Australia’s sharemarket has delivered sharply contrasting fortunes for investors over the past year, with mining stocks and selected industrial companies recording spectacular gains while major healthcare and technology businesses suffered heavy losses.
The S&P/ASX 200 has delivered a positive return over the 12 months to October 2026, but the headline performance conceals substantial differences between individual companies and industry sectors.
The index’s total return was approximately 7.5% over the year to 30 October, including price movements and the effect of reinvested dividends. However, investors’ fortunes depended heavily on their exposure to particular industries, with resources companies generally outperforming while several previously high-flying healthcare and technology stocks fell sharply.
Mining stocks dominate the winners
Resources companies were among the biggest beneficiaries of the past year’s market conditions, supported by changing commodity prices, expectations of increased demand for industrial metals and renewed investor interest in critical minerals.
Among the most notable performers was PLS Group, formerly known as Pilbara Minerals, which benefited from a recovery in lithium market sentiment. Market Index reported that its shares rose approximately 229% during the 2025–26 financial year, while lithium producer Elevra Lithium gained approximately 256% over the same period. Mineral Resources advanced approximately 154%, reflecting an operational turnaround following several difficult years.
The rally demonstrated how quickly fortunes can change in the resources industry. Lithium producers had previously been battered by oversupply and falling prices, but expectations of improving demand and a recovery in lithium prices helped bring investors back to the sector.
However, the rally was not sustained across every resources company. By October, falling lithium prices were again weighing on some producers, illustrating the volatility associated with commodities exposed to changes in Chinese demand and global supply.
Iron ore producers also faced difficulties. Fortescue shares were under pressure as softer iron ore prices and tensions involving China’s state-backed iron ore purchasing organisation raised concerns about the outlook for Australian exporters.
BHP and Rio Tinto, meanwhile, benefited from expectations that investment in artificial intelligence infrastructure would support demand for copper. The metal is essential for electricity networks, power generation infrastructure and data centres.
CommSec reported that BHP and Rio Tinto gained approximately 62% and 63%, respectively, during the 2025–26 financial year. The strong performances helped make materials the market’s best-performing sector during that period.
Nevertheless, the late-year pullback in mining shares demonstrated that even strong performers remained vulnerable to changes in commodity prices and investor sentiment.
4DMedical emerges as a standout
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.
CSL and Cochlear suffer major setbacks
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 stocks face an AI reckoning
Technology companies also endured a difficult period, as investors reconsidered valuations and the potential consequences of artificial intelligence for established software businesses.
WiseTech Global, the logistics software company, 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.
The falls were particularly significant because both businesses had previously attracted premium valuations based on expectations of sustained international growth.
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 and retailers provide mixed results
Australia’s major banks generally proved more resilient than healthcare and technology companies.
ANZ was the strongest performer among the Big Four banks during the 2025–26 financial year, gaining approximately 21%, according to CommSec. Macquarie also advanced, although returns varied across the financial sector.
Retail and consumer businesses experienced contrasting fortunes. Woolworths gained approximately 29% during the financial year as investors responded positively to its turnaround strategy, while rival Coles rose approximately 17%.
However, renewed pressure on household spending and concerns about the economic outlook remained important considerations for consumer-facing businesses as October ended.
A mixed outlook
The past 12 months have reinforced the extent to which company-specific developments and industry trends can determine investment outcomes.
Mining companies benefited from commodity recoveries and demand expectations linked to infrastructure investment, while selected medical technology and defence businesses delivered exceptional gains.
Conversely, CSL, Cochlear, WiseTech and Xero demonstrated how quickly investor confidence can deteriorate when earnings disappoint, valuations come under pressure or business models face new challenges.
With resources companies and banks accounting for substantial portions of the Australian market, their performance will remain important to the ASX 200’s direction.
However, the divergence between individual stocks suggests that the index’s overall performance provides only a partial picture of the opportunities and risks facing Australian investors.
