Could this really be the turning point for Woolworths shares?

The Woolworths Group Ltd (ASX: WOW) share price jumped an incredible 13% after reporting its FY26 half-year result. This led to the supermarket business reaching a level not seen since 2024, as the below chart shows.

The business is the name behind Woolworths supermarkets in Australia, Countdown supermarkets in New Zealand, BIG W, Petstock, PFD (supplying businesses) and more.

The underlying HY26 result numbers were solid and the trading update for the second half of FY26 was particularly appealing. They seemed to show the business is turning its sales, margins and net profit around.

Strong performance in the HY26 result

In the first six months of FY26, before significant items, sales increased 3.4% to $37.1 billion, operating profit (EBIT) 14.4% to $1.66 billion and net profit grew 16.4% to $859 million.

The most important division, Australian food division delivered 3.6% to $27.6 billion and food EBIT increased 9.9% to $1.5 billion.

The business to business (B2B) segment grew sales to $3.1 billion and its EBIT rose 14.6% to $89 million.

New Zealand food sales went up 0.6% to $3.9 billion and EBIT increased 19.8% to $89 million.

W Living sales increased 2.7% to $3.1 billion and EBIT soared 185.6% to $96 million.

Every division achieved sales growth and higher EBIT margins, helping profit rise at a faster pace.

The trading update was particularly promising because it may signify it is regaining its appeal to shoppers compared to main rival Coles Group Ltd (ASX: COL).

In the first seven weeks of the second half of FY26, Australian food sales grew by 5.8% (it was 7.2% growth excluding tobacco). Woolworths food sales were driven strong store item growth and e-commerce growth. However, part of this growth was down to cycling residual industrial action in the prior corresponding period.

Woolworths is expecting the Australian food EBIT “to be at the upper end of the mid-to-high single digit range” guidance that it gave in August. The optimism is based on the performance in the FY26 first half and improved trading momentum.

Another sign of the company’s improving confidence was the fact that the board of directors decided to hike the interim dividend per share by 15.4% to 45 cent. Not a 3% increase, not 5%, not 10%. That’s a confident increase.

Is the Woolworths share price a buy?

One result doesn’t mean it has entered into a new era. But, an intense focus on giving customers the products they want at good value in a convenient way should (continue to) get a good response from consumers.

Its scale benefits, supply chain and e-commerce capabilities are clear advantages that it should continue to capitalise on (and invest in).

I think the business has turned a corner, though it needs to continue what’s working. But, it’s not exactly a cheap bargain because it has already risen significantly in the last few weeks.

The post Could this really be the turning point for Woolworths shares? appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison 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 positions in and has recommended Woolworths Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.