3 ASX Tech Companies with Strong FY27 Potential

These three ASX technology companies reported strong earnings, new AI and product developments, infrastructure expansion and updated guidance, showing ongoing business growth and improving financial performance as they move toward FY27 with stronger operational and market positions.

Xero Limited (ASX: XRO),

on 14 May 2026, shared FY26 financial results for the period ending 31 March 2026. Revenues were up by $2.8 billion while adjusted EBITDA was up. Free cash flow was strong and indicating strong growth in the business.

Australia and New Zealand delivered double digit revenue growth with customer numbers reaching 2.8 million. International markets also expanded, supported by higher revenue and customer growth. The US recorded strong progress, and the UK continued to benefit from demand linked to Making Tax Digital.

The company expanded its AI services through JAX, smart document capture, and a new partnership with Anthropic alongside its existing OpenAI collaboration. It also introduced XeroForce, an AI agent builder now available through an invite-only alpha program.

For FY27, XRO expects higher revenue and adjusted EBITDA with stronger earnings expected in the second half of the year.

Megaport Limited (ASX: MP1)

Megaport Limited (ASX: MP1), on 3 June 2026, announced four new AI infrastructure contracts with a combined value of about A$458.9 million. The company also revealed plans to build a globally distributed AI Inference Cloud and launch an on-demand GPU Pool.

The GPU Pool will be backed by A$350 million of investment and will give businesses fast access to GPUs, storage, networking, and computing resources through both long-term contracts and pay-as-you-use services. It will use Megaport’s network across more than 1,100 data centres in 31 countries.

To fund these projects, the company will raise A$827.3 million through a fully underwritten entitlement offer. It also reported a strong liquidity position and higher annual recurring revenue across its compute and network businesses.

Megaport narrowed its FY26 revenue guidance to A$307 million–A$315 million, while EBITDA margin and capital expenditure guidance remained unchanged.

Life360, Inc. (ASX: 360)

Life360, Inc. (ASX: 360) released the results of Q1 2026 on 12 May 2026. Monthly Active Users stood at around 97.8 million, out of which 1.9 million were newly acquired users, and the Paying Circles expanded to 3.0 million from an addition of 201 thousand in the quarter.

Revenues increased to $143.1 million, aided by an increase in subscriptions as well as a record-high advertising revenue of $19.7 million. There was a favorable trend in operating cash flow, and cash and cash equivalents stood at $459.0 million.

The corporation released the products of Temporary Location Sharing, Safety Incidents on the Map and Back on the Grid in order to facilitate family collaboration and safety.

Life360 increased the forecast for revenue and adjusted EBITDA for 2026, anticipating greater second half growth. 360 will publish their 2026 Q2 results on 11 August 2026.

(Source: Company Report)