There are not many ASX shares I'd describe as an unstoppable force, but TechnologyOne Ltd (ASX: TNE) is one of them.
The business describes itself as Australia's largest enterprise software company. It has 1,300 businesses, government agencies, local councils and universities.
Software is a very important part of operations these days, helping organisations be as organised and efficient as possible.
TechnologyOne has a long track record of supporting customers and giving them what they want/need.
There are a few reasons why I think the business has a very exciting future.
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Big commitment to customers
In this era, I believe customers and subscribers want software that can operate in a complex way without errors or incidents.
TechnologyOne has invested significantly in its software offering for clients. It regularly invests around 25% of its revenue into developing and improving its software for customers.
I think that level of investment will help it stay ahead of competitors. It may be able to bring down its costs by utilising AI, which could significantly improve its profitability.
Customers seem to love what the business has to offer, with its customer churn rate being less than 1% in the first half of FY26 – which is its target.
Strong revenue growth
The ASX share is generating impressive revenue growth each year, which is flowing through the financials.
One of the main elements of it being unstoppable is the net revenue retention (NRR), which is how much revenue it achieves from its existing client base from the previous year. In other words, keeping all of last year's revenue would be 100%, while anything above that implies revenue growth from clients.
If its NRR is 115%, it can double in size every five years, without winning new customers. In the first half of FY26, NRR was 116%.
Its primary growth engine is expanding its relationships with customers, which is partly why it invests so much in R&D and explains why its NRR is able to be so high.
The company is aiming for $1 billion of annual recurring revenue (ARR) by FY30. Management believes that AI usage will drive average revenue and ARR per customer higher in the coming years.
I'm also hopeful that the company's UK expansion can continue at a pleasing pace, with an ongoing pipeline of potential customers to win.
Rising profitability
The business expects its profit margins to increase, which will make each revenue dollar more valuable to the business.
In the long term, the ASX share aims to achieve a profit before tax (PBT) margin of at least 35% thanks to its economies of scale. I believe the business has a very promising future, and its rising PBT margin will help drive its bottom line as revenue grows.
According to Commsec's forecast, the TechnologyOne share price is valued at 60x FY26's estimated earnings and 41x FY28's estimated earnings. In other words, the company's earnings per share (EPS) is forecast to rise by 45% between FY26 and FY28.
With profit growth like that, I think the business has a very promising future.
