It has been a brutal year for WiseTech Global Ltd (ASX: WTC).
WiseTech shares are down approximately 47% year to date and have crashed 66% over the past twelve months.
At $36 today, the stock trades near levels last seen in early 2022.
May was another poor month for WiseTech shares, with the stock down approximately 16%.
So what happened?
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What drove the May selling in WiseTech shares
The selling in WiseTech shares in May reflected a toxic combination of two forces.
First, the most dramatic company-specific event was WiseTech's announcement that it would cut approximately 2,000 jobs, as part of a two-year AI-linked restructuring program.
This is nearly a third of its total workforce.
The cuts triggered an urgent request for a meeting from an Australian trade union.
Furthermore, the company simultaneously faces a Fair Work Commission claim from an executive over her dismissal.
The handling of the layoffs attracted significant negative media coverage and raised questions about WiseTech's workplace culture.
Second, WiseTech's Q3 FY2026 quarterly update, published on 4 May 2026, added to investor unease rather than providing reassurance.
While the company reaffirmed its full-year FY2026 revenue guidance of US$1.39 billion to US$1.44 billion, it also confirmed that one-off integration costs related to the E2open acquisition would reach US$45 million to US$50 million in FY2026, materially compressing profit margins.
Furthermore, analysts have cut the consensus full-year FY2026 EPS forecast to approximately A$0.72 per share.
This is down from higher estimates earlier in the year, as the E2open integration costs and restructuring charges weigh on the bottom line.
With full-year results not due until August 2026, investors have had no earnings catalyst to offset the negative newsflow from the restructuring and integration cost overruns.
But the business keeps delivering
Look past the sentiment and WiseTech's operational performance remains solid.
CargoWise is used by all of the world's top 25 global freight forwarders.
And switching costs for WiseTech's customers are enormous.
That gives WiseTech a revenue base that is considerably more resilient than the share price performance implies.
Moreover, the company has accelerated its AI integration roadmap.
The company is embedding AI tools directly into CargoWise to automate workflows, improve compliance, and reduce costs for customers.
What does the broker community think?
The broker picture on WiseTech shares is divided but broadly constructive.
UBS maintains a buy rating on WiseTech shares, stating the medium-term growth outlook remains intact and seeing the stock as attractively valued on a forward sales multiple basis.
The broker forecasts a compound annual growth rate of 27% in sales and 33% in EBITDA through FY2028.
Meanwhile, Bell Potter recently named WiseTech shares as a stock that could rise 150% from current levels.
The broker cited the deep competitive moat and the platform's irreplaceable role in global freight forwarding.
Foolish takeaway
WiseTech shares have been through the wringer in May.
The near-term volatility is unlikely to disappear while governance uncertainty and sector rotation pressures persist.
However, the underlying business continues to grow at impressive rates, the CargoWise moat is intact, and at least two major brokers see substantial upside from current WiseTech shares levels.
For patient investors who can tolerate volatility, May may prove to be an interesting month to have paid attention.
