Author: openjargon

Data centre and cloud computing businesses have been taking off over the past year as the AI revolution takes hold.

There are several Australian businesses positioning themselves to benefit from AI growth, some of which have already enjoyed impressive share price gains.

The brokers at UBS have released reports this week on companies they like in the sector.

Let’s see what they’re saying.

Goodman Group (ASX: GMG)

This company last week reported an operating profit of $2.67 billion for FY26, up 15.7% on the previous year, and said it was targeting earnings growth of 9% in the current financial year.

The company said:

The result reflects continued demand for Goodman’s urban locations and the growing contribution from data centre developments, where secured power, scarce land and customer and investment partner engagement are supporting a significant development pipeline.

Chief Executive Officer Greg Goodman said the strong operating result positioned the company well as a global provider of digital infrastructure.

He added:

Goodman has been active in data centres since 2005 and over the past five years, we’ve deliberately deepened our exposure to the sector by securing the sites, power and capital needed in major metro markets. Demand is structural across both logistics and data centres. Automation and robotics continue to drive logistics requirements while scarcity of power and land remains the key constraint on AI and cloud growth supporting data centre demand. Hyperscaler capex expectations continue to rise, with many customers facing undersupply into 2027 and 2028.

UBS said demand remained “incredibly strong”, with the company having a “compelling” offering.

UBS has a buy rating on the stock and a price target of $33.66 compared to $27.43 currently.

Megaport Ltd (ASX: MP1)

This cloud computing company last week announced FY26 revenue of $312.2 million, up 37%, while EBITDA was up 24% to $77.1 million.

Megaport Chief Executive Officer Michael Reid said:

Our team delivered an exceptional result in FY26. The Network business produced its strongest commercial performance to date, Latitude.sh expanded rapidly following acquisition, and our combined capabilities secured major long-term customer contracts across Compute, Network, and Storage. We have materially increased the scale of the business, broadened the markets we can serve, and created a much larger opportunity. Now our job is to execute against it.

UBS said the net outcome of the results report was “firmly in the positive” and estimated EBITDA of $624 million for Megaport in FY28.

The broker has a price target of $26.40 on Megaport shares, up from $24.20, compared to the current share price of $18.19.

The post Two ASX data centre stocks rated a buy appeared first on The Motley Fool Australia.

More reading

• 3 ASX shares I’d buy for their global growth potential
• 3 ASX shares I’d buy if I were a beginner today
• 2 ASX shares highly recommended to buy: Experts
• Top brokers name 3 ASX shares to buy next week
• Why Megaport, Lendlease and JB Hi-Fi shares all crashed 14% to 15% this week

Motley Fool contributor Cameron England has positions in Megaport. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group and Megaport. 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.

S&P/ASX 200 Index (ASX: XJO) shares are 0.3% higher at 9,086.1 points on Monday.

Let’s start the new week with some fresh ratings from the experts

CSL Ltd (ASX: CSL)

The CSL share price is $170.37, up 1.3% today and down 21% over 12 months. 

CSL shares soared 23% last week after the company released its FY26 results and provided a positive outlook.

The CSL share price has ripped 85% since the healthcare sector began its long-awaited rebound on 3 June.

Morgans has a buy rating on this ASX 200 healthcare giant.

Analyst Derek Jellinek said: 

The FY26 result was broadly in line with expectations, with revenue of US$15.8bn (+3% vs guidance) and underlying NPATA of US$3.1bn.

Importantly, underlying Ig demand remains strong, Seqirus delivered seasonal influenza growth despite lower US immunisation rates and transformation savings reached US$176m ahead of target, although Vifor continues to face challenges.

While FY27 targets flat top line growth, as Vifor remains a significant drag, the earnings trajectory is becoming increasingly skewed towards recovery, supported by stabilising plasma economics, cost-outs and improved commercial execution.

We make modest changes to FY27-28 estimates and increase our blended DCF, PE and EV/EBITDA-based target price to A$187.71 on a multiple roll forward.

BHP Group Ltd (ASX: BHP)

The BHP share price hit a new record high of $67.72, up 3.9%, in early trading on Monday.

