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Australian (ASX) Software Industry Analysis

UpdatedMar 16, 2026
DataAggregated Company Financials
Companies68
  • 7D-7.5%
  • 3M-27.0%
  • 1Y-33.6%
  • YTD-26.1%

Over the last 7 days, the Software industry has dropped 7.5%, driven by a pullback from WiseTech Global of 9.8%. The industry has fallen 34% in the last year. 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
Mon, 16 Mar 2026AU$55.0bAU$8.6bAU$736.0m22.2x74.7x6.4x
Wed, 11 Feb 2026AU$59.3bAU$8.1bAU$635.6m36.8x93.4x7.4x
Fri, 09 Jan 2026AU$74.5bAU$8.2bAU$652.0m35.8x114.2x9.1x
Sun, 07 Dec 2025AU$79.8bAU$8.2bAU$655.7m34.4x121.7x9.7x
Tue, 04 Nov 2025AU$90.6bAU$8.1bAU$634.2m36.2x142.8x11.2x
Thu, 02 Oct 2025AU$100.2bAU$8.1bAU$635.2m34.3x157.8x12.4x
Sat, 30 Aug 2025AU$102.5bAU$8.2bAU$623.8m29.3x164.2x12.5x
Mon, 28 Jul 2025AU$106.9bAU$8.0bAU$545.8m74.1x195.8x13.4x
Wed, 25 Jun 2025AU$101.4bAU$8.0bAU$538.1m74.7x188.4x12.7x
Fri, 23 May 2025AU$95.1bAU$8.0bAU$540.9m93.5x175.8x11.8x
Sun, 20 Apr 2025AU$78.5bAU$7.9bAU$418.4m61.3x187.7x9.9x
Tue, 18 Mar 2025AU$80.8bAU$7.9bAU$415.1m58.7x194.5x10.3x
Thu, 13 Feb 2025AU$101.5bAU$7.6bAU$278.8m70.6x364x13.3x
Sat, 11 Jan 2025AU$99.1bAU$7.6bAU$278.2m70.4x356.3x13x
Mon, 09 Dec 2024AU$103.6bAU$7.7bAU$285.2m64.5x363.3x13.5x
Wed, 06 Nov 2024AU$91.8bAU$7.4bAU$210.2m64.2x436.6x12.4x
Fri, 04 Oct 2024AU$94.3bAU$7.4bAU$204.6m66.6x460.7x12.8x
Sun, 01 Sep 2024AU$86.6bAU$7.5bAU$200.9m67.8x431.1x11.5x
Tue, 30 Jul 2024AU$84.7bAU$7.7b-AU$90,339,231.5061.2x-937.1x11x
Thu, 27 Jun 2024AU$82.9bAU$7.8b-AU$93,147,570.5560.2x-890x10.7x
Sat, 25 May 2024AU$83.6bAU$7.8b-AU$97,301,422.2161.3x-859.1x10.7x
Mon, 22 Apr 2024AU$76.4bAU$7.6b-AU$369,339,416.3363.2x-206.9x10x
Wed, 20 Mar 2024AU$81.7bAU$7.6b-AU$389,734,514.8462.3x-209.5x10.7x
Fri, 16 Feb 2024AU$72.4bAU$7.6b-AU$767,676,947.4756.2x-94.4x9.5x
Sun, 14 Jan 2024AU$68.5bAU$8.4b-AU$1,047,986,363.0059.6x-65.3x8.2x
Tue, 12 Dec 2023AU$65.4bAU$8.4b-AU$1,048,477,472.0060.7x-62.4x7.8x
Thu, 09 Nov 2023AU$65.3bAU$8.2b-AU$1,167,516,207.0057.3x-55.9x8x
Sat, 07 Oct 2023AU$64.2bAU$8.1b-AU$1,112,168,882.0057.8x-57.7x7.9x
Mon, 04 Sep 2023AU$70.3bAU$8.1b-AU$1,106,793,792.0063.3x-63.5x8.7x
Wed, 02 Aug 2023AU$74.9bAU$7.7b-AU$891,786,656.0052.5x-83.9x9.7x
Fri, 30 Jun 2023AU$70.1bAU$7.7b-AU$901,698,779.0046.9x-77.7x9.1x
Sun, 28 May 2023AU$67.8bAU$7.7b-AU$937,654,081.0044.4x-72.3x8.8x
Tue, 25 Apr 2023AU$62.5bAU$7.5b-AU$872,365,301.0047.3x-71.6x8.3x
Thu, 23 Mar 2023AU$58.8bAU$7.5b-AU$871,250,101.0044.1x-67.5x7.8x
Price to Earnings Ratio

