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

Australian (ASX) Software Industry Analysis

UpdatedMar 19, 2026
DataAggregated Company Financials
Companies69
  • 7D-6.3%
  • 3M-27.6%
  • 1Y-34.7%
  • YTD-28.1%

Over the last 7 days, the Software industry has dropped 6.3%, driven by WiseTech Global declining 14%. On the other hand Vinyl Group is actually up 11%. The industry has fallen 35% in the last year. Earnings are forecast to grow by 25% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 19 Mar 2026AU$53.5bAU$8.5bAU$728.8m22.2x73.4x6.3x
Sat, 14 Feb 2026AU$51.6bAU$8.1bAU$603.3m28.2x85.5x6.4x
Mon, 12 Jan 2026AU$73.7bAU$8.2bAU$652.0m35.3x113x9x
Wed, 10 Dec 2025AU$78.9bAU$8.2bAU$656.3m34.4x120.2x9.6x
Fri, 07 Nov 2025AU$88.1bAU$8.1bAU$635.0m35.6x138.7x10.9x
Sun, 05 Oct 2025AU$102.2bAU$8.1bAU$635.0m35.2x161x12.6x
Tue, 02 Sep 2025AU$99.4bAU$8.1bAU$637.9m33.6x155.8x12.2x
Thu, 31 Jul 2025AU$107.1bAU$8.0bAU$548.8m75.1x195.2x13.4x
Sat, 28 Jun 2025AU$99.9bAU$8.0bAU$537.1m77x186x12.5x
Mon, 26 May 2025AU$96.2bAU$8.0bAU$538.4m95x178.7x12x
Wed, 23 Apr 2025AU$77.3bAU$7.9bAU$419.1m60.4x184.5x9.8x
Fri, 21 Mar 2025AU$81.6bAU$7.9bAU$417.7m60.1x195.3x10.3x
Sun, 16 Feb 2025AU$102.6bAU$7.6bAU$343.5m54.9x298.6x13.4x
Tue, 14 Jan 2025AU$95.9bAU$7.7bAU$277.7m68.6x345.4x12.5x
Thu, 12 Dec 2024AU$97.6bAU$7.7bAU$275.2m65.6x354.9x12.7x
Sat, 09 Nov 2024AU$96.2bAU$7.4bAU$210.4m64.2x457.1x13x
Mon, 07 Oct 2024AU$92.7bAU$7.4bAU$213.6m66.1x433.9x12.6x
Wed, 04 Sep 2024AU$88.8bAU$7.5bAU$195.1m67.6x455.4x11.8x
Fri, 02 Aug 2024AU$77.9bAU$7.3b-AU$195,038,768.9662.5x-399.5x10.7x
Sun, 30 Jun 2024AU$86.0bAU$7.8b-AU$93,619,849.6461.6x-918.2x11.1x
Tue, 28 May 2024AU$84.3bAU$7.8b-AU$97,194,306.8663.1x-867.2x10.8x
Thu, 25 Apr 2024AU$78.6bAU$7.6b-AU$368,825,163.1662.8x-213.1x10.3x
Sat, 23 Mar 2024AU$82.4bAU$7.6b-AU$389,378,034.4561.3x-211.5x10.8x
Mon, 19 Feb 2024AU$73.1bAU$7.6b-AU$763,598,154.7152.5x-95.7x9.6x
Wed, 17 Jan 2024AU$68.0bAU$8.4b-AU$1,048,468,865.0058.6x-64.9x8.1x
Fri, 15 Dec 2023AU$66.9bAU$8.4b-AU$1,047,242,649.0061x-63.9x8x
Sun, 12 Nov 2023AU$62.3bAU$8.3b-AU$1,104,216,079.0055.2x-56.5x7.5x
Tue, 10 Oct 2023AU$64.0bAU$8.1b-AU$1,112,318,201.0056.5x-57.5x7.9x
Thu, 07 Sep 2023AU$69.5bAU$8.1b-AU$1,117,815,608.0061.1x-62.2x8.6x
Sat, 05 Aug 2023AU$74.6bAU$7.7b-AU$893,126,319.0051.7x-83.5x9.6x
Mon, 03 Jul 2023AU$70.6bAU$7.7b-AU$889,874,090.0047.8x-79.3x9.2x
Wed, 31 May 2023AU$67.7bAU$7.7b-AU$936,809,460.0045.4x-72.3x8.8x
Fri, 28 Apr 2023AU$62.4bAU$7.5b-AU$874,536,048.0049.1x-71.4x8.3x
Sun, 26 Mar 2023AU$58.3bAU$7.5b-AU$872,825,320.0045x-66.8x7.7x
Price to Earnings Ratio

