ASX growth shares could be the sector poised to deliver the biggest returns due to the compounding potential of their earnings over the coming years.
We don't necessarily need to look at the technology sector to deliver big returns – there are some great candidates that could outperform the S&P/ASX 200 Index (ASX: XJO) over the longer-term.
The following businesses have strong growth potential, in the eyes of experts.
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Aussie Broadband Ltd (ASX: ABB)
Aussie Broadband is an Australian telco that it's growing its market share of NBN connections across residential, businesses, government and wholesale.
Broker UBS rates Aussie Broadband as a buy, with a price target of $6.20.
The business generated solid growth in the HY26 result, its on-net broadband connections reached 827,700, up 13.7% year-over-year. Revenue grew 8.4% to $637.8 million, underlying operating profit (EBITDA) increased 13.5% to $74.7 million and underlying net profit (NPATA) grew 24.5% to $31.3 million.
The company highlighted "strong growth outlook for business, enterprise and government with higher value contract wins, strong sales pipeline and enhanced SME [small and medium enterprise] capability with [the] acquisition of Nexgen".
UBS thinks that Australia Broadband's earnings per share (EPS) is going to grow at a compound annual growth rate (CAGR) of 33% over the next three years.
The broker said:
The earnings growth is largely underpinned by the structural growth opportunity we see as Australian broadband market share shifts from the incumbents to challenger brands. Challenger market share is currently at 22%, with our analysis pointing to this reaching at least 35% presenting a still to be won A$3.0bn revenue opportunity.
UBS projects that the ASX growth share could make a net profit of $72 million in FY26 and $176 million in FY30, a forecast rise of 140% over that period.
Breville Group Ltd (ASX: BRG)
Breville designs and develops small kitchen appliances, particularly coffee machines, which includes a number of brands including Breville, Sage, Lelit and Baratza. It also has a coffee bean business called Beanz.
Despite the impacts of US tariffs, the company was able to deliver net profit growth of 0.7% in the first half of FY26, along with 10.1% revenue growth. The board of directors decided to increase the interim dividend per share of 5.6% to 19 cents.
Tariffs have been a key issue for the ASX growth share and market to navigate. Broker UBS said that the company has handled it well so far:
US tariffs have been the key concern for BRG. Gross margin (GM) compression in 1H26 (-151bps in Global Product) a function of some China sourced products sold in 1H26 & no price rises in core US range, but this has been well managed:
(1) execution of production shift of 80% of 120v product from China to lower tariff markets (Cambodia, Indonesia, Mexico) at pace handled well;
(2) distribution/retailer mix has been optimised; and
(3) price raises for tail products has had a neutral $ gross profit outcome (assisted by competitor pricing & range decisions).
Looking to FY27E, gross margin upside exists due to the shift for a full 12mths to lower US tariff countries although uncertainty is likely to continue. Longer term, AI adoption at BRG is expected to assist CODB [cost of doing business] management & operating leverage tailwinds.
The Australian stock is rated as a buy by UBS with a price target of $39.
UBS projects the ASX growth share could generate net profit of $139 million in FY26 and $160 million in FY27. That means, at the time of writing, the Breville share price is valued at 29x FY27's estimated earnings.