-67.5x


Total Market Cap: AU$58.8bTotal Earnings: -AU$871,250,101.00Total Revenue: AU$7.5bTotal Market Cap vs Earnings and Revenue0%0%0%
Australian Software Industry Price to Earnings3Y Average 19.1x202420252026
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 74.7x which is higher than its 3-year average PE of 19.1x.
  • The 3-year average PS ratio of 10.3x is higher than the industry's current PS ratio of 6.4x.
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 4.4% 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-2.69%
Tech-6.17%
Software-7.49%
Systems Software3.55%
Application Software-7.59%
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 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
QOR QoriaAU$0.3411.7%
+AU$47.8m		-16.3%PS3.5x
IOD IODMAU$0.2044.4%
+AU$38.1m		30.0%PS31.8x
ESK EtherstackAU$0.569.9%
+AU$7.1m		91.4%PS5.4x
DUG DUG TechnologyAU$2.022.3%
+AU$6.1m		82.0%PE120.4x
CCR Credit ClearAU$0.205.3%
+AU$5.2m		-11.1%PE21.2x

Latest News

CAT
AU$3.36
Catapult Sports
7D
-9.7%
1Y
-5.6%

CAT: Next Generation Performance Platform Will Support Future Outperformance Despite Minor Assumption Shifts

Analysts have trimmed their price target for Catapult Sports to reflect slightly lower fair value and profitability assumptions, along with a modestly higher discount rate and future P/E. This has resulted in a small recalibration of expectations in A$ terms.
NXL
AU$1.58
Nuix
7D
-11.5%
1Y
-53.5%

NXL: Neo Migration Execution Will Support Contract Value And Long Term Upside

Nuix's analyst price target has been adjusted from A$2.15 to A$2.20, with analysts citing a strong recent result against low expectations and growing confidence in management's execution on the Neo migration strategy to support net dollar retention and Annual Contract Value growth. Analyst Commentary The latest research points to a slightly higher price target around A$2.20 to A$2.30, with analysts pointing to recent results and progress on the Neo migration as key reasons for their updated views.
IOD
AU$0.20
IODM
7D
44.4%
1Y
30.0%
QOR
AU$0.34
Qoria
7D
11.7%
1Y
-16.3%
OCL
AU$12.28
Objective
7D
-5.8%
1Y
-17.9%

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$19.39
Life360
7D
-5.0%
1Y
-6.8%

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).
IRE
AU$6.95
Iress
7D
-7.3%
1Y
-15.8%
WTC
AU$46.63
WiseTech Global
7D
-8.0%
1Y
-44.8%
DUG
AU$2.02
DUG Technology
7D
2.3%
1Y
82.0%

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.
XRO
AU$78.98
Xero
7D
-5.3%
1Y
-50.3%

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.
CCR
AU$0.20
Credit Clear
7D
5.3%
1Y
-11.1%
TNE
AU$25.75
Technology One
7D
-2.2%
1Y
-7.8%

TNE: Higher Growth Assumptions And Margins Will Support Future Upside

Analysts have trimmed their price target on Technology One to A$32.23 from A$34.87. This reflects updated assumptions around a slightly higher discount rate, modestly stronger revenue growth at 14.47%, a marginally higher profit margin of 25.71%, and a lower future P/E of 57.47x.
IOV
AU$0.24
Ion Video
7D
14.3%
1Y
140.0%
IS3
AU$0.009
I Synergy Group
7D
28.6%
1Y
125.0%
3DP
AU$0.037
Pointerra
7D
8.8%
1Y
-51.3%
ESK
AU$0.56
Etherstack
7D
9.9%
1Y
91.4%