Author: openjargon

The Ramelius Resources Ltd (ASX: RMS) share price is in focus after the gold miner reported FY26 revenue of $1,032.8 million, up 1% year on year, and a fully franked final dividend of 3 cents per share.

What did Ramelius Resources report?

• Revenue: $1,032.8 million, up 1% from FY25
• Underlying EBITDA: $765.4 million, down 7%
• Net profit after tax (NPAT): $118.8 million, down 75%
• Dividends: 6.0 cents per share total for FY26 (3.0 cents interim, 3.0 cents final), both fully franked
• Gold produced: 192,182 ounces at an All-in Sustaining Cost (AISC) of A$1,983/oz
• Net tangible asset backing per share: $2.08, up 27%

What else do investors need to know?

Ramelius completed the acquisition of Spartan Resources Limited during the year, adding the high-grade Dalgaranga gold mine to its portfolio. The company’s 2026 acquisition and plant integration program saw a $2.8 billion transaction, boosting resource and reserve estimates and expanding Dalgaranga’s mine life.

During FY26, Ramelius also announced the sale of the Edna May hub for $300 million. A $250 million share buy-back program was launched, with $141.8 million of shares repurchased so far, benefitting existing shareholders. The company continues to run a Dividend Reinvestment Plan, giving eligible shareholders the option to reinvest dividends.

What’s next for Ramelius Resources?

Ramelius expects to update its 4-Year Production Outlook and capital expenditure profile in the September quarter, following the award of the Mt Magnet mill upgrade contract. The company is targeting production of over 500,000 ounces per year by FY30, underpinned by further development of Dalgaranga, Rebecca-Roe, and exploration at existing projects.

With a robust cash and gold position of $649.6 million at year-end, Ramelius is well-placed to fund growth, continue capital returns, and adapt to market conditions. Management notes positive project economics at Rebecca-Roe and ongoing efforts to optimise the Mt Magnet-Dalgaranga integration.

Ramelius Resources share price snapshot

Over the past twelve months, the Ramelius Resources share price has outperformed the S&P/ASX 200 index (ASX: XJO) with a gain of 35%, lifted by robust gold prices and project milestones.

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The post Ramelius Resources reports profit drop, expands growth plans in FY26 earnings appeared first on The Motley Fool Australia.

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• 4 ASX 200 mining shares to buy following quarterly updates
• Ramelius Resources posts June quarter results

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 Regis Resources Ltd (ASX: RRL) share price is in focus as the company posts a record net profit after tax of $715 million and declares fully franked final dividends of 20 cents per share, including a 5 cent special dividend.

What did Regis Resources report?

• Gold sales revenue rose 43% to $2.349 billion in FY26 from 373,879 ounces sold at an average $6,283 per ounce.
• Record net profit after tax (NPAT) of $715 million, up 181% year-on-year.
• EBITDA reached $1.345 billion, an increase of 72%, with an EBITDA margin of 57%.
• Fully franked final dividends of 20 cents per share declared, totalling $151 million, bringing total FY26 dividends to 35 cents per share ($265 million) and a 6.1% yield.
• Cash and bullion increased to $1.184 billion, up $667 million from the previous year.
• FY26 gold production was 379,050 ounces at an all-in sustaining cost (AISC) of $2,945 per ounce.

What else do investors need to know?

The company’s strong earnings performance allowed for record dividend payments, reflecting its updated capital management policy. Along with ongoing investment in production and development, Regis continues to prioritise shareholder returns with a 39% payout ratio this year.

Regis spent $23 million advancing the McPhillamys Gold Project and maintained a healthy balance sheet after $307 million in tax and dividend payments. The company returned to paying regular income tax instalments during FY26, with future tax payments expected to remain strong.

Dividend key dates are: ex-dividend on 10 September 2026, record date on 11 September, and payment on 7 October. The dividend reinvestment plan remains suspended.

What did Regis Resources management say?

Regis Resources CEO and Managing Director Jim Beyer said:

Regis has delivered an outstanding result for FY26, generating record net profit after tax of $715M, record EBITDA of $1.345B and record statutory operating cash flows of $1.247B. This performance reflects the consistency of our operations and the continued strengthening of our balance sheet.

What’s next for Regis Resources?

Looking ahead, Regis has reaffirmed its FY27 guidance, targeting between 360,000 and 400,000 ounces of gold production and group AISC of $2,990–$3,390 per ounce. Growth capital of $250–$270 million is weighted towards the first half, as new open pits are developed and the Rosemont Stage 3 project progresses.

