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Australian (ASX) Software Industry Analysis

UpdatedFeb 22, 2026
DataAggregated Company Financials
Companies63
  • 7D9.1%
  • 3M-27.4%
  • 1Y-46.7%
  • YTD-25.7%

In the last week, the Software industry is up 9.1%, with Technology One leading the way, up 23%. Meanwhile, Bravura Solutions actually underperformed within the industry, shrinking 7.5% in the last week. In the past year, the industry is down 47%. Looking forward, 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
Sun, 22 Feb 2026AU$55.1bAU$8.0bAU$620.4m27x88.8x6.9x
Tue, 20 Jan 2026AU$69.6bAU$8.2bAU$652.9m33.9x106.5x8.5x
Thu, 18 Dec 2025AU$73.4bAU$8.3bAU$657.4m32.4x111.7x8.9x
Sat, 15 Nov 2025AU$79.2bAU$8.3bAU$673.6m35.9x117.6x9.5x
Mon, 13 Oct 2025AU$100.0bAU$8.1bAU$639.2m34.6x156.5x12.3x
Wed, 10 Sep 2025AU$99.6bAU$8.1bAU$638.9m33.6x155.9x12.3x
Fri, 08 Aug 2025AU$107.6bAU$8.0bAU$547.3m76.4x196.6x13.5x
Sun, 06 Jul 2025AU$102.5bAU$8.0bAU$535.9m77.5x191.3x12.8x
Tue, 03 Jun 2025AU$100.2bAU$8.1bAU$540.5m101.1x185.4x12.4x
Thu, 01 May 2025AU$83.8bAU$7.8bAU$484.1m65.1x173.1x10.8x
Sat, 29 Mar 2025AU$79.2bAU$7.9bAU$416.7m61.6x190.2x10x
Mon, 24 Feb 2025AU$100.7bAU$7.6bAU$327.6m66.4x307.4x13.2x
Wed, 22 Jan 2025AU$96.0bAU$7.6bAU$287.6m70.1x333.6x12.6x
Fri, 20 Dec 2024AU$96.1bAU$7.7bAU$272.7m67.1x352.3x12.5x
Sun, 17 Nov 2024AU$101.1bAU$7.6bAU$268.6m65.3x376.3x13.2x
Tue, 15 Oct 2024AU$95.4bAU$7.4bAU$212.5m63.7x448.9x12.9x
Thu, 12 Sep 2024AU$88.4bAU$7.4bAU$198.9m64.1x444.5x11.9x
Sat, 10 Aug 2024AU$73.8bAU$7.3b-AU$206,391,813.6560.2x-357.5x10.1x
Mon, 08 Jul 2024AU$84.6bAU$7.7b-AU$94,543,155.7159.4x-894.5x10.9x
Wed, 05 Jun 2024AU$82.6bAU$7.8b-AU$95,158,811.8163.2x-867.7x10.6x
Fri, 03 May 2024AU$79.1bAU$7.6b-AU$322,935,962.9663.2x-244.9x10.4x
Sun, 31 Mar 2024AU$81.5bAU$7.6b-AU$389,080,811.5563x-209.5x10.7x
Tue, 27 Feb 2024AU$76.5bAU$7.6b-AU$527,546,309.7956.3x-145x10.1x
Thu, 25 Jan 2024AU$70.2bAU$8.4b-AU$1,048,425,097.0060.8x-66.9x8.4x
Sat, 23 Dec 2023AU$68.8bAU$8.4b-AU$1,046,645,751.0060.8x-65.8x8.2x
Mon, 20 Nov 2023AU$64.8bAU$8.4b-AU$1,057,783,285.0057.5x-61.3x7.8x
Wed, 18 Oct 2023AU$65.7bAU$8.1b-AU$1,112,279,840.0057.9x-59.1x8.1x
Fri, 15 Sep 2023AU$68.2bAU$8.1b-AU$1,117,077,104.0059.9x-61x8.5x
Sun, 13 Aug 2023AU$73.4bAU$7.7b-AU$892,660,153.0050.5x-82.2x9.5x
Tue, 11 Jul 2023AU$68.3bAU$7.7b-AU$891,571,135.0049.2x-76.6x8.8x
Thu, 08 Jun 2023AU$68.4bAU$7.7b-AU$895,161,054.0050.1x-76.4x8.9x
Sat, 06 May 2023AU$61.4bAU$7.5b-AU$876,732,502.0048.9x-70x8.2x
Mon, 03 Apr 2023AU$60.0bAU$7.5b-AU$871,825,416.0045.6x-68.8x8x
Wed, 01 Mar 2023AU$58.5bAU$7.4b-AU$664,027,102.0046x-88x7.9x
Price to Earnings Ratio

