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Australian (ASX) Software Industry Analysis

UpdatedJan 01, 2026
DataAggregated Company Financials
Companies65
  • 7D-0.2%
  • 3M-25.7%
  • 1Y-25.2%
  • YTD-25.6%

Over the last 7 days, the Software industry has remained flat. Unfortunately though, the industry is down 25% over the past 12 months. As for the next few years, earnings are expected to grow by 25% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 01 Jan 2026AU$75.6bAU$8.2bAU$653.6m36.5x115.6x9.2x
Sat, 29 Nov 2025AU$81.5bAU$8.2bAU$659.3m34.8x123.6x9.9x
Mon, 27 Oct 2025AU$96.8bAU$8.1bAU$638.0m36.1x151.8x11.9x
Wed, 24 Sep 2025AU$102.4bAU$8.1bAU$637.7m34.2x160.5x12.6x
Fri, 22 Aug 2025AU$105.7bAU$8.1bAU$659.1m40.1x160.4x13.1x
Sun, 20 Jul 2025AU$105.9bAU$8.0bAU$535.7m73.8x197.7x13.3x
Tue, 17 Jun 2025AU$100.4bAU$8.0bAU$538.0m77.7x186.7x12.6x
Thu, 15 May 2025AU$92.9bAU$7.8bAU$501.9m89.8x185.2x11.9x
Sat, 12 Apr 2025AU$78.4bAU$8.0bAU$423.0m60.4x185.4x9.8x
Mon, 10 Mar 2025AU$84.1bAU$7.9bAU$415.4m57.5x202.4x10.7x
Wed, 05 Feb 2025AU$101.1bAU$7.7bAU$279.2m71.2x362x13.2x
Fri, 03 Jan 2025AU$98.0bAU$7.7bAU$271.8m68.4x360.5x12.7x
Sun, 01 Dec 2024AU$101.1bAU$7.7bAU$286.6m63.8x352.8x13.2x
Tue, 29 Oct 2024AU$89.1bAU$7.4bAU$210.1m65.6x424x12x
Thu, 26 Sep 2024AU$92.4bAU$7.4bAU$201.8m67.9x457.8x12.5x
Sat, 24 Aug 2024AU$87.4bAU$7.5bAU$119.8m68.2x729.5x11.7x
Mon, 22 Jul 2024AU$84.1bAU$7.7b-AU$89,432,135.3460.8x-939.8x11x
Wed, 19 Jun 2024AU$81.6bAU$7.8b-AU$92,523,767.4260.6x-881.9x10.5x
Fri, 17 May 2024AU$83.7bAU$7.6b-AU$316,707,850.9260.1x-264.3x11x
Sun, 14 Apr 2024AU$78.5bAU$7.6b-AU$368,949,507.1365.3x-212.6x10.3x
Tue, 12 Mar 2024AU$81.6bAU$7.6b-AU$389,705,313.3861x-209.3x10.7x
Thu, 08 Feb 2024AU$66.8bAU$7.6b-AU$768,931,429.4456.9x-86.9x8.8x
Sat, 06 Jan 2024AU$66.8bAU$8.4b-AU$1,047,742,772.0057x-63.7x8x
Mon, 04 Dec 2023AU$64.5bAU$8.4b-AU$1,047,635,038.0058.2x-61.5x7.7x
Wed, 01 Nov 2023AU$60.4bAU$8.1b-AU$1,118,861,940.0053x-54x7.5x
Fri, 29 Sep 2023AU$65.2bAU$8.1b-AU$1,117,872,695.0057.6x-58.3x8.1x
Sun, 27 Aug 2023AU$69.6bAU$8.0b-AU$1,178,878,874.0060.9x-59x8.7x
Tue, 25 Jul 2023AU$71.9bAU$7.7b-AU$888,546,765.0048.3x-80.9x9.4x
Thu, 22 Jun 2023AU$70.8bAU$7.7b-AU$898,122,327.0050.4x-78.8x9.2x
Sat, 20 May 2023AU$65.4bAU$7.7b-AU$945,158,814.0045.3x-69.2x8.5x
Mon, 17 Apr 2023AU$61.6bAU$7.5b-AU$871,837,856.0046.1x-70.6x8.2x
Wed, 15 Mar 2023AU$57.3bAU$7.5b-AU$875,653,074.0046.2x-65.5x7.7x
Fri, 10 Feb 2023AU$58.0bAU$7.1b-AU$706,257,024.0054.6x-82.1x8.2x
Sun, 08 Jan 2023AU$52.6bAU$7.1b-AU$711,189,398.0050.6x-73.9x7.4x
Price to Earnings Ratio

