WiseTech Global (ASX:WTC), Xero (ASX:XRO) and TechnologyOne (ASX:TNE) entered the latter part of 2026 with different software growth strategies spanning logistics, cloud accounting and enterprise resource planning. WiseTech is integrating a major acquisition, Xero is expanding its accounting and payments proposition, while TechnologyOne continues to increase recurring SaaS Revenue and develop its international operations.

WiseTech Global

WiseTech reported FY26 underlying EBITDA of approximately AUD 644.5 million and underlying net profit after tax of AUD 313.5 million.

Free Cash Flow reached approximately AUD 410.7 million, while underlying free cash flow was AUD 489.6 million.

The e2open Acquisition was a major contributor to FY26 revenue, generating approximately AUD 541.2 million during the year. The transaction expanded WiseTech's position across international supply-chain software alongside its established CargoWise platform.

The company's next phase will depend partly on integrating e2open into the broader group and improving the contribution from the acquired Business over time.

Xero

Xero reported FY26 Operating Revenue of approximately NZD 2.75 billion. Adjusted EBITDA reached NZD 757.4 million, while free cash flow was approximately NZD 554 million.

Net profit after tax was NZD 167.4 million.

Total subscribers reached approximately 4.92 million, with 506,000 net additions during the financial year. Average revenue per user was NZD 55.44.

A major strategic priority is the integration of Melio, which expands Xero's presence in payments and the US small-business software market.

The combination is intended to link accounting and payment workflows within a broader platform. Successful integration could increase the range of services available to small-business customers while supporting Xero's US expansion strategy.

For FY27, Xero has guided to operating revenue of approximately NZD 3.62 billion to NZD 3.73 billion. Adjusted EBITDA is expected to range from NZD 860 million to NZD 920 million.

TechnologyOne

TechnologyOne reported annual Recurring Revenue of approximately AUD 598 million for the first half of FY26.

Total revenue reached AUD 322.7 million, while profit before tax was approximately AUD 89.1 million. Net profit after tax reached AUD 66.8 million.

The company continues to transition customers toward its software-as-a-service enterprise resource planning platform, which serves government, education, healthcare and financial-services organisations.

TechnologyOne maintained full-year FY26 guidance for profit-before-tax growth of approximately 18% to 20%, with management targeting the upper end of that range.

Annual recurring revenue growth is expected to be approximately 16% to 18%, also with an objective of reaching the upper end of the range.

The company is targeting continued Margin expansion toward a profit-before-tax margin of approximately 30% to 32%, alongside free cash flow conversion of around 100% of net profit.

Technology Sector Outlook

Recurring subscription revenue remains central to the operating models of all three companies.

WiseTech generates software revenue from customers operating across global logistics networks. Xero combines subscription accounting services with a growing payments proposition, while TechnologyOne relies heavily on long-duration enterprise relationships and recurring SaaS revenue.

Artificial intelligence is becoming another common Investment theme. WiseTech is applying automation to logistics processes, Xero is integrating AI into accounting and payment workflows, and TechnologyOne is embedding new capabilities into its enterprise platform.

The financial impact of these investments will depend on whether new functionality increases customer adoption, improves retention or supports additional revenue without causing a disproportionate increase in costs.

International expansion is also relevant. WiseTech and Xero already generate significant business outside Australia, while TechnologyOne continues to expand its presence in the UK.

Key Risks

WiseTech faces execution risk associated with integrating e2open. Delays in integration or lower-than-expected efficiencies could affect future margins and earnings.

Xero faces competitive and integration risks as it develops its US business and incorporates Melio. Customer acquisition costs and competition across accounting and payment software could influence future returns.

TechnologyOne remains exposed to enterprise technology spending and competition from international ERP providers. Its expansion outside Australia also requires continued customer acquisition and execution.

Currency movements can influence reported results for businesses with significant international revenue, while continued AI development may require additional investment before financial benefits become evident.

What Investors May Monitor Through the Rest of 2026

For WiseTech, e2open integration, CargoWise organic growth and progress across AI-related product development will remain important operational areas.

For Xero, subscriber additions, US expansion, Melio integration and performance against FY27 revenue and EBITDA guidance will provide further indicators of progress.

For TechnologyOne, the FY26 full-year result will provide an update on annual recurring revenue growth, profit margins and delivery against its existing guidance.

The three companies represent different parts of Australia's software sector. WiseTech is expanding its logistics technology platform through acquisition and integration, Xero is combining accounting with payments to increase its presence in major international markets, and TechnologyOne continues to build recurring enterprise software revenue while extending its SaaS model.