Australia’s cyber threat is growing, and so is the need to find out who’s

• Australian cyber incidents jump 20%
• AI fuels cybersecurity growth opportunity

• Excite secures $2.9m government deal

Cybercriminals targeting Australia have been keeping themselves rather busy.

And according to the latest figures from the Australian Signals Directorate (ASD), they’re getting some serious technological help.

The ASD’s 2025-26 Annual Cyber Threat Report, released on October 26, revealed that the agency responded to more than 1500 cyber security incidents during the financial year, up 20%.

It also received more than 82,000 cybercrime reports. That’s roughly one every six minutes.

Meanwhile, AI is making life easier for attackers, helping them find weaknesses and launch increasingly sophisticated operations.

In June, Australian healthcare provider Partnered Health suffered a cyberattack affecting 21 clinics – with sensitive patient information, including treatment details and Medicare numbers, believed to have been stolen.

The incident was a reminder of just how much valuable information organisations hold, and how serious the consequences can be when it falls into the wrong hands.

For investors, it points to growing demand for cybersecurity services.

But there’s another part of the industry attracting attention.

It’s what happens when something suspicious has already occurred, and investigators need to establish exactly what happened.

Growing business of digital detective work

Think about how much evidence now lives inside computers, smartphones, emails and corporate networks.

Financial transactions, messages, deleted documents and system activity can all become important when regulators investigate potential wrongdoing.

The problem is that finding relevant evidence among millions of digital records is no small job.

That’s where digital forensics and investigative analytics come in.

Digital forensics involves collecting, preserving and examining electronic information in ways that protect its integrity.

Investigative analytics helps specialists search large datasets, identify patterns and connect information that might otherwise remain buried.

And AI is beginning to change how that work gets done.

On October 22, Australian investigative software company Nuix (ASX:NXL) launched its Nuix Neo AI Agent, designed to help investigators search and analyse complex information using ordinary language.

The system links its answers to source material and records the steps taken, allowing investigators to check the findings.

Nuix CEO John Ruthven explained the thinking:

“For more than two decades, organisations have trusted Nuix with their high-stakes matters. Agentic AI should raise that bar, so we built the Nuix Neo AI Agent to show its work.”

It’s an important development for the broader industry.

AI might help investigators work through enormous volumes of information, but in regulatory and legal investigations, speed alone isn’t enough.

The evidence must remain reliable, traceable and capable of being scrutinised.

Elsewhere in cybersecurity, ASX-listed archTIS (ASX:AR9) helps organisations protect sensitive data and control who can access it.

Where Excite Technology Services fits in

Another ASX company operating across this increasingly important field is Excite Technology Services (ASX:EXT).

On the cybersecurity front, Excite helps businesses stay one step ahead of hackers, testing their defences, keeping them compliant and watching for threats around the clock.

Its managed IT arm keeps the technology running smoothly, from cloud systems and networks to everyday workplace tech.

Then there’s digital forensics, where Excite helps uncover digital evidence, investigate cyber incidents and train the specialists who tackle complex cases.

The company works with technology partners including Fortinet, Cellebrite and Nuix, and operates Australia’s only Nuix-accredited training academy.

That puts Excite on both sides of cybersecurity – helping organisations stop attacks and investigate what happened when things go wrong.

And there’s already a recent example of that demand translating into business.

Earlier this month, Excite announced a $2.9 million contract with an Australian federal government regulator.

Under the 24-month agreement, running until September 2028, its wholly owned subsidiary CBIT will supply digital forensics and investigative analytics software and associated services.

The regulator hasn’t been identified because of the sensitive nature of the engagement.

Excite CEO and managing director Bryan Saba described the contract as a significant endorsement of its capabilities.

“Being selected as the vendor of choice is a powerful vote of confidence in our people and our technology.

“When digital evidence is at stake, agencies need a partner they can rely on completely, and this award shows the trust that Australian Government customers place in Excite’s digital forensics capability.”

Why investors are paying attention

The investment opportunity extends beyond any single contract.

Excite cites third-party forecasts suggesting Australia’s cybersecurity market could grow from around US$10 billion in 2026 to almost US$19bn by 2031.

The AI cybersecurity segment is projected to expand even faster, from US$654m in 2026 to US$5.49bn by 2033.

And Excite has already been making progress on its own financial position.

Its September 2026 quarter delivered $1.33m in positive operating cash flow – its strongest quarterly result on record – alongside $7.2m in customer receipts.

Saba said the results demonstrated progress in the company’s turnaround.

“Our roadmap started with a clear first step: reset the cost base and turn Excite into a business that generates cash from its operations.”

Looking ahead, Excite is eyeing organisations with 100 to 2000 employees – particularly in finance, professional services and critical infrastructure.

The company is targeting positive EBITDA in FY28.

There’s also consolidation occurring across the industry.

Major technology groups have been acquiring specialist cybersecurity businesses, including Accenture’s acquisition of CyberCX and Thales’ earlier purchase of Tesserent.

And with cyber threats showing no signs of slowing, it’s hard to imagine demand for this kind of expertise going anywhere but up.

Stockhead has not provided, endorsed or otherwise assumed responsibility for any financial product advice contained in this article.

At Stockhead we tell it like it is. While Excite Technology Services is a Stockhead advertiser, it did not sponsor this article.

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