-73.9x


Total Market Cap: AU$52.6bTotal Earnings: -AU$711,189,398.00Total Revenue: AU$7.1bTotal Market Cap vs Earnings and Revenue0%0%0%
Australian Software Industry Price to Earnings3Y Average 7.2x202420252026
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 116x which is higher than its 3-year average PE of 7.2x.
  • The 3-year average PS ratio of 10.3x is higher than the industry's current PS ratio of 9.2x.
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 4.9% 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 Market-0.47%
Tech-0.61%
Software-0.15%
Systems Software0.91%
Application Software-0.17%
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 24.3%, which is higher than its past year's earnings growth of 20.3% per year.
Forecasted Growth
  • Analysts are most optimistic on the Systems Software industry, expecting annual earnings growth of 56% over the next 5 years.
  • In contrast, the Application Software industry is expected to see its earnings grow by 24% 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
XRO XeroAU$114.021.1%
+AU$210.6m		-32.4%PE83.9x
360 Life360AU$33.530.9%
+AU$73.6m		48.8%PE179.3x
FCL FINEOS Corporation HoldingsAU$3.006.4%
+AU$62.0m		63.0%PS4.3x
ROC RocketBootsAU$0.4221.4%
+AU$12.8m		507.1%PS106.9x
DUG DUG TechnologyAU$2.194.3%
+AU$12.2m		57.0%PS3.2x

Latest News

NXL
AU$1.80
Nuix
7D
-5.3%
1Y
-71.6%

NXL: Governance Reforms Will Drive Stronger Long Term Profitability

Analysts have modestly raised their price target on Nuix, citing slightly lower discount rate assumptions, marginally higher long term revenue growth and profit margin expectations, and a small compression in forecast future P E multiples that together support a refined fair value estimate around $2.25 per share. What's in the News Shareholders approved amendments to the Nuix constitution at the Annual General Meeting held on 19 November 2025, formalizing updates to the company bylaws (Key Developments).
OCL
AU$16.51
Objective
7D
-3.6%
1Y
4.0%

OCL: Mission-Aligned Acquisitions Will Drive Stronger Long-Term Revenue Outlook

Analysts have raised their price target to 25.00 dollars from 24.29 dollars, citing stronger expected revenue growth that more than offsets slightly lower projected profit margins and a modest increase in the discount rate. What's in the News Objective Corporation Limited is actively seeking acquisitions to support its growth strategy, focusing on targets that align with its core mission and existing business lines (Key Developments).
XRO
AU$114.02
Xero
7D
1.1%
1Y
-32.4%

XRO: Higher Future Earnings Multiple Will Support Stronger Share Performance

Analysts have lowered their price target on Xero from approximately $240 to $231 per share. This reflects a higher assumed discount rate and a more conservative profit margin outlook, partially offset by stronger projected revenue growth and a higher future price-to-earnings multiple.
360
AU$33.53
Life360
7D
0.9%
1Y
48.8%

360: Rising Earnings Guidance Will Likely Fail To Justify Elevated Price

Analysts have raised their fair value estimate for Life360 from approximately 27.32 dollars to 29.76 dollars, reflecting expectations for slightly faster revenue growth, improved profit margins, and a modestly lower future price to earnings multiple despite a small increase in the discount rate. What's in the News Life360, Inc.
ROC
AU$0.42
RocketBoots
7D
21.4%
1Y
507.1%
TNE
AU$27.96
Technology One
7D
-2.1%
1Y
-10.7%

