NEWS + VIEWS – 27/02/2026
MARKETS
Global share markets have been influenced by US economic data over the past week, which have shifted expectations around the timing and pace of interest rate cuts from the Federal Reserve. Movements in bond yields created volatility, particularly in growth and technology stocks. Ongoing geopolitical tensions and fluctuations in oil prices also affected investor sentiment.
The ASX 200 has taken its cues from the US while also responding to company reporting season updates, commodity price swings and commentary form the Reserve Bank regarding the outlook for inflation and rates. Strength in major banks and large-cap miners mainly drove the market.
PROFIT REPORTING SEASON
So far this reporting season, of the 86% of ASX 200 companies that have reported first-half results, 43% have beaten market expectations.
BHP
BHP reported a stronger-than-expected half-year result with underlying profit rising 22% year-on-year to US$6.2 billion. Revenue grew by 11% to US$27.9 billion, while the interim dividend was lifted to US$0.73 per share, which was well received by investors and helped the stock hit record highs. Copper overtook iron ore as BHP’s largest earnings contributor for the first time, accounting for over half of underlying operating earnings as demand and prices for copper surged.
Copper’s ascendancy as the dominant contributor highlights the company’s pivot toward metals tied to electrification and clean energy, while traditional products like iron ore also performed solidly. Management maintained its operational guidance, including increasing copper production expectations. BHP’s 60% payout ratio underscores its balance sheet strength and cash flow sustainability.
Rio Tinto (RIO)
RIO delivered solid operational performance for the full year, with underlying earnings steady at US$10.9 billion, while net profit after tax (NPAT) declined -14% to US$10 billion, impacted by higher depreciation, financing costs and softer iron ore pricing. The company declared a final dividend of US$2.54 per share, consistent with its 60% payout ratio.
RIO continued to pivot toward future-facing metals like copper and lithium, directing a higher proportion of exploration budget toward copper, even as it navigated cost pressures and operational challenges in some commodities. Iron ore remained a key earnings driver, though weaker prices weighed on headline profit.
Telstra (TLS)
TLS reported total income for the half year of $11.8 billion, up modestly from the previous corresponding period, while NPAT rose 8% to $1.1 billion. The company also lifted its interim dividend to $0.105 per share and continued capital returns with the completion of $637 million of its on-market share buyback, while increasing the overall buyback cap to $1.25 billion. The mobile segment continued to drive revenue and earnings momentum, even as legacy fixed-line service trends remained challenging.
Management emphasised disciplined cash generation and shareholder returns, balancing sustained dividend growth with ongoing investments in network capacity and digital services. While TLS’ core earnings performance beat expectations, it also flagged external and operating risks such as regulatory uncertainties,
Sonic Healthcare (SHL)
SHL delivered a solid set of half-year results, with revenue rising 17% to $5.4 billion and NPAT increasing 11% to $262 million compared to the prior corresponding period. The business continued to generate strong operating cash flow, reflecting good demand across its global pathology and radiology services network and disciplined cost management. The market reacted positively as the company’s share price closed nearly 10% higher on the day that the result was released.
SHL declared an increased interim dividend of $0.45 per share, signalling confidence in recurring earnings and capital return capacity. Management also reaffirmed full-year guidance, indicating that the company remains on track operationally despite some margin pressures and varied regional cost dynamics.
Wesfarmers (WES)
WES reported a solid half-year performance, with revenue up 3% to $24.2 billion and NPAT rising 9.3% to $1.6 billion compared to the previous corresponding period, reflecting resilient earnings across its diversified retail and industrial divisions. Strong contributions from Bunnings and Kmart underpinned the result, while productivity initiatives helped mitigate challenging conditions in consumer spending and broader economic headwinds.
WES boosted its interim dividend by 7.4% to $1.02 per share. While the company’s performance largely met expectations, the market showed some caution due to macroeconomic pressures and mixed signals about future consumer activity. WES’ share price fell by more than 5% on the day the result was announced.
Polynovo (PNV)
PNV delivered strong revenue growth in its half year result, with sales rising 26% to $68 million, driven by continued growth in the US and solid demand for its NovoSorb wound care products. However, reported NPAT was flat due to the completion of a clinical trial for full thickness burns that reduced external revenue and non-recurring items such as impairment costs.
Woodside Energy (WDS)
For the full year, WDS delivered record annual production of 198.8 million barrels of oil equivalent, exceeding guidance and demonstrating operational strength across key assets such as Sangomar, Pluto LNG and the North West Shelf Project. However, underlying NPAT fell -8% to US$2.65 billion, primarily due to lower realised commodity prices.
WDS declared a final dividend of US$0.59 per share, maintaining a payout ratio at the top of its range at 80%. Management emphasised continued investment in growth and a strong balance sheet, with ongoing focus on portfolio optimisation, capital allocation and cost efficiency.
Fortescue (FMG)
FMG reported a 10% increase in revenue to US$8.44 billion and a 23% rise in NPAT to US$1.91 billion in its half-year result compared with the prior corresponding period. The miner also achieved record iron ore shipments of 100.2 million tonnes, reflecting continued demand for its Pilbara production.
FMG increased its interim dividend by 24% to $0.60 per share and the result underscored the company’s sheet strength while it continued to invest in both iron ore operations and longer-term growth initiatives including decarbonisation and critical minerals strategy.
Woolworths (WOW)
WOW reported strong earnings growth in its half-year result, with underlying NPAT rising 16% to $859 million and sales increasing 3.4% to $37 billion, as momentum built in its Australian food division and online channels, and cost control helped lift margins. Supermarkets saw solid sales growth and e-commerce continued to expand, underscoring resilience in core operations even as remediation costs hit profit. The market reacted very positively to the result with the share price surging almost 13% to multi-month highs.
WOW declared an interim dividend of $0.45 per share, up from $0.39 a year ago. Management highlighted ongoing strategic priorities including value-focused pricing, fresh and convenience offerings, and productivity initiatives designed to sustain competitive position, even as the broader regulatory spotlight on pricing and consumer perceptions remains a key external consideration.
Sigma Healthcare (SIG)
SIG reported strong combined results for the first half of FY26 following its merger with Chemist Warehouse Group, with revenue of $5.5 billion, up 14.9% on a pro-forma basis, reflecting strong sales growth across domestic pharmacy and international segments, and early synergy benefits from the merged operations. Underlying NPAT climbed 19% to $392 million, while the company declared an interim dividend of $0.02 per share, underlining confidence in cash flow and earnings momentum through the combined business.
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