The company’s unhedged position and strong cash balance put it in good shape to invest further in operations and growth opportunities, while keeping shareholder returns front of mind. Management projects a “catch-up” tax payment of $220–$240 million later in the year as part of its ongoing obligations.

Regis Resources share price snapshot

Over the past 12 months, Regis Resources shares have risen 84%, significantly outperforming the S&P/ASX 200 Index (ASX: XJO).

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The post Regis Resources delivers record FY26 profit and dividends 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.

Telstra Group Ltd (ASX: TLS) shares tumbled further into the red on Thursday.

At the close of the ASX on Thursday afternoon, the ASX telco stock had tumbled around 1% and ended the day at an annual low of just $4.71 a piece.

The shares are now down over 6% since the company posted its FY26 update last week, and have now shed around 16% of their value from a 10-year high of $5.55 recorded in mid-May.

For the year to date, Telstra shares are down around 4%.

What pushed Telstra shares to a fresh low this week?

It looks like the telco’s FY26 results announcement last week was the catalyst. 

The company posted a 0.8% decline in revenue, a 4.9% increase in NPAT, and a 4% increase in EBITDA.

Telstra also posted a final dividend of 10.5 cents per share with 90.48% franking, up 10.5% from the 9.5 cents with 100% franking paid in FY25.

The company also announced a further on-market share buyback of up to $1 billion. Telstra completed its $1.25 billion on-market share buyback in June. 

In FY 2027, Telstra expects continued underlying EBITDA growth with an earnings guidance range between $8.5 billion and $8.8 billion.

It looks like the results were a miss versus expectations, and investors weren’t too thrilled. They’ve continued taking their gains off the table following a huge rally earlier this year.

So, what’s next?

Here’s what the experts have to say.

Here’s the outlook for Telstra shares over the next 12 months

It looks like analysts and brokers are reserved about the outlook for the telco stock following its results.

Market Index data shows that the majority of brokers have a hold rating on the shares. But the $5.06 average target price now implies around an 8% upside at the time of writing.

Similarly, on TradingView, the majority of analysts also have a hold rating on Telstra shares. The average $5 target price implies around a potential 7% upside at the time of writing. But the range between the minimum and maximum is quite large. Some think the shares could fall another 10% to $4.20, and others think the shares could jump 17% higher to $5.50 a piece, over the next 12 months.

Morgans confirmed its hold rating and $5 target price on Telstra shares following the announcement. The broker said the result and FY27 guidance are largely as expected, with FY26 itself coming in at the middle-to-top end of guidance.

Bell Potter agrees that the Telstra result is largely in line with expectations, although total income and NPAT were softer than forecasts. The broker has a hold rating but lowered its target price to $4.80.

The post Telstra shares hit fresh 52-week low: What’s next for the ASX 200 telco stock? 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 no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Guzman y Gomez Ltd (ASX: GYG) share price is in focus today after the company reported record underlying earnings for FY26 and completed its exit from US operations. Network sales rose 17.9% to $1.38 billion, while underlying EBITDA surged 28.7% to $85.0 million.

What did Guzman y Gomez report?

• Network sales jumped 17.9% year on year to $1,377.8 million
• Underlying EBITDA increased 28.7% to $85.0 million
• Statutory NPAT lifted 31.6% to $40.6 million; underlying NPAT up 29.7% to $53.4 million
• Opened 35 new restaurants during FY26, taking the total to 284 globally as at 30 June 2026
• Declared a fully franked full year dividend of 48.0 cents per share, including a special dividend
• Completed exit from US operations, with statutory group NPAT loss (inc. discontinued ops) of $(26.7) million

What else do investors need to know?

Guzman y Gomez maintained a strong balance sheet, finishing the year with $171 million in cash and no debt. The company deployed $100 million in share buybacks during the year and announced a further $100 million buyback.

Restaurant network expansion remains a key priority, with 117 Australian sites in the pipeline and plans to open 35 new Australian restaurants in FY27. Technology investment was highlighted, including deployment of AI tools to streamline kitchen operations.

GYG welcomed two new non-executive directors, George Wahby and Guy Fowler, whose appointments bring additional experience in scaling businesses. Their nominations are subject to shareholder approval later in 2026.

What did Guzman y Gomez management say?

