TechnologyOne (ASX:TNE), Australia's preeminent ERP SaaS provider, announced a significant upgrade to its FY26 financial guidance, citing the transformative impact of its "SaaS+" strategy and artificial intelligence integration.
During the company's annual general meeting, CEO Ed Chung revealed that the firm now expects profit before tax growth of 18% to 20%, an increase from the previously projected range of 13% to 17%.
Additionally, annual recurring revenue is forecasted to climb between 16% and 18%.
Chung characterised AI and SaaS+ as the company’s "not so secret weapons," noting that the upgraded outlook reflects a robust customer pipeline across Australia, New Zealand, and the UK.
While the company has historically maintained a "heartbeat" growth rate of 10% to 15%, this latest revision marks a deliberate "surgical" acceleration of their business rhythm.
Investors should note a strategic phasing shift in the first half of the year. TechnologyOne has invested approximately $8 million to $9 million in "AI Showcase" product launches.
H1 FY26 PBT growth is expected to land in the high single digits, with a substantial "step-up" in the second half to meet the full-year targets.
The board announced the retirement of Non-executive Director Clifford Rosenberg after seven years of service.
Chung concluded with a firm vote of confidence in the revised figures, stating, "We don't guide up unless we can see it in the numbers."
At the time of reporting, TechnologyOne's share price was $23.20.