Computershare Ltd (ASX: CPU) shares are having a solid start to the day and are pushing higher in morning trade on Wednesday.
At the time of writing, the ASX 200 stock is up over 2% to $31.98.
This follows the release of an update from the share registry company after the market close on Tuesday.
ASX 200 stock rises on update
Investors appear to be responding positively to Computershare reaffirming its FY 2026 earnings guidance.
According to the release, the company continues to expect management earnings per share (EPS) of around 144 US cents in FY 2026. This would represent growth of approximately 6% on the prior corresponding period.
This guidance was previously upgraded in February and has now been maintained following its latest trading update.
Margin income guidance upgraded
A key positive in the update was Computershare’s outlook for margin income.
The company revealed that client balances have continued to grow in the second half of FY 2026.
Average client balances for the year are now expected to be US$500 million higher than previously forecast, driven by Corporate Actions activity.
As a result, Computershare has upgraded its margin income guidance to around US$740 million for the year.
The average weighted yield for FY 2026 is still expected to be 2.37%, in line with the company’s February update.
Core businesses performing well
Computershare also provided updates across several of its divisions.
In Issuer Services, management advised that register maintenance continues to perform consistently, while Corporate Action volumes are broadly in line with expectations. The pipeline is also increasing.
Its Employee Share Plans business is seeing continued growth in recurring client-paid fee revenue, reflecting greater use of equity in employee remuneration.
Trading revenue in that division is also up in the second half compared to the prior corresponding period. This is being supported by more transactions from energy sector clients.
Corporate Trust growth
Management revealed that the Corporate Trust business is also performing well.
It reported that issuance volumes and fee revenues are higher in the second half compared with the prior corresponding period.
The company also noted that Ginnie Mae document custodian approval, secured in March, supports further growth in this business.
Despite today’s move higher, Computershare shares are still down approximately 18% over the past 12 months.
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Motley Fool contributor James Mickleboro 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.