Highlights

  • ASX technology sector dropped 9.21%, marking the weakest-performing sector on 4 February 2026.
  • Xero Ltd declines 15.90%, despite outlining AI expansion and US payments progress.
  • WiseTech Global shares declined 10.68%, tracking the broader technology sector sell-off.
  • HUB24 shares fell 10.75% today, even after record platform net inflows in Q2 FY26.

The ASX technology sector came under heavy pressure on 4 February 2026, falling 9.21% to become the weakest-performing sector of the session. The decline followed a difficult overnight period for global software stocks, where selling was widespread and sentiment weakened across technology markets.

Offshore cloud and fintech exchange-traded funds declined between 5% and 6%, signalling continued pressure on the technology space and setting a negative tone for local stocks. Against this backdrop, several ASX-listed technology names moved sharply lower despite the absence of company-specific negative disclosures.

The sector-wide pullback weighed on both large-cap and mid-cap stocks, with Xero Ltd WiseTech Global Ltd and HUB24 Ltd among the notable decliners, each recording double-digit percentage losses during the session.

Xero Ltd (ASX:XRO)

Xero Ltd (ASX:XRO) shares fell 15.90% to AUD 81.04 on 4 February 2026, placing the stock among the day’s steepest technology decliners. The move came despite the company hosting an investor briefing on 3 February 2026, outlining its focus on global artificial intelligence initiatives and US payments opportunities.

Xero highlighted ongoing development of AI-driven features, with more than two million subscribers using its AI-enabled tools and over 300,000 engaging with newer generative AI features. The company also provided updates on the integration of Melio following its October 2025 acquisition, detailing progress in embedding payments functionality and aligning go-to-market teams. Guidance reiterated that Melio is expected to reach adjusted EBITDA breakeven on a run-rate basis in H2 FY28, while Xero maintained its existing FY26 outlook.

HUB24 Ltd (ASX:HUB)

HUB24 Ltd (ASX:HUB) shares fell 10.75% to AUD 88.01 on 4 February 2026, moving in line with the broader technology sector sell-off despite a recent platform update highlighting continued inflows.

In an ASX release dated 20 January 2026, HUB24 reported record quarterly Platform net inflows of AUD 5.6 billion in Q2 FY26, up 2% on the prior corresponding period and 42% excluding large migrations. Half-year Platform net inflows reached AUD 10.7 billion in 1H FY26, up 13% year-on-year.

Total Funds Under Administration stood at AUD 152.3 billion as of 31 December 2025, comprising Platform FUA of AUD 127.9 billion and PARS FUA of AUD 24.4 billion. The update also referenced ongoing product development initiatives, including IRIS and myhub, though the stock declined alongside the wider technology sector.

WiseTech Global Ltd (ASX:WTC)

WiseTech Global Ltd (ASX:WTC) shares declined 10.68%, with the move largely attributed to the wider technology sector sell-off. No new company-specific announcements were released during the session, positioning the share price decline in line with broader investor risk aversion toward technology stocks on the day.

Investor Takeaway

The session underscored the impact of sector-wide sentiment on ASX technology stocks. While company updates from Xero and HUB24 pointed to ongoing operational activity, the sharp 9.21% decline in the technology sector drove coordinated selling across multiple names, highlighting the influence of macro and sector dynamics on short-term share price movements.