WTC punched +11% higher yesterday after delivering a headline catching 1H result – we covered in detail Here. The headline announcement was major redundancies of up to 2,000 roles (~30% of the workforce) over the next two years under what management calls a “deep AI transformation”. In other words AI is allowing WTC to rapidly evolve and improve its offering to consumers faster and cheaper. They said that projects that once took 6-7 months can now be completed in a day! That’s the power of the AI revolution for any doubters in our midst.
We believe this is an established quality company that is going to benefit from AI, with its moat remaining largely intact – we often hear customers say that WTC is expensive but by far the best option, and it’s hard to move. This logistics software business (CargoWise) could have competition in time from cheaper alternatives, but WTC already has sensitive data embedded in its operations, and alternatives will need to be very compelling for customers to transition, even if they’re not huge fans of WTC’s new pricing model:
Sensitive data: Supply-chain, customs, customer operations and commercial transaction data stored in login-protected enterprise systems across global customers.
Why sensitive: CargoWise manages trade documentation and operational data that clients do not make public, and which must be highly secure.
UBS wrote this morning: We viewed WTC’s 1H26 results positively and reiterate Buy ($89 PT): i) WTC highlighted its AI moat being data, integrations with key ecosystem partners, and agentic AI workflows ii)commercial model change driving price uplift into 2H26.
- We like the direction WTC is moving (fast!) and will likely defend our weighting in the Growth Portfolio – i.e adding ~2% to bring it back to 5% target.
MM is long and bullish WTC ~$47.75
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