ASX tech stocks Xero and WiseTech Global face significant declines

Australian technology stocks on the ASX have experienced significant declines, with companies like Xero Ltd and WiseTech Global Ltd seeing notable share price drops. This downward trend coincides with the ASX 200's worst session in three months and is attributed to rising bond yields, including the US 10-year Treasury and Australian long bonds, which impact technology companies due to their future-oriented profit models.

WiseTech Global has seen its shares fall more than 60% from its 52-week high, despite reporting a 79% increase in FY26 revenue to US$1,395.9 million. The company faces challenges including projected single-digit revenue growth for FY27 and an ongoing ACCC investigation.

Xero Ltd, which provides cloud-based accounting software globally, has seen its share price drop approximately 27.68% since the start of the year. Despite the price decline, the company reported a 31% increase in FY26 operating revenue to $2.75 billion and reached 4.92 million customers globally. Xero's latest reported gross margin stands at 88.2%, and the company has transitioned from a $9 million loss three years ago to a $175 million profit in the last financial year.