Author: openjargon

Woodside Energy Group Ltd (ASX: WDS) shares are climbing higher again in Wednesday morning trade.

At the time of writing, the shares are up around 0.5% and changing hands at $33.30 a piece. Today’s increase means the shares are now up around 41% for the year-to-date. They’re also roughly 27% higher than this time last year.

What drove Woodside shares higher this year?

So far in 2026, the oil and gas giant has benefited from major oil supply concerns and volatility around conflict in the Middle East.

The US-Iran war shows renewed signs of cooling. But each time it looks like conflict is calming down, it quickly returns. The region is highly volatile, and the movement of oil from the area will continue to be uncertain until a resolution is reached. 

Shipping disruptions and production cuts pushed crude oil prices to a multi-year high of around US$111 per barrel in April, according to Trading Economics data. While the price of oil softened in June and early July, it is now trading back up at around US$85 per barrel.

And it’s not just volatile oil prices and market demand driving the company’s shares higher.

Woodside grabbed headlines in late April after it posted its first-quarter FY26 update. The oil and gas producer reported a 7% quarter-on-quarter increase in operating revenue and an 8% hike in revenue. The company’s production figures were lower thanks to weather events, but this was offset by an 11% increase in the average realised price of oil. 

Late last month the company made waves again after it posted its second-quarter update. Woodside announced a 28% increase in quarterly operating revenue and confirmed that its major growth projects are on track. The Scarborough Energy Project is now 98% complete and remains on budget, targeting first LNG cargo in the December quarter of 2026.

Woodside is expected to release its first-half results for 2026 next week on the 25th of August. Its full FY26 results will be announced in February next year.

Can Woodside shares keep climbing higher?

It looks like brokers now think the oil major’s shares are now trading around fair value. In fact, some are tipping a downside over the next 12 months.

Market Index data shows the majority of brokers have a hold rating on Woodside shares. The $28.52 average target price implies a potential 14% downside ahead.

Experts on TradingView are a little more positive. Sentiment is split between a hold rating and a buy/strong buy rating. Although the average $32.31 now implies a potential 3% downside, at the time of writing. 

The team at Morgans have a hold rating and $32.50 target price on the energy shares. The broker said it was pleased with the company’s latest quarterly update, with the figures coming in ahead of expectations.

Michael Gable from Fairmont Equities recently reduced his rating on Woodside shares to a hold. He said that the US strategic petroleum reserve was recently at a 43-year low, and he is concerned it will be difficult to keep a lid on crude oil prices.

The post Up 41%: How much higher can Woodside shares go? appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Thursday

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 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.

WiseTech Global Ltd (ASX: WTC) shares are jumping higher again on Wednesday morning.

At the time of writing, the shares are up around 1.5% and changing hands for $43.92 a piece.

The latest increase means the ASX tech shares have now rebounded around 52% from a five-year low of just $28.76 a piece, recorded in late-June. 

But there is still a long way to go until WiseTech shares have regained the huge losses shed over the past 12 months. For the year-to-date and tech shares are still down around 36% and they’re roughly 62% lower than this time last year.

But, while it’s important to consider how the company’s shares have performed over the past 12 months, investors should also keep an eye on what lies ahead.

So, if I buy $8,000 of WiseTech shares today, what could that be worth in 12 months time?

The experts are incredibly bullish about the outlook for WiseTech shares over the next 12 months, with the majority forecasting a strong upside ahead.

Market Index data shows the majority of brokers have a strong buy rating on the shares. The $54.71 average target price implies a potential 27% upside, at the time of writing.

Analysts are even more bullish on TradingView. The data shows that the majority have a strong buy rating on WiseTech shares, but they have a higher average target price of $60.61. That implies the shares could increase another 38%, at the time of writing.

But some are even more optimistic. The $114.11 maximum target price implies a potential 160% upside over the next 12 months.

Assuming the average target price comes to fruition, that means your $8,000 investment today could be worth around $10,160 to $11,040 by August 2027.

