Investing IdeasBrowse All StocksMarkets
Have your own idea? Try our Stock Screener
Header cover image

Australian (ASX) Software Industry Analysis

UpdatedApr 13, 2026
DataAggregated Company Financials
Companies69
  • 7D-0.2%
  • 3M-31.8%
  • 1Y-38.0%
  • YTD-33.0%

In the last week, the Software industry is flat overall, with Xero standing out by going down 3.5%. As for the longer term, the industry has declined 38% in the last year. Earnings are forecast to grow by 24% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Mon, 13 Apr 2026AU$49.9bAU$8.5bAU$730.8m22x68.3x5.9x
Wed, 11 Mar 2026AU$58.5bAU$8.5bAU$730.4m24.4x80.1x6.9x
Fri, 06 Feb 2026AU$58.3bAU$8.1bAU$640.3m36.2x91x7.2x
Sun, 04 Jan 2026AU$75.1bAU$8.2bAU$653.1m37.5x115x9.2x
Tue, 02 Dec 2025AU$80.0bAU$8.2bAU$662.7m34.4x120.7x9.7x
Thu, 30 Oct 2025AU$91.7bAU$8.1bAU$632.8m35.9x144.9x11.3x
Sat, 27 Sep 2025AU$100.8bAU$8.1bAU$640.3m34.3x157.4x12.4x
Mon, 25 Aug 2025AU$105.4bAU$8.1bAU$661.6m35.1x159.3x13.1x
Wed, 23 Jul 2025AU$106.8bAU$8.0bAU$534.9m73.4x199.7x13.4x
Fri, 20 Jun 2025AU$100.7bAU$8.0bAU$539.3m77.1x186.7x12.6x
Sun, 18 May 2025AU$94.1bAU$8.0bAU$515.3m91.8x182.5x11.8x
Tue, 15 Apr 2025AU$80.5bAU$7.9bAU$420.0m61.4x191.6x10.1x
Thu, 13 Mar 2025AU$80.3bAU$7.9bAU$416.7m57.5x192.6x10.2x
Sat, 08 Feb 2025AU$103.3bAU$7.6bAU$280.3m70.6x368.5x13.5x
Mon, 06 Jan 2025AU$98.8bAU$7.7bAU$271.7m68.4x363.8x12.8x
Wed, 04 Dec 2024AU$102.0bAU$7.7bAU$286.0m64x356.7x13.3x
Fri, 01 Nov 2024AU$89.9bAU$7.4bAU$209.8m65.3x428.4x12.1x
Sun, 29 Sep 2024AU$94.6bAU$7.4bAU$202.6m69x467x12.8x
Tue, 27 Aug 2024AU$86.9bAU$7.5bAU$125.6m63.4x692.2x11.6x
Thu, 25 Jul 2024AU$84.8bAU$7.7b-AU$89,388,542.3862.4x-949.2x11x
Sat, 22 Jun 2024AU$82.6bAU$7.8b-AU$92,702,120.3263.4x-890.6x10.6x
Mon, 20 May 2024AU$81.1bAU$7.6b-AU$316,667,987.4959.6x-256x10.7x
Wed, 17 Apr 2024AU$77.4bAU$7.6b-AU$369,339,832.4762.2x-209.7x10.1x
Fri, 15 Mar 2024AU$82.4bAU$7.6b-AU$389,537,876.5161.7x-211.6x10.8x
Sun, 11 Feb 2024AU$68.7bAU$7.6b-AU$769,248,217.2955.6x-89.3x9x
Tue, 09 Jan 2024AU$66.4bAU$8.4b-AU$1,047,763,984.0056.6x-63.4x7.9x
Thu, 07 Dec 2023AU$65.6bAU$8.4b-AU$1,048,565,105.0058.2x-62.5x7.8x
Sat, 04 Nov 2023AU$62.9bAU$8.2b-AU$1,166,847,078.0054.7x-53.9x7.7x
Mon, 02 Oct 2023AU$65.3bAU$8.1b-AU$1,117,674,984.0058.5x-58.5x8.1x
Wed, 30 Aug 2023AU$69.1bAU$8.0b-AU$1,156,175,981.0062.7x-59.7x8.6x
Fri, 28 Jul 2023AU$74.2bAU$7.7b-AU$887,967,261.0047.5x-83.5x9.7x
Sun, 25 Jun 2023AU$67.7bAU$7.7b-AU$900,685,811.0049.5x-75.2x8.8x
Tue, 23 May 2023AU$65.4bAU$7.7b-AU$945,986,776.0044.9x-69.1x8.5x
Thu, 20 Apr 2023AU$61.8bAU$7.5b-AU$871,591,765.0049x-70.9x8.2x
Price to Earnings Ratio

-70.9x


Total Market Cap: AU$61.8bTotal Earnings: -AU$871,591,765.00Total Revenue: AU$7.5bTotal Market Cap vs Earnings and Revenue0%0%0%
Australian Software Industry Price to Earnings3Y Average 22.6x202420252026
Current Industry PE
  • Investors are optimistic on the Australian Software industry, and appear confident in long term growth rates.
  • The industry is trading at a PE ratio of 68.3x which is higher than its 3-year average PE of 22.5x.
  • The 3-year average PS ratio of 10.3x is higher than the industry's current PS ratio of 5.9x.
Past Earnings Growth
  • Total earnings for the Software industry have gone up over the last three years, and the industry is now profitable. Revenues have grown 4.1% per year.
  • This means that more sales are being generated by the industry overall, and subsequently profits are increasing too.