BHP released its FY26 report last week, and following this, John Athanasiou from Red Leaf Securities gave the miner a hold rating.

Athanasiou said (courtesy The Bull):

The company posted attributable profit of $US9.8 billion in full year 2026, up 9 per cent on the prior corresponding period. Revenue of $US58.8 billion was up 15 per cent.

The company’s copper portfolio is positioned to benefit from electrification, renewable infrastructure, power grid investment and data centre growth.

However, BHP remains heavily exposed to iron ore, leaving earnings sensitive to Chinese demand and commodity price movements.

The quality of BHP’s asset base, balance sheet and diversified portfolio leaves existing shareholders with little reason to sell.

However, after a solid run, prospective investors may be better served waiting for a potentially more attractive entry point.

Westpac Banking Corp (ASX: WBC)

The Westpac share price is $33.60, down 0.7% today and down 12% over 12 months. 

Following Westpac’s 3Q FY26 update, Athanasiou put a sell rating on the ASX 200 bank share. 

He said: 

The bank remains well capitalised and continues to generate solid earnings, but the operating environment is becoming increasingly competitive.

Mortgage pricing is aggressive, deposit competition remains intense and the scope for sustained margin expansion appears limited.

Westpac’s dividend remains attractive, but investors should also consider opportunity cost.

We believe there are more compelling opportunities on the ASX, which offer stronger structural growth or more attractive valuations.

The post Buy, hold, sell: CSL, BHP, Westpac shares appeared first on The Motley Fool Australia.

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• Are Westpac shares a buy at their new 52-week low?
• Could CSL shares really hit $200? Experts reveal their 12-month targets
• Experts name CBA and these ASX shares as sells today
• How much must I invest in BHP shares to earn a $1,000 passive income in 2027?
• How much do you need invested in ASX dividend shares to replace a $90,000 salary?

Motley Fool contributor Bronwyn Allen 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 BHP Group and CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If I were starting out in the share market today, I would want businesses I could understand and feel comfortable holding for years.

I would also favour companies that already have strong positions but still have clear ways to grow.

For those reasons, these three would be high on my list.

Goodman Group (ASX: GMG)

Goodman develops and owns large-scale property used by some of the world’s biggest companies.

Its portfolio includes logistics facilities, warehouses, and data centres, with properties concentrated around major cities where land and access to power can be difficult to secure.

I think that makes Goodman a particularly interesting way for a beginner to gain exposure to some powerful long-term trends.

Online shopping and increasingly complex supply chains have created demand for well-located logistics space. At the same time, cloud computing and artificial intelligence are driving enormous investment in data centres.

Goodman’s advantage is that it already owns and controls property in locations where these facilities are needed.

It also has decades of experience developing major projects and works with large global customers that need substantial amounts of space.

For a beginner, I like that the basic investment idea is easy to follow. Businesses need somewhere to store goods and run computing infrastructure, and Goodman is focused on supplying that property in places where it can be difficult to build more.

I think that could keep creating opportunities for a long time.

ResMed Inc. (ASX: RMD)

ResMed is one of the world’s major providers of technology for treating sleep apnoea and other respiratory conditions.

Its devices help people breathe properly while they sleep.

But selling a sleep treatment machine is only the beginning. ResMed can generate recurring revenue by providing replacement products, while its digital technology helps patients and healthcare providers manage treatment.

There is also a large group of people around the world who have sleep apnoea but have either not been diagnosed or are not receiving treatment.

As awareness improves and more people seek help, ResMed has the opportunity to bring more patients into its ecosystem.

For someone new to investing, I think this is a relatively straightforward long-term story. ResMed provides products that address a genuine medical need, has spent decades developing expertise in the field, and can keep growing by helping more people receive treatment.

That is the type of business I would be comfortable learning to invest with.

Macquarie Group Ltd (ASX: MQG)

Macquarie is much more than an Australian bank.

It operates across asset management, commodities and financial markets, banking, advisory, and investing, with activities spread around the world.

I think that range is one of the reasons it could suit a beginner.