But if the more bullish expert forecasts are correct, an $8,000 investment today does have the potential to climb as high as $20,800 over the next 12 months.

What‘s ahead for the ASX tech shares?

WiseTech is due to announce its FY26 results on the 26th of August.

The company reaffirmed its FY26 guidance earlier this year, expecting full-year revenue of US$1.39 billion to US$1.44 billion (representing a 79% to 85% increase) and EBITDA in the range of US$550 million to US$585 million, up 44% to 53% from FY25.

WiseTech has a strong competitive advantage in the global logistics industry. I think the company’s future hinges primarily on its FY26 results. If the company manages to reach or exceed its upgraded guidance, I think we’ll see a turnaround in investor sentiment.

The post By August 2027, $8,000 invested in WiseTech shares could turn into… 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 WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Australian house prices have spent most of this cycle shrugging off higher interest rates.

That stopped in July. National home values fell 0.7% over the month, according to Cotality’s Home Value Index, making it the steepest monthly decline since December 2022.

For investors holding ASX property shares, that gives food for thought.

These trends are a signal about where earnings guidance is heading.

The house prices data has turned

Sydney led the falls with a 1.4% drop in July. Melbourne was close behind at 1.2%, whereas Brisbane slipped 0.6% and Adelaide gave up 0.2%.

Perth managed a 0.1% gain, though that is a long way from the pace it set last year.

What changed in July was the breadth of the weakness.

Cotality head of research Gerard Burg pointed to the gap opening up between buyers and sellers.

There remains a mismatch between the pricing expectations of buyers and sellers.

Annual figures still look strong across the smaller capitals, but annual numbers are a rear-view mirror indicator and the monthly data is what tells you where the market is heading next.

Why rate rises finally bit

The Reserve Bank has lifted the cash rate three times this year.

It held at 4.35% on 11 August, but left the door open to more.

The Board noted that headline inflation “is still too high” and is likely to stay elevated for some time.

The data backs that up. The ABS reported that CPI rose 3.8% over the year to June, with the trimmed mean at 3.6%.

Higher rates do two things to housing, cutting how much buyers can borrow while lifting the cost of carrying the debt they already hold.

KPMG now forecasts house prices nationally to fall 1.1% across 2026 before recovering 3.4% in 2027.

Sydney houses are tipped to fall 4.4% and Melbourne houses 5.0%.

KPMG chief economist Dr Brendan Rynne was direct about the cause.

Three consecutive interest rate rises have also reduced borrowing capacity, while changes to property investment taxation have weakened investor confidence.

What falling house prices mean for ASX property shares

Not every ASX property share is exposed in the same way.

The listed sector blends residential developers, commercial landlords and funds managers, and falling house prices hit each of those business models very differently.

Developers feel it first, through slower sales and thinner margins on completed stock.

Landlords are better insulated, because commercial and industrial rents answer to a different set of drivers.

Much of the damage may already be done, too.

ASX 200 real estate stocks tumbled through the first half of 2026 as the rate outlook soured.

Goodman, Mirvac and Stockland: three very different exposures

Goodman Group (ASX: GMG) is the least exposed of the trio.

The company owns virtually no residential property.

Its growth story is industrial space and data centres, with a portfolio valued at $87.1 billion in May.

Mirvac Group (ASX: MGR) sits at the other end of the spectrum, because as a residential developer its shares sank to their lowest level since 2015 in April.

Stockland (ASX: SGP) lands somewhere in between.

The company’s residential communities arm is directly exposed to weaker prices, while land lease communities and a new data centre joint venture provide some ballast against the cycle.

Stockland maintained FY26 guidance at its third-quarter update in April.

All three report FY26 results within the next week, according to the Foolish reporting calendar.

Foolish takeaway

Falling house prices are not automatically bad news for ASX property shares.

Much of the pessimism is already reflected in share prices after a difficult 2026 for the sector.

What matters now is what management teams say about the year ahead.

