3 incredible ASX growth shares to buy and hold forever in 2026

Most investors say they want to buy shares for the long term. Only a few actually invest as if they mean it.

Holding a company forever doesn’t require perfect timing or flawless execution. What it does require is owning businesses that stay relevant, reinvest intelligently, and grow alongside the world rather than against it.

As 2026 gets started, there are a handful of ASX growth shares that I believe meet that test. These are not short-term trades or cyclical punts. They are businesses I would be comfortable owning through market corrections, economic slowdowns, and inevitable periods of volatility.

Here are three incredible ASX growth shares I’d buy and hold forever.

TechnologyOne Ltd (ASX: TNE)

TechnologyOne is one of the most impressive growth stories on the ASX. Over the last 15 years, its shares have recorded a return of 25% per annum on average. 

The company provides enterprise software to government, education, and large organisations. These are customers that value reliability, long-term relationships, and deep integration. Once TechnologyOne’s systems are in place, switching becomes difficult, expensive, and risky. That has historically created high customer retention and long contract durations.

The shift to a Software-as-a-Service (SaaS) model has materially improved the quality of its earnings, increasing recurring revenue, margin stability, and cash flow visibility. At the same time, its international expansion provides a longer runway for growth beyond Australia and New Zealand.

TechnologyOne shares rarely look cheap, but that’s often the case with genuinely high-quality compounders. If held long enough, I think this ASX growth share has the potential to deliver consistent returns for decades.

Life360 Inc (ASX: 360)

Life360 is a business that benefits from both scale and habit.

With more than 90 million monthly active users worldwide, the company has built a platform that families rely on for safety, location sharing, and peace of mind. Importantly, engagement is high, and the product becomes more valuable as more family members are added.

What I think makes Life360 particularly attractive as a forever hold is its monetisation strategy. The company has demonstrated it can convert free users into paying subscribers over time without undermining the core user experience. As features expand and services deepen, average revenue per user has room to grow. And for users that don’t convert, Life360 has created an advertising business to monetise them.

Digital safety and location-based services are not fads. They are becoming more relevant as families become more connected and more mobile. If Life360 continues to execute, I believe it has the potential to compound for many years.

DroneShield Ltd (ASX: DRO)

DroneShield is the highest-risk stock on this list, but I believe the long-term rewards justify its inclusion.

The company operates in counter-drone technology, a market that barely existed a decade ago but is now mission-critical for defence, government, and critical infrastructure. As drones become cheaper, more capable, and more widely available, the need to detect and neutralise them only increases.

DroneShield’s technology spans software, sensors, and electronic warfare, giving it flexibility as threats evolve.

This ASX growth share will almost certainly remain volatile. But for investors willing to think in decades rather than quarters, DroneShield’s relevance could increase significantly over time. That’s exactly the kind of uncertainty I’m comfortable holding when the long-term opportunity is so large.

Foolish takeaway

Buying and holding shares forever isn’t about finding companies that never disappoint. It’s about owning businesses that stay useful, adaptable, and economically relevant as the world changes.

TechnologyOne, Life360, and DroneShield all operate in markets with long growth runways, strong demand drivers, and business models that can scale over time. They won’t all perform equally every year, but I believe they share the most important trait of all: the ability to compound.

The post 3 incredible ASX growth shares to buy and hold forever in 2026 appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has positions in DroneShield. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield, Life360, and Technology One. The Motley Fool Australia has positions in and has recommended Life360. The Motley Fool Australia has recommended Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.