Top 5 ASX growth stocks to watch in September 2026

Top 5 ASX growth stocks to watch in September 2026

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As we edge towards the final quarter of 2026, many traders are looking for ways to review their portfolios. Australian shares could be one way to diversify market exposure. The Australian energy and materials sectors have been performing well in 2026, driven by surging demand for critical minerals, iron ore and copper. Mining and energy stocks benefited from this, with BHP Group Ltd share rising almost 32% and Woodside Energy Group Ltd rising over 39% year-to-date by 1 August. Other sectors that have been experiencing growth this year include AI integration, cloud infrastructure, medical technology and e-commerce. This backdrop can create a compelling environment for growth stocks in these sectors.

What are growth stocks?

Growth stocks are shares in companies expected to increase their revenues and earnings at a much faster rate than the overall market or their industry peers. A common characteristic is that instead of distributing profits as dividends to shareholders, these businesses typically reinvest their earnings back into research, development and expansion. As a result, investors typically seek returns primarily through long-term capital appreciation rather than dividend income.

Another common characteristic is that growth stocks often trade at high price-to-earnings (P/E) ratios because investors are pricing in big future gains. However, these stocks also typically see higher volatility than value stocks. While volatility might make these stocks appealing to short-term and high-frequency traders, it is important to ensure appropriate risk management when investing in growth stocks.

Here’s a look at the top five Australian shares with growth potential to add to your ASX 200 watch list for September 2026.

Xero Ltd (ASX: XRO)

Founded in 2006 and headquartered in Wellington, New Zealand, Xero provides a cloud-based accounting platform for small and medium-sized businesses (SMBs), accountants and bookkeepers. The platform automates invoicing, bank reconciliation, payroll processing, tax-related tasks and financial reporting. Operating across Australia, New Zealand, the UK and North America, Xero generates recurring subscription revenue and a high-margin software model.

In May 2026, Xero reported full-year results for FY26 with operating revenue of AU$2.8 billion, representing a 31% increase over FY25. Adjusted EBITDA grew 18% to AU$757.4 million, while free cash flow reached AU$554 million. Global subscribers expanded 11% to 4.92 million, reflecting 506,000 net additions. The integration of US payments platform Melio accelerated North American expansion, driving US pro-forma revenue up 50%. Xero also deployed generative AI tools to automate document capture and workflow management.

Analysts maintain a positive outlook on Xero’s growth trajectory. Annual revenue growth is projected at 16.5% with earnings per share (EPS) growth of more than 30% per annum. Low monthly churn (1.14%) suggests that the company might have strong pricing power.

Nextdc Ltd (ASX: NXT)

Founded in 2010, Nextdc is headquartered in Brisbane, Queensland. The company is one of Australia’s leading independent data centre operators. It builds and manages enterprise-class facilities that provide server co-location, connectivity and digital infrastructure. Nextdc serves major cloud hyperscalers (large companies that provide massive cloud computing, data storage and networking services), multinational corporations and government agencies across the Asia-Pacific region.

Following FY25 net revenue growth of 14% to AU$350.2 million, NEXTDC reported strong 1H26 results, with total revenue of AU$231.8 million, up 13% from 1H25. The company maintained its FY26 net revenue guidance of AU$390 million to AU$400 million and increased its capital expenditure guidance to AU$2.7 billion to AU$3.0 billion to accelerate the development of additional data centre capacity. The expansion is being driven by strong demand from AI, cloud and hyperscale customers.

Analysts expect NEXTDC to deliver revenue growth of around 24.7% annually and EPS growth of approximately 18.2% over the medium term. Although capital expenditure remains elevated due to facility build-outs, analysts view these expenditures as potential high-return investments. Long-term customer contracts and AI demand continue to position NextDC as a core holding among top Australian shares, with analysts setting an average 12-month price target of $20.12, indicating +50.60% upside to its share price as of the beginning of August 2026.

Temple & Webster Group Ltd (ASX: TPW)

Temple & Webster Group is one of Australia’s largest online-only retailers of furniture, homewares and home improvement goods. Founded in 2011, the company is headquartered in New South Wales, Australia. Using a capital-light drop-ship model and direct inventory, the business uses digital marketing and data analytics to gain market share from physical retailers.

Temple & Webster delivered record FY26 revenue of AU$664.6 million, up 10.6% from FY25. EBITDA increased 16.6% to AU$21.9 million, while underlying EBITDA rose 28% to AU$25.9 million. The company ended the financial year with AU$122.7 million in cash and cash equivalents. Active customers increased by 5% to approximately 1.3 million, while more than half of revenue now comes from exclusive and private-label products.