Mirvac, Goodman and Stockland will each put a number on that within days, and those guidance statements will tell investors all they need to know about the future of ASX property shares.

The post Rate rises have finally caught house prices. What does that means for ASX property shares? appeared first on The Motley Fool Australia.

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

The team at Morgans has been busy updating its views on a number of popular ASX 200 shares this month.

Three that the broker has been looking at are listed below. Here’s what it is saying about them:

ANZ Group Holdings Ltd (ASX: ANZ)

Morgans was pleased enough with ANZ’s trading update. However, it isn’t a fan of its valuation and sees potential for negative returns even after dividends. As a result, it has put a trim rating and $33.53 price target on ANZ Bank’s shares. It said:

Underlying earnings growth, delivery of cost decline and low bad debts were a feature of the trading update, with lifting momentum behind revenue growth. Forecast changes are immaterial. 12-month target price reset to $33.53/s. TRIM retained, with potential TSR at current prices of c.-9% (including 4.4% yield).

Iress Ltd (ASX: IRE)

Although this financial technology company delivered a softer than expected half-year result, Morgans remains positive. This is due to the quality of its earnings improving and its modernisation story. 

This saw the broker retain its buy rating with a $9.65 price target. It said:

IRE’s 1H26 result was softer than anticipated, with slower revenue momentum along with currency headwinds the main drivers. While Group revenue & underlying EBITDA fell short of MorgF by -2%/-4% respectively, earnings quality continued to improve as efficiency program cost improvements saw underlying EBITDA margins from continuing operations improve +330bps YoY. Revised FY26 guidance sees revenue & UPAT expectations lowered by ~4% at the midpoint, however Cash EBITDA guidance of A$119-124m (+19-24% YoY) was raised, supported by efficiency program delivery, more moderate Capex outlook, and a further A$6-9m of cost savings to be delivered over 2H26 (implying 2H26 Cash EBITDA of A$58-63m). 

We trim our underlying UPAT forecasts by -2 to -6%, which sees our price target reduce by ~7% to A$9.65. Although top line momentum has softened in the half, execution of IRE’s broader efficiency / modernisation story in our view remains on track (albeit early days). We therefore retain our BUY rating.

JB Hi-Fi Ltd (ASX: JBH)

This retail giant delivered a result largely in line with expectations for FY 2026. The only disappointment was its trading update, which revealed a weaker than expected start to FY 2027.

In response, Morgans has retained its accumulate rating on JB Hi-Fi shares with a trimmed price target of $82.00. It explains:

JBH reported a broadly in-line FY26 result, with NPAT up ~3%. However, sales growth slowed in the 4Q, including turning negative in JB Hi-Fi Australia. The July trading update was below market expectations, with 3 out of 4 divisions reporting negative comparable sales growth, and tracking below 1H27 consensus. This was impacted by price increases, supplier stock shortages, weaker consumer backdrop and cycling a strong pcp. We expect some of these headwinds to ease as the year progresses, although the macro trading environment remains choppy. 

We have downgraded our NPAT forecasts by ~5% in FY27 and FY28, respectively. Our valuation lowers to $82.00 driven by earnings downgrades, offset by rolling forward our model. We maintain our ACCUMULATE rating.

The post Buy, hold, sell: ANZ Bank, Iress, and JB Hi-Fi shares appeared first on The Motley Fool Australia.

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• Buy, hold, sell: Endeavour, JB Hi-Fi, and New Hope shares 

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.

For years, $1 million was shorthand for a comfortable Australian retirement. More recently, $2 million has started appearing in retirement projections, calculator results and attention-grabbing headlines.

However, there is no universal superannuation target.

Whether you need $2 million depends mainly on when you retire, how much you plan to spend and whether the Age Pension will eventually support your income.

The superannuation maths, worked backwards

Start with the income, not the balance.

Consider a couple retiring at 60 and funding a 30-year retirement entirely from their own capital. Assuming annual returns of 6% after fees and tax, inflation of 3% and no remaining balance after 30 years, an income of $80,000 a year in today’s dollars requires approximately $1.6 million.

