The Australian stock market presented investors with starkly different outcomes over the past twelve months, where some mining and industrial companies achieved remarkable gains while major healthcare and technology firms endured steep declines.
Though the S&P/ASX 200 delivered a positive return through October 2026, this overall figure masked significant disparities across sectors and individual companies. The index climbed roughly 7.5% by October 30, factoring in both price changes and dividend reinvestments.
Resources Lead Market Gains
Resources companies stood out as top performers amid shifting market conditions, driven by evolving commodity prices, rising demand forecasts for industrial metals, and growing investor focus on critical minerals.
Among standout performers was PLS Group, previously operating as Pilbara Minerals, which capitalized on improved lithium market sentiment. According to Market Index, its shares surged approximately 229% during the 2025–26 financial year, while Elevra Lithium advanced roughly 256% over the same period.
Mineral Resources also saw substantial growth, rising about 154% following operational improvements after several challenging years.
Market Highlights
One of the most extraordinary sharemarket performances came from medical technology company 4DMedical. The company’s shares rose approximately 1,788% during the 2025–26 financial year, making it the standout performer in Market Index’s ranking of ASX 200 stocks. The surge reflected progress in commercialising its CT technology, which uses conventional CT scans to produce detailed images of ventilation and blood flow in the lungs. The technology received US regulatory clearance, while adoption by major American medical institutions helped strengthen expectations that the company could develop a substantial commercial business.
Defence technology company Electro Optic Systems was another significant winner, rising approximately 277% during the same financial year. Increased defence spending in Australia and overseas contributed to investor enthusiasm for companies supplying military technology and equipment.
However, the volatility of both companies’ shares also illustrated the risks associated with investing in businesses whose valuations depend heavily on future growth expectations. Indeed, 4DMedical experienced a sharp reversal in the final week of October, when its shares fell approximately 33.5%, according to Market Matters. The movement demonstrated how quickly sentiment can change even for companies that have delivered exceptional gains over longer periods.
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Healthcare Sector Struggles
Healthcare was among the weakest parts of the market, with two of Australia’s best-known medical companies experiencing particularly difficult years. CSL, the once market darling biotechnology giant, suffered a substantial decline as investors reacted to earnings concerns, write-downs and management upheaval. Its shares fell approximately 52% during the 2025–26 financial year, according to CommSec. The decline represented a significant reversal for a company that had long been regarded as one of Australia’s premier healthcare businesses.
Hearing implant manufacturer Cochlear experienced an even more dramatic deterioration in investor confidence. Its shares dropped approximately 59% over the same period as weaker demand in the United States and successive profit downgrades undermined expectations. An April sell-off, triggered by disappointing developments, saw the shares fall approximately 40% in a single day. The declines highlighted an important lesson from the past year: established companies with strong international reputations are not immune to significant share price falls when earnings disappoint or growth expectations prove too optimistic.
Technology companies also endured a difficult period, as investors reconsidered valuations and the potential consequences of artificial intelligence for established software businesses. Logistics software provider WiseTech Global was among the market’s worst performers, with its shares falling approximately 70% during the 2025–26 financial year. Corporate governance concerns compounded broader investor uncertainty about the long-term prospects of software companies in an environment increasingly shaped by AI.
Accounting software provider Xero also suffered a substantial decline, losing approximately 60% during the financial year. Concerns about its US business and the cost of acquiring US accounting software company Melio contributed to investor unease.
Other notable losers included online employment platform SEEK, whose shares were affected by weaker hiring conditions, concerns about AI and lower valuations. Property advertising business REA Group also faced pressure from weaker housing conditions and increased competition.
Banks Show Resilience
Australia’s major banks generally proved more resilient than healthcare and technology companies. ANZ was the strongest performer among them, gaining approximately 21% during the 2025–26 financial year, while Macquarie also saw gains, though financial sector returns varied.
Consumer and retail businesses presented a mixed picture, with Woolworths rising about 29% following a successful turnaround strategy, while competitor Coles advanced roughly 17%.
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