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Australian (ASX) Software Industry Analysis

UpdatedApr 20, 2026
DataAggregated Company Financials
Companies69
  • 7D14.2%
  • 3M-17.1%
  • 1Y-29.3%
  • YTD-23.4%

In the last week, the Software industry is up 14%, with WiseTech Global up 22%. Meanwhile, IODM actually underperformed within the industry, shrinking 5.7% in the last week. In contrast, the industry has lost 29% in the last 12 months. 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
Mon, 20 Apr 2026AU$57.1bAU$8.4bAU$724.3m24.6x78.8x6.8x
Wed, 18 Mar 2026AU$53.1bAU$8.5bAU$729.9m23.3x72.7x6.2x
Fri, 13 Feb 2026AU$55.5bAU$8.0bAU$599.8m30x92.5x6.9x
Sun, 11 Jan 2026AU$73.7bAU$8.2bAU$652.0m35.3x113x9x
Tue, 09 Dec 2025AU$79.6bAU$8.2bAU$656.2m31.7x121.3x9.7x
Thu, 06 Nov 2025AU$87.7bAU$8.1bAU$636.8m35.8x137.7x10.8x
Sat, 04 Oct 2025AU$102.1bAU$8.1bAU$636.6m35.2x160.4x12.6x
Mon, 01 Sep 2025AU$102.3bAU$8.1bAU$638.5m33.6x160.3x12.6x
Wed, 30 Jul 2025AU$107.8bAU$8.0bAU$547.7m75.7x196.8x13.5x
Fri, 27 Jun 2025AU$99.2bAU$8.0bAU$537.0m77x184.7x12.4x
Sun, 25 May 2025AU$96.2bAU$8.0bAU$538.4m95x178.6x12x
Tue, 22 Apr 2025AU$78.6bAU$7.9bAU$417.7m61.3x188.2x9.9x
Thu, 20 Mar 2025AU$79.7bAU$7.9bAU$416.3m58.6x191.5x10.1x
Sat, 15 Feb 2025AU$102.6bAU$7.6bAU$342.7m54.9x299.3x13.4x
Mon, 13 Jan 2025AU$99.2bAU$7.7bAU$278.1m70.4x356.6x12.9x
Wed, 11 Dec 2024AU$99.2bAU$7.7bAU$284.8m64.5x348.4x12.9x
Fri, 08 Nov 2024AU$94.6bAU$7.4bAU$210.3m64.7x449.8x12.8x
Sun, 06 Oct 2024AU$92.7bAU$7.4bAU$213.6m66.1x433.8x12.6x
Tue, 03 Sep 2024AU$87.7bAU$7.5bAU$189.0m66.5x463.7x11.6x
Thu, 01 Aug 2024AU$85.7bAU$7.7b-AU$88,263,242.6863.5x-971.5x11.1x
Sat, 29 Jun 2024AU$86.0bAU$7.8b-AU$93,610,657.2961.1x-918.2x11.1x
Mon, 27 May 2024AU$83.6bAU$7.8b-AU$97,316,708.3261.3x-859x10.7x
Wed, 24 Apr 2024AU$78.7bAU$7.6b-AU$369,118,708.0763.2x-213.3x10.3x
Fri, 22 Mar 2024AU$82.0bAU$7.6b-AU$389,154,676.5360.4x-210.8x10.8x
Sun, 18 Feb 2024AU$73.1bAU$7.6b-AU$763,598,154.7152.5x-95.7x9.6x
Tue, 16 Jan 2024AU$68.6bAU$8.4b-AU$1,047,961,907.0059.5x-65.4x8.2x
Thu, 14 Dec 2023AU$66.9bAU$8.4b-AU$1,048,467,973.0059.2x-63.8x8x
Sat, 11 Nov 2023AU$62.3bAU$8.4b-AU$1,104,427,532.0055.2x-56.4x7.5x
Mon, 09 Oct 2023AU$64.2bAU$8.1b-AU$1,112,128,807.0057.8x-57.7x7.9x
Wed, 06 Sep 2023AU$70.4bAU$8.1b-AU$1,118,232,108.0062.5x-62.9x8.7x
Fri, 04 Aug 2023AU$73.7bAU$7.7b-AU$893,927,212.0051.5x-82.5x9.5x
Sun, 02 Jul 2023AU$70.6bAU$7.7b-AU$889,874,090.0047.8x-79.3x9.2x
Tue, 30 May 2023AU$67.6bAU$7.7b-AU$936,838,146.0044.1x-72.1x8.7x
Thu, 27 Apr 2023AU$62.2bAU$7.5b-AU$874,564,052.0047.2x-71.1x8.3x
Price to Earnings Ratio

