2 ASX 200 shares I rate as top buys for growth

I reckon these stocks offer significant potential.

Some S&P/ASX 200 Index (ASX: XJO) shares reach an optimal size where they're large enough to be strong and stable but still have growth potential.

Large and mature businesses may offer a decent dividend yield, but their revenue growth may be limited because it's already such a large number.

Rising arrow on a blue graph symbolising a rising share price.

Image source: Getty Images

Sigma Healthcare Ltd (ASX: SIG)

Sigma Healthcare is the largest pharmacy business in Australia – it owns the brands of Chemist Warehouse, Amcal and Discount Drug Store.

There are a variety of growth factors helping drive Sigma Healthcare. For starters, the existing Chemist Warehouse Australian store network is performing strongly. In FY26 to April 2026, Chemist Warehouse Australian store like-for-like (LFL) growth was 14.4%. It's exposed to strong tailwinds like an ageing and growing population.

It's also expanding its store network in Australia, further boosting its sales potential and scale benefits in the country. In the HY26 period, it reached 550 Australian Chemist Warehouse stores, up from 537 in FY25. I expect that number to continue rising by double-digits annually for the foreseeable future.

The ASX 200 share's international division is also performing strongly, with growing store networks in New Zealand and Ireland. It also has a presence in Dubai and China, plus it has just started expanding into the UK. I think the international segment could become a major contributor in the coming years. In FY26 to March 2026, international total sales were up by 24.7%.

The final reason to like the business is its rising profit margins, which helps the bottom line grow faster than revenue. HY26 saw revenue climb 14.9%, operating profit (EBITDA) rose 17.8% and net profit jumped 19.2%.

Net profit growth is the best driver of the Sigma Healthcare share price and seeing the company's profit margins rise is a great sign for future shareholder returns.

TechnologyOne Ltd (ASX: TNE)

The other ASX 200 share I want to highlight is TechnologyOne, a business I'd describe as one of the leading tech businesses on the ASX.

It provides enterprise resource planning (ERP) software, in other words essential operations software, for a number of clients including government entities, businesses, local councils, universities and so on.

I like its target client base because they're resilient customers and software is essential so they can run efficiently across their operations.

TechnologyOne invests a significant portion of its annual revenue into research and development, which is a key driver of organic growth. The ASX 200 share targets a net revenue retention (NRR) of 115%, meaning its existing client base produces 15% more revenue than the year before. Revenue can double in five years at that speed.

The company is in the early stages of its UK expansion, which is a market with similar entities as Australia, so there will hopefully be an easy transition to winning clients there. It has already won a couple of London local councils, which bodes well for future wins.

The ASX 200 share expects to grow its annual recurring revenue (ARR) to $1 billion in the next few years, while the profit before tax (PBT) margin is expected to rise as well.

I think it could be the top-performing ASX 200 share to own to the end of the decade. But, these aren't the only ASX shares that have a compelling future.

Motley Fool contributor Tristan Harrison has positions in Technology One. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Growth Shares

Two smiling colleagues looking at a tablet in a data centre.
Growth Shares

Where I'd invest $10,000 in ASX growth shares

These shares have strong growth outlooks. Let's get to know them better.

Read more »

A young man punches the air in delight as he reacts to great news on his mobile phone.
Growth Shares

2 ASX growth shares I think could surprise investors by 2030

These two shares could have bucketloads of growth ahead of them.

Read more »

Happy businessman fist pumping while looking at a tablet.
Growth Shares

Why I think these shares could return more than the ASX 200 by 2030

Beating the market isn't easy, but I think these companies have qualities that could make it happen.

Read more »

Green arrow going up on a stock market chart, symbolising a rising share price.
Growth Shares

2 ASX shares tipped to grow up to 142% in the next 12 months

Analysts think these stocks are poised to deliver big returns.

Read more »

Man reading his emails on a laptop while relaxing on a beach.
Growth Shares

3 ASX growth shares I think are no-brainer buys

There are good reasons why I am bullish on these shares.

Read more »

Buy and sell keys on an Apple keyboard.
Growth Shares

Is the Life360 share price a compelling buy after falling 61%?

Is it time to be greedy with this beaten-up ASX share?

Read more »

A businessman hugs his computer and smiles.
Growth Shares

3 top ASX shares I'd buy today and happily hold until 2036

These shares have qualities that could make them great long-term investments.

Read more »

Man holding out $50 and $100 notes in his hands, symbolising ex dividend.
Growth Shares

2 ASX shares tipped to grow up to 70% or more in the next 12 months

These stocks have a lot of upside potential, according to experts.

Read more »