Sydney, Feb 16, 2026, 17:35 AEDT — The session wrapped up with the market now closed.
- Xero shares jumped 7.6% to finish at A$79.06, clawing back ground after hitting a 52-week low on Friday.
- Advisers pointed to short covering and bargain hunting as tech stocks took charge of the market.
- Attention turns to what’s next from Wall Street, while Xero is on deck with full-year numbers set for May 14.
Xero Ltd jumped 7.6% to close at A$79.06 on Monday, snapping back after hitting a 52-week low just last Friday. Shares moved in a A$74.90 to A$79.33 range through the session. Still, the stock sits around 59% under its 12-month high. Xero’s next annual report lands May 14. (Intelligent Investor)
That’s relevant right now, since this jump is starting to look more like a read on beaten-up software stocks than anything specific to the company. With Xero moving sharply in the absence of any news, traders are treating it as a sign of shifting sentiment — a wager that the sharp tech selloff may be cooling off, if only briefly.
The S&P/ASX 200 eked out a modest gain, but technology names stole the show, jumping 5.7% for their best single-day performance in over 10 months. According to Craig Sidney, senior investment adviser at Shaw and Partners, much of the move came from short covering and bargain hunters stepping in after a spell of weakness. Short covering, he noted, involves investors buying back shares to exit losing bearish bets. (The Economic Times)
Xero wasn’t alone in its move. By midday, the S&P/ASX 200 Tech Index had climbed around 4.5%. WiseTech Global, Life360, SiteMinder, and Technology One all pushed higher, too. Still, the tech index has fallen about 6% over the last week. (Market Index)
Not much in the way of fresh company news. Xero’s last updates to the ASX came on Feb. 3, with an investor briefing and a presentation detailing its AI strategy and U.S. expansion, per the Open Briefing feed. (Openbriefing)
Even so, the rebound could easily fizzle after just a day. Vantage Point CIO Nick Ferres told Reuters that “if the mega-cap technology companies announce a pause in capital expenditure, that might lead to a sharp correction”—a reminder of how suddenly concerns over AI spending can sour the mood on software names. (Reuters)
Next session, traders are eyeing U.S. tech for any new signals, while local earnings could decide if the rotation has more room to run. Xero’s right in the middle: it moves with growth stocks when risk is in favor, but the mood turns, it can look overpriced fast.
The next big event for the company lands in May with its FY26 results. Xero plans to overhaul its guidance format, switching to forward guidance focused on “Adj‑EBITDA”—a measure that leaves out certain one-off items—ditching its old “OPEX ratio” (which tracked operating costs as a percentage of revenue). There’s also a one-time FY27 revenue growth range coming. (Company Announcements)
