WiseTech Global Profit Drops 11% Despite Strong Revenue Growth
Synopsis
WiseTech Global’s FY26 profit fell 11% to $178.7 million, while revenue jumped 79% to $1.4 billion. Its shares dropped 8.5% after the results.
Key Highlights
- WiseTech Global FY26 profit down 11% to $178.7m.
- Revenue rose by 79% to $1.4 billion bolstered by the e2open buy-up.
- WiseTech shares fell around 8.5 per cent to $41.73 following the results
- SE expects revenue growth of 6% to 10% in FY27.
WiseTech Global Reports Lower Profit
For the year to 30 June 2026, WiseTech Global advised a full-year ratio of gain after tax of $178.7 million. This was an 11% decline from $200.7 million in the prior year and just missing the $181.9 million market consensus.
The company said the decline in profit was largely attributable to costs related to its acquisition of e2open. This was partially due to the e2open acquisition and business growth, as revenue surged from $778.7 million in FY25 to $1.4 billion during this period.
WiseTech Shares Fall After Results
Shares in WiseTech Global sank nearly 8.5% to $41.73 on Wednesday morning after the owner of logistics software reported its FY26 results. The shares are now about 39% down since the start of the year and you can say that they are approximately 64% lower compared to a year earlier.
EBITDA increased 46% to US$558.4M, the company stated. Its guided range (US$550 million to US$585 million) still beats its guidance. It was less than the market forecast of US$569.5m. EBITDA underlying was up by 56% to $$644.5M, at a margin of 42%.
Revenue and Cost Savings Increase
Underlying profit after tax rose 29% at WiseTech, aided by e2open-related organic growth.
The firm gained approximately US$115 million of annual cost savings through cost reduction programs as well. The savings were efficiencies from utilising technology in its operations. WiseTech lifted its final dividend to 88 cents from last year’s 77 cents.
WiseTech Gives FY27 Outlook
WiseTech expects total revenue to grow between 6% and 10% in FY27, for total revenue of US$1.48 billion to US$1.54 billion. Underlying EBITDA is forecast to grow by 12% to 21%, with underlying EBITDA margin expected in the range of 49%–51%.
While WiseTech has seen its share price tumble, the vast majority of analysts remain positive. According to Market Index, three out of four brokers have a strong buy rating and an average price target of $54.71. As per the data from TradingView, 10 of 20 analysts rate shared buy or strong buy and two a hold.
Source: Motley Fools
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