Macquarie has several ways to find opportunities as economic conditions change. Its asset management business can invest in areas such as infrastructure, energy, and real assets. Its commodities operations help businesses manage financial and physical risks, while its banking and advisory businesses provide further sources of earnings.

What interests me is the experience Macquarie has built in areas requiring large amounts of capital and specialist knowledge.

Infrastructure, renewable energy, digital networks, transport, and other major projects will continue requiring investment for decades. Macquarie has positioned itself to participate in many of those opportunities around the world.

The business can be more complicated than the other two, but I think the central idea remains simple. That is that Macquarie has built expertise in allocating capital and finding opportunities across markets.

I would be comfortable backing that capability over a long period.

Foolish takeaway

If I were a beginner, I would not feel any pressure to find the most exciting share on the market.

I would rather start with established businesses whose long-term opportunities I can understand, then give myself time to learn while those companies continue doing what they do well.

Goodman, ResMed, and Macquarie would give me that kind of starting point, which is why I would be happy to buy all three with the intention of holding for years.

The post 3 ASX shares I’d buy if I were a beginner today appeared first on The Motley Fool Australia.

More reading

• Two ASX data centre stocks rated a buy
• 2 ASX shares highly recommended to buy: Experts
• Could CSL shares really hit $200? Experts reveal their 12-month targets
• Top brokers name 3 ASX shares to buy next week
• 3 excellent ASX shares I would buy and hold for 10 years or more

Motley Fool contributor Grace Alvino 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, Macquarie Group, and ResMed. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool Australia has recommended Goodman Group and Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

DroneShield Ltd (ASX: DRO) has become one of the ASX’s most closely watched growth shares.

The opportunity is substantial, but this is still a company where investors need to be comfortable with plenty of uncertainty along the way.

So, would I buy the shares and hold them for the long term?

Counter-drone technology has become increasingly important

The first reason I am positive on DroneShield is the problem it is trying to solve.

Small drones are now being used extensively in modern conflicts, while governments are also thinking more seriously about protecting airports, military bases, critical infrastructure, and other sensitive locations.

That creates demand for technology that can detect drones quickly and, when appropriate, stop them.

DroneShield specialises in this area. Its products use radio-frequency sensing, artificial intelligence, electronic warfare, and other technology to identify and respond to drone threats.

I think its focus is an important strength.

DroneShield has spent years developing specifically for the counter-drone market rather than treating it as a small part of a much larger defence business. I think that experience could become increasingly valuable as customers look for technology that has already been tested and can continue adapting as drones change.

The technology keeps moving forward

Another reason I would be comfortable holding DroneShield is that the company is not relying on one successful product.

Drone threats are changing quickly. New drones can use unfamiliar frequencies, move faster, and try to avoid existing detection methods.

DroneShield has been responding with regular software and hardware development. Its recently released RfAI-3 technology is designed to identify previously unseen drones rather than depending entirely on a catalogue of known signals.

It has also recently launched RfRecon, a portable system that helps military and security users understand activity across the radio-frequency environment.

I like this because it shows the opportunity extends beyond simply selling more of the same equipment.

If DroneShield can keep improving the technology already deployed with customers while developing new products around their needs, it could build much deeper relationships over time.

It is preparing for a much larger business

Manufacturing is another part of the story I think investors should watch closely.

There is little value in winning major defence orders if a company cannot produce enough equipment to fill them.

DroneShield has been investing heavily to increase its manufacturing capability in Australia, while also establishing production in Europe. Its first European-produced counter-drone system came off the production line earlier this year.

That gives the company more capacity to pursue larger programs while also bringing production closer to important overseas customers.

For me, that is an encouraging sign that management is building the business for a much greater level of demand than it has historically served.

I would still treat this as a high-risk investment

This is where I would be careful.

Defence orders can be large and unpredictable, procurement processes can take time, and future revenue may not arrive smoothly from one period to the next.

Competition is another consideration. The counter-drone opportunity is attracting major defence companies and specialist technology businesses around the world.

DroneShield also needs to keep investing rapidly enough to stay ahead as drone technology evolves.

That means I would be much more comfortable holding DroneShield as a relatively small part of a diversified portfolio than making it one of my largest investments.