Guzman Y Gomez’ founder and co-CEO, Steven Marks, said:

This year marks the twentieth anniversary since we opened our first GYG restaurant in Newtown, Sydney. I am incredibly proud of the growth we have delivered in that time, the people who have delivered it and the strength of the operating platform we have built.

Our Australia Segment has reported network sales of $1.4 billion, up 17.9% on last year, demonstrating continued consumer demand for clean, fresh, made-to-order food, loaded with flavour and prepared at speed. This momentum has translated into strong earnings growth, with underlying EBITDA up 28.7%, highlighting the strong operating leverage embedded in our business.

What’s next for Guzman y Gomez?

Looking ahead to FY27, Guzman y Gomez is targeting the opening of 35 new restaurants in Australia and expects underlying EBITDA margin as a percentage of network sales to expand to 6.7–6.9%. Early trading in FY27 is positive, with strong comp sales growth reported.

Over the medium term, GYG aims for continued network expansion, steady comp sales growth, margin improvement from drive-thru penetration, and ongoing investment in digital and operational efficiencies. The company continues to target underlying EBITDA margin of around 10% of network sales.

Guzman y Gomez share price snapshot

The Guzman Y Gomez share price has been among the worst performers on the S&P/ASX 200 index (ASX: XJO) over the past 12 months with a decline of almost 20%.

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The post Guzman y Gomez delivers record FY26 results, launches new buyback 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 MGX Resources Ltd (ASX: MGX) share price is in focus as the company reported a net loss after tax of $30.2 million and completed a major transition from iron ore to gold during FY26.

What did MGX Resources report?

• Sales revenue of $204.0 million, down from $330.5 million the previous year
• Iron ore sales of 2.68 million tonnes, including 1.81 million tonnes of low-grade material
• Profit before tax and impairments was $29.1 million
• Reported net loss after tax of $30.2 million, narrowing from $82.2 million loss in FY25
• Cash and investments of $412.1 million at 30 June 2026
• Koolan Island divestment agreement for at least $20.2 million plus revenue share and rehabilitation cost assumption

What else do investors need to know?

The year was a turning point for MGX Resources as it repositioned its business from iron ore towards precious metals. The company completed the Koolan Island low-grade iron ore sales program, generating positive cash flow and fully funding site rehabilitation and wind-down activities.

MGX executed a binding agreement to divest Koolan Island to Crestlink, helping preserve its strong, debt-free balance sheet. The company also acquired a 50% interest in the Central Tanami Project Joint Venture, fast-tracking its entry into Australian gold production.

What did MGX Resources management say?

MGX Resources CEO Peter Kerr said:

MGX completed a successful transitional year with the low-grade sales program at Koolan Island surpassing expectations to generate positive cashflow to fully fund site rehabilitation and ramp-down activities

Together with the recently announced agreement to divest Koolan Island to logistics proponent Crestlink, this helped MGX preserve its strong debt-free balance sheet which will enable the business to focus on accelerating the high-grade Central Tanami Gold Project towards a development decision.

MGX is well positioned to utilise its hard-earned iron ore cash reserves to realise substantial shareholder value as it seeks to create a new high-quality Australian gold production business.

What’s next for MGX Resources?

Looking ahead, MGX will focus on completing the Koolan Island divestment and fully transitioning operations to gold. The company is accelerating work at the Central Tanami Gold Project, including resource definition drilling, infrastructure upgrades, and pushing towards a development decision.

MGX plans to leverage its significant cash reserves and mining expertise to develop the Tanami project and grow its footprint in Australian gold production.

MGX Resources share price snapshot

Over the past 12 months, MGX Resources shares have declined 8%, trailing the All Ordinaries Index (ASX: XJO), which is flat over the same period.

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The post MGX Resources narrows FY26 loss as it moves from iron ore to gold 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.

The James Hardie Industries plc (ASX: JHX) share price is in focus today after the company announced the divestiture of its European operations, including the sale of Fermacell to Holcim for €840 million (around $980 million USD).

The deal is expected to speed up debt reduction and support the return of capital to shareholders, with a new $250 million share repurchase program also unveiled.

What did James Hardie report?

• Firm has agreed to sell its European sustainable walling and flooring business Fermacell to Holcim for €840 million in cash.
• Proceeds will be used to repay about $600 million in debt and to fund a $250 million share buyback.
• The transaction is expected to be accretive to the company’s margin profile and return on invested capital (ROIC) post-completion.
• James Hardie also plans to close its European fiber cement operations, sharpening focus on its core growth markets.
• The deal is targeted to close in the first half of calendar 2027, subject to regulatory and employee procedures.

