5 ASX Stocks to Watch in 2026

With innovation accelerating across biotech, cloud, AI, and data, a new generation of ASX companies are emerging to capitalise on these opportunities and lead the next wave of growth in 2026.

Neuren Pharmaceuticals Limited (ASX: NEU)

keeps making big moves in the field of rare neurodevelopmental disorders. Its strong financials and clinical progress show the company is on the right track. Neuren made around A$473 million in income from Daybue since its launch and finished June 2025 with about A$300 million cash in hand which means it has enough funds to support all its running clinical programs. With its partner Acadia Pharmaceuticals, Neuren gets tiered royalties between 10–15% on Daybue global sales which are expected to touch US$380–405 million in 2025 which gives around A$62–67 million in royalties. The company is also working on its NNZ-2591 drug line where a Phase 3 trial is happening for Phelan-McDermid Syndrome. Positive Phase 2 results came for Pitt Hopkins Syndrome and a new program for Hypoxic-Ischemic Encephalopathy is being prepared.

NUIX Limited (ASX: NXL)

kept its turnaround story going strong in FY25 by showing better profits and steady growth in its recurring income. It recorded total revenue of around A$221.5 million which is slightly higher than last year. The Annualised Contract Value grew by 8% to A$228.4 million out of which almost 97% came from subscription licences which gives the company stable income. Cash EBITDA went up by 24.5% to A$37.2 million and margins improved to 16.8%. The main reason behind this improvement was its AI-powered platform Nuix Neo, which saw Annualised Contract Value jump by 132% to A$28.1 million and customer numbers tripled to 75 by the end of the year. The company runs its business across North America, EMEA and APAC regions, with clients from regulators, finance and government bodies.

DUG Technology Limited (ASX: DUG)

kept its growth going as one of the top names in high performance computing and seismic imaging technology. In FY25, it reported a revenue of about US$62.6 million and EBITDA of US$15.4 million which is around a 25% margin even though it was a transition year with big investments happening. The services part brought in US$51.9 million, software revenue was up 13% to US$8.3 million. DUG’s order book hit a record high of US$52 million, which is 58% higher than December 2024 because of strong project wins mainly in Abu Dhabi and Brazil. The company also opened new offices in these areas which helped increase its global reach. It raised about A$31.4 million to upgrade its data centres, roll out DUG Nomad mobile HPC units and support its DUG Cool immersion cooling technology that’s licensed only to Baltimore Aircoil Company.

NEXTDC Limited (ASX: NXT)

had another strong year in FY25 as it took full advantage of the growing demand for AI and cloud data centers. Its net revenue was up 14% to A$350.2 million and underlying EBITDA increased 6% to A$216.7 million. Contracted utilisation jumped 42% to 244.8MW while billing utilisation reached 110.9MW showing how strong the demand for data centers is. The company’s forward order book stands at 134MW and around 85% of it is expected to turn into revenue and profit by FY27. NEXTDC’s balance sheet also looks strong with around A$5.5 billion in liquidity. It also has access to A$6.4 billion in debt facilities for further expansion. The company is adding more capacity in Sydney, Melbourne and Kuala Lumpur and also developing new sites in Tokyo, Auckland and the Gold Coast. For FY26, it expects net revenue between A$390–400 million and underlying EBITDA in the range of A$230–240 million.

Megaport Limited (ASX: MP1)

had a great year in FY25, showing why it is one of the global leaders in Network-as-a-Service. The company made around A$227.1 million in revenue, which is up 16% from last year. This growth came mostly from more recurring customer contracts and opening new data centers. Its Annual Recurring Revenue jumped 20% to A$243.8 million which shows that customers are staying longer and spending more. EBITDA rose to A$62.3 million with a margin of 27% and by the end of the year Megaport had about A$102.1 million in cash and A$178.7 million in net assets. The company now operates in more than 1,000 data centers worldwide after adding 115 new sites covering 26 countries. It also worked on new products like compute platforms, 400G connections and AI powered customer support. Megaport expects FY26 revenue to be between A$260–270 keeping its spot as an important player in the global cloud and AI networking space.

Source: Company Announcements