Lifting the desired income to $100,000 increases the starting balance to almost $2 million. If annual returns rise to 7% under the same assumptions, the required balance falls to around $1.75 million.

That is where the $2 million figure becomes relevant. It is approximately what an early-retiring couple needs to fund a six-figure lifestyle without relying on the Age Pension.

Change the retirement age, spending target or return assumption and the number changes with it.

Why ASFA’s benchmark is much lower

The Association of Superannuation Funds of Australia estimates that a comfortable retirement currently costs $55,923 a year for a single homeowner and $78,566 for a couple.

ASFA estimates the corresponding superannuation balances at $630,000 and $730,000 respectively. However, those figures assume retirement at 67, home ownership and access to a part Age Pension over time.

That makes them very different from a couple retiring at 60 and funding everything independently.

The maximum Age Pension is currently worth approximately $31,223 a year for a single retiree and $47,070 combined for a couple. However, it is means-tested. A homeowner couple retiring with $730,000 in assessable assets would generally receive only a part pension, with the entitlement potentially increasing as their assets are drawn down.

At a simple 4% withdrawal rate, replacing the maximum couple pension would require almost $1.2 million of additional capital. That is not precisely how ASFA models retirement, but it illustrates why its recommended balance is so much lower than a fully self-funded target.

The important question is not which benchmark is correct. It is which set of assumptions resembles your household.

Where investors can close the gap

For investors with substantial super balances, contributions are only part of the equation. Returns earned on the existing portfolio can become increasingly influential during the final decade of work.

The Australian share market has historically generated average annual returns of around 9% over long periods, including dividends. Past performance does not guarantee future returns, but it demonstrates how compounding can accelerate as the balance grows.

For example, $600,000 earning a 5% annual return after inflation would grow to approximately $977,000 in today’s dollars over 10 years, without further contributions. If another $15,000 reaches the account each year, the balance could grow to around $1.17 million in today’s dollars.

The final decade before retirement is not necessarily when growth stops mattering. It can be when compounding has the largest pool of capital to work on.

Broad-market exchange-traded funds such as the Vanguard Australian Shares Index ETF (ASX: VAS) and iShares S&P 500 ETF (ASX: IVV) can provide diversified exposure to Australian and international shares.

Australian shares may also generate franking credits, although the benefit received depends on the super fund, account structure and individual tax circumstances.

Shares alone are not a complete retirement plan. Fees, diversification, liquidity and the order in which returns occur all matter. A sharp market fall during the first years of retirement can cause substantially more damage than the same decline earlier in life, making portfolio construction and the drawdown plan just as important as the target balance.

Foolish takeaway

A $2 million superannuation balance is a reasonable target for one particular scenario: a couple retiring early, wanting around $100,000 a year in today’s dollars and planning without the Age Pension.

That is not every Australian household.

For people retiring later with a paid-off home and some Age Pension eligibility, ASFA’s modelling suggests a comfortable retirement may remain achievable with considerably less than $1 million.

The number that matters is not the one attracting headlines. It is the capital required to fund your desired spending from your chosen retirement date, under realistic assumptions about inflation, returns and the Age Pension.

For some households, that may be $2 million. For many others, it will be substantially less.

The post Is $2 million really the new superannuation target? appeared first on The Motley Fool Australia.

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Motley Fool contributor Leigh Gant 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 iShares S&P 500 ETF. The Motley Fool Australia has recommended iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

NextDC Ltd (ASX: NXT) shares have been on the rise, gaining 12% over the past month to $14.73. The stock is up 20% year to date, although it’s only 4% higher over the past 12 months.

Some of the recent momentum appears to be coming from strong earnings from US technology giants including Apple Inc (NASDAQ: AAPL) and Alphabet Inc (NASDAQ: GOOG). But could there be more to the NextDC story?

