WTC.AX Stock Today: February 26 — AI Cuts Fuel 11% ASX Surge
The WTC.AX stock surged about 11% on 26 February after WiseTech Global outlined an AI-led restructure that will remove roughly 2,000 roles over two years. Investors focused on a leaner cost base and future margins, even as statutory profit fell 36% and underlying profit rose 2% to US$114.5 million. We break down why the market reacted, how WTC.AX stock screens on valuation and technicals, and what Australian investors should monitor as the WiseTech share price recalibrates on the ASX.
What Drove Today’s 11% Jump
WiseTech plans to cut about 2,000 roles, or 29% of staff, over two years as AI automates coding and support tasks. Management also flagged potential 50% reductions in customer service and product or development teams as AI improves. The market read this as margin accretion and stronger cash generation, lifting WTC.AX stock. Details were confirmed by local media reports source.
Despite a 36% drop in statutory profit, underlying profit edged up 2% to US$114.5 million. Results landed on 25 February 2026, and investors looked through near-term softness to a structurally lower cost base. The reaction suggests the AI plan overshadowed headline earnings pressure, helping WTC.AX stock rally intraday while traders priced in better margins and improved free cash flow over time.
Valuation, Quality, and Risks
WiseTech trades on a rich P or E of about 51.18, with price to sales near 11.74 and price to book around 5.55. Quality metrics are strong, including gross margin of roughly 86%, operating margin near 37%, net margin about 26%, and low debt to equity around 0.07. WTC.AX stock is not cheap, so delivery on savings is crucial to justify the multiple.
Large-scale role reductions can strain delivery and service levels. The company targets big efficiency gains, but any disruption to customer support, longer product cycles, or morale issues could slow adoption. External commentary noted the scale of the shift and industry signal it sends source. For WTC.AX stock, the key risk is savings not translating to durable growth.
Technical Picture for Traders
RSI sits at 29.91, which is oversold, while ADX at 45 signals a strong trend. The WiseTech share price printed A$42.99 today, with a low of A$42.65 and a high of A$44.28. Bollinger lower band is A$40.15 and ATR is 2.80, implying wide daily ranges. Short term, WTC.AX stock is stretched but bears still control momentum.
The 50-day average is A$61.14 and the 200-day is A$87.16, showing a clear downtrend. YTD change is about -37% and one month is -31%. A rebound could target the Bollinger middle near A$50.44. Watch the A$40.60 zone, close to the 1-year low at A$40.59 and the lower band at A$40.15, as potential support.
Catalysts and What to Watch Next
The role reductions span two years, so quarterly cost ratios will matter. Track operating expense to revenue, free cash flow per share at 1.606, and R and D spend at roughly 23.8% of revenue. If AI lifts productivity while service quality holds, WTC.AX stock can sustain a higher margin profile without sacrificing growth velocity.
Management hinted at further efficiencies as AI advances. Watch customer service response times, delivery cadence for new features, and churn. Any slip in satisfaction would challenge the thesis around AI layoffs ASX investors are weighing. Clear savings run-rate updates and stable revenue growth would be strong validation for the rerating.
Final Thoughts
WTC.AX stock spiked as the market priced a faster path to leaner operations and better margins. The plan is bold, with about 2,000 roles to be removed over two years and the possibility of deeper cuts as AI improves. Quality and cash generation are compelling, but the valuation is premium, so execution must be tight. Technically, conditions are oversold, yet the primary trend remains down. For local investors following wtc asx moves, the key is evidence that savings flow through without hurting service or growth. If WiseTech delivers clean savings and steady revenue, the WiseTech share price can defend recent gains. If service falters, the re-rate may unwind quickly. Position sizing and patience matter.
FAQs
Why did WiseTech rise even as profit fell?
Investors focused on future margins and cash flow. The AI-led restructure aims to cut about 2,000 roles and reduce support or development needs over time. That lowers the cost base, which can lift margins even if revenue growth is steady. The market priced those savings ahead of full delivery.
Is WTC.AX stock cheap after recent declines?
Not by standard metrics. The P or E is about 51, price to sales is near 11.7, and price to book is around 5.6. Quality is strong and debt is low, but the multiple assumes clean execution. If savings or growth miss, valuation compression is a risk.
What technical levels should traders watch?
RSI near 30 is oversold, while ADX near 45 signals a strong trend. Watch the A$40.60 area, which is close to the 1-year low, and the Bollinger lower band near A$40.15 for support. A bounce target is the Bollinger middle around A$50.44.
What should Australian investors monitor next?
Track the pace of cost savings, customer service metrics, churn, and free cash flow. The earnings release on 25 February set the baseline. Look for management updates on savings run-rate, delivery timelines, and any revenue guidance changes that confirm benefits from the AI program.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.