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Australian (ASX) Software Industry Analysis

UpdatedApr 06, 2026
DataAggregated Company Financials
Companies69
  • 7D-0.8%
  • 3M-31.0%
  • 1Y-33.3%
  • YTD-32.8%

The Software industry has stayed flat over the last week. Unfortunately though, the industry is down 33% over the past 12 months. 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, 06 Apr 2026AU$50.0bAU$8.5bAU$741.7m21.1x67.5x5.9x
Wed, 04 Mar 2026AU$53.6bAU$8.6bAU$734.9m23.4x72.9x6.3x
Fri, 30 Jan 2026AU$66.1bAU$8.1bAU$638.6m33.9x103.5x8.2x
Sun, 28 Dec 2025AU$75.6bAU$8.2bAU$653.9m37.8x115.7x9.2x
Tue, 25 Nov 2025AU$78.2bAU$8.3bAU$661.2m35.1x118.2x9.5x
Thu, 23 Oct 2025AU$96.6bAU$8.1bAU$639.4m36.4x151.1x11.9x
Sat, 20 Sep 2025AU$102.2bAU$8.1bAU$638.1m35x160.1x12.6x
Mon, 18 Aug 2025AU$105.2bAU$8.1bAU$578.1m76.3x182x13x
Wed, 16 Jul 2025AU$102.7bAU$8.0bAU$534.8m53.4x192.1x12.8x
Fri, 13 Jun 2025AU$101.1bAU$8.0bAU$538.2m78x187.9x12.6x
Sun, 11 May 2025AU$89.0bAU$7.8bAU$482.7m69.7x184.4x11.4x
Tue, 08 Apr 2025AU$72.1bAU$8.0bAU$429.3m55.2x167.9x9x
Thu, 06 Mar 2025AU$86.1bAU$7.9bAU$413.9m58.2x208x10.9x
Sat, 01 Feb 2025AU$101.2bAU$7.7bAU$288.8m70.9x350.5x13.2x
Mon, 30 Dec 2024AU$98.2bAU$7.7bAU$272.3m67.3x360.5x12.7x
Wed, 27 Nov 2024AU$99.7bAU$7.7bAU$277.1m64.9x359.7x13x
Fri, 25 Oct 2024AU$83.5bAU$7.4bAU$211.0m66x395.7x11.3x
Sun, 22 Sep 2024AU$93.0bAU$7.4bAU$200.3m67.9x464.1x12.5x
Tue, 20 Aug 2024AU$77.4bAU$7.3b-AU$104,717,136.6662.2x-738.8x10.6x
Thu, 18 Jul 2024AU$87.1bAU$7.7b-AU$96,045,747.5561x-907.2x11.3x
Sat, 15 Jun 2024AU$82.7bAU$7.8b-AU$91,614,845.7959.8x-902.9x10.6x
Mon, 13 May 2024AU$81.6bAU$7.6b-AU$316,527,083.5961.3x-257.8x10.8x
Wed, 10 Apr 2024AU$79.5bAU$7.6b-AU$383,949,828.0865.5x-207x10.5x
Fri, 08 Mar 2024AU$81.0bAU$7.7b-AU$402,304,631.6761.1x-201.3x10.5x
Sun, 04 Feb 2024AU$70.6bAU$8.4b-AU$1,049,046,024.0061.1x-67.3x8.4x
Tue, 02 Jan 2024AU$70.1bAU$8.4b-AU$1,046,756,541.0060x-66.9x8.4x
Thu, 30 Nov 2023AU$64.3bAU$8.4b-AU$1,049,910,549.0058x-61.3x7.7x
Sat, 28 Oct 2023AU$60.4bAU$8.1b-AU$1,118,553,552.0054.4x-54x7.5x
Mon, 25 Sep 2023AU$66.4bAU$8.1b-AU$1,117,449,857.0059.9x-59.5x8.2x
Wed, 23 Aug 2023AU$72.4bAU$7.9b-AU$1,008,318,502.0052.5x-71.8x9.2x
Fri, 21 Jul 2023AU$73.4bAU$7.7b-AU$887,241,696.0048x-82.8x9.6x
Sun, 18 Jun 2023AU$70.3bAU$7.7b-AU$895,287,775.0049.5x-78.5x9.2x
Tue, 16 May 2023AU$63.0bAU$7.5b-AU$877,091,298.0045.9x-71.8x8.4x
Thu, 13 Apr 2023AU$60.9bAU$7.5b-AU$872,406,277.0044.1x-69.8x8.1x
Price to Earnings Ratio

