Growth investing is about backing businesses that dominate their niches, generate strong returns on capital, and still have room to expand.
But which Australian growth stocks tick these boxes?
Listed below are three that analysts are bullish on and are tipping as buys:
Light & Wonder Inc. (ASX: LNW)
The first Australian growth stock to consider in 2026 is Light & Wonder.
This is not just a gaming machine manufacturer. It is a content company operating across land-based casinos, online real money gaming, and social gaming platforms.
The real strength of Light & Wonder lies in intellectual property. Successful game franchises can be rolled out across physical cabinets, digital channels, and new markets. That multiplies the lifetime value of each piece of content.
As gaming continues shifting toward digital channels and hybrid models, Light & Wonder is positioned across multiple touchpoints rather than relying on a single revenue stream. That diversification gives it more levers to pull over time.
Bell Potter currently rates Light & Wonder shares as a buy with a price target of $220.00.
Pro Medicus Ltd (ASX: PME)
Another Australian growth stock worth serious consideration is Pro Medicus.
Pro Medicus provides imaging software to hospitals and healthcare providers. Its Visage platform allows medical professionals to view and analyse complex imaging data quickly and efficiently.
Healthcare systems do not replace core software lightly. Once embedded, switching costs are high and contracts are often long term.
The company continues to win large hospital networks, expanding its footprint in the US market. With healthcare demand rising and digital imaging volumes growing, Pro Medicus is benefiting from structural tailwinds rather than cyclical ones.
Morgans is a big fan and has a buy rating and $275.00 price target on Pro Medicus’ shares.
REA Group Ltd (ASX: REA)
A final Australian growth stock to consider in 2026 is REA Group.
REA is best known for operating Australia’s leading online property platform. But the real story is its ecosystem.
The company has built a marketplace that connects buyers, sellers, agents, and increasingly data-driven services around property transactions. Premium listings, data insights, and digital tools give REA multiple revenue streams tied to property activity.
Even though property markets can fluctuate year to year, the long-term shift toward digital advertising and data services remains firmly in place. REA’s dominant position gives it pricing power that smaller competitors struggle to match.
The team at UBS is bullish and has a buy rating and $218.90 price target on REA Group’s shares.
The post 3 Australian growth stocks to buy in 2026 appeared first on The Motley Fool Australia.
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* Returns as of 20 Feb 2026
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Motley Fool contributor James Mickleboro has positions in Pro Medicus and REA Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Light & Wonder Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has recommended Light & Wonder Inc and Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.