WiseTech Global Ltd (ASX: WTC) shares have been hotly covered this year. The shipping and logistics management software company has seen its share price fall significantly amidst the heavy tech sell-off.
Its share price fell 37% to start 2026.
Technology shares have been caught up in heavy scrutiny as investors have exited the sector due to AI fears.
However on Wednesday, WiseTech shares roared back to life with an 11% gain on the back of earnings results.
So is this the start of a rebound or a false alarm?
Let's unpack the results.
Image source: Getty Images
Accelerated AI transformation
For 1H26, the company reported total revenue growth in 1H26 of 76% to $672.0 million (1H25: $381.0 million). This was driven by the acquisition of e2open and continued growth in CargoWise.
CargoWise revenue grew 12% on 1H25 to $372.4 million, including $6.6 million from FY25 M&A and a $3.7 million FX tailwind.
Organically, CargoWise revenue grew by 9% on 1H25 or $30.4 million.
It seems that WiseTech management were well-aware of investor fears coming into 2026. This was addressed in the company's 1H26 report.
The company said WiseTech is undergoing a deep AI transformation, as AI continues to be embedded across its software for customers and internal operations.
2,000 WiseTech jobs to be cut
According to the release, this will accelerate productivity, automation and decision-making across the industry's complex, regulated workflows.
WiseTech announced the next phase of their efficiency program, starting in the second half of FY26 and continuing into FY27, expecting to reduce teams – initially product & development and customer service across the company, including e2open, by up to 50% in terms of headcount.
As part of WiseTech's long-term strategic focus on higher-margin recurring revenue, and WiseTech's commitment to building a higher-performance culture, this program will likely result in a reduction of approximately 2,000 roles in FY26 and into FY27.
What does this mean?
Essentially, AI disruption will potentially lead to 2,000 jobs being cut in the company. This equates to almost 30% of WiseTech staff losing their jobs.
Speaking on the cuts, WiseTech Chief Executive Officer Zubin Appoo said:
Software development has experienced its most significant shift in decades. I am prepared to say this clearly: the era of manually writing code as the core act of engineering is over.
AI amplifies the productivity of our expertise in logistics and trade, the rich datasets that WiseTech holds, and the network advantage that we have built over 30 years. And it allows us to move faster from ideas to real customer value through the efficiencies it brings in software development and product creation.
What is Bell Potter's view?
Following the release, the team at Bell Potter issued updated guidance on WiseTech shares.
The broker downgraded its price target on WiseTech shares, but maintains a buy recommendation on valuation grounds.
The broker now has a 12 month price target of $83.75 (previously $87.50).
From it's current share price, this indicates an upside of roughly 75%.
Foolish takeaway
Heavy job cuts can often set off alarm bells for investors.
However in this case, it seems to be the latest example of the global shift towards AI automation.
After heavy sell-offs in the tech sector, this seems to be WiseTech's move to address these concerns.
It isn't the first company to do so.
Last month, Amazon cut 16,000 jobs in a similar move to streamline operations.
In regards to valuations moving forward, it seems Bell Potter is more focussed on the current share price opportunity more than management decisions, as the broker sees WiseTech shares as a value play.
