Why are WiseTech shares crashing 8.5% today?

WiseTech Global Ltd (ASX: WTC) shares have crashed into the red in Wednesday morning trade.

At the time of writing, the shares are down around 8.5% to $41.73 per share.

This means the shares are now down 39% for the year to date and are now 64% lower than trading levels seen this time last year.

Today's decline follows the company's FY26 results announcement, which it posted to the ASX ahead of the market open this morning.

It looks like the announcement spooked investors, with many rushing for the exit this morning.

What did WiseTech report this morning?

WiseTech reported that it has raised its annual earnings and flagged growth for FY27 in line with analysts' expectations.

The company reported a 46% increase in EBITDA to US$558.4 million for the 12 months through to the 30th of June. The result was in line with the company's $550 million to $585 million guidance range but short of market forecasts of $569.5 million.

But WiseTech's EBITDA beat the average analyst forecast of $599.9 million on an underlying basis. WiseTech reported a 56% jump in underlying EBITDA to $644.5 million at a 42% margin.

The company's total revenue increased by 79% compared to the prior year, and its underlying NPAT increased by 29% due to organic growth from its e2open acquisition.

WiseTech said its cost-saving programs also delivered around US$115 million in annualised savings, including efficiencies from adopting AI in operations.

The company also raised its final dividend to 88 US cents per share, up from 77 US cents per share.

Looking ahead, WiseTech is guiding total revenue growth between 6% and 10% (US$1.48 billion to US$1.54 billion) for FY27, and underlying EBITDA growth between 12% and 21%, with a margin uplift to 49% to 51%. 

Where to now for WiseTech shares?

At the time of writing, the outlook for WiseTech shares is unchanged, although I expect some market experts could revise their outlook in the coming days following today's results.

At the time of writing, brokers and analysts are still very bullish on where we'll see the share price travel from here.

Market Index shows that the majority of brokers (three out of four) are very bullish on the ASX tech stock and hold a strong buy rating. The average $54.71 target price implies a potential 27% upside over the next 12 months, at the time of writing.

TradingView data shows something similar. Of 12 analysts, 10 have a buy/strong buy rating, and the other two rate the shares as a hold.

The $60.63 average target price implies a potential 46% upside over the next 12 months, at the time of writing.

The post Why are WiseTech shares crashing 8.5% today? appeared first on The Motley Fool Australia.

Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. 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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