-88x


Total Market Cap: AU$58.5bTotal Earnings: -AU$664,027,102.00Total Revenue: AU$7.4bTotal Market Cap vs Earnings and Revenue0%0%0%
Australian Software Industry Price to Earnings3Y Average 15.8x202420252026
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 88.8x which is higher than its 3-year average PE of 15.8x.
  • The 3-year average PS ratio of 10.3x is higher than the industry's current PS ratio of 6.9x.
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 2.6% 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 Market1.87%
Tech6.12%
Software9.09%
Application Software9.15%
Systems Software3.79%
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 23.6%, which is higher than its past year's earnings growth of 16.6% per year.
Forecasted Growth
  • Analysts are most optimistic on the Systems Software industry, expecting annual earnings growth of 51% 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
TNE Technology OneAU$24.7522.7%
+AU$1.5b		-22.8%PE58.7x
WTC WiseTech GlobalAU$47.1010.5%
+AU$1.5b		-61.3%PE55.4x
XRO XeroAU$77.545.5%
+AU$693.0m		-57.4%PE58.4x
360 Life360AU$23.848.3%
+AU$436.9m		-1.2%PE136.6x
HSN Hansen TechnologiesAU$5.1416.3%
+AU$143.6m		-0.4%PE16x

Latest News

XRO
AU$77.54
Xero
7D
5.5%
1Y
-57.4%

XRO: Fair Outlook Will Balance AI Upside With Execution And Pricing Risks

Analysts have reduced their price target on Xero from about A$109.01 to about A$82.74, reflecting updated assumptions around discount rates, revenue growth, profit margins and P/E multiples, supported by recent Street research including the upgrade from RBC Capital. Analyst Commentary Recent research highlights a mixed setup for Xero, with the reduced price target pointing to more conservative expectations around growth, profitability and valuation.
WTC
AU$47.10
WiseTech Global
7D
10.5%
1Y
-61.3%

WTC: Higher Fair Value And Investor Day Access Will Support Future Confidence

The analyst fair value estimate for WiseTech Global has moved from A$131.14 to A$135.97. Analysts point to updated assumptions for revenue growth, profit margins and a higher future P/E as key drivers of the change.
HSN
AU$5.14
Hansen Technologies
7D
16.3%
1Y
-0.4%
CAT
AU$3.51
Catapult Sports
7D
5.7%
1Y
-8.8%
TNE
AU$24.75
Technology One
7D
22.7%
1Y
-22.8%
NXL
AU$1.36
Nuix
7D
-1.4%
1Y
-71.5%
EOL
AU$13.88
Energy One
7D
-1.6%
1Y
48.4%

EOL: Slightly Firmer Assumptions Will Support Stronger Sentiment And Upside Potential

Analysts have trimmed their price target on Energy One to A$21.25 from A$21.66, reflecting slightly updated assumptions on fair value, discount rate, revenue growth, profit margin and future P/E. Valuation Changes Fair Value: trimmed slightly from A$21.66 to A$21.25, a small reduction in the implied central estimate.
BVS
AU$1.93
Bravura Solutions
7D
-7.5%
1Y
-29.2%
FCL
AU$2.41
FINEOS Corporation Holdings
7D
13.1%
1Y
36.9%
RDY
AU$1.70
ReadyTech Holdings
7D
-5.8%
1Y
-49.1%

Lacklustre Performance Is Driving ReadyTech Holdings Limited's (ASX:RDY) 26% Price Drop

Feb 13
Lacklustre Performance Is Driving ReadyTech Holdings Limited's (ASX:RDY) 26% Price Drop
360
AU$23.84
Life360
7D
8.3%
1Y
-1.2%

Some Confidence Is Lacking In Life360, Inc. (ASX:360) As Shares Slide 27%

Feb 13
Some Confidence Is Lacking In Life360, Inc. (ASX:360) As Shares Slide 27%
COS
AU$0.40
COSOL
7D
-11.1%
1Y
-54.0%
OCL
AU$14.00
Objective
7D
6.1%
1Y
-12.4%

OCL: Share Buyback And Acquisition Plans Will Likely Sustain Overvaluation

Analysts have adjusted their price target to reflect updated assumptions for discount rates, revenue growth, profit margins and future P/E, which they believe better capture the current risk and earnings profile of the company. What's in the News The Board of Directors of Objective Corporation Limited authorized a share buyback plan on January 23, 2026, signaling an intention to return capital to shareholders over time (Key Developments).
VR1
AU$0.028
Vection Technologies
7D
-12.5%
1Y
3.7%

Vection Technologies Limited's (ASX:VR1) Revenues Are Not Doing Enough For Some Investors

Jan 06
Vection Technologies Limited's (ASX:VR1) Revenues Are Not Doing Enough For Some Investors
ROC
AU$0.31
RocketBoots
7D
-10.1%
1Y
213.1%
SKK
AU$0.021
Stakk
7D
-12.5%
1Y
320.0%