Sydney, May 20, 2026, 09:05 (AEST)
- TechnologyOne shares ended Tuesday at A$27.80, falling 2.9% following its half-year results.
- TechnologyOne stuck to its outlook for FY26, keeping profit-before-tax growth guidance at 18% to 20% and annual recurring revenue up 16% to 18%.
- The ASX had not opened yet; regular trading is scheduled from 10 a.m. to 4 p.m. Sydney time on weekdays.
TechnologyOne shares dropped Tuesday. The Australian enterprise software firm posted record first-half profit and subscription revenue, but the stock fell as investors shrugged off the strong numbers and took profits on a name already priced for more upside.
The shares ended at A$27.80, falling 2.9%. They moved between A$27.00 and A$29.47 through the session. The shift hit before the ASX opened on Wednesday, putting the company’s market cap near A$9.1 billion, according to Google Finance data.
TechnologyOne has been seen as a steady name in ASX software, thanks to its public-sector and education clients giving it more stable revenue than a lot of its growth-focused peers. But its latest result met guidance rather than beating it, and that was enough to spark selling.
TechnologyOne reported a 9% rise in profit before tax to A$89.1 million for the six months to March 31. Net profit after tax was up 6% at A$66.8 million. Annual recurring revenue climbed 17% to A$598.0 million, the company said.
TechnologyOne raised its interim dividend to 8.0 Australian cents per share, up from 6.6 cents the previous year. The company said software-as-a-service and recurring revenue climbed 13% to A$299.2 million.
Chief Executive Ed Chung said business momentum and confidence are strong, calling the first half “exactly what we committed to.” The company kept its FY26 guidance for profit-before-tax growth at 18% to 20% and ARR up 16% to 18%, aiming for the upper end of those targets. TechnologyOne
The market seemed to want more. “The market was arguably looking for management to formally upgrade guidance again rather than simply reaffirm it,” William Taylor, chief operating officer at ETFShares, told Reuters. Reuters
S&P/ASX 200 gained 1.17% Tuesday, but tech lagged, down 0.4%. WiseTech Global slipped 0.2%, though Xero managed to add 0.7% among software names. The drop stuck out against the stronger tape.
TechOne kept attention on its UK business after posting UK ARR of A$53.0 million, a 23% climb. The company also said its UK pipeline is running ahead of target. According to Reuters, Chung expects the UK arm to pass New South Wales—the group’s biggest market in Australia—within two years.
TechnologyOne is pushing further into AI with its Plus and Guide offerings, both key to its SaaS+ approach that sells customers both software and services. The company reported a “Rule of 40” score at 55%, which it says measures ARR growth and free cash flow margin for software firms looking to combine growth with cash discipline. TechnologyOne
Risk comes down to timing. Free cash flow dropped 15% to A$20.3 million in the half. The company said statutory results took a hit from currency moves, as a stronger Australian dollar against sterling kicked in and the UK grew as a share of the group. If sales in the second half come in slower, or if AI and SaaS+ costs keep biting at margins, holding to the full-year guidance will get tougher.
TechnologyOne has presentations lined up for institutions from Wednesday to Friday. Management is expected to face questions about whether stronger AI demand and local government contracts in the UK could lead to another guidance boost later this year.
