Wesfarmers Ltd (ASX: WES) shares have fallen into the red on Thursday after the conglomerate posted its FY26 results ahead of the ASX open this morning.

At the time of writing, Wesfarmers shares are down around 2% and are changing hands at $81.38 a piece.

Today’s price movement means the shares are now down around 1% for the year to date. They’re also roughly 11% lower than 12 months ago.

What is spooking investors today?

The company reported a 3.4% increase in revenue, to $47.3 million, and a 7.3% increase in EBIT. But statutory NPAT fell 1.8% to $2.8 million including significant items, or was up 8.3% excluding them. 

The result meant management was able to declare a full-year fully-franked ordinary dividend of 222 cents per share. This was a 15.8% increase from FY25.

The conglomerate saw strong performance across its major Bunnings and Kmart divisions, with earnings lifting 5.1% and 6% respectively over the 12-month period to 30th of June.

But elsewhere, Officeworks’ earnings fell 22.2%, mainly due to one-off transformation costs.

Wesfarmers’ result came in slightly ahead of the market’s $47.1 billion forecasts for revenue, and was in line with expectations for NPAT.

Going forward, Wesfarmers said it expects higher capital expenditure in FY27, of $1.3 to $1.5 billion. The increase is expected to support lithium production, store refurbishments, supply chain upgrades, and the start of a new joint venture in modular residential construction. 

Early trading in FY27 shows Bunnings’ sales growth is slightly ahead of the second half of FY26. Kmart and Officeworks have both maintained positive momentum.

It looks like investors are disappointed with the results, and some are selling up this morning.

Here’s what brokers expect from Wesfarmers shares over the next 12 months

I expect that some market experts may revise their outlook on the Wesfarmers share price in the coming days, following the results announcement.

But at the time of writing, it looks like the experts are pretty bearish about the conglomerate’s outlook.

TradingView data shows that out of 15 analysts, nine have a strong sell rating on the shares. Another five rate Wesfarmers shares as a hold, and one has a buy rating. The average target price is $77.56, implying a potential 5% downside ahead. Some are even more pessimistic, expecting the shares to crash by up to 20% to $65.10 over the next 12 months. 

The team at Morgan Stanley has a sell rating and a $79 12-month price target on the shares. The broker recently warned that the rally in discretionary spend stocks has “run ahead of fundamentals and is unlikely to prove durable”.

Tony Locantro from Alto Capital also has a sell rating on Wesfarmers shares. He thinks that much of the company’s long-term growth outlook is already reflected in the current valuation. 

The post Here’s what brokers tip for Wesfarmers shares over the next 12 months appeared first on The Motley Fool Australia.

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Motley Fool contributor Samantha Menzies 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 Wesfarmers. The Motley Fool Australia has recommended Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The DUG Technology Ltd (ASX: DUG) share price is sinking 22% to $1.51 on Thursday despite the company reporting a 38% jump in revenue to US$86.4 million and returned to profit for FY26.

What did DUG Technology report?

• Revenue increased 38% to US$86.4 million
• Normalised EBITDA rose 78% to US$27.4 million, excluding a one-off expense
• Net profit after tax was US$2.6 million, a turnaround of US$7.0 million from FY25
• Software and HPCaaS revenue jumped to US$22.6 million, making up 26% of total revenue
• Multi-Client revenue came in at US$4.1 million, with 12 projects in the library
• Net cash from operating activities rose to US$20.9 million, up 273% year on year

What else do investors need to know?

DUG returned to profitability in FY26, with net profit after tax reaching US$2.6 million after recording a loss in the prior year. The company’s growth was broad-based, with strong performance across software, high performance computing as a service (HPCaaS), and services, particularly in emerging regions such as Brazil and the Middle East.

Investments in HPC infrastructure are already in place to support new contracts and continued growth, including a recent hardware expansion to deliver on fresh software and HPC deals. The services order book ended the year at US$33.6 million, underpinned by rising exploration activity and a healthy sales pipeline.

What’s next for DUG Technology?

Looking ahead, DUG expects continued momentum in FY27, with a full year of revenue from contracts secured in FY26 and a material software and HPC infrastructure award worth US$9.3 million. The firm has invested heavily in compute capacity over recent years, positioning it to meet growing industry demand.

DUG sees high activity levels in its core markets, supported by strong oil prices and increased exploration programs as companies seek more advanced imaging and data solutions. Management highlighted their focus on growing recurring revenue streams through software, HPCaaS, and the expanding Multi-Client business.

DUG Technology share price snapshot

The DUG Technology share price is now down 18% since the start of the year, compared to a 4% gain from the S&P/ASX 200 index (ASX: XJO).

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The post DUG Technology share price sinks 22% on FY26 results appeared first on The Motley Fool Australia.

More reading

• DUG Technology scores US$9.3m software and HPC contract

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 recommended Dug Technology. 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.are expected to be detailed in the full annual report.

The Objective Corporation Ltd (ASX: OCL) share price is down 18% to $6.11 on Thursday after the company reported FY2026 revenue of $135 million, up 9% on the prior year, and adjusted EBITDA of $52 million, an 11% increase.

What did Objective Corporation report?

• Total revenue reached $135 million, up 9% from FY2025
• Annualised recurring revenue (ARR) was $121 million in constant currency
• Adjusted EBITDA climbed 11% to $52 million
• Net profit after tax rose 5% to $37 million
• Final dividend was 26 cents per share (8c fully franked, 18c unfranked)
• Operating cash flow was $49 million, representing 94% of adjusted EBITDA

What else do investors need to know?

Objective continued to invest heavily in innovation, with $34 million (30% of software revenue) directed to research and development during the year—part of a $146 million cumulative investment over five years. Subscription software revenue now accounts for 100% of the company’s software revenue, with SaaS revenue specifically growing 22% over FY2026.

By business line, Regulatory Solutions delivered 7% ARR growth, Information Intelligence ARR dipped 5%, and Planning & Building ARR rose 3%. The company highlighted its strong position in AI-driven solutions across government and regulated industries, with ongoing expansion in both the Australian and international markets.

What’s next for Objective Corporation?

Looking ahead to FY2027, Objective is targeting adjusted EBITDA above $40 million, which would be down a disappointing 23% year on year.

The company plans to further sharpen its go-to-market approach and cost discipline as it pursues larger, more complex opportunities in the GovTech sector. Management also signalled ongoing M&A ambitions, supported by a robust balance sheet and cash flow.

Product leadership and customer value remain a priority, with efforts focused on delivering trusted, AI-enabled solutions for public sector clients. The company believes its strengths in information governance, security and compliance will keep it well-placed for future growth.

Objective Corporation share price snapshot

Objective Corporation shares have performed very poorly in comparison to the S&P/ASX 200 index (ASX: XJO) over the past year with a decline of around 70%.

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The post Objective Corporation share price crashes 18% on FY26 earnings appeared first on The Motley Fool Australia.

More reading

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• DUG Technology share price sinks 22% on FY26 results
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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 positions in and has recommended Objective. The Motley Fool Australia has positions in and has recommended Objective. 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.