At the heart of data centre expansion

NextDC operates data centres, increasingly critical infrastructure underpinning the digital economy. The tech company is positioning itself at the heart of this expansion, with a growing Australian footprint and ambitions across Asia.

It recently opened its first AI-ready facility in Kuala Lumpur and is developing facilities specifically designed for Artificial Intelligence workloads, including its S6 Sydney data centre.

The long-term opportunity is compelling. As businesses increasingly use cloud computing, AI, streaming, online payments, cybersecurity tools and other data-heavy software, demand for secure and reliable data centre capacity should continue growing.

NextDC appears to be executing well. It reported pro forma contracted utilisation of 740MW at 30 June 2026, up 11%, while its pro forma forward order book expanded to 565MW.

Investors in NextDC shares will get more detail when the company releases its FY26 results on 27 August.

Could AI provide another catalyst?

The recent share price strength of NextDC shares has coincided with upbeat results from major US technology companies. Strong spending and growth expectations from tech giants may be encouraging investors to look more closely at Australia’s data centre sector.

But there could be a more interesting catalyst beneath the surface.

In July, AI company Anthropic was reportedly running a confidential tender for at least 1.4GW of Australian data centre capacity as it prepares for a potential $3 billion IPO in October. NextDC was reportedly among the operators approached.

If AI companies continue securing enormous amounts of computing infrastructure, NextDC could be well positioned to benefit.

Analysts see plenty of upside

TradingView data shows nine of 10 brokers rate NextDC shares a buy or strong buy. The average price target is $21.60, implying around 47% upside from the current share price.

The most bullish target is $32.29, suggesting potential upside of about 119%, while the most pessimistic target still implies roughly 5% upside.

UBS is among the bulls, maintaining a buy rating and a $22.55 price target.

With AI driving a surge in demand for data centre capacity, NextDC could be a stock worth watching closely.

The post Could the AI boom just be getting started for NextDC shares? 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 Alphabet and Apple. The Motley Fool Australia has recommended Alphabet and Apple. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Healius Ltd (ASX: HLS) share price was in focus today after the company delivered a 2.2% increase in revenue to $1,373.2 million for FY26, with underlying net loss shrinking by 46.8% to $13.2 million.

What did Healius Limited report?

• Revenue from continuing operations rose 2.2% to $1,373.2 million (FY25: $1,344.2 million)
• Underlying EBITDA grew 8.1% to $258.6 million
• Underlying EBIT jumped 76.6% to $30.2 million
• Underlying loss after tax improved to $13.2 million from $24.8 million a year ago
• Reported loss after tax widened to $415.6 million, from $151.2 million, due chiefly to a $332 million non-cash goodwill impairment
• No dividend declared for FY26 (FY25: 41.3 cps special dividend)

What else do investors need to know?

Healius delivered operational improvements despite headwinds in the healthcare sector, including increased labour costs and limited Medicare indexation. Cost management helped contain annual spend, aided by a detailed workforce optimisation program reducing headcount by around 5%.

The Agilex Biolabs division performed strongly, growing revenue by 14.1% and EBITDA by over 67%. The company is reviewing strategic options for Agilex Biolabs, and an update for shareholders is expected ahead of the AGM.

Healius completed the major phase of its digital transformation program, with most collection centres now processing over 80% of episodes digitally. AI‑driven initiatives are delivering productivity gains and will continue to be rolled out across back-office and laboratory operations.

What’s next for Healius Ltd?

Looking ahead, Healius is focused on expanding higher margin revenue streams in diagnostics, capturing benefits from its completed digital platform rollouts, and further lifting network productivity. The group expects full-year labour cost pressures from regulatory changes, but remains confident about healthcare demand trends over the medium to long term.

The company maintains a strong balance sheet, ending FY26 with net debt of $32.8 million and well within its banking covenants. Management continues to target improved cashflow and margin restoration in FY27.

Healius Ltd share price snapshot

The Healius share price has been sold off over the past 12 months and is down 45%. This compares to a modest 2% gain by the S&P/ASX 200 index (ASX: XJO).

