Audinate Leads ASX Technology Movers as AI Infrastructure Spending Accelerates

Audinate Group (ASX:AD8) was the week’s biggest mover, rising 38.10%. Investors responded to 15% revenue growth and a network of 8 million devices. DXN (ASX:DXN) followed with a 27.91% gain after securing a $4.1 million edge data centre contract at Melbourne Airport. Hansen Technologies (ASX:HSN) moved the other way, falling 25.23% despite a 15.9% rise in underlying profit.

AI spending reaches more parts of the market

Megaport (ASX:MP1) reported revenue of $312.2 million, up 37%, and raised more than $1 billion. The money will support AI infrastructure contracts worth $506 million, plus its Latitude.sh and Extreme IX acquisitions. Those deals give Megaport more computing, network and storage services. Its shares still fell 14.43% for the week. Investors may be weighing the large capital raise against the cost of building this capacity.

SCX.ai (ASX:SCX) also plans to raise $40 million through an initial public offering. It will provide AI computing from Australian data centres using specialised computer chips. The business forecasts $6 million in FY26 revenue and a $3.55 million loss. Its first system is at Equinix SY5 in Sydney. The listing gives investors access to a fast-growing area, but the company must still prove that customers will cover its high infrastructure costs.

Data centre work supports contractors

SKS Technologies (ASX:SKS) lifted revenue 33% to $347.9 million and nearly doubled profit to $27.1 million. Its order book grew 56% to $312 million. The Delta Elcom acquisition also expands its reach in New South Wales. Even so, the shares fell 13.58%. This suggests some investors wanted stronger evidence that the large project pipeline will turn into cash.

DXN’s Melbourne Airport contract offers a more immediate order. The prefabricated facility should be completed by mid-2027. A separate $1.6 million contract variation with Globalstar adds to near-term work. The shares rose after both awards were announced. The gain continued after the stock reopened, rather than quickly giving back its early rise.

Software companies focus on profit and recurring sales

Iress (ASX:IRE) increased net profit by 85% to $32 million, while revenue fell 16.9% after asset sales. Cost cuts lifted its cash profit margin, and recurring revenue grew 3.4% on a constant currency basis. The company also raised its interim dividend. The shares still fell 19.97%, showing that investors remain concerned about the smaller business after those divestments.

Hansen produced a similar split result. Support and maintenance revenue rose 13.4%, while AI tools helped staff work more efficiently. The company also completed its Digitalk acquisition, which contributed $11 million in revenue. A planned chief executive change adds another issue for investors to assess. Stuart MacDonald will take the role, while Andrew Hansen becomes executive chair.

Audinate gained despite a wider underlying loss of $3.6 million. The company is spending on its Dante audio and video platform, as well as the Iris acquisition. It plans to cut costs and improve profit from FY27. The price rise continued after the stock reopened, giving the market a clear sign that buyers accepted the investment period for now.

Capital raises and exits divide smaller technology stocks

Ovanti (ASX:OVT) fell 33.33% after leaving BNPL worldwide and focusing on its iSentric business in South-East Asia. It also opened a one-for-one entitlement offer at 0.2 cents per share to raise about $2.293 million. An entitlement offer lets existing shareholders buy new shares, but it can increase the total number of shares. The stock did not recover after reopening, pointing to weak investor support.

Sparc Technologies (ASX:SPN) is taking a different funding route, seeking up to $2.5 million to commercialise its graphene additive and support green hydrogen work. The share purchase plan price is 17.5 cents, a 16.7% discount to the last trade. More than 20 product tests are under way. The key test is whether these programmes become paying products.

Elsewhere, Energy One (ASX:EOL) rose 15.14% after announcing its $99.8 million all-scrip purchase of Gas Management Services. The deal should add European customers and is expected to lift FY26 earnings per share by 35%. Codan (ASX:CDA) gained 9.13% after a 30% revenue rise and a 69% profit increase. Its communications and metal detection businesses both grew, while an acquisition adds US defence capability.