WiseTech Posts $1.4 Billion Revenue and $313.5 Million Underlying NPAT in FY26

Record Revenue Lifted by e2open Acquisition

WiseTech Global (ASX:WTC) smashed through its FY26 revenue ceiling, reporting a 79% surge to $1.396 billion, largely fuelled by the acquisition of e2open in August 2025. This deal alone contributed $541.2 million in revenue for 11 months, while the legacy CargoWise platform grew 11% organically to $756.9 million, supported by new Large Global Freight Forwarder (LGFF) rollouts and the rollout of its CargoWise Value Packs (CVP) commercial model.

Despite the revenue jump, statutory net profit after tax fell 11% to $178.7 million, weighed down by increased interest and amortisation expenses related to the acquisition. However, underlying NPAT, which strips out acquisition, restructuring, and divestment costs, rose a healthy 29% to $313.5 million, reflecting strong operational performance and cost discipline.

AI and Cost Synergies Drive Efficiency Gains

WiseTech’s AI Transformation program delivered approximately $115 million in annualised run-rate cost savings in FY26. This includes $64 million from e2open integration synergies, surpassing the FY27 target of $50 million, $34 million from AI-driven productivity improvements across product development and customer service, and $17 million from an efficiency program focused on high-performance teams and early AI adoption.

Internal AI adoption is extensive, with over 75% of employees using AI tools daily and more than 90% of code now AI-assisted. CargoWise’s AI agents, six of which are live with more in pilot or development, target up to 50% labour cost savings for logistics providers, aiming to automate complex supply chain tasks and improve data quality.

CargoWise Value Packs Gain Traction

The new CVP commercial model, introduced in December 2025, has been adopted by over 95% of CargoWise customers, accelerating new customer signings by approximately 30% overall and 55% among small and medium enterprises. WiseTech plans to migrate the remaining customers on legacy Seat and Transaction License (STL) commitments to CVP in FY27, which is expected to further boost revenue growth.

LGFF rollouts continue to be a major growth driver, with 61 rollouts secured, including 13 of the top 25 global freight forwarders. Twelve LGFFs are contracted and in progress, with more than 75% of their expected volume yet to go live, offering significant upside potential.

Strong Cash Flow and Accelerated Deleveraging

Operating cash flow rose 29% to $564 million and free cash flow increased 43% to $410.7 million, underscoring WiseTech’s highly cash-generative business model. The net leverage ratio improved to 2.7x at 30 June 2026, ahead of the company’s previous guidance of around 3.0x, with plans to reduce leverage to approximately 2.2x by the end of FY27 and below 2.0x in FY28.

Board Renewal and Executive Remuneration Adjustments

Governance enhancements continued with the appointment of Raelene Murphy as Independent Chair in July 2026 and Tim Ebbeck as Chair of the Audit & Risk Committee effective September 2026. This follows a broader board renewal process aimed at strengthening oversight.

In response to shareholder feedback following a 'first strike' on the FY25 remuneration report, the Board decided not to pay out the untested portion of the FY25 performance equity incentive carried into FY26. The CEO, Zubin Appoo, received a remuneration adjustment for FY27, increasing total fixed cash remuneration by 28% to AUD 933,500 and aligning his total maximum remuneration opportunity closer to market levels, with over 80% delivered as deferred equity.

Strategic Acquisitions and Product Expansion

WiseTech completed the acquisition of FRDM.ai in August 2026, an AI-powered supply chain risk and compliance platform that will accelerate the VerifyWise solution. VerifyWise aims to provide multi-tier supply chain verification, including compliance with modern slavery and sanctions regulations, targeting exporters, importers, banks, and logistics providers.

Other initiatives include the launch of Container Transport Optimization in July 2026, expanding WiseTech’s footprint in Australia’s container logistics network, and progress on New Zealand government contracts delivering customs solutions and tariff management portals.

FY27 Guidance Reflects Confidence Amid Uncertainty

For FY27, WiseTech forecasts revenue between $1.48 billion and $1.54 billion, representing 6-10% growth, with underlying EBITDA expected to grow 12-21% to between $725 million and $780 million. The company anticipates EBITDA margins expanding to 49-51%, driven by continued cost efficiencies, AI adoption, and CVP migrations.

The guidance assumes stable market conditions and supply chain volumes, noting that changes in industrial production or global trade could impact results. The company expects CargoWise revenue growth of 12-20%, flat revenue from e2open as integration and product synergies are prioritised, and a minor reduction in non-CargoWise revenue as customers migrate to CargoWise.

Sustainability and Climate Ambitions

WiseTech’s FY26 Sustainability Report highlights a Net Zero Carbon ambition focused on operational emissions and enabling customers to reduce supply chain emissions through its products. The company reports total Scope 1, 2, and 3 emissions of 92,788 tonnes CO2e, with no material climate-related financial impacts identified in the short to long term. WiseTech has transitioned to 100% renewable electricity for key sites and discontinued carbon offsets, prioritising direct decarbonisation efforts.

The company’s governance framework integrates climate risk management alongside enterprise risks, with scenario analysis confirming business resilience under both low and high emission futures.