-69.8x


Total Market Cap: AU$60.9bTotal Earnings: -AU$872,406,277.00Total Revenue: AU$7.5bTotal Market Cap vs Earnings and Revenue0%0%0%
Australian Software Industry Price to Earnings3Y Average 21.7x202420252026
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 67.5x which is higher than its 3-year average PE of 21.7x.
  • 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 4.3% 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 Market0.63%
Tech-0.96%
Software-0.76%
Systems Software6.52%
Application Software-0.83%
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
XRO XeroAU$74.061.7%
+AU$208.1m		-49.1%PE57.1x
QOR QoriaAU$0.295.4%
+AU$20.5m		-18.1%PS3.1x
ROC RocketBootsAU$0.3415.0%
+AU$9.4m		228.6%PS175.6x
AV1 AdveritasAU$0.09611.6%
+AU$9.3m		23.1%PS9.3x
ESK EtherstackAU$0.6511.1%
+AU$9.2m		140.7%PS6.3x

Latest News

XRO
AU$74.06
Xero
7D
1.7%
1Y
-49.1%

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.
IRE
AU$6.80
Iress
7D
-2.0%
1Y
-8.7%

IRE: 2026 Guidance And Profit Outlook Will Support Undervalued Shares

Analysts now set their price target for Iress at A$10.05, effectively unchanged from A$10.05. This reflects only minor tweaks to assumptions around the discount rate, revenue growth, profit margin and future P/E multiples.
WTC
AU$37.88
WiseTech Global
7D
-1.3%
1Y
-49.4%

WTC: Reaffirmed 2026 Revenue Guidance Will Support Long-Term Share Price Appreciation

Analysts have reduced their fair value estimate for WiseTech Global from about A$107.32 to A$91.59, citing more moderate revenue growth assumptions and a slightly higher discount rate. These factors are partly offset by a small increase in expected profit margins and a lower future P/E multiple.
AV1
AU$0.096
Adveritas
7D
11.6%
1Y
23.1%

We Think Adveritas (ASX:AV1) Can Easily Afford To Drive Business Growth

Apr 03
We Think Adveritas (ASX:AV1) Can Easily Afford To Drive Business Growth
PPS
AU$0.67
Praemium
7D
2.3%
1Y
0%

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$26.91
Technology One
7D
-1.4%
1Y
6.2%

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.
CAT
AU$3.22
Catapult Sports
7D
-5.6%
1Y
-0.3%
ESK
AU$0.65
Etherstack
7D
11.1%
1Y
140.7%
EIQ
AU$0.86
Echo IQ
7D
-8.0%
1Y
220.4%
NXL
AU$1.20
Nuix
7D
-2.8%
1Y
-55.7%

NXL: Upgraded Rating Will Rely On Execution Of Neo Migration Strategy

Analysts have lifted their price target for Nuix to A$2.30 from A$2.15, citing the recent upgrade to Outperform and confidence in management's execution on the Neo migration strategy to support net dollar retention and Annual Contract Value growth. Analyst Commentary Bullish analysts point to the recent upgrade to Outperform and the lift in the price target to A$2.30 as a sign of growing confidence in Nuix's current trajectory.
HSN
AU$4.80
Hansen Technologies
7D
-3.6%
1Y
0.2%

HSN: Fair Pricing Will Reflect 2026 Second Half Revenue Expectations

Analysts have made a modest adjustment to their price target for Hansen Technologies, keeping fair value around A$5.30 as they factor in slightly updated assumptions for the discount rate, revenue growth, profit margin and future P/E multiples. What's in the News Hansen Technologies issued new earnings guidance for the second half of 2026, giving you a clearer view of management expectations for that period (Key Developments).
360
AU$18.70
Life360
7D
-3.1%
1Y
3.8%

360: Index Inclusion And Expanded Partnerships Will Support Further Upside

Analysts have trimmed their Life360 price target from A$29.75 to A$25.00 as updated assumptions around discount rates, revenue growth, profit margins, and future P/E multiples filter through their models. What's in the News Life360, Inc.
IOD
AU$0.12
IODM
7D
9.1%
1Y
-33.3%
QOR
AU$0.29
Qoria
7D
5.4%
1Y
-18.1%
ACE
AU$1.50
Acusensus
7D
1.7%
1Y
52.3%
ROC
AU$0.34
RocketBoots
7D
15.0%
1Y
228.6%