Why are Nuix shares rocketing 26% on Monday?

Nuix Ltd (ASX: NXL) shares are starting the week with a bang.

Shares in the All Ordinaries Index (ASX: XAO) investigative analytics and intelligence software provider closed on Friday trading for $1.425. In morning trade on Monday, shares are swapping hands for $1.80 apiece, up 26.3%.

For some context, the All Ords is up 0.2% at this same time.

This strong outperformance follows the release of the ASX tech stock's full year FY 2026 results.

Here's what stoking investor interest.

Nuix shares surge on return to profit

The ASX All Ords tech stock enjoyed a strong year of growth.

Highlights included an 18.8% year-on-year increase in revenue to $263.2 million. The company credited this to broad-based expansion through both existing customer growth and new customer wins.

And earnings rocketed too. Nuix shares are getting a lift, with the company reporting adjusted management earnings before interest, taxes, depreciation and amortisation (EBITDA) of $59.8 million, up 60.4% from FY 2025, with margins increasing to 22.7% from 16.8% last year.

This helped drive a 154% year on year increase in the company's underlying cash flow to $51.0 million.

On the bottom line, Nuix swung back into profit, achieving a statutory net profit after tax (NPAT) of $16.4 million, up from a $9.2 million loss in FY 2025.

Tapping into AI

Nuix shares could also get longer-term support from the company's investments in AI across its operations.

"Shifts in enterprise AI deepen Nuix's defensive moat and provide revenue opportunities," the company said.

Nuix noted that its approach to AI adoption is designed to "scale capacity rather than reduce headcount".

What did management say?

Commenting on the results lifting Nuix shares today, CEO John Ruthven said, "FY26 was a year of profitable growth and decisive action."

Ruthven added:

Financial performance was robust across key metrics, with ACV [Annualised Contract Value] within our guided range, material increases in profitability and a substantial lift in cash generation. Nuix Neo continues to scale as the primary engine of profitable growth.

During the year, we made the structural changes required to shift from feature selling to platform value. We have restructured our go-to-market with enhanced commercial capability, established a clear AI strategy, and unified product and technology, backed by a one-off R&D Accelerator investment in FY27.

Looking to what could impact Nuix shares in the year ahead, Ruthven said:

We are building on continued underlying momentum. With enhanced commercial capability in place, continued investment in platform and AI capabilities, and a clear strategy for profitable growth, we are well positioned to capture the significant opportunity ahead.

The post Why are Nuix shares rocketing 26% on Monday? appeared first on The Motley Fool Australia.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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