It’s been a tough year for most ASX tech shares.
Not to mention their stockholders.
Indeed, while the All Ordinaries Index (ASX: XAO) was recently up a bit more than 1% in 12 months, the S&P/ASX All Technology Index (ASX: XTX) has fallen almost 27% over this same period.
ASX tech shares have faced headwinds on several fronts.
First, the last year has seen central banks the world over pivot from lowering interest rates to hiking them, or at the very least staying put. And growth shares like tech companies, which are often priced with higher future earnings in mind, tend to be sensitive to any moves in borrowing costs.
The tech sector has also taken a hit from a development of its own devising. Namely AI.
In what you may have heard called the ‘SaaSpocalypse’, a lot of Aussie and global technology stocks came under pressure amid investor concerns that AI could potentially replace the services these companies currently provide.
Now, that’s the year just past.
Looking ahead, Red Leaf Securities’ John Athanasiou has drilled into two ASX tech shares he believes are well-placed to outperform (courtesy of The Bull).

Image source: Getty Images
ASX tech share primed for a rebound
First up we have Atturra (ASX: ATA), whose shares were recently down around 52% over 12 months, trading for 39 cents apiece.
Which could make now an opportune time to buy.
“Atturra is an AI-driven technology integrator,” Athanasiou said. “It’s focusing on organic growth after integrating a number of acquisitions.”
Turning to some key financial metrics, he noted:
Underlying EBITDA [earnings before interest, taxes, depreciation and amortisation] in full year 2026 is expected to range between $30 million and $30.5 million, which is in line with guidance, while second half operating cash flow is expected to reach between $22 million and $23 million.
Summarising his buy recommendation on the ASX tech shares, Athanasiou concluded:
Atturra plans to invest an additional $3 million in AI, while its SAP business is forecast to grow by more than 50% between fiscal years 2026 and 2027.
If management successfully executes its fiscal year 2027 strategy, Atturra’s earnings profile should materially strengthen.
Which brings us to…
Tech company on the growth path
Athanasiou also issued a buy recommendation on DUG Technology Ltd (ASX: DUG).
Shaking off the broader malaise dragging on the tech sector, DUG shares were recently up around 26% over 12 months, trading for $2.00 apiece.
“This software solutions company is building strong momentum in response to improving revenue, margins and cash flow,” Athanasiou said.
Explaining his buy recommendation on this ASX tech share, he said:
Revenue of US$62.7 million rose 39% in the first nine months of fiscal year 2026. Normalised EBITDA almost doubled to US$20.9 million. Operating cash flow reached US$23.7 million and DUG moved from net debt a year earlier to $US11.4 million in net cash. The earnings mix is also improving.
Demand for DUG’s proprietary MP-FWI imaging technology remains strong, while recurring 4D projects add further revenue visibility. Given accelerating growth, improving cash generation and a stronger balance sheet, DUG remains an attractive technology exposure.
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- Share-market news writer and analyst with deep experience covering equities, commodities, forex, and cryptocurrencies for readers in the USA, UK, Canada, and Australia. Ytv Market News delivers timely market updates, practical trading insights, and clear explanations of macro and company-level catalysts that move prices. Combines on-the-ground financial reporting with technical analysis, using concise charts and actionable ideas to help investors and traders make smarter decisions.
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