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WiseTech Global (ASX:WTC) Revenue Surge Contrasts With Sharply Lower Margins

Simply Wall St · 1d ago

WiseTech Global shareholders walked into this result after a choppy week, with the stock down about 8% over seven days yet still up over the past month. The earnings print itself was all about margins. Revenue reached about US$1.4b for FY26 and underlying earnings before interest, tax, depreciation and amortisation landed at US$644.5m, but the drag from a large one off loss and a 12.8% net margin over the last 12 months sits in sharp contrast to the premium P/E of 53x.

Is WiseTech Global trading at a rare mispricing, or do the 53x P/E and compressed 12.8% net margin signal a potential value trap in the making? See how the current share price compares with the valuation analysis for WiseTech Global

FY 2026 Earnings Summary

  • Total Revenue (FY26 vs FY25 TTM): US$1,395.9m vs. US$778.7m (very large increase, supported by the e2open acquisition and full year contribution in the trailing period)
  • Net Income, Excluding Extra Items (FY26 vs FY25 TTM): US$178.7m vs. US$200.7m (decline of about 11%, reflecting the impact of lower net profit margins over the last 12 months)
  • Basic EPS (FY26 vs FY25 TTM): US$0.535671 vs. US$0.604154 (decline of about 11%, in line with the softer net income performance)
  • Net Profit Margin (FY26 TTM vs Prior Year): 12.8% vs. 25.8% (margin almost halved, with the latest period affected by an A$84.5m one off loss)

Prefer clean charts over another wall of earnings tables and footnotes? See WiseTech Global's full valuation picture in an easy visual format through the company report for WiseTech Global.

ASX:WTC Trailing 12-Month Earnings & Revenue History as at Aug 2026
ASX:WTC Trailing 12-Month Earnings & Revenue History as at Aug 2026

Evaluating WiseTech’s AI and Platform Growth Story

Bulls argue WiseTech is turning CargoWise plus e2open into an AI enabled digital trade marketplace with richer recurring, higher margin revenue. The FY26 numbers show some of that thesis moving from story to execution. Group revenue reached US$1.4b, with 95% classed as recurring, which supports the idea of a subscription and transaction led model rather than lumpy project work. CargoWise revenue growth of US$56.6m, with US$38.5m from existing customers, shows wallet share expansion is already happening on the core platform.

Key commercial milestones are also visible. More than 95% of CargoWise customers are now on CargoWise Value Packs, a concrete step toward value based, usage linked pricing. Management reports US$115m in annualised run rate savings, including US$64m of e2open synergies and US$34m from the AI program, which speaks directly to the claim that AI and integration can lift profitability over time.

Compare WiseTech Global’s push toward higher recurring revenue, AI linked cost savings and value based pricing with where the market thinks the stock should go next. See the consensus price target analysis for WiseTech Global

WiseTech bear case: execution hits and new regulatory overhang

The core worry around WiseTech is that heavy restructuring and the e2open deal could weaken profitability just as regulatory and governance risks climb. The FY26 result gives bears real ammunition. Underlying NPAT fell 11% to US$313.5m while statutory NPAT was lower again at US$178.7m, which shows acquisition and AI restructuring costs are still biting. Net profit margin compressed to 12.8% over the last 12 months, well below the prior year. That supports concerns that integration is proving expensive and complex rather than a clean uplift.

Regulatory and governance risk also moved from theory to fact. The ACCC raid in June and the ongoing AFP investigation into the founder mean a formal governance reset and new independent chair have not removed the overhang. With FY27 margin expansion guided as dependent on customer adoption, key milestones on earnings quality and regulatory clarity remain unresolved for now.

After a margin almost halved, a large one off loss and high debt, it is fair to ask if these are isolated issues or early signs of something more structural. Review the independent risk scoring and expose any hidden pressures in WiseTech Global with the risk analysis for WiseTech Global which shows 3 important warning signs.

Stay Ahead Of Your Next Move

If the mix of a 53x P/E, compressed 12.8% net margin and one off loss has put WiseTech Global firmly on your radar, register for free with Simply Wall St and add it to a Watchlist to track price against fair value and watch for a better entry point. Once you own the stock, use the Portfolio Command Center to cut through noise and focus on the most important developments affecting your holdings. For ongoing context and fresh angles, tap into thousands of investor views through the Community. By surfacing potential catalysts and risks early, Simply Wall St helps you stay informed and move faster than the wider market.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.