Foolish takeaway

For an investor with a high tolerance for risk, I think DroneShield shares are worth buying and holding.

What keeps me interested is the possibility that counter-drone technology becomes a much larger and more permanent part of defence and security spending around the world.

DroneShield has already spent years developing specialist technology and is now building the manufacturing footprint needed to compete for bigger opportunities.

There could be plenty of volatility between here and there. But with a long timeframe and sensible position size, I think the potential reward makes that risk worth considering.

The post Are DroneShield shares worth buying and holding? appeared first on The Motley Fool Australia.

More reading

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Motley Fool contributor Grace Alvino has positions in DroneShield. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield. 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.

Reece Ltd (ASX: REH) shares are heading south on Monday after the plumbing products group released its FY26 results.

At the time of writing, the Reece share price is down 5.62% to $15.61. By comparison, the S&P/ASX 200 Index (ASX: XJO) is 0.3% higher to 9,090 points.

The company reported higher revenue for FY26, although profit slipped. Reece also lifted its final dividend, giving shareholders some good news despite the drop in the bottom line.

So, does the result make Reece shares worth buying?

Let’s take a closer look.

Reece lifts its final dividend 13%

Reece declared a fully-franked final dividend of 13.40 cents per share.

That is almost 13% higher than the 11.86 cents per share paid a year earlier.

Combined with the 5.44-cent interim dividend, Reece will pay total dividends of 18.84 cents per share for FY26. That’s up 2.6% from 18.36 cents in FY25.

At the current share price of $15.61, the full-year payout gives Reece shares a trailing dividend yield of around 1.2% before franking credits.

Reece shares will trade ex-dividend on 6 October, with the record date on 7 October. The final dividend will then be paid on 21 October.

What did Reece report?

For the 12 months ended 30 June 2026, Reece reported sales revenue of $9.38 billion, up 4.5% from the previous year.

EBITDA was flat at $901 million, while EBIT fell 2.6% to $534 million. Net profit after tax (NPAT) declined 2.8% to $308 million.

Earnings per share (EPS) still increased 0.7% to 49.5 cents.

The Australian and New Zealand business was the stronger part of the result. Sales rose 8.3% to $4.2 billion, while EBITDA increased 7.3% to $532 million as volumes recovered.

Nonetheless, conditions were tougher across the US business. Sales increased 6.5% in US dollar terms, but EBITDA fell 4.5% as weak residential construction weighed on demand.

Reece also continued investing in its US network, opening 25 new branches during the year.

Are Reece shares a buy?

There were some positives in the result, particularly the recovery in Australia and New Zealand and the higher final dividend.

Management expects that momentum in ANZ to continue into FY27, helped by a solid pipeline of activity.

However, the US outlook remains less certain. Reece expects only modest growth there while residential new construction remains weak.

Investors also need to consider the price they are paying.

At $15.61, Reece shares are trading at around 32 times FY26 earnings. That’s not cheap for a company that reported lower profit for the year and is still dealing with a weak US housing market.

And while the dividend increase is a positive, the 1.2% trailing yield is unlikely to attract investors looking mainly for income.

The post Reece shares sink despite dividend boost. Is it a buy? appeared first on The Motley Fool Australia.

More reading

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Motley Fool contributor Aaron Teboneras 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.

Nuix Ltd (ASX: NXL) shares are starting the week with a bang.

Shares in the All Ordinaries Index (ASX: XAO) investigative analytics and intelligence software provider closed on Friday trading for $1.425. In morning trade on Monday, shares are swapping hands for $1.80 apiece, up 26.3%.

For some context, the All Ords is up 0.2% at this same time.

This strong outperformance follows the release of the ASX tech stock’s full year FY 2026 results.

Here’s what stoking investor interest.

Nuix shares surge on return to profit

The ASX All Ords tech stock enjoyed a strong year of growth.

Highlights included an 18.8% year-on-year increase in revenue to $263.2 million. The company credited this to broad-based expansion through both existing customer growth and new customer wins.

And earnings rocketed too. Nuix shares are getting a lift, with the company reporting adjusted management earnings before interest, taxes, depreciation and amortisation (EBITDA) of $59.8 million, up 60.4% from FY 2025, with margins increasing to 22.7% from 16.8% last year.

