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Australian (ASX) Software Industry Analysis

UpdatedFeb 23, 2026
DataAggregated Company Financials
Companies63
  • 7D9.1%
  • 3M-29.1%
  • 1Y-46.7%
  • YTD-25.7%

In the last week, the Software industry is up 9.1%, with Technology One up 10%. In the same time, WiseTech Global was down 7.2%. In the past year, the industry is down 47%. As for the next few years, earnings are expected to grow by 24% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Tue, 24 Feb 2026AU$55.1bAU$8.0bAU$620.4m27x88.8x6.9x
Thu, 22 Jan 2026AU$67.7bAU$8.2bAU$651.9m33.3x103.9x8.3x
Sat, 20 Dec 2025AU$76.4bAU$8.2bAU$659.0m37.8x115.9x9.3x
Mon, 17 Nov 2025AU$79.2bAU$8.3bAU$671.4m38.1x118x9.5x
Wed, 15 Oct 2025AU$98.1bAU$8.1bAU$641.1m34.7x153x12x
Fri, 12 Sep 2025AU$99.6bAU$8.1bAU$638.6m34.1x155.9x12.3x
Sun, 10 Aug 2025AU$106.4bAU$8.0bAU$547.5m75.6x194.3x13.3x
Tue, 08 Jul 2025AU$102.7bAU$8.0bAU$537.6m75.7x191x12.8x
Thu, 05 Jun 2025AU$101.0bAU$8.0bAU$539.8m79.7x187.1x12.6x
Sat, 03 May 2025AU$87.7bAU$7.8bAU$482.5m67.9x181.9x11.3x
Mon, 31 Mar 2025AU$79.2bAU$7.9bAU$416.9m61.6x190.1x10x
Wed, 26 Feb 2025AU$90.3bAU$7.7bAU$379.1m48.9x238.2x11.8x
Fri, 24 Jan 2025AU$98.4bAU$7.6bAU$288.1m70.4x341.4x12.9x
Sun, 22 Dec 2024AU$96.6bAU$7.7bAU$268.5m68.4x359.6x12.5x
Tue, 19 Nov 2024AU$100.5bAU$7.6bAU$268.6m63.8x374.1x13.2x
Thu, 17 Oct 2024AU$94.5bAU$7.4bAU$211.8m65.8x446.3x12.8x
Sat, 14 Sep 2024AU$90.4bAU$7.4bAU$199.4m66.5x453.1x12.1x
Mon, 12 Aug 2024AU$73.8bAU$7.3b-AU$206,777,324.9360.2x-356.8x10.1x
Wed, 10 Jul 2024AU$84.6bAU$7.7b-AU$95,013,077.5358.2x-890.1x10.9x
Fri, 07 Jun 2024AU$83.5bAU$7.8b-AU$82,097,334.6962.8x-1016.7x10.7x
Sun, 05 May 2024AU$79.9bAU$7.6b-AU$322,886,593.9563.8x-247.4x10.6x
Tue, 02 Apr 2024AU$81.5bAU$7.6b-AU$387,839,811.5563x-210.1x10.7x
Thu, 29 Feb 2024AU$78.9bAU$7.7b-AU$477,883,230.1556.8x-165.1x10.2x
Sat, 27 Jan 2024AU$69.7bAU$8.4b-AU$1,048,353,753.0060.7x-66.5x8.3x
Mon, 25 Dec 2023AU$68.8bAU$8.4b-AU$1,046,713,887.0060.7x-65.8x8.2x
Wed, 22 Nov 2023AU$64.4bAU$8.4b-AU$1,057,547,168.0057.3x-60.9x7.7x
Fri, 20 Oct 2023AU$63.2bAU$8.1b-AU$1,119,403,421.0058.2x-56.5x7.8x
Sun, 17 Sep 2023AU$69.5bAU$8.1b-AU$1,116,615,884.0060.1x-62.3x8.6x
Tue, 15 Aug 2023AU$73.5bAU$7.7b-AU$892,591,052.0050.9x-82.3x9.5x
Thu, 13 Jul 2023AU$69.1bAU$7.7b-AU$890,051,417.0048x-77.6x9x
Sat, 10 Jun 2023AU$67.3bAU$7.7b-AU$895,238,292.0049.5x-75.2x8.7x
Mon, 08 May 2023AU$61.4bAU$7.5b-AU$876,444,181.0048.9x-70x8.2x
Wed, 05 Apr 2023AU$61.6bAU$7.5b-AU$869,660,235.0045.3x-70.8x8.2x
Fri, 03 Mar 2023AU$57.4bAU$7.3b-AU$694,526,727.0045.9x-82.6x7.9x
Price to Earnings Ratio