The company continues to invest in expanding its product range, improving customer experience and increasing margins. However, trading conditions remain challenging. Temple & Webster reported that revenue during the first seven weeks of FY27 was 13% lower year-on-year, citing weaker consumer demand and slower conversion. Despite this, management is targeting FY27 EBITDA of AU$33 million to AU$40 million, representing an increase of approximately 50% to 80% from FY26.

Analysts currently forecast annual earnings growth of around 31.1% and revenue growth of approximately 6.4% over the medium term, with earnings growth well above the specialty retail sector's forecast of 11.6%. As of August 2026, the average 12-month analyst price target was around AU$5.71, based on 14 analysts, although estimates vary considerably between firms.

4DMedical Ltd (ASX: 4DX)

This contender for your ASX 200 watchlist, founded in 2013, is headquartered in Melbourne, Victoria. 4DMedical Ltd is a medical technology company focused on respiratory health. Its software platform, XV Technology, converts standard scan data into four-dimensional quantitative images of lung ventilation. This technology allows clinicians to diagnose respiratory conditions earlier and track treatment effectiveness.

4DMedical continued to expand its commercial footprint in 2026. Its CT™ software was deployed at Mayo Clinic in March under an initial 90-day evaluation arrangement, giving clinicians access to its ventilation and perfusion analysis technology. In June, 4DMedical announced an agreement to acquire European medical imaging software company contextflow, adding chest CT analysis capabilities, an established customer base and a European commercial platform. The acquisition was subsequently completed.

4DMedical reported its FY26 operating revenue at AU$7.2 million, up 23% year-on-year, driven by increased paid scan volume, with margins of more than 90%.

Some analysts see 4DMedical as a high-growth healthcare disrupter. Its cloud-based SaaS model allows revenue to scale rapidly without huge hardware costs. Key growth catalysts for the company include broader US private insurance reimbursement coverage and expanding hospital adoption. The stock’s average 12-month price target is AU$4.97, suggesting 25.74% upside over the next one year.

CSL Ltd (ASX: CSL)

This global biotechnology giant, founded in 1916, is headquartered in Melbourne, Australia. It operates three main divisions: CSL Behring (plasma-derived biotherapies), CSL Seqirus (influenza vaccines) and CSL Vifor (iron deficiency and renal treatments).

SL's FY26 results reflected a challenging year, with reported revenue increasing 2% to US$15.8 billion, while underlying NPATA attributable to CSL shareholders declined 4% to US$3.1 billion on a constant-currency basis. Statutory results were significantly affected by restructuring and impairment charges of US$7.9 billion, resulting in a reported net loss of US$3.0 billion. Underlying results, which exclude significant non-recurring items, provide a clearer picture of the company's underlying operating performance.

CSL has also changed its approach to CSL Seqirus. While the company announced plans in 2025 to demerge the vaccines business into a separately listed entity, the separation process was completed during FY26 and management said in August 2026 that it has no plans to pursue a demerger in the near term. CSL will retain the option to reconsider the move if it believes a future demerger could create additional shareholder value.

CSL could therefore appeal to investors looking for exposure to a large, diversified biotechnology business with recurring demand for essential therapies. However, the company continues to face challenges, including generic competition affecting CSL Vifor, weaker vaccination rates in the US and the need to improve operational efficiency across the group.

How to trade Australian shares

Australian equities can offer some exposure to the Asia-Pacific region’s banking and mining sectors. Beyond traditional stock ownership, traders frequently use Contracts for Difference (CFDs) to speculate on price moves in major ASX-listed companies without taking physical delivery. CFDs also allow traders to use leverage, meaning they can open a position with a smaller amount of capital than would be required to purchase the equivalent number of shares outright. However, leverage magnifies both potential gains and losses, making effective risk management particularly important. However, potential gains and losses make risk management crucial.

For broader market exposure, active traders often trade the S&P/ASX 200 index (commonly traded as the AUS200 CFD). Trading the ASX 200 via CFDs allows you to go long or short on Australia’s top 200 companies with leverage, enabling tactical strategies during both market rallies and declines.

Trade CFDs on ASX shares with FP Markets

Xero, NextDC, Temple & Webster, 4DMedical and CSL possess strong market positions, expanding cash flows and structural growth catalysts. Adding these names to your ASX 200 watch list can offer a structured approach to identifying high-probability trading setups.

Executing trades efficiently requires a reliable broker. FP Markets provides traders with institutional-grade execution speed, tight spreads and advanced charting tools. Whether building a long-term portfolio of growth stocks or trading short-term swings, access deep liquidity and market-leading technology. Open an account with FP Markets today.