ASX growth stocks 2026
Investing in ASX growth stocks when they are available at reasonable prices is one of the best ways for long-term wealth creation.
The following three ASX growth stocks have declined significantly from their earlier highs and represent attractive opportunities for growth investors at current valuation levels.
Xero Limited (ASX: XRO)
is now seen as one of the top undervalued ASX growth stocks with a market capitalisation of $12.96 billion after the stock fell more than 50% in the past 12 months because of AI fears.
Xero in H1 FY26 reported operating revenue of NZ$1,194 million which grew by 20% year-on-year while adjusted EBITDA came in at NZ$350.9 million with an impressive 29.4% margin.
The rollout of Xero’s AI strategy with multiple AI agents and expansion in US payments through the Melio acquisition also led to higher use of AI features across the platform.
The outlook is positive because the company expects strong US growth with AI monetisation opportunities and it also sees the potential to more than double FY25 revenue by FY28 through payments and AI driven product expansion.
Megaport Limited (ASX: MP1)
now has a market capitalisation of $1.3 billion and because it has declined almost 40% year-to-date, it has created opportunity for investors in search of undervalued ASX growth stocks.
The company in H1 FY26 reported revenue rose 26% to $134.9 million while EBITDA rose 28% to $35.3 million which is due to excellent operating leverage and expansion compared to the previous corresponding period.
The platform is highly scalable and once built, it can add customers at relatively low incremental cost which is a key feature of many successful technology businesses.
ARR growth along with improved margins and a larger global network footprint positions the company well for sustained long-term growth.
Pro Medicus Limited (ASX: PME)
has a market capitalisation of $12.71 billion and the share price has declined around 45% year-to-date but the company has built a great place in the global radiology workflow market.
The Visage platform can integrate with AI algorithms which allows collaboration with partners and research institutions to develop new AI powered imaging capabilities.
The company in HY2026 reported revenue of $124.8 million which grew by 28.4% and underlying EBIT of $90.7 million which increased 29.7% while profit after tax rose 231% compared to the previous corresponding period.
The outlook is positive because of a strong contract pipeline and a growing global footprint especially in the U.S. hospital market while future growth will be supported by higher medical imaging data volumes.
(Source: Company Reports)
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