-82.6x


Total Market Cap: AU$57.4bTotal Earnings: -AU$694,526,727.00Total Revenue: AU$7.3bTotal Market Cap vs Earnings and Revenue0%0%0%
Australian Software Industry Price to Earnings3Y Average 16.1x202420252026
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 88.8x which is higher than its 3-year average PE of 16.0x.
  • 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 2.4% 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 Market1.85%
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$23.4710.2%
+AU$708.3m		-26.5%PE55.7x
HSN Hansen TechnologiesAU$5.1915.6%
+AU$139.5m		2.2%PE16.2x
NXL NuixAU$1.5713.0%
+AU$60.3m		-64.5%PS2.4x
EIQ Echo IQAU$0.6114.0%
+AU$50.0m		103.3%PS3942.5x
OCL ObjectiveAU$13.893.2%
+AU$41.2m		-15.7%PE37.6x

Latest News

XRO
AU$75.28
Xero
7D
-4.8%
1Y
-58.2%
CAT
AU$3.40
Catapult Sports
7D
-2.6%
1Y
-7.4%

Unified SaaS Platform And AI Data Will Transform Long Term Performance Analytics Prospects

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WTC
AU$44.63
WiseTech Global
7D
-7.2%
1Y
-54.1%

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$5.19
Hansen Technologies
7D
15.6%
1Y
2.2%
TNE
AU$23.47
Technology One
7D
10.2%
1Y
-26.5%
NXL
AU$1.57
Nuix
7D
13.0%
1Y
-64.5%
EOL
AU$13.55
Energy One
7D
-5.1%
1Y
43.7%

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.
PPS
AU$0.71
Praemium
7D
6.7%
1Y
-17.8%

PPS: Higher Margin Outlook And Updated P/E Assumptions Will Support Bullish Upside

Analysts have nudged their price target for Praemium slightly higher, with fair value moving from A$1.03 to A$1.05, citing updated assumptions around revenue growth, profit margins and future P/E expectations. Valuation Changes Fair value has been adjusted slightly higher from A$1.03 to A$1.05.
IRE
AU$6.95
Iress
7D
-2.1%
1Y
-9.5%

IRE: Higher Required Returns Will Still Support Confidence In Undervalued Shares

Analysts have nudged their Iress price target slightly higher to A$10.12 from A$10.10, reflecting updated views on discount rates, modestly softer revenue and margin assumptions, and a slightly higher future P/E multiple. Valuation Changes Fair Value: The model fair value estimate has edged up from A$10.10 to A$10.12.
BVS
AU$1.88
Bravura Solutions
7D
-11.3%
1Y
-29.6%
FCL
AU$2.30
FINEOS Corporation Holdings
7D
4.5%
1Y
31.4%
360
AU$22.75
Life360
7D
-3.2%
1Y
-1.5%

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

Feb 13
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OCL
AU$13.89
Objective
7D
3.2%
1Y
-15.7%

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).
SDR
AU$3.33
SiteMinder
7D
-9.0%
1Y
-47.6%

SiteMinder Limited's (ASX:SDR) Popularity With Investors Under Threat As Stock Sinks 32%

Feb 06
SiteMinder Limited's (ASX:SDR) Popularity With Investors Under Threat As Stock Sinks 32%
EIQ
AU$0.61
Echo IQ
7D
14.0%
1Y
103.3%
YOJ
AU$0.35
Yojee
7D
32.1%
1Y
159.3%