The ASX Ltd (ASX: ASX) share price is in focus today after the company reported unaudited 1H26 results showing operating revenue up 11.2% to $602.8 million and statutory NPAT climbing 8.3% to $263.6 million.
What did ASX Ltd report?
- Operating revenue of $602.8 million, up 11.2% on the prior corresponding period (pcp)
- Statutory net profit after tax (NPAT) of $263.6 million, up 8.3%
- Underlying NPAT of $263.6 million, up 3.9%
- Total expenses (excluding ASIC Inquiry costs) of $247.0 million, up 12.1%
- Total expenses (including ASIC Inquiry costs) of $264.3 million, up 20%
- Underlying return on equity of 13.5%, flat on pcp
What else do investors need to know?
ASX has updated its FY26 total expense growth guidance. Excluding ASIC Inquiry costs, FY26 expense growth is now forecast between 13% and 15%; including these costs, growth is expected between 20% and 23%. This update is driven by heavier investment in technology upgrades and risk management, as well as higher legal costs.
The company continues to develop its Commitments plan in response to the ASIC Inquiry Panel’s interim report. The plan details strategic actionsâincluding a reset of the Accelerate Program and steps to improve board independence for key facilities.
Stronger trading volumes, especially in cash markets and interest rate futures, contributed to ASX’s higher revenues in the half.
What did ASX Ltd management say?
ASX Ltd CEO and Managing Director Helen Lofthouse said:
Since announcing our five-year strategy in mid-2023, we have been making significant investments in ASX to modernise our technology and secure our pathway to long-term sustainable growth.
The ASIC Inquiry Panel’s interim report underscores an even greater urgency to the transformation we are pursuing.
Alongside the reset of the Accelerate Program and the measures to enhance the independence of the clearing and settlement facilities, we have been reviewing key areas of our strategic investment to support how we address the spirit of the Inquiry’s findings.
This has underpinned our forecasting activity and contributed to the expense update we’ve provided today. Central in our assessment has been ASX’s role as an operator of critical market infrastructure that must perform to a very high standard, always striving for excellence.Our unaudited results show ASX has experienced a period of strong cash market trading activity and demand for interest rate futures, and we felt it was important to release these additional figures to allow a fuller picture to be considered when providing today’s update to expense guidance.
What’s next for ASX Ltd?
ASX plans to provide further details at its 1H26 results announcement scheduled for 12 February 2026. The company is focused on delivering on its Commitments plan, investing to modernise its platforms, and addressing the findings of the ASIC Inquiry.
Investors can also expect FY27 expense growth guidance to be released at ASX’s June 2026 Investor Forum. The company’s medium-term return-on-equity target range has also been adjusted slightly lower in response to updated capital requirements from regulators.
The post ASX Ltd 1H26 earnings: revenue rises, expenses guidance upgraded appeared first on The Motley Fool Australia.
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