Can Software Stocks on ASX 200 and All Ordinaries Maintain Momentum?

2 min read | May 22, 2025 04:32 PM AEST | By Team Kalkine Media

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Can Software Stocks on ASX 200 and All Ordinaries Maintain Momentum? — Image source: Shutterstock

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Highlights

Technology One Limited (TNE) delivered double-digit revenue and income growth in first half 2025

Profit margin expanded above previous period and earnings per share rose significantly

Equity performance on ASX 200 and All Ordinaries reflected in sustained share value advance

The software sector on ASX 200 and All Ordinaries features Technology One Limited (ASX:TNE) reporting robust first half 2025 results, driven by strong subscription and services revenue across domestic and international markets.

Revenue Advancement

Technology One recorded a year-on-year increase in revenue from core software platforms, with growth outpacing prior reporting cycles. Recurring licence fees and cloud subscription income underpinned the rise, reflecting expansion across government, education and enterprise customer segments.

Net Income Improvement

Net income for the first half of twenty twenty five rose above previous comparative periods, supported by higher gross margins and disciplined cost management. Operating leverage contributed to the uplift, with administrative and development expenses growing at a lower rate than revenue.

Earnings Per Share Growth

Earnings per share increased in the first half, following improvements in net profit and share count stability. The rise in EPS underscored enhanced profitability from recurring revenue streams and ongoing efficiency measures within delivery and support teams.

Profit Margin Expansion

The company’s profit margin widened in the reporting period, driven by a blend of subscription revenue and a shift toward cloud-based offerings. Higher margin services and software licence renewals contributed, alongside reduced overhead relative to total income.

Operational and Sector Benchmarks

Within the software industry on ASX 200 and All Ordinaries, peers often report moderate growth in revenue and net income. Technology One’s performance in the first half set it apart through accelerated subscription growth and margin improvement. Continued focus on product development, customer support and geographic expansion supported the result, aligning with sector dynamics and market demand for enterprise software solutions.

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