I'd describe Technology One Ltd (ASX: TNE) as one of Australia's top shares. A sell-off could be an excellent opportunity for brave investors.
Technology One is Australia's largest enterprise software company. It says that its Solution as a Service (SaaS+) offering is an all-inclusive, industry-specific solution that allows it to deliver enterprise resource planning (ERP) implementations.
It has more than 1,300 leading businesses, government agencies, local councils and universities as clients.
At the time of writing, the Technology One share price has fallen 14% since 14 August 2026. It's also down by 32% since June 2025.
For multiple reasons, I think it's a good time to invest in one of Australia's top shares.
Image source: Getty Images
Strong revenue growth
To count as one of Australia's top shares, I think the revenue needs to grow at a solid pace.
The Technology One business is growing at a strong pace, with revenue growth of 11% to $322.7 million during the FY26 first-half.
I think the growing annual recurring revenue (ARR) is an even better sign of the company's success. This reveals what the business could earn in the next 12 months.
A key driver of its ARR is the net revenue retention (NRR). In other words, it is the level of income the existing client base generates – 100% means those clients account for as much revenue this year as last year.
Technology One reported NRR of 114%, meaning revenue from existing clients grew by 14%. That growth rate has been consistent recently, which is strong organic growth.
A company that grows at 15% per year doubles in size in five years, so that's the sort of number we're talking about with Technology One, making it look to me like one of Australia's top shares.
Rising profit margins
Another positive element to the business is the prospect of rising profit margins in the coming years.
As the company is a software business, it can deliver pleasing operating leverage. Revenue can grow faster than expenses, leading to rising margins and a stronger bottom line in the years ahead.
Currently, the business is investing heavily for growth, which is why HY26 profit before tax grew 9% to $89.1 million. But, on an underlying basis, profit before tax grew 21% with a margin improvement of 2 points to 30%.
It expects that group margins will improve towards 35% in the coming years, driven by "significant economies of scale".
Geographic expansion
Technology One is driving future growth by looking at places like the UK to unlock the next stage of growth. The UK has a similar setup to Australia with government agencies, local councils, companies and so on, so the growth opportunity is there.
It's already delivering impressive growth in the UK. HY26 UK ARR rose 23% to $53 million, so it's a small but growing part of the business. Recent wins include Liverpool City Council and Salisbury City Council.
Technology One noted that the UK local government sector is currently undergoing a transition period with the planned combination of smaller councils to form larger, economically viable councils. Its sales pipeline for local government in the UK remains strong and management expects accelerated growth from this sector in future periods.
Overall, the business has a very promising future, in my opinion, it looks like one of Australia's top shares to buy right now.