Industry Trends

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

AU Market4.32%
Tech2.30%
Software-0.23%
Application Software-0.21%
Systems Software-1.78%
Industry PE
  • Investors are most optimistic about the Application Software industry even though it's trading below its 3-year average PE ratio of 2kx.
    • Analysts are expecting annual earnings growth of 23.2%, which is higher than its past year's earnings growth of 16.2% per year.
Forecasted Growth
  • Analysts are most optimistic on the Systems Software industry, expecting annual earnings growth of 65% over the next 5 years.
  • In contrast, the Application Software industry is expected to see its earnings grow by 23% 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$27.692.9%
+AU$254.6m		-0.1%PE65.7x
360 Life360AU$19.484.2%
+AU$187.7m		4.5%PE22x
SDR SiteMinderAU$2.946.5%
+AU$50.6m		-18.1%PS3.3x
IOD IODMAU$0.1745.8%
+AU$34.9m		2.9%PS28.6x
EOL Energy OneAU$13.375.8%
+AU$23.0m		22.7%PE56.6x

Latest News

HSN
AU$4.59
Hansen Technologies
7D
-4.4%
1Y
-10.4%

HSN: Canadian Partnership And 2026 Second Half Outlook Will Support Upside

Analysts have made only a slight adjustment to their A$ price target for Hansen Technologies, reflecting largely unchanged fair value estimates, along with small tweaks to discount rate, revenue growth and profit margin assumptions within their P/E based models. What's in the News Hansen Technologies entered into a partnership with ERTH Holdings Inc.
WTC
AU$37.63
WiseTech Global
7D
-0.7%
1Y
-55.3%
NXL
AU$1.14
Nuix
7D
-5.0%
1Y
-51.5%

NXL: Future Upside Seen As Neo Migration Execution Rebuilds Confidence

Analysts have lifted their price target on Nuix to A$2.30 from A$2.15, pointing to a solid recent result versus previously low expectations, as well as growing confidence in management's execution of the Neo migration strategy to support net dollar retention and Annual Contract Value growth. Analyst Commentary Recent Street research on Nuix points to a more constructive tone, with bullish analysts highlighting both the upgraded rating and the higher A$2.30 price target as signals of improving confidence in the story.
OCL
AU$11.05
Objective
7D
-4.0%
1Y
-24.9%

OCL: Share Buyback Plan Will Support Longer Term Shareholder Returns

Analysts have trimmed their fair value estimate for the shares from about A$19.24 to A$16.17, reflecting updated assumptions for a higher discount rate, slightly softer revenue growth and profit margins, and a lower future P/E multiple. What's in the News Objective Corporation Limited declared an ordinary unfranked distribution of A$0.13 per share for the six month period ended 31 December 2025, with an ex date of 6 March 2026, record date of 9 March 2026, and payment date of 17 March 2026 (Key Developments).
360
AU$19.48
Life360
7D
4.2%
1Y
4.5%

360: Index Additions And Uber Partnership Will Support Further Upside

Analysts have kept their A$25.00 price target for Life360 unchanged, with only minor adjustments to assumptions such as discount rate, revenue growth, profit margin and future P/E. These adjustments together support maintaining their prior view on the stock.
DUG
AU$2.10
DUG Technology
7D
7.4%
1Y
133.3%

DUG: Lower Discount Rate Will Support Further Upside Potential

Analysts have lifted their price target on DUG Technology to A$2.52 from A$2.48, reflecting updated assumptions around fair value, discount rate, revenue growth, profit margin, and future P/E. Valuation Changes Fair Value: A$2.48 to A$2.52, a slight upward adjustment reflecting refreshed model inputs.
XRO
AU$71.46
Xero
7D
-3.5%
1Y
-53.9%

XRO: AI Partnerships Will Support Future Earnings Despite Ongoing Execution Risks

Analysts have modestly lifted their Xero price target to A$83.66 from A$82.74, reflecting updated assumptions for revenue growth, profit margins and a lower future P/E multiple following recent research, including an upgrade at RBC Capital. Analyst Commentary Even with the upgraded price target, recent commentary shows that not all experts are fully comfortable with the current set up for Xero.
PPS
AU$0.69
Praemium
7D
4.5%
1Y
3.7%

PPS: Stable Assumptions And Lower Discount Rate Will Support Future Upside

Analysts have kept Praemium's fair value estimate broadly steady at A$1.23, with only small tweaks to inputs such as the discount rate, revenue growth, profit margin and future P/E. These changes help refine rather than shift their overall price target view.
TNE
AU$27.69
Technology One
7D
2.9%
1Y
-0.1%

TNE: Index Removals Will Present Long Term Margin Upside Opportunity

Analysts have trimmed their price target on Technology One from A$40.32 to A$38.70. This reflects slightly different assumptions around discount rates, revenue growth, profit margins and future P/E multiples, while maintaining a broadly similar view on the company.
FCL
AU$2.10
FINEOS Corporation Holdings
7D
-10.6%
1Y
13.2%
CAT
AU$3.12
Catapult Sports
7D
-3.1%
1Y
-6.0%
EIQ
AU$0.90
Echo IQ
7D
3.5%
1Y
214.0%
IOD
AU$0.17
IODM
7D
45.8%
1Y
2.9%
QOR
AU$0.29
Qoria
7D
-1.7%
1Y
-15.9%
EOL
AU$13.37
Energy One
7D
5.8%
1Y
22.7%
SDR
AU$2.94
SiteMinder
7D
6.5%
1Y
-18.1%