Rival ASX tech shares Hub24 Ltd (ASX: HUB) and Netwealth Group Ltd (ASX: NWL) have lit up the ASX.
Both heavyweight trading platform providers have surged on the back of strong half-year results, climbing 16% and 10% respectively over the past 7 days.
With structural tailwinds from Australia's growing superannuation pool and ongoing market share gains, the outlook for both ASX tech shares remains firmly geared toward growth.
Let's have a look which rival takes up pole position.
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Hub24: Growth powerhouse with a big runway
Hub24 has been firing on all cylinders. Its 1H FY26 result showed record net inflows of around $10.7 billion, revenue up 26% to $245.9 million, and underlying net profit surging around 60% as scale kicks in.
Total funds under administration (FUM) hit $152.3 billion, and the board boosted its interim dividend by 50%. That kind of growth paired with operating leverage that expanded margins, is exactly what investors love to see in a platform stock.
The strength here isn't just numbers, it's structural momentum. Adviser uptake is rising, with over 5,200 advisers now on the platform and a growing trend toward "platform monogamy" where advisers consolidate their book with one provider.
Weaknesses? Valuation is a potential fly in the ointment. The $7.5 billion ASX stock has ripped higher – at times more than doubling – and trades on premium multiples. That leaves little room for a misstep. Fee and margin pressure also looms, and competition from legacy players upgrading their tech stacks can't be ignored.
Bottom line: A high-growth, high-quality platform play with strong inflows and adviser momentum. But at current valuations, investors need conviction that market share gains continue and operating leverage holds.
Bell Potter recently retained their buy rating on the ASX tech shares with a trimmed price target of $120.00. This points to a potential gain of 29.6% over the next 12 months.
Netwealth: Profitable performer with resilience
Netwealth's first-half FY26 numbers underscored its place near the top of the platform pack. Platform revenue climbed 25%, and FUM reached a record $125.6 billion, lifted by strong custodial inflows.
Managed accounts and FUM also posted double-digit growth, and the company hiked its interim dividend by about 20%.
What sets this ASX tech share apart is profitability and efficiency. Its recurring fee model, strong adviser retention and deep client stickiness underpin stable margins and predictable cash flows. Traits that appeal to long-term investors.
Risks here include competitive fee pressures. And like Hub24, intense rivalry for adviser mindshare and product sophistication means Netwealth can't afford to stand still.
Bottom line: This $6 billion ASX share is a more mature, profitable platform operator that tends to trade at a slightly more conservative valuation than Hub24. It's a slower burner but offers solid recurring income and growth through adviser momentum and FUA expansion.
Morgans was pleased with this ASX tech share's half-year results, noting that its profit was ahead of expectations
In response, the broker retained its accumulate rating with a $29.00 price target. This suggests a 20% upside at the current share price of $24.20.
Foolish Takeaway
Both Hub24 and Netwealth are riding structural tailwinds. The two ASX tech shares are central to Australia's platform oligopoly story.
Hub24 looks like the rocket ship with rapid inflows and scale effects kicking in. Netwealth on the other hand feels like the steady, profitable runner benefitting from sticky clients and recurring fees.
Investors keen on growth may favour Hub24's momentum, while income-oriented long-term holders might lean more toward Netwealth's stability.
