The financial power of compounding can lead to wonderful results for investors with ASX shares.
As Albert Einstein once supposedly said about compounding:
Compound interest is the most powerful force in the universe. Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn’t pays it.
When I think about which S&P/ASX 300 Index (ASX: XKO) shares could grow the revenue and earnings the most over the next decade, the two below are ones that come to mind. That’s why I’m invested in them.
Temple & Webster Group Ltd (ASX: TPW)
Temple & Webster is a leading homewares and furniture company. It sells hundreds of thousands of products, with a large majority of those shipped directly by suppliers, leading to the ASX share having a capital-light model and being able to offer a huge array of products.
In its FY26 half-year result, the company recorded $376 million of revenue, up 20% year-over-year. In the trading update for the second half to 9 February 2026, revenue was up another 20%.
I think that the trading update was particularly pleasing because it shows how the business is still growing at a strong pace. However, the company’s margins were a little weaker, particularly because it’s investing in starting up sales to New Zealand.
While investors may not like seeing margins fall in the shorter-term, I believe it’s the right call in the long-term. It’s very useful for the business to grow market share and this can provide operating leverage benefits.
In FY26, it still expects its delivered margin and contribution margin to rise. In the long-term, the operating profit (EBITDA) margin could reach more than 15%.
I’m also excited to see the company’s home improvement segment is growing at a rapid pace â in HY26, revenue grew 47% to $30 million. It’s quickly becoming a notable contributor to the overall financials and could become an important part of the business.
Additionally, its good balance sheet (of $160 million of cash) will allow the business to fund a pleasing share buyback during this uncertain period.
I think Temple & Webster has a very promising future and it’s a top ASX share to buy today after its decline. It’s rapidly soaring towards its medium-term goal of $1 billion of sales.
TechnologyOne Ltd (ASX: TNE)
The enterprise resource planning (ERP) software business recently pushed back against some AI-related negativity with a strong update at its annual general meeting (AGM).
The company has a goal of growing revenue from its existing client base each year by 15%, which means it doubles in size in five years. It’s managing to do that by selling more software modules to clients and investing around a quarter of its revenue into research and development R&D) in improving its software.
In the annual general meeting AGM update, the ASX share upgraded its guidance for both annual recurring revenue (ARR) and profit before tax (PBT). It said that ARR is now expected to grow by between 16% to 18% and PBT is projected to grow by between 18% to 20% in FY26.
While AI is certainly a legitimate worry, I think the update shows that businesses which could theoretically be affected can still very much succeed during this period. In-fact, TechnologyOne was even able to reveal promising progress on its own AI initiatives, including its AI showcase product launches.
If it continues growing revenue by more than 15% per year, it has a very promising future, with $1 billion by FY30 its current ARR goal.
The post 2 top ASX shares to buy and hold for the next decade appeared first on The Motley Fool Australia.
Should you invest $1,000 in Technology One Limited right now?
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* Returns as of 20 Feb 2026
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Motley Fool contributor Tristan Harrison has positions in Technology One and Temple & Webster Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Technology One and Temple & Webster Group. The Motley Fool Australia has recommended Technology One and Temple & Webster Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.