What Did Iress (ASX:IRE) Report for 1H26, and How Did It Update FY26 Guidance?

Sonal Goyal

21 October 2026 04:53 PM AEDT

What Did Iress (ASX:IRE) Report for 1H26, and How Did It Update FY26 Guidance?

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Key highlights

Iress reported continuing Business Cash EBITDA of $61.1 million, up 47.1% in constant currency, with the Margin at 24.5%.
A fully franked Interim Dividend of 14.0 cents per share was declared, 27.3% higher than the prior period.
Updated FY26 guidance is for Revenue growth of 1–2% and Cash EBITDA growth of 21–26% in constant currency.

During the Trading session on 21 October 2026, Iress Ltd (ASX:IRE) was priced at $5.66, up 2.17%. The S&P/ASX 200 Info Tech [XIJ] traded at 1,614.00 (−3.38%, −56.50 points) and the S&P/ASX 200 [XJO] at 8,811.10 (−0.066%, −5.80 points) at 3:12 pm GMT+11. In US trading on Tuesday, the Dow rose 1.02% to 52,495.88 and the S&P 500 added 0.28% to 7,712.57, while the Nasdaq Composite eased roughly 0.02% to 26,424.82 as some large technology names declined on a reassessment of valuations and coming earnings. Iress is an Australian provider of software and services for the financial services industry, including Wealth Management and trading and market data.

What Iress does

Iress Limited provides software and data for financial services firms, including wealth managers, advisers, Brokers and market participants. Its continuing business covers APAC Wealth, Global Trading & Market Data (GTMD) and UK Wealth & Sourcing. Recurring Revenue represents about 95% of group revenue.

1H26 results

In an ASX release dated 17 August 2026 for the half year ended 30 June 2026, Iress reported statutory NPAT of $32.0 million, up 85.0%, and Underlying Profit after tax of $38.8 million, up 18.4%. Continuing business revenue rose 2.5% in constant currency to $250.0 million, with recurring revenue up 3.4% to $237.8 million.

Continuing business Cash EBITDA increased 47.1% in constant currency to $61.1 million, with the margin expanding more than 740 basis points to 24.5%. The company linked this to higher revenue, benefits from its business efficiency program and lower capital expenditure.

Efficiency, Balance Sheet and dividend

The business efficiency program has delivered $31.5 million of annualised cost savings, ahead of plan, with a further $6 million to $9 million expected in 2H26. Leverage was 0.5 times at 30 June 2026. The Board declared a fully franked interim dividend of 14.0 cents per share, 27.3% higher than the prior corresponding period. The company said it has moved to the next phase of its strategy, including product evolution, a Thoughtworks Partnership and AI embedded across product and engineering.

Updated FY26 guidance

Updated FY26 guidance, on a continuing business and constant-currency basis, reflects softer revenue growth of 1–2% because of lower non-recurring revenue, and higher Cash EBITDA growth of 21–26%.

Sector context

Technology shares are being assessed against Earnings and valuations. During the session, the S&P/ASX 200 Info Tech index was at 1,614.00, down 3.38%, and the broader S&P/ASX 200 was at 8,811.10. In the United States, the Nasdaq is described as sensitive to corporate earnings and forward guidance and to artificial intelligence infrastructure spending. Financial software providers report recurring revenue and cost programs, and market data and trading volumes can influence non-recurring revenue.

Risks and uncertainties

The guidance cut revenue growth expectations to 1–2% because of lower non-recurring revenue. Profit growth relies on cost savings and lower Capital Expenditure rather than revenue growth. Continuing business figures exclude divested operations, and constant-currency guidance does not capture Exchange Rate movements. Competition, product delivery under the Thoughtworks partnership and client spending can affect outcomes.

Catalysts to watch

Items to watch include delivery of the further $6–9 million of cost savings, second-half revenue against the 1–2% guidance, product evolution milestones, leverage and capital management decisions and the FY26 result.

Final word

Iress’ 17 August 2026 release recorded higher margins, earnings and dividend alongside slower revenue growth guidance. The full-year result will indicate how the second half compares with guidance.

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