Technology One Achieves 17th Consecutive Record Half-Year Profit as SaaS+ Adoption Grows

Technology One Ltd has announced its 17th consecutive record first-half profit for the period ended March 31, 2026, underpinned by the continued adoption of its SaaS+ platform and the strategic rollout of new artificial intelligence products. The ASX-listed software organisation reported a profit before tax of $89.1 million, representing a 9% increase compared to the previous corresponding period. This result follows a period of significant transition for the company as it migrates its customer base to a recurring revenue model and expands its technological footprint across Australia and international markets.

Revenue from ordinary activities reached $318.424 million for the first half of the 2026 financial year, up from $285.693 million in the first half of 2025. The company’s focus on long-term sustainability is reflected in its annual recurring revenue, which grew by 17% to reach $598.0 million. This growth in recurring revenue provides a predictable foundation for future operations, particularly as the organisation targets a milestone of more than $1 billion in annual recurring revenue by the 2030 financial year. Profit after tax for the half-year reached $66.8 million, a 6% increase year-on-year.

SaaS+ and AI Product Momentum

The momentum behind the SaaS+ strategy has been a primary driver of the latest financial results. SaaS and recurring revenue reached $299.2 million, marking a 13% increase. Technology One has seen strong performance in the local government and education sectors, where its enterprise resource planning solutions are widely utilised. The net revenue retention rate remained high at 114%, indicating that existing customers are not only renewing their contracts but are also increasing their investment in the company's software suite.

Investment in research and development remains a cornerstone of the company’s growth strategy. During the first half, Technology One increased its research and development expenditure by 22% to $84.1 million. This investment represents 26% of total income, focused heavily on the integration of artificial intelligence within its core products. This high level of reinvestment contributed to a Rule of 40 result of 55%, a metric used to balance growth and profitability in the software industry.

Shareholder Returns and Balance Sheet Strength

Following the record performance, the company has declared a record interim dividend of 8.0 cents per share. This represents a 21% increase from the previous year’s interim payout. The ex-dividend date for this payment is set for May 28, 2026, with the record date following on May 29, 2026. Eligible shareholders can expect payment on June 12, 2026. This dividend growth reflects the company’s confidence in its cash-generating capabilities and its robust balance sheet.