Two ASX small caps that enjoyed big gains this earnings season are Cogstate Ltd (ASX: CGS) and Austco Healthcare Ltd (ASX: AHC).
Both companies released half-year results this week, leading to massive share price gains.
Let's see what investors were reacting to.
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Cogstate
Cogstate is a neuroscience technology company specialising in brain health assessments. The principal activity of the company is the sale of technology and services to measure cognition.
It released 1H FY26 results yesterday, which included:
- Group Revenue of $26.9m, up 12% on previous corresponding period ($23.9m)
- Net Profit After Tax of $4.5m, up 16% on pcp ($3.9m)
- EBITDA of $6.5m, up 5% on pcp ($6.2m) with an EBITDA margin of 24% (pcp 26%)
Cogstate CEO, Brad O'Connor, said:
These results demonstrate Cogstate's growing momentum and the increasing strength of our competitive position. We're seeing record levels of sales opportunities from an expanded customer base across more therapeutic indications, and those opportunities are converting into meaningful contract wins.
Investors were gobbling up this ASX small-cap stock following the results as the share price climbed 8.7% on Thursday.
Austco Healthcare
Austco Healthcare engages in the development, manufacture, and supply of hardware relating to healthcare and electronic communications systems.
The company reported H1 FY26 results on Wednesday, which included:
- Revenue from customers up 30.7% to $48.2 million
- EBITDA grew 60.1% to $8.3 million
- Net profit before tax up 62.1% to $6.3 million
This ASX small-cap obviously impressed investors with these numbers, as the share price has risen 20.3% since the announcement.
What are brokers saying about these ASX small caps?
Following the results, brokers released fresh guidance on both of these small-cap shares.
In a note out of Morgans, the broker was impressed with the results from Cogstate.
It said the company posted a strong 1H26 result and expects a stronger 2H than previously anticipated.
CGS continues to broaden the number of indications it targets, which in turn is generating an increase in sales contracts. In the 1H26, US$41.7m of sales contracts were executed across Alzheimer's (38%); Mood, Sleep & Other Neurology (45%); Rare Disease (15%); and Cancer (2%). We note the FactSet consensus target price is A$3.08, which represents 41% upside to the last close.
On Wednesday, Bell Potter released updated guidance on Austco Healthcare shares.
The broker said the company is delivering on the key catalysts of conversion, efficiency, product enhancements, and geographic expansion.
The strong performance of the acquired businesses and the 5-yr revenue target of $250m pa leads to the possibility of more M&A. Given undemanding trading multiples, and material upside, the share price presents as an attractive entry point.
Bell Potter reiterated its buy recommendation and $0.55 price target on this ASX small cap.
From yesterday's closing price, that indicates an upside of 44.7%.
