CSL Ltd (ASX: CSL) shares have surged 23% across the past two trading days to $166.48, lifting their monthly gain to 34%.

After plunging from $228.30 in October to a low of $90, the recovery is gathering serious pace. Yet CSL remains down 4% year to date and 32% over 12 months.

Can the rebound last?

Why are CSL shares surging?

The big catalyst was CSL’s FY26 result, released on Tuesday.

At first glance, the numbers looked ugly. CSL reported a US$2.6 billion net loss after tax. But that loss wasn’t an operating disaster.

It reflected US$7.1 billion of pre-tax impairments and another US$799 million in restructuring costs, largely non-cash. Most of the impairments related to CSL Vifor intangibles and under-utilised property, plant and equipment.

Investors had already been warned. In May, CSL flagged roughly US$5 billion of impairments and cut its FY26 guidance.

Strip away those exceptional items and the picture looks much healthier. Underlying NPATA came in at US$3.1 billion, down just 2%, while revenue slipped 1% to US$15.8 billion — still ahead of analyst expectations.

That gave investors in CSL shares something they had been waiting for: a reset year, a cleaner balance sheet and guidance that finally beat expectations.

CSL Behring remains the powerhouse. Its plasma division generated US$11.4 billion in revenue, down 1%, while immunoglobulin revenue held steady at US$6.2 billion. That’s crucial to the bull case.

CSL Vifor grew revenue 3% to US$2.4 billion, while Seqirus struggled, with revenue falling 8% to US$2 billion.

Meanwhile, CSL’s transformation program delivered US$176 million of cost savings, and management committed US$1.5 billion to expand US plasma collection capacity.

Guidance is driving the recovery

Here’s where things get interesting. CSL expects underlying NPAT to grow approximately 5% in FY27. Consensus had been closer to 2%.

After 18 months of downgraded expectations, that upgrade was a welcome surprise for shareholders in CSL shares. Behring is expected to deliver mid-single-digit growth, with immunoglobulins growing at a mid-to-high single-digit rate.

The weak spot remains Vifor, where revenue is expected to fall about 25% as iron generics arrive.

Are CSL shares fully valued?

Not everyone is convinced the rally can continue. Bell Potter retained its hold rating but lifted its price target from $120 to $150, suggesting CSL shares are now fully valued.

The broker said:

Based on the new underlying NPAT metric, CSL trades on a PE multiple of ~19x FY26 and ~18x FY27 earnings, with flat revenue growth and low-to-mid single digit earnings growth expected for FY27. While the result today suggests the worst (by way of earnings declines) is in the rear-view for CSL, we find it difficult to justify a greater premium than is now being attributed relative to global biopharma peers.

So, while CSL’s recovery looks encouraging, the shares have already priced in plenty of optimism. The next challenge is proving that earnings growth can accelerate enough to justify the rally.

The post CSL shares are flying higher. Is it too late to buy? appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Van Dinther has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. The Motley Fool Australia has recommended CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Dexus (ASX: DXS) share price is in focus today after the company reported FY26 results featuring adjusted funds from operations (AFFO) of $483.9 million and distributions of 37.0 cents per security, both matching previous guidance. Statutory net profit after tax was $482.2 million, and gearing remained at the lower end of the group’s target range.

What did Dexus report?

• Statutory net profit after tax of $482.2 million (up from $136.1 million in FY25)
• Adjusted funds from operations (AFFO) steady at $483.9 million
• Distribution per security maintained at 37.0 cents
• Gearing (look-through) at 33.4%, providing balance sheet flexibility
• Office occupancy 95.7%, well above the market average of 85.1%
• Industrial effective like-for-like income growth of 8.3%

What else do investors need to know?

Dexus reported continued strength in its core office and industrial portfolios, with both segments outperforming broader market trends. The group successfully secured around $2 billion in third-party equity commitments and completed more than $1.9 billion in divestments, exceeding its divestment target for FY25–FY27.

A strategic review of the infrastructure funds business is underway after legal proceedings relating to the APAC airports matter. Dexus has provided for legal costs and is in regular consultation with investors regarding the future of certain funds. Major developments like Atlassian Central remain on schedule, while the Waterfront Brisbane project is facing a delay to late 2029.

What’s next for Dexus?

Looking to FY27, Dexus expects lower earnings due to reduced performance fees, an immaterial contribution from trading profits, and a smaller contribution from funds under review. The company targets AFFO of 37.5–39.5 cents per security and distributions maintained at 37.0 cents per security, assuming no major changes in market conditions.

Strategic priorities for the year ahead include completing the Atlassian Central project, further capital recycling, broadening capital partnerships, and enhancing platform efficiency. Dexus also aims to continue simplifying its fund offering and embed new technologies for greater operational efficiency.

Dexus share price snapshot

Over the past 12 months, the Dexus share price has underperformed the S&P/ASX 200 index (ASX: XJO) with a disappointing decline of 22%. This reflects sector headwinds and uncertainty over the funds management division.

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The post Dexus delivers steady FY26 results, maintains distributions, and advances strategy appeared first on The Motley Fool Australia.

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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. 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.

The Codan Ltd (ASX: CDA) share price is in focus today after the company delivered a 30% jump in annual revenue to $875 million and a 69% rise in net profit after tax to $175.2 million for FY26.

What did Codan report?

• Revenue up 30% to $874.97 million
• Net profit after tax (NPAT) up 69% to $175.18 million
• EBIT up 67% to $244.08 million
• Fully franked full-year dividend of 48.5 cents per share (up 70% on FY25)
• Net cash position of $35.7 million at 30 June 2026
• Earnings per share up 69% to 96.5 cents

What else do investors need to know?

Codan’s Communications business (including DTC and Zetron) reported revenue of $506.2 million, up 22%, with segment profit up 45% and margins beating long-term targets. The order book jumped 50% to $380 million, underpinned by momentum in unmanned radio systems and strong defence demand.

Minelab, the company’s Metal Detection division, achieved record results, with revenue rising 42% to $362 million and segment profit up 65%. New product launches, like the flagship GPZ8000 gold detector, helped drive growth, particularly in Africa and the rest of the world.

Codan also completed the acquisition of US-based Adaptive Dynamics after year-end, further strengthening its technical offerings for defence customers. Codan finished FY26 with a solid net cash position and significant undrawn debt facilities, giving the board flexibility for future investment and growth initiatives.

What’s next for Codan?

For FY27, Codan is targeting revenue growth of around 20%, supported by high defence spending and continued demand for both unmanned communications systems and advanced gold detectors. A full-year contribution from recently launched Minelab products and new client wins in Communications are expected to underpin momentum.

The company says it will continue investing in people, systems, and new product development, with an eye for further acquisitions aligned with its technology and market strategy. The board is optimistic about ongoing growth opportunities and plans to update investors further at the annual general meeting in October.

Codan share price snapshot

Over the past 12 months, Codan shares have surged 84%, significantly outpacing the S&P/ASX 200 Index (ASX: XJO).

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The post Codan FY26: Profit surges 69% with higher dividend 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.