The Zip Co Ltd (ASX: ZIP) share price is in focus today after the company posted record FY26 cash EBTDA of $268.9 million, up 57.9%, and a material increase in net profit after tax to $116.4 million, up 45.7% on the prior year.

What did Zip Co Limited report?

• Record cash EBTDA of $268.9 million, up 57.9% vs FY25
• Total revenue rose 24.7% to $1,336.1 million
• Operating margin expanded to 20.0%, from 15.8% last year
• Total transaction volume (TTV) increased 27.2% to $16.7 billion
• Net profit after tax of $116.4 million, up 45.7%
• Active customers grew to 6.5 million, a 3.7% lift year on year

What else do investors need to know?

Zip continued to deliver strong growth in the US, with total transaction volume and revenue up over 42% in local currency. In Australia and New Zealand, the company reported improved revenue and Australian receivables growth, led by its Zip Plus product, while announcing a wind down of its New Zealand operations to sharpen focus on Australia.

The business strengthened its funding platforms with new note issuances and warehouse facilities, increasing available cash and liquidity to $246.5 million. Zip also completed $150 million of share buybacks and announced a further on-market buyback of up to $50 million for FY27.

Looking ahead, Zip is considering a share consolidation to reduce the number of shares on issue and is exploring the possibility of a dual listing on a US stock exchange, should market conditions support this.

What did Zip Co management say?

Zip Group CEO and Managing Director, Cynthia Scott, said:

Consistent execution has built the platform to deliver our next phase of growth and innovation. In FY26, we exceeded our targets with record cash earnings of $268.9m, up 57.9%, underpinned by material cash earnings growth in both markets. We maintained strong unit economics, expanded operating leverage and reinforced the value of our differentiated business model.

Our focus on exceptional customer experiences is translating into stronger engagement. In the US, we achieved more than 40% growth in both TTV and revenue for a second consecutive year while adding new customers at scale. In ANZ, we returned to revenue and Australian receivables growth, led by the continued success of our Zip Plus product.

We delivered strong credit outcomes, strengthened our funding platforms and embedded AI across our people, processes and products. We also returned $150 million to shareholders through share buybacks and continue to optimise our capital structure, with new capital management initiatives announced today. Looking ahead, we are focused on executing on our FY27 strategic priorities to drive growth and innovation, and investing for long-term scale.

What’s next for Zip Co?

Looking forward, Zip aims to deliver group cash EBTDA of $340 million in FY27, up 26% on FY26, while targeting an operating margin of 20%–22%. US transaction volume is expected to grow by more than 30% (in USD), with a group revenue margin around 8%.

Management says it remains committed to scaling through further product innovation, AI integration, and capital management initiatives. Investors can also expect ongoing updates on potential share consolidation plans and any move towards a US dual listing.

Zip Co share price snapshot

The Zip Co share price has underperformed the S&P/ASX 200 index (ASX: XJO) over the past 12 months with a decline of around 15%.

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The post Zip Co reports record FY26 earnings and outlines growth 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.

Owners of ANZ Group Holdings Ltd (ASX: ANZ) shares may not have seen a lot of net profit growth over the past decade, but investors may like to know what analysts are expecting of the ASX bank share in the coming two annual results and how that plays into the valuation.

Profit growth is not guaranteed, of course, but ANZ is facing somewhat challenging conditions, with loan demand facing headwinds amid taxation changes and higher interest rates.

But, at the same time, borrowers may be less reliable during this period of economic uncertainty and higher interest rates.

Despite that, shareholders will be pleased to know that the ASX bank share is predicted to grow earnings in the coming annual FY26 result. A projection is not a guarantee of growth, though.

FY26

The ASX bank share’s 2026 financial year finishes in September 2026, so there is still more than a month to go for ANZ.

But, the latest update from the bank showed further progress by the business.

Its quarterly cash profit of $1.9 billion showed 2% year-over-year growth. Net loans and advances were flat year-over-year at $846 billion, though there was an increase in constant currency terms.

The bank also reported that its cost-to-income ratio improved by 155 basis points (1.55%) year-over-year to 49.66%.