What else do investors need to know?

James Hardie’s strategic shift is part of a broader plan to align its portfolio with long-term growth opportunities and market leadership in core regions. The funds from the Fermacell sale will reduce James Hardie’s net leverage toward a target of below 2.0x by September 2027.

Additionally, the Board’s $250 million share buyback authorisation demonstrates a commitment to delivering shareholder returns. The closure of the European fiber cement business, while significant, also signals a more focused approach to investment and innovation in key growth markets such as North America and Asia-Pacific.

What did James Hardie management say?

James Hardie’s CEO, Aaron Erter, commented:

The strategic divestiture of our European operations and the intended closure of the European fiber cement business will enable us to focus on our highest growth and return opportunities. We believe this divestiture will strengthen our balance sheet, deliver compelling value for our shareholders and position the Fermacell business for long-term success under Holcim’s ownership. We are deeply grateful to our talented team members across Europe, whose expertise and hard work have made meaningful contributions to James Hardie, and we are committed to supporting impacted European fiber cement employees.

What’s next for James Hardie?

James Hardie expects the transaction to be completed in the first half of 2027, pending usual closing conditions. The focus post-sale will be on reducing debt further and potentially more capital management initiatives, including share buybacks.

The divestment and business closure will allow James Hardie to direct resources toward markets and segments with the most potential for sustainable growth and improved returns. Management has indicated a continued appetite for innovation and investment in these core markets.

James Hardie share price snapshot

It has been a strong 12 months for the James Hardie share price. During this time, the company’s shares have outperformed the S&P/ASX 200 index (ASX: XJO) with a gain of almost 50%.

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The post James Hardie sells European business, launches share buyback 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 Fisher & Paykel Healthcare share price is front and centre today after the company issued upbeat guidance, forecasting first-half revenue of NZ$1.24 billion and net profit after tax (NPAT) of NZ$280 million for the 2027 financial year.

What did Fisher & Paykel Healthcare report?

• Forecast first-half revenue of approximately NZ$1.24 billion, up 14% on the prior corresponding period
• Expected first-half NPAT of around NZ$280 million, up 24% (excluding US tariff refunds)
• Full-year operating revenue guidance: NZ$2.47 billion to $2.57 billion
• Full-year NPAT guidance: NZ$525 million to NZ$565 million (including $23 million in US IEEPA tariff refunds)
• Improvement in gross margin and operating efficiencies anticipated

What else do investors need to know?

Fisher & Paykel Healthcare saw particularly strong demand in its Hospital product group for the start of FY27, driven by adoption of its latest hardware devices and increased consumable sales stemming from changing clinical practices. The company’s positive momentum is also underpinned by continuous improvement activities that are delivering results in gross margin and operating efficiency.

The updated guidance assumes current global tariff rates will remain in place for the financial year. Fisher & Paykel Healthcare’s annual shareholders’ meeting is set for 25 August 2026, offering an opportunity for investors to engage with leadership on strategy and performance.

What did Fisher & Paykel Healthcare management say?

The company’s CEO, Lewis Gradon, said:

We have had a strong start to our first half, particularly in our Hospital product group, as a result of continued strong demand for our latest range of hardware devices and ongoing change in clinical practice driving consumable sales. It is also pleasing to see the progress we are making with our continuous improvement activities and the impact on our gross margin and other operating efficiencies.

What’s next for Fisher & Paykel Healthcare?

Looking ahead, Fisher & Paykel Healthcare plans to keep investing in innovation to support clinicians and adapt to evolving healthcare needs. Management expects continued improvement in gross margin while progressing ongoing projects to sustain the company’s growth momentum.

The current outlook remains subject to changes in global tariffs and foreign exchange conditions, but management remains confident in the strong demand outlook and ability to deliver operating efficiencies.

Fisher & Paykel Healthcare share price snapshot

The Fisher & Paykel Healthcare share price is marginally outperforming the S&P/ASX 200 index (ASX: XJO) on a 12-month basis with a gain of around 3%.

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The post Fisher & Paykel Healthcare shares: Earnings outlook upgraded for FY27 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.

Telix Pharmaceuticals Ltd (ASX: TLX) shares have been strong performers in 2026.

Since the start of the year, the radiopharmaceutical company’s shares have risen a sizeable 53%.

While this still leaves its shares well short of their 2025 highs, one leading broker is calling time on the rally.

What is the broker saying?

