Tech stocks crashed. Which ASX Companies appear to be on verge of staging a rebound?

The rapid adoption of artificial intelligence had raised concerns that many technology businesses could face disruption which contributed to significant share price declines across several ASX technology companies over the past year.

Many leading ASX tech stocks have reported strong revenue growth despite these concerns while also expanding their customer bases.
Management teams are treating AI as an opportunity by using the it to enhance customer experience and increase operational efficiency.

A clear gap has emerged between share price performance and business performance which make current valuations compelling entry points for investors who are willing to look beyond short-term AI-related market concerns.

Life360, Inc. (ASX: 360) 

is one of the most undervalued ASX tech stocks with a market capitalisation of $5.56 billion and its share price is still down 31% year-to-date which has presented an opportunity for investors who focus on long-term value.

The company reported record first quarter results as total revenue increased 38% year-over-year to US$143.1 million supported by strong subscription growth and further expansion of its global user base.
Key operating metrics also showed solid momentum with monthly active users up 17% to 97.8 million and annualized Monthly Revenue rose 32% to US$517.9 million which is a reflection of the strength of its recurring revenue business model.

Management raised FY26 guidance and now expects revenue of US$650 million to US$685 million and Adjusted EBITDA of US$130 million to US$140 million.

Xero Limited (ASX: XRO) 

is one of the best undervalued ASX tech stocks with a market capitalisation of $12.27 billion as its share price has fallen 62% over the past 12 months which may present an attractive opportunity for investors who focus on business fundamentals.

The company in FY26 reported an excellent result as operating revenue rose 31% year-over-year to NZ$2.75 billion driven by strong customer growth along with higher payments revenue and the successful integration of Melio.
Profitability improved as Adjusted EBITDA increased 18% to NZ$757 million while free cash flow reached NZ$554 million.

Management for FY27 has issued guidance of operating revenue between NZ$3.62 billion to NZ$3.73 billion and Adjusted EBITDA of NZ$860 million to NZ$920 million supported by expansion in the US and deeper AI monetisation.

WiseTech Global Limited (ASX: WTC) 

is one of the best undervalued ASX tech stocks as its share price has fallen 65% over the past 12 months despite excellent operational performance.  

The company in 1H26 reported strong results as total revenue increased 76% year-over-year to US$672.0 million which was supported by ongoing CargoWise expansion and the transformational acquisition of e2open while CargoWise revenue rose 12% to US$372.4 million.

Key recent developments include the successful integration of e2open the achievement of US$50 million in annualised cost synergies almost 18 months ahead of schedule and the market capitalisation is $12.38 billion.

WiseTech also invested US$175.3 million in research and development during 1H26 and advanced major AI initiatives that are expected to improve productivity automation and competitive advantages across global trade and logistics while supporting a network of more than 500,000 connected enterprises across 193 countries.

Management reaffirmed FY26 guidance for revenue of US$1.39 billion to US$1.44 billion and EBITDA of US$550 million to US$585 million which is expected to be supported by AI-driven efficiencies.

(Source: Company Announcements)