This helped drive a 154% year on year increase in the company’s underlying cash flow to $51.0 million.

On the bottom line, Nuix swung back into profit, achieving a statutory net profit after tax (NPAT) of $16.4 million, up from a $9.2 million loss in FY 2025.

Tapping into AI

Nuix shares could also get longer-term support from the company’s investments in AI across its operations.

“Shifts in enterprise AI deepen Nuix’s defensive moat and provide revenue opportunities,” the company said.

Nuix noted that its approach to AI adoption is designed to “scale capacity rather than reduce headcount”.

What did management say?

Commenting on the results lifting Nuix shares today, CEO John Ruthven said, “FY26 was a year of profitable growth and decisive action.”

Ruthven added:

Financial performance was robust across key metrics, with ACV [Annualised Contract Value] within our guided range, material increases in profitability and a substantial lift in cash generation. Nuix Neo continues to scale as the primary engine of profitable growth.

During the year, we made the structural changes required to shift from feature selling to platform value. We have restructured our go-to-market with enhanced commercial capability, established a clear AI strategy, and unified product and technology, backed by a one-off R&D Accelerator investment in FY27.

Looking to what could impact Nuix shares in the year ahead, Ruthven said:

We are building on continued underlying momentum. With enhanced commercial capability in place, continued investment in platform and AI capabilities, and a clear strategy for profitable growth, we are well positioned to capture the significant opportunity ahead.

The post Why are Nuix shares rocketing 26% on Monday? appeared first on The Motley Fool Australia.

More reading

• Nuix share price on watch amid robust FY26 earnings and platform growth

Motley Fool contributor Bernd Struben 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 GR Engineering Services (ASX: GNG) share price is in focus today after the company reported record FY26 EBITDA of $63.1 million on revenue of $493.2 million, and increased its fully franked dividend to 25.0 cents per share for the year.

What did GR Engineering Services report?

• FY26 revenue rose to $493.2 million (FY25: $479.0 million)
• EBITDA reached $63.1 million, up from $57.2 million in FY25
• NPAT increased to $39.0 million (FY25: $34.2 million)
• Final dividend lifted to 13.0 cents per share, full year total 25.0 cents (fully franked)
• Year-end cash position of $87.9 million with no debt
• Strong operating cashflow of $62.7 million for the year

What else do investors need to know?

GR Engineering has been awarded more than $1.0 billion in new contracts since 1 April 2026, supporting a robust pipeline into FY27 and FY28. Key contract wins cover a diversified commodity base, with over 60% of FY27 revenue expected from non-gold projects.

To fund growth and recent contract wins, the company announced a placement aiming to raise up to $100 million plus a $10 million share purchase plan. Together, these moves are set to boost pro-forma cash to $197.9 million post-raising, maintaining the company’s debt-free posture and providing flexibility for acquisitions and IT upgrades.

What’s next for GR Engineering Services?

Looking ahead, GR Engineering is forecasting FY27 revenue in the range of $825 million to $850 million. Over 90% of this guidance is already secured through existing contracts, underpinning strong confidence in future earnings.

The company’s focus remains on delivering contracted work across a growing pipeline, expanding across multiple commodities, and deploying new capital into operational capabilities and potential acquisitions.

GR Engineering Services share price snapshot

Over the past 12 months, GNG Engineering shares have risen 41%, outperforming the All Ordinaries Index (ASX: XAO), which is flat over the same period.

View Original Announcement

The post GR Engineering Services posts record FY26 result and lifts dividend appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

When Telstra Group Ltd (ASX: TLS) reported its full-year FY 2026 results on 13 August, investors were greeted with a 10.5% increase in the final Telstra dividend.

But if you’re looking to bank that increased passive income payout, time is running short.

Here’s what you need to know.

When do I need to own shares to score the boosted Telstra dividend?

The S&P/ASX 200 Index (ASX: XJO) telco reported some solid results for FY 2026.

Among the highlights, Telstra’s underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) increased by 4% year on year to $8.3 billion.