Bell Potter notes that it recently met with the company and spoke about the prospects of its Pixclara product, which is seeking FDA approval. It commented:

Following a tough year in CY25, Telix continues to control the controllable factors and is now on the cusp of a major step forward with the pending approval of Pixclara. We recently met with the company at Bioshares (Queenstown), coming away encouraged with the prospects for Pixclara’s approval based on the company’s extensive engagement with the FDA. 

Pixclara is included on the NCCN guidelines for disease management, virtually ensuring commercial success if approved. The resubmission of the NDA for Pixclara included extensive new data which the company expects will satisfy the FDA’s efficacy concerns.

The broker has also been looking at Telix’s half-year results and was pleased with what it delivered. And while it expects the launch of a competing product to impact fourth-quarter revenue, Bell Potter still believes that its guidance is achievable. It explains:

1H26 increased by 22% to $477m, dominated by US sales of PSMA imaging agents. FY26 revenue guidance range is unchanged at $950m – $970m with the company guiding to the upper end. We expect the launch of a competitor product (TruVu – Lantheus) will impact 4Q26 revenues, nevertheless, the top end of the guidance is realistic. We do not anticipate a change in guidance irrespective of 3Q26 revenues.

Telix shares downgraded 

Despite the positives, Bell Potter believes that Telix shares are now approaching fair value.

As a result, the broker has downgraded them from a buy rating to a hold rating with a steady price target of $19.00. This implies potential upside of approximately 9% for investors from current levels.

Commenting on its investment thesis, Bell Potter said:

The pivotal moment is in a few days time for Pixclara with this event alone to dominate short term share price performance. We expect approval but without great conviction. FY26 earnings adjustments are modest. We retain our PT $19.00 and downgrade to Hold following the recent share price increase.

The post Why were Telix shares just downgraded? 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.

Investing in AI stocks on the ASX is harder than it looks because our market lacks “no-brainer” stocks like Nvidia and Microsoft.

Our local Aussie index is dominated by banks, miners and supermarkets.

But that does not mean there are no opportunities. What it does mean is that we need to look at the plumbing and the applications driving AI rather than the AI chips themselves.

The Motley Fool has previously covered how to invest in artificial intelligence locally.

Here are three ASX companies I think give you strong exposure to the AI theme.

Why ASX AI stocks look different to Wall Street

Australia does not manufacture semiconductors.

What we do have is land, power and regulated demand for sovereign data storage, and that has turned the local artificial intelligence trade into an infrastructure trade first and a software trade second.

NextDC: the purest infrastructure play

NextDC Ltd (ASX: NXT) builds and operates the data centres that artificial intelligence workloads run inside.

The company’s scale is now hard to ignore.

In an April update, contracted utilisation reached 667MW as at 31 March 2026, a 60% increase, while the forward order book jumped 83% to 544MW.

Contracted earnings from existing agreements now exceed $1 billion.

Chief executive Craig Scroggie did not undersell the shift:

The scale of this increase in contracted utilisation and the resulting uplift in the Company’s pro forma Forward Order Book are unprecedented, underscoring the record levels of demand we continue to experience.

The catch is cost.

NextDC guided to FY26 capital expenditure of $2.7 billion to $3.0 billion with roughly $5 billion forecast for FY27, and it funded part of that through a $1.5 billion entitlement offer priced at $12.70 per share.

Investors are still debating whether the AI boom is only getting started for NextDC shares.

The company reports its FY26 result on 27 August.

Pro Medicus: one of the few profitable AI stocks

Pro Medicus Ltd (ASX: PME) sells medical imaging software to United States hospital networks.

Its FY26 result delivered revenue of $261.7 million, up 22.9%, while underlying net profit after tax rose 24.1% to $144.7 million.

The underlying earnings before interest and tax margin reached 74.9%.

Dividends climbed 25.5% to 69 cents per share fully franked, and the company signed 10 new contracts worth at least $407 million.

Chief executive Sam Hupert framed the AI opportunity in terms of access:

We are the gatekeeper for image-based AI to now 11% of the market in the U.S. and growing.

That gatekeeper position represents the premium the market pays for.

Shares jumped more than 10% on results day, although they remain down roughly 11% for the calendar year.

Macquarie Technology: the small-cap option

Macquarie Technology Group Ltd (ASX: MAQ) runs data centres, cloud and cybersecurity services for government and corporate customers.

The company is a fraction of NextDC’s size, with a market capitalisation of roughly $1.6 billion.

