Highlights

  • WiseTech Global faces regulatory scrutiny as ASIC and AFP execute a search at Sydney office.
  • Xero reports H1 FY26 revenue growth of 20% with subscribers rising to 4.59 million.
  • Technology One posts 18% revenue growth, surpassing AUD 500M in annual recurring revenue.

The ASX 200 Information Technology sector dropped 2.44% today, with major stocks including WiseTech Global, Xero, and Technology One  all recording losses. The decline reflects ongoing pressure across the IT segment, as investors digest recent regulatory developments and financial results.

Name

Ticker

CMP in AUD (as on 05 Jan 2025)

% Change (05 Jan 2025)

6-Month Change

9-Month Change

WiseTech Global Ltd

(ASX:WTC)

66.01

-3.70%

-41.08%

-11.75%

Xero Limited

(ASX:XRO)

109.11

-2.82%

-38.90%

-23.30%

Technology One Limited

(ASX:TNE)

27.27

-2.10%

-32.36%

7.92%

Data source: Refinitiv

WiseTech Global Regulatory Update
WiseTech Global Ltd (ASX:WTC) disclosed on 28 October 2025 that officers from the Australian Securities and Investments Commission (ASIC) and the Australian Federal Police (AFP) attended its Sydney office and executed a search warrant. The warrant sought documents concerning alleged trading in WiseTech shares by Richard White and three employees between late 2024 and early 2025. WiseTech noted that no charges have been laid against any individual, and the company itself is not under allegation. The company confirmed it will fully cooperate with any investigation.

Xero H1 FY26 Results
Xero Ltd (ASX:XRO) reported H1 FY26 results for the six months ending 30 September 2025. Operating revenue increased 20% to NZD 1.19B, or 18% in constant currency. Adjusted EBITDA rose 12% to NZD 350.9M, while reported EBITDA reached NZD 377.9M. Free cash flow grew to NZD 321.1M, with a free cash flow margin of 26.9%, resulting in a Rule of 40 outcome of 44.5%. Subscriber numbers climbed by 176,000 to 4.59M, supported by growth across Australia, New Zealand, and international markets. Annualised monthly recurring revenue increased 26% to NZD 2.73B. During the period, Xero completed the acquisition of Melio.

Technology One FY25 Performance
Technology One Ltd (ASX:TNE) released its FY25 results on 18 November 2025. Profit before tax rose 19% to AUD 181.5M, surpassing prior guidance, while profit after tax increased 17% to AUD 137.6M. Total revenue grew 18% to AUD 610M, driven by SaaS and recurring revenue, which rose 19% to AUD 553.2M. Annual recurring revenue reached AUD 554.6M, exceeding the AUD 500M milestone ahead of schedule. Free cash flow increased 55% to AUD 184.2M. The company declared a total dividend of 36.6c per share, including a special dividend.