TNE: Index Inclusions And Special Dividend Will Support Future Upside

Analysts have slightly reduced their price target on Technology One from A$45.70 to A$44.55, citing a modestly higher discount rate and lower margin assumptions that more than offset stronger expected revenue growth. What's in the News Technology One is actively seeking disciplined acquisitions to add new intellectual property and support inorganic growth, leveraging its strong cash flow and AI enabled platform (company results commentary) The company announced a special dividend of 10.0 cents per share for the six months ended September 30, 2025 (company announcement) The final dividend was increased to 20.0 cents per share for the six months ended September 30, 2025, up 15% on the prior comparable period (company announcement) Technology One was added to the S&P/ASX 50 Index, reflecting its growing scale and market significance (index provider) The company was also included in the S&P International 700 and S&P Global 1200 indices, broadening its exposure to global investors (index provider) Valuation Changes Fair Value: reduced slightly from A$45.70 to A$44.55 per share, reflecting a modestly lower valuation despite stronger growth assumptions.
WTC
AU$68.46
WiseTech Global
7D
-0.5%
1Y
-43.4%

WTC: Market Outlook Will Balance Higher Risk Assumptions With Stronger Profitability Expectations

Analysts have trimmed their price target on WiseTech Global by approximately A$9 per share. This reflects slightly higher discount rate assumptions, a modestly lower long term revenue growth outlook, and a more conservative future price to earnings multiple, partly offset by a marginally stronger expected profit margin.
DUG
AU$2.19
DUG Technology
7D
4.3%
1Y
57.0%

DUG: Stronger Future Margins And Earnings Are Expected To Drive Upside

Narrative Update on DUG Technology The analyst price target for DUG Technology has been raised from approximately A$2.12 to A$2.41, as analysts now expect stronger revenue growth, modestly higher profit margins, and a slightly richer future price to earnings multiple. Valuation Changes The fair value estimate has risen moderately from A$2.12 to A$2.41 per share, reflecting a higher intrinsic valuation for DUG Technology.
EOL
AU$17.35
Energy One
7D
1.6%
1Y
161.7%

EOL: Index Inclusion Will Support Stronger Future Market Sentiment

Narrative Update on Energy One Analysts have modestly raised their price target on Energy One by approximately $0.43, citing slightly stronger expectations for revenue growth, improving profit margins, and a lower projected future price-to-earnings (P/E) multiple. What's in the News Energy One Limited (ASX:EOL) has been added to the S&P/ASX Emerging Companies Index, increasing its visibility among institutional and index-tracking investors (Index Constituent Adds).
AIM
AU$0.80
Ai-Media Technologies
7D
4.6%
1Y
-9.7%
SDR
AU$6.08
SiteMinder
7D
-3.5%
1Y
0.7%
SKK
AU$0.033
Stakk
7D
-5.7%
1Y
371.4%
CAT
AU$4.15
Catapult Sports
7D
-3.9%
1Y
11.9%

CAT: Upcoming Industry Momentum Will Fuel Outperformance Over The Coming Year

Narrative Update on Catapult Sports Analysts have revised their price target for Catapult Sports downward from A$7.97 to A$7.02, citing adjustments for fair value and discount rate. However, they maintain a positive outlook due to expectations of sustainable, above-consensus revenue growth in the sports technology sector.
FCL
AU$3.00
FINEOS Corporation Holdings
7D
6.4%
1Y
63.0%

A Look At The Intrinsic Value Of FINEOS Corporation Holdings plc (ASX:FCL)

Nov 23
A Look At The Intrinsic Value Of FINEOS Corporation Holdings plc (ASX:FCL)
PHX
AU$0.16
PharmX Technologies
7D
10.3%
1Y
116.2%
YOJ
AU$0.37
Yojee
7D
-5.1%
1Y
184.6%