WiseTech Global (ASX:WTC) reported first-half FY26 results that management said were in line with internal expectations, alongside a significant expansion of its AI-led operating model, continued rollout of its transaction-based commercial model, and further progress integrating E2open.
First-half results and dividend
CEO Zubin Appoo said reported revenue grew 76% year over year, with reported EBITDA margin of 38%. He emphasized four priorities for the half: disciplined execution, accelerating the company’s AI transformation, implementing its new commercial model, and advancing the E2open integration.
- Total revenue: AUD 672 million, up 76% reported; 7% organic growth
- CargoWise revenue: AUD 372.4 million, up 12% reported; 9% organic, with recurring revenue at 99%
- EBITDA: AUD 252.1 million, up 31%, with reported EBITDA margin of 38%
- Organic EBITDA margin: 51%, consistent with the prior period (as described)
- Underlying NPAT: AUD 114.5 million, up 2%
- Free cash flow: AUD 153.6 million, up 24%
- Interim dividend: AUD 0.068 per share, up 1%, with a 20% payout ratio of underlying NPAT
E2open contribution and integration updates
CFO Caroline (last name not provided in the transcript) said the group now reports two operating segments following the August 4, 2025 completion of the E2open acquisition. She said E2open contributed AUD 249.4 million to revenue in the half.
Management said integration work is “well progressed,” including alignment of product teams and an integrated sales and marketing organization. The company also said it achieved its Horizon 1 FY27 cost synergy target of AUD 50 million in annualized run-rate savings in January, nearly a year and a half earlier than planned.
Caroline said group gross profit margin was 79% (down seven percentage points), which she attributed largely to E2open’s higher mix of professional services revenue and related cost of revenues. Excluding E2open, gross profit margin was described as consistent with the prior period at 87%.
She added that E2open delivered EBITDA margins of 22% in the half, including AUD 30.6 million of restructuring and break costs. Excluding those items, she said E2open’s EBITDA margin would be 34%, a 6 percentage point expansion versus FY25 pro forma figures previously provided.
CargoWise Value Packs and commercial model shift
A central theme of the call was WiseTech’s transition away from seat-based pricing to a transaction-based model. Appoo said CargoWise Value Packs are now rolled out to approximately 95% of CargoWise customers. Under this model, the company removes seat/user fees and charges based on transactions, which management argued better aligns revenue to value delivered as AI improves customer productivity and reduces labor needs.
Appoo said the remaining customers not yet on Value Packs are primarily large customers on long-term commitment agreements, representing about 30% of CargoWise revenue. Management said expanded functionality—particularly embedded AI—creates an incentive for these customers to transition before contract expiry.
In Q&A, management said it is proactively approaching customers even if expiries are “many years into the future.” Appoo also said some customers are using time-limited Trial Access Agreements (previously Early Access Agreements) for specific features, including AI functionality, as a “carrot” to drive earlier migration to Value Packs.
Management noted two large global freight forwarder rollouts—Blue Water Shipping and XPD Global—have signed up on the Value Packs since the start of calendar 2026. Appoo also said CargoWise signed four new large global freight forwarder rollouts in FY26 to date, naming Sincham, CJ Logistics, Blue Water Shipping, and XPD Global, and added an additional organic global rollout of Neptune Pacific. He said WiseTech now has 59 large global freight forwarders, with 46 in production and 13 in contracted rollouts, including 11 in the top 25.
Executives also addressed “transition pricing protection” (TPP), describing it as a customer commitment to support the changeover. In response to questions, Appoo said TPP can either reduce or increase what a customer pays under Value Packs to match what they paid under prior agreements for a period of time, depending on the customer, and said the company would not comment on individual accounts.
AI transformation and planned headcount reductions
Appoo described AI as reshaping software development and said WiseTech has been embedding AI into workflows across design, build, testing, and deployment. He said AI is being used for code reviews, automated test generation, identifying edge cases, resolving defects via agentic workflows, and accelerating product delivery.
He said WiseTech has already made more than 500 role reductions during FY26 as part of an efficiency program. Looking ahead, he said that starting in 2H FY26 and continuing into FY27, the company expects to reduce headcount in product and development and customer service across the company, including E2open, by up to 50%. Appoo said the phased program will “likely result in a reduction of approximately 2,000 roles in FY26 and into FY27.”
Management said the impact is not expected to be material to FY26 outcomes, with execution costs likely offsetting any savings. Caroline said the financial effects will reflect cost savings, restructuring costs, and capitalized development, but the company did not quantify execution costs in the call.
Executives also argued that AI increases the value of “trusted, deeply embedded systems of record” in regulated workflows. Appoo described WiseTech’s moat as extending beyond source code to its network, permissioned data, and embedded regulatory and compliance capabilities. He cited the company’s scale metrics discussed on the call, including software supporting “approximately 80% of manufactured trade flows,” operations across 193 countries, connectivity with airlines and ocean carriers, and a global base of CargoWise certified professionals.
Container Transport Optimization and outlook
On product initiatives beyond Value Packs, Appoo said Container Transport Optimization (CTO) is in implementation with launch partner ACFS Port Logistics. In Q&A, management reiterated that CTO was expected to be a smaller contributor to FY26 growth and characterized the rollout as requiring significant change management in an industry with entrenched processes. Appoo said the company would look at other customers in Australia and the U.S. after implementation progress with ACFS.
On guidance, management said it is reaffirming FY26 guidance excluding the impacts of the restructuring plans announced on the call. Executives said second-half performance is expected to accelerate, subject to the timing and take-up of revenue initiatives, particularly Value Packs adoption and ongoing execution of strategic programs. Caroline also said the company continues to plan to return to EBITDA margins above 50% over time, noting WiseTech’s history of margin recovery after acquisitions.
About WiseTech Global (ASX:WTC)
WiseTech Global Limited engages in the development and provision of software solutions to the logistics execution industry in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. It develops, sells, and implements software solutions that enable and empower logistics service providers to facilitate the movement and storage of goods and information. The company offers CargoWise, a software platform for logistics service providers that enables execution of complex logistics transactions and manage operations on one global database across multiple users, functions, offices, corporations, currencies, countries, and languages.
