WiseTech Stock Crash: Profit, ACCC Search, FY27 Guidance

Australia’s WiseTech Global shares came under pressure after the logistics software company reported an 11% decline in FY26 statutory net profit to A$178.7 million and issued FY27 revenue-growth guidance of 6% to 10%. The results followed an Aug. 19 search warrant executed by Australia’s competition regulator, the Australian Competition and Consumer Commission (ACCC), which sent the stock down as much as 13% during the session.

The company reported FY26 revenue of about A$1.4 billion, with the acquisition of e2open contributing materially to the increase. WiseTech had previously forecast FY26 revenue of A$1.39 billion to A$1.44 billion, including e2open for about 11 months of the financial year.

Profit Falls Despite Record Revenue

WiseTech’s statutory net profit after tax fell 11% to A$178.7 million in FY26, while revenue reached about A$1.4 billion, according to the company’s FY26 results. The result highlights the difference between acquisition-driven revenue expansion and statutory earnings performance.

The e2open acquisition was completed on Aug. 4, 2025, after WiseTech agreed to acquire the company for about US$2.7 billion. The ACCC subsequently investigated the transaction and concluded that it could substantially lessen competition in the supply of logistics software in Australia.

WiseTech had forecast FY26 revenue of A$1.39 billion to A$1.44 billion and EBITDA of A$550 million to A$585 million before the year began. Its earlier guidance also anticipated an EBITDA margin of 40% to 41%, reflecting the effect of the e2open acquisition on group profitability.

ACCC Search Adds Regulatory Risk

The ACCC executed a search warrant at WiseTech’s premises on Aug. 19 as part of an investigation into alleged contraventions of the Competition and Consumer Act 2010. The company said the warrant required it to produce documents and electronic data concerning the supply of global logistics services and software.

The ACCC confirmed the search but said its investigation remained ongoing and that it would not comment further. WiseTech said it intended to fully cooperate with the investigation, leaving the specific allegations and potential consequences unresolved.

The market reaction was immediate. WiseTech shares fell as much as 13% after the announcement and closed Aug. 19 at A$39.58, down 8.7%, according to market data reported that day.

FY27 Guidance Tests WiseTech’s Growth Story

WiseTech’s FY27 revenue guidance of 6% to 10% growth represents a sharp moderation from the 79% to 85% revenue-growth range the company had forecast for FY26, although the FY26 comparison includes the contribution from the e2open acquisition. The company had previously said e2open would contribute to FY26 revenue for roughly 11 months.

The slower FY27 growth outlook matters because WiseTech’s FY26 expansion was substantially influenced by e2open, while its longer-term strategy centers on increasing recurring CargoWise revenue and improving productivity through technology and artificial intelligence.

WiseTech continues to operate at significant international scale. The company says its software is used across 195 countries, while its CargoWise platform had customers operating in 193 jurisdictions at Dec. 31, 2025.

AI Investment Creates a New Growth Lever

WiseTech has positioned artificial intelligence as part of its longer-term productivity strategy rather than solely as a new revenue stream. The company’s FY25 annual report said it invested A$263.8 million in research and development, equivalent to 34% of revenue, while 64% of its workforce was focused on product development.

The company also entered FY26 with a strong recurring-revenue base. Its FY25 annual report showed group recurring revenue at 98%, while free cash flow reached A$287 million, up 31% from the previous year.

That recurring base provides WiseTech with a foundation for continued investment in CargoWise, AI and product development even as acquisition-related growth moderates. The combination of recurring revenue, international reach and continued technology investment gives the company identifiable avenues for rebuilding investor confidence as the ACCC investigation proceeds.