Computershare lifts outlook and dividend after solid 1H26 earnings

Yesterday afternoon, Computershare Ltd (ASX:CPU) posted a 3.9% rise in Management EPS and upgraded its full-year outlook.

What did Computershare report?

• Management revenue up 3.9% compared to 1H FY25
• Management EPS rose 3.9% to 72.2 US cents
• ROIC exceeded 36%
• Margin income of $372.9 million, down 5.4%
• Interim dividend lifted to 55 AU cents per share (30% franked), up 22% on last year
• Net debt leverage reduced to 0.3x

What else do investors need to know?

Computershare said revenue growth was especially strong in its Issuer Services business, with Register Maintenance revenue up more than 4%. Corporate Action revenue grew by over 12% as market activity recovered in some regions, although global M&A volumes remain below 2021 levels.

The Corporate Trust division enjoyed fee revenue growth over 12%, boosted by higher issuance volumes across structured products. Employee Share Plans also saw a 5% lift in revenue, while Assets under Administration jumped 25% year-on-year.

With a robust balance sheet and strong cash generation, the company’s board opted to increase the interim dividend instead of pursuing additional share buybacks due to tax efficiency reasons.

What did Computershare management say?

Stuart Irving, CEO, said:

We are executing well on our strategic plans to deliver a simpler, higher quality Computershare that generates consistent results and enduring returns for shareholders. We have positioned the group to leverage long term growth trends and have benefitted from increased activity across all our business lines. With our natural interest rate hedge, we have delivered earnings growth again, despite a lower yield environment.

What’s next for Computershare?

Following the stronger first-half performance, Computershare upgraded its full-year Management EPS guidance to around 144 cents per share, a 6% increase on the prior year. The company remains focused on operational improvements, cost control, and investing in new technologies to drive long-term growth.

Management says momentum across key business lines and improved activity levels provide a positive outlook for the second half of FY26.

Computershare share price snapshot

Over the past 12 months, Computershare shares have declined 9%, trailing the S&P/ASX 200 Index (ASX: XJO), which has risen 5% over the same period.

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The post Computershare lifts outlook and dividend after solid 1H26 earnings appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.