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The post Healius posts FY26 revenue growth, narrows underlying loss 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 Service Stream Ltd (ASX: SSM) share price is in focus after the company reported an 18.4% jump in NPAT-A to $81.1 million, and 11.8% higher operational EBITDA for FY26.

What did Service Stream report?

• Group revenue of $2.48 billion
• EBITDA from operations of $163.4 million, up 11.8% on last year
• NPAT-A of $81.1 million, up 18.4% from FY25
• EBITDA-A margin improved to 6.6%
• Net cash balance increased to $80.7 million
• Final fully franked dividend of 3.5 cents, taking FY26 dividend to 6.5 cents (up 18.2%)

What else do investors need to know?

Service Stream successfully mobilised several new contracts in Defence, Water, and Industrial sectors, helping boost its contracted work-in-hand to $8.2 billion (excluding extension options). Cash generation remained strong, with a 24.9% increase in operating cash flow and an EBITDA-to-cash conversion rate above 113%.

Availability of skilled staff supported new contract launches and ongoing growth, while inflationary pressures were managed effectively via operational improvements and contract terms.

What did Service Stream management say?

Managing Director Leigh Mackender said:

Financial year 2026 was another period of strong and positive performance with Service Stream delivering improved financial results, headlined by enhanced group margins, double-digit growth in EBITDA-A and NPAT-A, generation of exceptional cashflows and a strengthening of the Group’s net cash balance sheet. The business expanded its total addressable markets, successfully securing and mobilising several new contractual agreements across the defence, water and industrial sectors as it continues to diligently execute its value creation strategy.

What’s next for Service Stream?

Management expects earnings growth in FY27 on the back of improved quality of earnings, benefits from mobilising new contracts, and strong demand for infrastructure upgrades. The group says its scalable platform positions it well to capture further opportunities as clients invest in essential networks.

The board remains confident the company can take advantage of increased infrastructure spending and sees a robust pipeline of projects in critical sectors.

Service Stream share price snapshot

Over the past 12 months, Service Stream shares have risen 25%, outperforming the All Ordinaries Index (ASX: XAO), which has risen 1% over the same period.

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The post Service Stream: Profit jumps and dividend lifted in FY26 results 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 Santos Ltd (ASX: STO) share price is in focus today as the company reported a 2% lift in half-year product sales revenue to US$2,620 million, but a 19% drop in statutory profit to US$355 million for the six months ended 30 June 2026. Directors declared an unfranked interim dividend of 11.6 US cents per share.

What did Santos report?

• Product sales revenue: US$2,620 million, up 2% year on year
• Statutory net profit after tax: US$355 million, down 19%
• Underlying profit: US$397 million, down 22%
• EBITDAX: US$1,555 million, down 12%
• Interim dividend: 11.6 US cents per share (unfranked), down 13%
• Operating free cash flow: US$378 million, down 65%

What else do investors need to know?

Santos delivered higher production volumes, mainly due to increased LNG output and the continued ramp-up of the Barossa and Pikka Phase 1 developments. Sales volumes rose by 1.7% to 48 million barrels of oil equivalent, helping offset the impact of lower realised LNG prices and higher depletion expenses.

Cash flow from operations fell sharply versus the prior period, reflecting increased commissioning costs at Barossa and Darwin LNG, higher third-party purchase costs, and the change in depreciation methodology to reflect 1P reserves rather than 2P.

The company’s major projects remain on track. Barossa has reached 97% of planned rates since the end of June, while Pikka Phase 1 in Alaska achieved first oil, with expectations for ramp-up to plateau production in the third quarter of 2026.

What’s next for Santos?

Santos has provided production guidance of 99 to 105 million barrels of oil equivalent and sales volume guidance of 102 to 108 million barrels for the full year 2026. The company expects key growth projects, including the Barossa and Pikka ramp-ups, to underpin higher production and support long-term performance.

