target on Appen from A$1.65 to A$1.85, citing updated assumptions for revenue growth, profit margins and a lower future P/E multiple as key drivers of the change. Valuation Changes Fair Value: Updated from A$1.65 to A$1.85, indicating a higher assessed value per share in the latest model.
STH
AU$0.11
StepChange Holdings
7D
-12.0%
1Y
n/a
ITS
AU$0.53
Infotrust
7D
2.9%
1Y
-4.5%
CGO
AU$0.083
CPT Global
7D
2.5%
1Y
43.1%
MP1
AU$10.85
Megaport
7D
-12.4%
1Y
24.9%

MP1: Latitude Acquisition Will Concentrate Execution Risk And Stretch Future Earnings Multiple

Narrative Update Analysts have lifted their price targets on Megaport, with some moving into Buy or Overweight ratings and citing the A$150m Latitude.sh acquisition, its expanded total addressable market and cross selling potential as key supports for higher fair value estimates despite a richer future P/E profile. Analyst Commentary Recent research on Megaport has turned more constructive, with upgrades and higher price targets coming through after the Latitude.sh announcement.
CYB
AU$0.075
AUCyber
7D
2.7%
1Y
-44.4%
SOC
AU$0.062
SOCO
7D
17.0%
1Y
n/a

Little Excitement Around SOCO Corporation Ltd's (ASX:SOC) Revenues

Jan 13
Little Excitement Around SOCO Corporation Ltd's (ASX:SOC) Revenues
AI1
AU$0.053
Adisyn
7D
-5.4%
1Y
-45.4%
NXT
AU$12.85
NEXTDC
7D
-3.7%
1Y
-14.1%
WRK
AU$0.15
Wrkr
7D
-3.2%
1Y
200.0%
MAQ
AU$63.43
Macquarie Technology Group
7D
-8.7%
1Y
-23.6%

Macquarie Technology Group (ASX:MAQ) Seems To Use Debt Quite Sensibly

Dec 22
Macquarie Technology Group (ASX:MAQ) Seems To Use Debt Quite Sensibly