The WiseTech Global Ltd (ASX: WTC) share price soared in response to the release of its FY26 first-half result. Experts think the ASX tech share can rise a lot more from where it is right now.
The logistics software provider reported that its revenue grew 76% to US$672 million thanks to the e2open acquisition, the operating profit (EBITDA) grew 31% to US$252.1 million underlying net profit rose 2% to US$114.5 million and statutory net profit fell 36%.
Profitability declined because of costs relating to acquiring e2open, but the business announced a plan that could lead to a headcount reduction of up to 50%, or around 2,000 roles, which could reduce costs.
Let's take a look at what experts from UBS thought of the report.
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Ongoing strong revenue growth
After WiseTech's recent commercial model change, UBS thinks there are four key drivers for the business that could deliver a compound annual growth rate (CAGR) of 18% over the next three years.
First, UBS is expecting 4% volume growth from a mixture of new and existing customers.
Second, the broker is assuming price growth of 6%.
Third, UBS forecasts a 4% CargoWise value pack (CVP) uplift on the remaining 5% large freight forwarders (FF), representing 30% of CargoWise's revenue.
Fourth, it expects a container transport optimisation (CTO) contribution of 4%.
The broker thinks that CTO could be the "key swing factor" because of the large total addressable market, which could be somewhere between $4 billion to $20 billion.
UBS highlighted that WiseTech noted the complexity and newness of the CTO product, which is "likely to take time to drive broader adoption, with the company focused on their implementation with ACFS in Aus as proof of concept."
Thoughts on the job cuts
UBS noted that WiseTech's job cuts are largely being driven by AI efficiencies.
But, the company had more than tripled its workforce over the last three years as it had retained a large number of tech-related employees from acquisitions, particularly Blume and Envase, amid the competition for tech talent over the last few years.
UBS said it's conservatively assuming around $200 million of underlying cost reductions by FY27.
Is the WiseTech share price a buy?
The broker certainly thinks the ASX tech share is a buy, with a price target of $89. That implies a possible rise of approximately 80% over the next 12 months, if UBS is right.
UBS wrote:
We viewed WTC's 1H26 results positively and reiterate Buy: i) WTC highlighted its AI moat being data, integrations with key ecosystem partners, and agentic AI workflows; ii) commercial model change driving price uplift into 2H26.
WTC also signed 2 new large FF rollouts on CVP, and current conversations with large contracted FF to move to CVP appears positive. We continue to remain positive on the growth outlook for WTC and its defensiveness against AI disruption but we see incremental risks on a lower ramp of CTO over medium term.