-71.1x


Total Market Cap: AU$62.2bTotal Earnings: -AU$874,564,052.00Total Revenue: AU$7.5bTotal Market Cap vs Earnings and Revenue0%0%0%
Australian Software Industry Price to Earnings3Y Average 23.5x202420252026
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 78.8x which is higher than its 3-year average PE of 23.5x.
  • The 3-year average PS ratio of 10.3x is higher than the industry's current PS ratio of 6.8x.
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 3.8% 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 Market0.25%
Tech11.65%
Software14.18%
Application Software14.21%
Systems Software11.25%
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 16.2% 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 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
WTC WiseTech GlobalAU$45.4922.4%
+AU$2.8b		-44.5%PE66.8x
XRO XeroAU$82.1516.7%
+AU$2.0b		-47.0%PE63.8x
360 Life360AU$22.4825.5%
+AU$1.1b		14.1%PE25.8x
TNE Technology OneAU$30.4912.0%
+AU$1.1b		8.5%PE72.3x
EIQ Echo IQAU$1.2339.8%
+AU$231.3m		310.0%PS8941.5x

Latest News

EIQ
AU$1.23
Echo IQ
7D
39.8%
1Y
310.0%
WTC
AU$45.49
WiseTech Global
7D
22.4%
1Y
-44.5%

WTC: Execution And Integration Discipline Will Shape Future Earnings And Dividend Outcomes

Analysts have reduced their WiseTech Global price target to about A$47.52 from roughly A$56.40, reflecting updated views on growth, margins and valuation multiples. Analyst Commentary Recent revisions to WiseTech Global price targets highlight a more cautious tone from some bearish analysts, even as interest in the broader logistics and software space continues.
360
AU$22.48
Life360
7D
25.5%
1Y
14.1%
RKN
AU$0.46
Reckon
7D
-3.2%
1Y
-4.2%
TNE
AU$30.49
Technology One
7D
12.0%
1Y
8.5%

TNE: Index Removals Will Create Future Opportunity From Modestly Lowered Expectations

Analysts have trimmed their price target for Technology One by A$0.76 to reflect updated assumptions around fair value, discount rate, revenue growth, profit margins and future P/E multiples. What's in the News Technology One Limited (ASX:TNE) removed as a constituent of the S&P International 700 Index (Index Constituent Drops).
IOD
AU$0.17
IODM
7D
-5.7%
1Y
6.5%
VR1
AU$0.031
Vection Technologies
7D
-3.1%
1Y
63.2%
BVS
AU$2.18
Bravura Solutions
7D
11.8%
1Y
0%

BVS: Higher Earnings Visibility And Dividends May Support Future Share Rebound

Analysts have lifted their A$ price target for Bravura Solutions, citing revised assumptions for improved revenue growth along with slightly lower discount and P/E inputs as the main factors behind the change. Analyst Commentary Bullish analysts are framing the latest A$ price target move for Bravura Solutions as a sign of increasing confidence in the company’s ability to execute on its revenue plans, especially with updated assumptions that point to a stronger top line and a refined valuation framework.
XRO
AU$82.15
Xero
7D
16.7%
1Y
-47.0%

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.
OLL
AU$0.023
OpenLearning
7D
-8.0%
1Y
53.3%
FCL
AU$2.52
FINEOS Corporation Holdings
7D
13.5%
1Y
36.2%
DWG
AU$0.14
DataWorks Group
7D
-12.5%
1Y
-26.3%
ROC
AU$0.30
RocketBoots
7D
-3.2%
1Y
252.9%
SDR
AU$3.32
SiteMinder
7D
13.7%
1Y
-13.8%
FLX
AU$0.086
Felix Group Holdings
7D
-9.5%
1Y
-58.6%
GTI
AU$0.05
Gratifii
7D
-9.1%
1Y
-41.2%