-66.8x


Total Market Cap: AU$58.3bTotal Earnings: -AU$872,825,320.00Total Revenue: AU$7.5bTotal Market Cap vs Earnings and Revenue0%0%0%
Australian Software Industry Price to Earnings3Y Average 19.5x202420252026
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 73.4x which is higher than its 3-year average PE of 19.5x.
  • The 3-year average PS ratio of 10.3x is higher than the industry's current PS ratio of 6.3x.
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 4.2% 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-1.51%
Tech-4.47%
Software-6.27%
Application Software-6.27%
Systems Software-6.66%
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 24.1%, 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 86% 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
VNL Vinyl GroupAU$0.08911.3%
+AU$12.5m		-15.2%PS6.8x
IS3 I Synergy GroupAU$0.01271.4%
+AU$8.7m		n/aPS25.8x
PHX PharmX TechnologiesAU$0.114.8%
+AU$3.3m		46.7%PS9.5x
IRI Integrated ResearchAU$0.325.0%
+AU$2.7m		-23.2%PE7.8x
DUG DUG TechnologyAU$2.010.8%
+AU$2.0m		77.1%PE120.6x

Latest News

PRO
AU$0.11
Prophecy International Holdings
7D
11.1%
1Y
-77.8%
NXL
AU$1.45
Nuix
7D
-16.2%
1Y
-57.4%
TNE
AU$25.76
Technology One
7D
-2.5%
1Y
-9.6%

TNE: Higher Margin Outlook Will Support Future Upside Potential

Analysts have reduced their price target for Technology One from A$44.55 to A$40.32, citing updated assumptions for discount rate, revenue growth, profit margins and future P/E that result in a slight adjustment to the valuation outlook. Valuation Changes Fair Value: Adjusted from A$44.55 to A$40.32, indicating a modest reduction in the assessed value per share.
HSN
AU$4.78
Hansen Technologies
7D
-6.1%
1Y
-1.4%

HSN: Fair Pricing Will Reflect Tighter Assumptions And 2026 Revenue Guidance

Analysts have kept their A$ price target for Hansen Technologies broadly in line with prior views, citing only minor tweaks to inputs such as the discount rate, revenue growth, profit margin and future P/E assumptions rather than any material shift in the investment case. What's in the News Hansen Technologies issued earnings guidance for the second half of 2026, giving investors a time frame to watch for the next set of financial results (Key Developments).
OCL
AU$11.69
Objective
7D
-6.5%
1Y
-23.2%

OCL: Share Buyback And Upcoming Distribution Will Support Long Term Returns

Analysts have reduced their price target for the stock from A$25.00 to A$22.10, reflecting updated assumptions for slightly higher discount rates, more moderate revenue growth, a marginally lower profit margin, and a small adjustment to future P/E expectations. 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$18.97
Life360
7D
-7.0%
1Y
-12.0%

360: Index Addition And Ride Partnership Will Support Future Upside

Analysts have reduced their Life360 price target from A$42.13 to A$38.46, reflecting updated views on growth, margins and the price-to-earnings ratio they are prepared to apply to the stock. What's in the News Life360 issued revenue guidance for fiscal 2026, with expected consolidated revenue of $640 million to $680 million, including subscription revenue of $460 million to $470 million, other revenue of $140 million to $160 million, and hardware revenue of $40 million to $50 million (Corporate Guidance).
WTC
AU$41.47
WiseTech Global
7D
-13.5%
1Y
-51.1%
DUG
AU$2.01
DUG Technology
7D
0.8%
1Y
77.1%

DUG: Higher Margin Assumptions Will Support Further Upside Potential

Analysts have adjusted their fair value estimate for DUG Technology from A$2.43 to A$2.48, reflecting updated assumptions around discount rates, revenue growth, profit margins and future P/E multiples. Valuation Changes Fair Value: updated from A$2.43 to A$2.48, representing a small upward adjustment in the modelled estimate.
IRI
AU$0.32
Integrated Research
7D
5.0%
1Y
-23.2%

IRI: Revised Margins And P/E Assumptions Will Support Long Term Upside

Analysts have trimmed their fair value estimate for Integrated Research from A$0.40 to A$0.36. This reflects updated assumptions that pair a slightly higher discount rate and future P/E multiple with more cautious profit margin expectations and revised revenue growth forecasts.
XRO
AU$76.98
Xero
7D
-1.9%
1Y
-51.7%

XRO: Reset Expectations And AI Expansion Will Support Future Upside

Analysts have trimmed their Xero price target to about A$155 from roughly A$182, reflecting updated views on fair value, discount rate, growth, margins and future P/E that also supported a recent upgrade in Street research. Analyst Commentary Recent Street commentary around Xero has focused on how the trimmed A$155 price target lines up with updated views on valuation, growth and execution, alongside the upgrade in formal research coverage.
VNL
AU$0.089
Vinyl Group
7D
11.3%
1Y
-15.2%
NOR
AU$0.012
Norwood Systems
7D
20.0%
1Y
-50.0%
IS3
AU$0.012
I Synergy Group
7D
71.4%
1Y
n/a
PHX
AU$0.11
PharmX Technologies
7D
4.8%
1Y
46.7%
SDR
AU$2.97
SiteMinder
7D
-6.0%
1Y
-36.1%
JCS
AU$0.042
JCurve Solutions
7D
5.0%
1Y
75.0%