ASX Technology Sector Performance Analysis: Megaport Leads While Xero Lags

Robert Luong

07 September 2026 10:03 AM AEST

ASX Technology Sector Performance Analysis: Megaport Leads While Xero Lags

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Key Highlights

Megaport Leads the Group: Megaport (MP1) surged 4.11%, recording the strongest performance among the selected technology stocks.
Iress and NEXTDC Rally: Iress (IRE) gained 2.72%, while NEXTDC (NXT) advanced 2.55%.
WiseTech Extends the Recovery: WiseTech Global (WTC) rose 2.53%, adding to the strong rebound across major technology stocks.
Macquarie Technology and Data#3 Advance: MAQ and DTL gained 2.06% and 2.04%, respectively.
Broad Technology Strength: Seven of the 10 selected technology stocks gained more than 2%, indicating strong participation across the group.
TechnologyOne Holds Steady: TechnologyOne (TNE) was almost unchanged, gaining just 0.10%.
Codan and Xero Decline: Codan (CDA) fell 0.41%, while Xero (XRO) dropped 1.66%, recording the weakest performance.
Tech Sector Rebounds: The strong performance occurred as the broader Australian technology sector recovered, with the All Technology index gaining more than 1% on the session.

The selected ASX technology stocks displayed predominantly positive performance on 4 September 2026, led by a sharp 4.11% gain in Megaport. Iress, NEXTDC and WiseTech Global also recorded gains above 2%, while Macquarie Technology, Data#3 and Dicker Data advanced strongly. The performance contrasted with weakness in Xero and Codan.

Daily ASX Technology Stock Performance Summary

Megaport Takes the Lead

Megaport (MP1) dominated the selected technology stocks on 4 September, surging 4.11%.

The company's strong performance came amid renewed investor attention on cloud connectivity and digital infrastructure. Megaport has remained a major beneficiary of the expansion in cloud and AI infrastructure, while recent coverage has highlighted continued interest in its growth outlook.

Iress (IRE) followed with a 2.72% gain. Recent market coverage has focused on Iress' improved profitability and cost-efficiency program, with the company reporting stronger interim profit and a significant increase in its dividend.

NEXTDC (NXT) also advanced 2.55%. The data-centre operator remains supported by long-term Demand for digital infrastructure, particularly from AI and cloud computing. Its recent expansion plans and increased Debt capacity have strengthened its ability to fund additional data-centre development.

WiseTech and Digital Infrastructure Stocks Advance

WiseTech Global (WTC) gained 2.53%, continuing a recovery after considerable Volatility during August and early September.

Investor attention remains focused on CargoWise, WiseTech's logistics software platform, as the company develops AI-enabled capabilities and works through pricing and regulatory considerations. Recent coverage has highlighted the company's new FY27 Revenue guidance and continued strategic focus on CargoWise.

Macquarie Technology Group (MAQ) rose 2.06%, while Data#3 (DTL) and Dicker Data (DDR) gained 2.04% and 2.00%, respectively.

The broad gains across data-centre, cloud-connectivity, software and IT-services companies suggest that the session's technology recovery was not confined to a single subsector. Instead, buying interest extended across several areas of Australia's technology market.

Mixed Performance Across the Technology Sector

TechnologyOne (TNE) was almost unchanged, gaining only 0.10%. Its limited movement contrasted sharply with the gains recorded by Megaport, Iress, NEXTDC and WiseTech.

Codan (CDA) also underperformed, declining 0.41%. The stock's weakness indicates that company-specific factors remained important even as broader technology sentiment improved.

Overall, nine of the 10 selected technology stocks moved higher or were close to flat, with only Codan and Xero declining. The concentration of gains above 2% among seven stocks demonstrates particularly strong breadth within the selected group.

Xero Lags the Technology Rebound

Xero (XRO) was the weakest performer, declining 1.66%.

The decline was notable because Xero had recently staged a significant recovery from a multi-year low. Recent market coverage highlighted a sharp rebound in the company's share price, with the stock having gained approximately 33% from its seven-year low by early September.

The subsequent decline suggests that some investors may have been taking profits following the strong recovery. Xero's performance also demonstrates that the technology-sector rebound was not uniform across all large-cap software companies.

Bottom Line

The 4 September session showed a strong and broad-based rebound across the selected ASX technology stocks, led by Megaport's 4.11% gain. Iress, NEXTDC, WiseTech, Macquarie Technology, Data#3 and Dicker Data all advanced by more than 2%.

The strength was particularly notable across cloud connectivity, data centres, logistics software and IT services, areas closely linked to continued Investment in digital infrastructure and AI. Recent market coverage also points to strong investor interest in Megaport's cloud-connectivity growth and NEXTDC's data-centre expansion.

However, the weakness in Xero and Codan shows that the recovery was not completely uniform. Xero's 1.66% decline was particularly notable following its recent sharp rebound from multi-year lows.

Overall, the session suggests that short-term momentum has shifted strongly back toward ASX technology stocks, with digital infrastructure and software names leading the recovery. Continued strength in Megaport, NEXTDC and WiseTech would provide further confirmation that the sector's recent rebound is developing into a broader momentum recovery.

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