It's been an interesting time for ASX mid-cap stocks of late. We're seeing some mid-caps outperform the broader market and with business spending predicted to continue picking up in 2026, many are poised for growth.
And it makes sense that this market is getting more attention. Mid-caps often have more resilience than their smaller counterparts and potentially more runway for growth than their larger ones.
Here are three that are worth adding to your watchlist.
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Megaport Ltd (ASX:MP1)
Megaport may not be the most exciting name in AI tech right now, but it is a pivotal one. This Network-as-a-Service provider facilitates connectivity between data centres, cloud services and corporate networks with an on-demand model that allows business to access the bandwidth needed at any given point.
Its share price has been a little volatile of late, down over 10% in the last month, potentially due to some investor caution about its relatively high price-to-sales ratio and broader weakness in the tech sector.
However, Megaport delivered solid results in FY25 and has some strong, tailwinds, with the surge in AI usage driving demand for fast, low-latency interconnection.
In FY25, it reported 20% growth in Annual Recurring Revenue (ARR), 16% growth in total revenue ($227.1 million) and an 18% lift in large customers. And it is moving forward with a compute-as-a-service arm through the acquisition of Latitude.Sh, a play that will expand its global reach and capability.
Although recent indicators are positive, right now, this might be a buy for investors with a slightly higher risk tolerance than me. But I do think there is potential value here. I'm adding it to my watchlist with a sneaking suspicion that it might be one I later regret not jumping on.
HUB24 Ltd (ASX: HUB)
While this stock has gained more attention recently, for me, it deserves still more of the spotlight. At current prices, I believe it's conservatively valued and poised for growth.
HUB24 is an Australian investment and superannuation platform, delivering technology solutions to the financial advice sector. It offers a range of cloud-based and platform products to accountants, wealth advisers and financial planners, from compliance to reporting.
It's been recognised as the overall market leader in platform functionality in successive Investment Trends annual benchmarking reports. And it is an industry favourite with rapidly growing funds under management, reporting record quarterly net inflows of $5.6 billion in Q2 FY26.
The quality of its platform is fast creating a competitive moat for this local tech success story, particularly as the financial advice industry faces ever more complex regulation.
In FY25, it posted revenue of $406.6 million, representing 24% year-on-year growth. In addition, it's underlying EBITDA margin grew to 39.9%, indicating solid operating leverage.
Its share price is sitting at $76.57, down from a 12-month high of $122.03, making now an attractive entry point for investors.
Objective Corporation Ltd (ASX: OCL)
Objective is another player in the tech space that is perhaps not garnering as much attention as it deserves. It delivers mission-critical technologies to government and enterprise, everything from planning tech for local councils to disclosure management software for HUB24.
It has seen some share price decline over the last year, down circa 15%, driven by the broader pullback across the tech sector. Investors may also be cautious about its reliance on heavily regulated industries in the current climate.
That said, I think Objective is primed for growth.
- A 15.1% jump in ARR to $120 million
- Net profit after tax growth of 13% to $35.4 million
- Total dividends of 22 cents per share
It has a solid defensive moat, too, being embedded in large-scale government and defence clients. And it has demonstrated a commitment to constant innovation with a healthy investment in research and development in FY25.
Objective is attractively priced right now. And, in my opinion, it's one to consider for long-term investors who are prepared for the prospect of some shorter-term volatility.
