WiseTech Global shares (ASX:WTC) capped a dramatic week of gains on Friday, climbing 10.83% to A$52.72 as markets rotated into beaten-down technology names following the company’s half-year result.
The WTC share price’s 18.47% weekly gain caps one of the sharpest rebounds among ASX 200 names, occurring even as the broader index fell almost 3% this week amid stagflation concerns and Middle East geopolitical tensions. The rally leaves WiseTech still trading approximately 23% below its level at the start of 2026, following a tough start to the year, as markets seemed intent to sell down software names.
Friday’s double-digit surge saw WiseTech shares feature prominently on “top gainers” screens alongside fellow technology names Xero and Technology One, which also rallied strongly. The move came despite a risk-off tone across most sectors, with resources and cyclicals under pressure from oil-driven inflation fears.
Earlier in the week, on 4 March, logistics software stocks jumped 5-7% in sympathy with a rebound in US software and AI-related equities. The ASX Information Technology index surged approximately 5.9% that session, with WiseTech climbing around 11% as capital flowed back into previously de-rated quality technology names.
The sustained nature of the bounce suggests some accumulation after months of underownership in the sector as a whole.
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Fundamentals Support The Move
The fundamental catalyst for the rebound arrived on 25 February, when WiseTech released its FY26 half-year results alongside a major strategic update centred on artificial intelligence and operational efficiency.
Revenue climbed 76% to US$672 million versus US$381 million in the prior corresponding period, though the headline growth was heavily driven by the August 2025 acquisition of e2open for US$2.4 billion. Stripping out the acquisition, organic growth registered closer to 7%, with core CargoWise revenue up 12% including 9% organic expansion.
Underlying net profit after tax rose just 2% to US$114.5 million, while statutory NPAT fell 36% due to amortisation charges, elevated costs and financing expenses related to the e2open transaction. EBITDA increased 31% to US$252.1 million, but the EBITDA margin compressed from approximately 50% to 38% on consolidation of the lower-margin e2open business and restructuring costs. Management noted that organic EBITDA margin for the core WiseTech business remained around 51%.
Importantly, the company reaffirmed its full-year FY26 guidance ranges, targeting revenue of US$1.39-1.44 billion representing 79-85% growth versus FY25 and EBITDA of US$550-585 million for 44-53% growth, implying an EBITDA margin of 40-41%. The reaffirmation proved crucial for sentiment, given that this same guidance had triggered a sharp sell-off and broker downgrades when first issued in late 2025.
AI-Driven Restructure
The headline strategic announcement involved a “deep AI transformation” that will see WiseTech eliminate up to 2,000 positions across FY26 and FY27, representing initial reductions of up to 50% in product development and customer service teams, including within the acquired e2open division.
Management framed the restructure as a fundamental shift to an “AI-led organisation,” with executives arguing that “the era of manually writing code as the core act of engineering is over.” The company expects the FY26 profit and loss impact to be roughly neutral as restructuring costs offset initial savings, with material margin benefits flowing through from FY27 onwards.
The restructure coincides with a commercial model shift that has seen approximately 95% of CargoWise customers migrate from traditional seat-based licensing fees to transaction-based pricing through CargoWise Value Packs. This pricing evolution positions WiseTech to monetise customer throughput and automation gains rather than headcount, theoretically aligning the business model with AI-driven productivity improvements that reduce the number of users required per unit of work.
e2open Integration Ahead of Schedule
On the acquisition front, WiseTech reported that it has already achieved its FY27 cost-synergy target of US$50 million annual run-rate savings from the e2open integration as of January 2026, approximately 18 months ahead of the original plan. The accelerated synergy capture has helped ease concerns about the company’s ability to successfully digest such a large transaction while managing the broader AI transformation.
Net leverage stood at approximately 3.2 times EBITDA post-acquisition, with management outlining a path to reduce that ratio below 2.0 times by August 2028 through organic deleveraging. The company declared an interim dividend of US$0.068 per share, payable 10 April to shareholders on the register as of 16 March.
WiseTech also highlighted its pipeline of 59 Large Global Freight Forwarder rollouts underway, including 11 of the world’s top 25 forwarders, with many implementations currently at less than 20% of expected user penetration. This embedded rollout schedule represents a visible, contracted source of future revenue growth.
Amplifying the Move
The size and speed of the weekly gain, with multiple double-digit daily gains on sessions where the broader market fell, points to technical factors amplifying the underlying fundamental re-rating. Short-covering appears to have played a role, as does renewed accumulation by momentum-oriented funds and investors who had been underweight following the 2025 de-rating.
Looking ahead, WiseTech’s ability to sustain this week’s gains will hinge on continued operational delivery against the reaffirmed FY26 guidance and tangible evidence that the AI-driven restructure is delivering margin expansion without impairing product quality or customer satisfaction.
The company faces a delicate balancing act. Cutting up to 2,000 roles across development and customer-facing teams carries execution risk, particularly around the integration of e2open’s sales-led culture into WiseTech’s traditionally product-led model. Any missteps that result in customer service degradation or delayed product releases could quickly reverse sentiment.
On the positive side, the transaction-based pricing model and deep integration into complex, regulated logistics workflows create switching costs and network effects that underpin WiseTech’s competitive moat. The large pipeline of partially deployed LGFF rollouts provides visibility into near-term growth, while the early achievement of e2open synergies demonstrates operational competence.
The 18.5% weekly rally for WiseTech shares represents a sharp reversal from months of selling, but it leaves WTC still a long way down from where it started the year. Whether this week’s rally marks the beginning of a sustained recovery or merely a technical bounce is yet to be known, but for now, bulls will be heading in to this weekend feeling more positive than those of recent times.