ANZ won’t be able to cut costs every reporting period to grow earnings, but it made a sizeable difference in the FY26 third quarter. Operating income for the bank actually declined by 1% year-over-year, while operating expenses improved by 4%. That helped profit before provisions increase 3% to $2.8 billion.

It was a 6% rise in the provision charge to $102 million and a 4% rise in the income tax expense to $819 million that meant the cash profit growth was slower than the profit before provisions growth. Profit is important for supporting ANZ shares.

Analysts expect the ASX bank share’s earnings per share (EPS) to rise to $2.566 in the 2026 financial year, according to Commsec.

FY27

There are a number of things that ANZ is working on to improve its operations in the coming years, including in FY27.

First, ANZ wants to embed its new leadership team and continue to drive a cultural reset.

Second, the ASX bank share wants to integrate Suncorp Bank faster to deliver value.

Third, ANZ wants to accelerate the delivery of its single customer digital front-end.

Fourth, it wants to reduce duplication and simplify the organisation. It noted that 84% of 3,500 announced roles exited the bank by the end of June 2026. Around of 73% of estimated gross cost savings of $875 million in FY26 were realised by the end of June 2026.

Fifth, it wants to enhance non-financial risk management to improve the ASX bank share’s resilience.

The projection on Commsec suggests the business could see EPS slightly fall to $2.55 in FY27.

Therefore, ANZ’s profit isn’t likely to do much after FY26, so there could be better ASX shares to consider.

The post Here’s the earnings forecast out to 2027 for ANZ 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 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.

The Telix Pharmaceuticals Ltd (ASX: TLX) share price is in focus after the company reported half-year revenue up 22% to US$477 million and a strong gross margin improvement to 55%. Adjusted EBITDA surged 146% year-on-year to US$52 million.

What did Telix Pharmaceuticals report?

• Revenue rose 22% year-on-year to US$477 million, tracking to the upper end of FY26 guidance.
• Gross margin climbed to 55%, with Precision Medicine segment margin at 65%.
• Adjusted EBITDA came in at US$52 million, up 146% on the prior year.
• Profit after tax was US$38 million, including a US$40 million payment from Regeneron.
• Group R&D investment was US$124 million, mainly supporting late-stage programs.
• Positive operating cash flow of US$23 million and cash balance of US$252 million at 30 June 2026.

What else do investors need to know?

Telix announced a new strategic collaboration with Regeneron to develop and commercialise next-generation radiopharmaceutical therapies, contributing US$40 million in other income this half. The company also completed refinancing of its convertible bond structure with a new US$600 million issue due 2031.

Operationally, the Precision Medicine segment drove growth with flagship products Illuccix and Gozellix gaining market share. Key clinical milestones were achieved, including enrolment completion for late-stage trials and regulatory progress in the US, China, Europe, and Japan. Telix is also expanding its global manufacturing footprint with new and upgraded facilities in Australia, Belgium, Japan, and the US.

What did Telix Pharmaceuticals management say?

Managing Director and Group CEO, Dr Christian Behrenbruch, said:

Telix delivered an outstanding first half, with strong revenue growth, market share gains and significant progress across clinical and regulatory milestones. Our strengthened balance sheet is enabling increased investment in late-stage programs, including ProstACT Global, market expansion opportunities within our precision medicine portfolio and manufacturing and supply chain capabilities that differentiate Telix. With multiple near-term catalysts, we enter the second half with strong momentum and confidence.

What’s next for Telix Pharmaceuticals?

Telix reaffirmed FY26 revenue and other income guidance above US$1 billion, with R&D expenditure expected between US$230 million and US$270 million. The company expects ongoing clinical trial readouts and regulatory submissions in key territories later in the year.

Strategically, Telix will leverage its expanded manufacturing capacity and commercial partnerships to support commercial growth and pipeline advancement. The new at-the-market equity facility is intended to provide flexible access to capital to underpin future expansion, subject to regulatory approvals.

Telix Pharmaceuticals share price snapshot

The Telix Pharmaceuticals share price has recorded a small decline over the past 12 months, compared with a 1.5% gain from the S&P/ASX 200 index (ASX: XJO).

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The post Telix Pharmaceuticals delivers robust half-year earnings and pipeline progress 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 positions in and has recommended Telix Pharmaceuticals. The Motley Fool Australia has recommended Telix Pharmaceuticals. 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.