Santos continues to progress its portfolio of decarbonisation initiatives, such as the Moomba and Bayu-Undan carbon capture projects. The company maintains its focus on reducing costs, improving asset reliability, and delivering project milestones to support its strategy.

Santos share price snapshot

The Santos share price is marginally outperforming the S&P/ASX 200 index (ASX: XJO) on a 12-month basis with a gain of 4.5%.

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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.

CSL shares (ASX: CSL) surged as much as 18% on Tuesday, capping the biotech giant’s best single session in more than two decades.

The stock changed hands around $157.40.

That is an extraordinary move for a company of this size, and it becomes stranger still once you read the headline numbers.

CSL reported a net loss after tax of US$2.6 billion for FY26.

A record loss and a record rally, on the same morning.

So what did the market see that the headline missed?

Why CSL shares looked past a US$2.6 billion loss

The loss was not in any way an operating problem.

It came from US$7.1 billion in pre-tax impairments and a further US$799 million in restructuring costs, none of which involved cash leaving the business.

Most of that writedown was due to CSL Vifor intangibles and under-utilised property, plant, and equipment.

Investors had also been warned well in advance, because back in May the company flagged roughly US$5 billion of impairments alongside a cut to FY26 guidance.

Strip the one-offs away and the underlying picture was far steadier.

Underlying NPATA stood at US$3.1 billion, down just 2% on the prior year.

Revenue of US$15.8 billion slipped 1%, but still came in ahead of what most analysts had predicted.

Operating cash flow was a healthy US$3.5 billion.

Inside the FY26 result

CSL Behring remains the engine room of the business.

The plasma division generated US$11.4 billion in revenue, down 1%, while immunoglobulin sales held flat at US$6.2 billion.

That immunoglobulin line is a key pillar of the CSL bull case.

CSL Vifor lifted 3% to US$2.4 billion.

Seqirus was weak, with the influenza vaccine business shrinking 8% to US$2 billion.

In better news, CSL’s transformation program delivered US$176 million of cost savings during the year.

Management also committed US$1.5 billion to expanding plasma collection capacity across the United States.

The final dividend left the full-year payout unchanged at US$2.92 per share.

The guidance that drove the CSL share price craze

Here is where the enthusiasm came from.

CSL guided to underlying NPAT growth of approximately 5% in FY27.

Consensus had been sitting closer to 2%, so for a company that has spent 18 months walking its guidance backwards, an upgrade of any kind is a welcone plot twist.

Behring is expected to grow at a mid-single-digit rate, with immunoglobulins running in the mid-to-high single digits.

The offset is CSL Vifor, where revenue is tipped to fall around 25% as iron generics arrive.

Interim chief executive Gordon Naylor set the tone for this reset back in May.

Growth initiatives are working, but the financial benefits will take longer than previously anticipated to materialise.

Are CSL shares still worth a look?

Even after Tuesday’s surge, CSL shares remain down roughly 8% in 2026, and they still sit well below the highs they set a few years ago.

Investors should still be considering the bear case. The company is still operating without a permanent chief executive, Seqirus is shrinking, and the Vifor acquisition has now been written down heavily.

One guidance beat does not undo two years of disappointment.

Ahead of the result, my Foolish colleagues asked whether the healthcare giant could arrest the slide.

On the evidence of a single session, the answer is yes. However, sustaining this recovery is a very different question.

Foolish takeaway

Tuesday was not really a case of the market missing something.

It was a case of the market finally being handed something to hold onto: a reset year, a cleaner balance sheet, and guidance that beat expectations for the first time in a while.

The plasma business is still growing, and the cost program is still delivering.

Whether CSL shares can build on that will come down to execution over the next 12 months.

The post CSL shares just had their best day in 20 years. What did I just miss? appeared first on The Motley Fool Australia.

More reading

• Is the CSL share price in the buy zone after the biotech giant’s results?
• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX 200 shares today
• CSL shares surge 18% as ‘reset year’ points to a return to growth
• Why is everyone talking about CSL, Pro Medicus and BHP shares on Tuesday?

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 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.