WiseTech Global shares (ASX: WTC) came under pressure today, down double digits (-10.07%) to A$40.89 on what were record FY26 results. The company put up its largest annual revenue and underlying profit print yet, but markets seemed more than willing to look beyond the record FY26 figures and focus on a softer FY27 outlook.
The pullback leaves WiseTech shareholders sitting on a decline of 40.35% since the start of 2026, with the recent rally stalling on the day. Today’s action followed a strong short-term rebound, with share price up 27.3% over the past month of trading, even after the pullback.
WiseTech Global Fy26 Results
WiseTech reported record FY26 total revenue of US$1,395.9 million, up 79% and within guidance. The result was driven heavily by the e2open acquisition, which contributed US$541.2 million in revenue and materially expanded WiseTech’s global logistics software footprint.
Profitability measures were mixed but broadly strong on an underlying basis. Guidance EBITDA rose 54% to US$585.8 million. Reported EBITDA increased 46% to US$558.4 million, with a 40% margin. Underlying EBITDA rose 56% to US$644.5 million, representing a 46% margin.
Underlying NPAT increased 29% to US$313.5 million, while statutory NPAT declined 11% to US$178.7 million. The divergence between underlying and statutory profit reflects amortisation, integration costs, restructuring charges and other acquisition-related items.
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Gross margin fell 9 percentage points to 79%, largely due to the consolidation of e2open’s lower-margin business. That margin dilution is central to the market debate: e2open has increased scale, but markets are waiting for evidence that integration savings, AI efficiencies and future revenue synergies can restore broader group margins.
Cash generation remained strong. Free cash flow rose 43% to US$410.7 million, while underlying free cash flow increased 67% to US$489.6 million. WiseTech declared a final fully franked dividend of 8.8 US cents per share, up 14%, representing a 17% payout ratio of underlying NPAT.
Acquisition and Efficiencies
The e2open acquisition remains the defining strategic event. WiseTech acquired e2open for an enterprise value of about US$2.1 billion, funded through debt, pushing the company from a historically low-leverage position to net leverage of around 3.2 times. Management reported about US$64 million in annualised e2open cost synergies, with total annualised savings of roughly US$115 million when including AI-driven efficiency gains. Of that, approximately US$34 million is attributed to AI-enabled productivity improvements.
The company is also pushing a broad efficiency program that includes large-scale restructuring. The supplied analysis cites planned reductions of about 2,000 roles across affected product, development and customer-service functions, including e2open-related areas. This creates a potential margin upside if execution is smooth, but also raises operational and service-quality risk during a complex integration period.
On the commercial front, more than 95% of CargoWise customers have transitioned to WiseTech’s Value Packs model, a usage-linked pricing structure designed to improve revenue visibility and support new signings, particularly among small and mid-sized freight operators. Management said the model is helping broaden adoption beyond top-tier forwarders and making the platform harder to replace with in-house alternatives.
WiseTech also moved to strengthen its compliance and supply-chain risk offering through the acquisition of FRDM.ai. The deal involves US$10 million in upfront cash and scrip, plus potential earn-outs of up to US$14.31 million, taking the total possible consideration to about US$24.3 million. FRDM.ai will be integrated with existing WiseTech assets to form VerifyWise, an AI-enabled compliance and supplier-risk platform.
What Comes Next?
Looking to FY27, WiseTech guided for total revenue growth of 6% to 10%, implying revenue of US$1.48 billion to US$1.54 billion. The company expects underlying EBITDA growth of 12% to 21%, with margins improving to between 49% and 51%. Priorities include integrating e2open, migrating remaining legacy customers to Value Packs, launching new AI solutions, expanding regulatory products, maintaining research and development investment, and reducing debt.
Price Targets
The central question for markets is whether FY26 represents a peak growth year or the start of a more profitable, but slower-growing, phase. The FY26 numbers are exceptional: revenue up 79%, underlying EBITDA up 56%, underlying free cash flow up 67%, and a dividend increase. But the FY27 guide is materially slower, with revenue growth expected at only 6% to 10%.
WiseTech’s record FY26 result confirms the company’s scale, cash generation and platform strength, but the share price fall shows markets are now focused on the harder task ahead: proving that e2open integration, AI savings, Value Packs adoption and regulatory clarity can support a durable next phase of growth.
Bull Case:
- Record revenue, cash flow and dividend show scale and resilient execution.
- e2open synergies and AI savings support margin expansion and debt reduction.
- Value Packs migration and compliance tools deepen CargoWise’s platform moat.
Bear Case:
- FY27 guidance implies sharp slowdown after acquisition-fuelled FY26 surge.
- e2open dilutes gross margin and raises leverage, increasing integration sensitivity.
- ACCC and governance overhang may sustain valuation discount despite strong earnings.
