Medibank FY26 earnings: Profit and dividend rise

The Medibank Private Ltd (ASX: MPL) share price is in focus after unveiling its FY26 results, with underlying net profit after tax rising 2.9% to $636.8 million and the full-year dividend increasing 6.7% to 19.2 cents per share, fully franked.

What did Medibank report?

• Group revenue from external customers grew 5.9% to $9,115.2 million
• Underlying NPAT rose 2.9% to $636.8 million
• Full-year fully franked ordinary dividend lifted 6.7% to 19.2 cents per share
• Group operating profit increased 6.7% to $813.5 million
• Medibank Health segment profit up 31.3% to $100.7 million
• Total claims paid of $6.9 billion, delivering around $299 million in customer value

What else do investors need to know?

Medibank added 22,100 net resident policyholders over the year, with its core Medibank brand showing improved growth momentum and ahm continuing to grow ahead of the market. Non-resident policy units fell 2.3%, mostly due to reduced student numbers amid tighter migration settings.

The company maintained strong capital levels, with a Health Insurance required capital ratio of 13.3%—above its targeted range, partly due to APRA supervisory adjustments. Operating expenses rose 7.1% as Medibank invested in brand, technology, and customer rewards, but productivity savings of $10 million were achieved.

What did Medibank management say?

Medibank’s CEO, David Koczkar, commented:

We continued to deliver value for the 6 million people who trust us with their health and wellbeing, as household budgets remain under pressure. Despite this, people continue to prioritise their health. Today’s result reflects the strength of the business, the trust our customers and patients have in us, and the progress we have made towards our 2030 ambitions.

What’s next for Medibank?

Looking ahead, Medibank expects FY27 resident health insurance gross margins to be broadly consistent with FY26, and continued solid growth from its non-resident and Medibank Health segments. The company will focus on disciplined market share growth, further investments in digital health, and integrating recent acquisitions.

Management flagged robust appetite and financial capacity for further M&A to support Medibank’s long-term growth strategy and deliver value to shareholders.

Medibank share price snapshot

The Medibank share price has fallen short of the performance of the S&P/ASX 200 index (ASX: XJO) over the past year with a decline of around 4%.

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The post Medibank FY26 earnings: Profit and dividend rise appeared first on The Motley Fool Australia.

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