The company delivered its 22nd consecutive half of EBITDA growth in the first half of FY26, with EBITDA of $57.9 million and full-year guidance of $114 million to $117 million.

Its IC3 Super West facility in Sydney is the real prize.

Phase one delivers 6MW, with a pathway to 19MW and an option over a Sydney campus site above 150MW.

Macquarie Technology also reports on 27 August.

The risks with ASX AI stocks

None of these businesses is cheap.

Pro Medicus trades on a price-to-earnings ratio near 88, which leaves no margin at all for a missed contract or a slower implementation schedule.

NextDC has never reported a statutory profit, and its capital intensity means further raisings are possible.

Macquarie Technology is small, thinly traded and spending heavily ahead of revenue.

Buying AI stocks means accepting that the market has already priced in a great deal of future growth.

Foolish takeaway

I would not put an entire portfolio into this single theme.

But a modest allocation across infrastructure and applications gives you two very different ways to win, because the companies building the capacity and the companies monetising it rarely peak at the same moment.

NextDC and Macquarie Technology sell the shovels.

Pro Medicus sells the software that makes the data useful.

For investors who want exposure to AI stocks without leaving the ASX, that is where I would start.

The post Investing in AI stocks on the ASX? Here’s what you should buy appeared first on The Motley Fool Australia.

More reading

• My top 5 ASX 200 shares to buy and hold
• Why I’d buy CSL, Cochlear, and Pro Medicus shares
• This ASX dividend share just blew me away
• Could the AI boom just be getting started for NextDC shares?
• Healthcare results wrap: Are Cogstate and Pro Medicus shares a buy, hold or sell?

Motley Fool contributor Mark Verhoeven 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 Microsoft and Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has recommended Microsoft, Nvidia, and Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Fortescue Ltd (ASX: FMG) shares have been in the spotlight this week after the mining giant released its FY 2026 results.

Are its shares a buy? Let’s see what analysts at Bell Potter are saying about the miner.

What is the broker saying?

Bell Potter notes that Fortescue released a mixed result this week, with revenue and EBITDA slightly ahead of expectations, but net profit and dividends falling short. It said:

FMG reported mixed FY26 results, with revenue and EBITDA slightly ahead of our forecasts and consensus but NPAT and dividend a miss. Key metrics included revenue of US$16,966m (vs BPe US$16,491m, up 9% YoY), underlying EBITDA of US$8,635m (vs BPe US$8,382m, up 9% YoY) and underlying NPAT of US$3,458m (vs BPe US$3,723m, up 3% YoY). Statutory NPAT was impacted by an impairment of US$750m (Iron Bridge) and a US$104m (Yindjibarndi compensation) for US$598m post tax cost and statutory NPAT of US$2,870m, down 15% YoY.

Speaking about its dividend and outlook, Bell Potter adds:

FMG’s declared a final dividend of A46cps (vs A60cps YoY) for total FY26 dividends of A108cps at a 6.0% fully franked yield, a key support for the FMG share price. This was lower (A110cps YoY) despite higher production and a higher iron ore price. FY27 guidance was reiterated, for shipments of 197-207Mt at C1 cost US$20.50- US$21.75/wmt, implying +13% YoY cost inflation and that margins and earnings will remain under pressure. 

Adding downside risk is pricing pressure from centralised Chinese buying group CMRG. FMG provided limited commentary on the progress of ongoing negotiations, but stated that all it seeks is a return to “fair and proper market practices”, implying that is not currently what’s on offer.

Should you buy Fortescue shares?

According to the note, in response to the results, Bell Potter has retained its hold rating on Fortescue shares with a trimmed price target of $17.10.

Based on its current share price of $17.95, this implies potential downside of around 5% for investors over the next 12 months.

However, Bell Potter expects a 3.3% dividend yield in FY 2027, reducing the total potential negative return.

Commenting on its recommendation, the broker said:

There are no material EPS changes in this report. FMG’s core iron ore operations continue to perform well. However, broad input cost inflation, subdued iron ore price fundamentals, a rising AUD and potential impacts to price realisation all put pressure on our earnings and dividend forecasts. We retain our Hold rating and do not yet see the positive catalysts to re-enter the stock. Our NPV-based valuation is lowered 2%, to $17.10/sh.

The post Are Fortescue shares in the buy zone after its results? appeared first on The Motley Fool Australia.

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• Why is the Fortescue share price on a rollercoaster today?
• Fortescue hits new records in FY26: profit up, dividends flow
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