2 ASX growth shares set to soar higher in 2026

If 2025 taught investors anything, it’s that growth doesn’t move in a straight line. Sectors rotate. Sentiment swings. Valuations compress and expand.

In 2026, I’m looking for ASX growth shares with genuine earnings momentum, exposure to powerful structural themes, and the ability to surprise on the upside. Two names stand out to me right now for very different reasons.

Codan Ltd (ASX: CDA)

Codan has quietly transformed itself into a multi-engine growth business.

Most investors know it for its metal detection division, and with gold trading above US$5,000 an ounce, demand for high-performance detectors has been strong. Elevated gold prices typically encourage more exploration and small-scale prospecting, which directly supports Codan’s Minelab business. In my view, that dynamic alone could underpin solid earnings momentum through 2026.

But I think the story is broader than gold.

Codan also has meaningful exposure to communications and tactical electronics, including applications tied to defence and drone-related technologies. As governments globally increase spending on border security, defence capability, and electronic warfare systems, I believe Codan is well placed to benefit. Its expertise in secure communications and signal intelligence positions it in niches that are difficult to replicate.

What I like most is the combination of cyclical and structural tailwinds. High commodity prices support one side of the business, while defence and security spending support the other. That diversification gives Codan more resilience than many investors assume.

If execution continues and order momentum remains healthy, I think 2026 could be another year where earnings surprise on the upside.

Netwealth Group Ltd (ASX: NWL)

Netwealth represents a different kind of growth opportunity.

This is a classic structural winner in my view. The long-term shift toward independent financial advice and sophisticated wealth platforms is far from over. Advisers continue to move assets away from legacy institutions and onto modern, technology-driven platforms. Netwealth has consistently captured more than its fair share of that flow.

Recent performance has reinforced the strength of its model. Funds under administration continue to grow, driven by net inflows and market movements. More importantly, I believe Netwealth still has a significant runway. Australia’s wealth pool is enormous, and the platform penetration opportunity remains meaningful.

I also like the scalability of the business. As assets grow, margins can expand. The operating leverage embedded in the model means incremental revenue can translate into disproportionately higher earnings over time.

In a market where investors are searching for reliable growth, I see Netwealth as a high-quality compounder.

Foolish Takeaway

For 2026, I’m backing ASX growth shares with clear growth drivers and tangible earnings momentum.

Codan offers exposure to record gold prices, expanding defence budgets, and drone-related technologies. Netwealth gives me structural exposure to Australia’s growing wealth platform market.

The post 2 ASX growth shares set to soar higher in 2026 appeared first on The Motley Fool Australia.

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