And on the bottom line, underlying net profit after tax (NPAT) of $2.5 billion was up 4.9% from FY 2025.

This saw management declare a 10.5 cents per share final Telstra dividend, franked at 90%. That’s up from the 9.5 cents per share final dividend paid out last year.

And at the recent Telstra share price of $4.73, it equates to an instant yield of 2.2%. Adding in the 10.5 cents per share interim dividend, and the stock trades on a partly franked yield of 4.4%.

Now, if you want to bank the upcoming payout, you’ll need to own Telstra shares at market close on Tuesday. The ASX 200 stock trades ex-dividend on Wednesday, 26 August. You can then expect to be paid on 24 September.

Commenting on the Telstra dividend, CEO Vicki Brady said:

The final dividend is consistent with our Capital Management Framework, and our aim to deliver a sustainable and growing dividend. Our dividend is supported by strong cash earnings, and our Connected Future 30 ambition remains to deliver mid-single digit growth in cash earnings.

Should you buy Telstra shares today?

Red Leaf Securities’ John Athanasiou recently analysed the outlook for Telstra shares (courtesy of The Bull).

“Telstra’s investment case has improved materially, supported by a stronger mobile business, better earnings momentum and improving shareholder returns,” he said.

According to Athanasiou, who issued a hold recommendation on Telstra:

Its mobile network remains the company’s key competitive advantage, providing pricing power, scale and dependable cash generation. The market has increasingly recognised Telstra’s defensive qualities, which, we believe, are reflected in the share price.

Telecommunications also remains a capital intensive industry, requiring significant ongoing investment to maintain network leadership.

As for the Telstra dividend, Athanasiou noted:

For existing shareholders, the combination of relatively stable earnings, dividends and a strong mobile franchise remains attractive. However, for new investors, the upside appears less compelling after a recent re-rating.

The post Looking to bank the boosted Telstra dividend? You better hurry! appeared first on The Motley Fool Australia.

More reading

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Motley Fool contributor Bernd Struben 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 Kogan.com Ltd (ASX: KGN) share price is in focus today after the online retailer surpassed $1 billion in Gross Sales for FY26, delivering 12% growth and a fully franked final dividend of 8.0 cents per share.

What did Kogan report?

• Gross Sales: $1,042.3 million, up 12% year on year
• Total Revenue: $510.7 million, up 5%
• Adjusted EBITDA: $41.8 million, up 14%
• Statutory NPAT: $11.2 million (no comparable figure provided)
• Final dividend: 8.0 cents per share, fully franked; total FY26 dividend up 14.3% to 16.0cps
• Cash balance: $36.4 million, with no debt as at 30 June 2026

What else do investors need to know?

Kogan.com continued its margin expansion and operating leverage, with adjusted EBITDA margin improving to 10.6% and gross margin reaching 43.5%. The business rolled out AI-driven processes across customer care, product, and operations, boosting efficiency and helping to keep costs down even as revenue grew.

Mighty Ape, Kogan’s New Zealand subsidiary, showed positive signs after a major operational reset, delivering positive adjusted EBITDA in the fourth quarter of FY26. Key improvements included reducing inventory levels and fixed costs, and a focus on higher-margin platform sales.

The group increased its investment in marketing and returned $34.9 million to shareholders through dividends and an on-market share buy-back. Board succession and management remuneration updates were also flagged, with two long-standing directors set to retire and transition later in 2026.

What did Kogan management say?

Founder and CEO Ruslan Kogan said:

Everything we do starts with our customers. Our focus is simple: find ways to deliver them more value; through better prices, a broader range of products and services, and an increasingly compelling shopping experience… As we become more efficient and profitable, we can reinvest those benefits back into our customer proposition, creating a powerful cycle of better value, stronger loyalty and a better business.

What’s next for Kogan?

Kogan Group says it is well positioned for disciplined growth in FY27, aiming for further expansion in its products division, higher-margin platform-based sales, and increased efficiency through AI and automation. At Mighty Ape, the priority will be to leverage its streamlined operations for sustainable, profitable sales in New Zealand.

The group highlighted a positive start to FY27, with unaudited July 2026 sales up 9% and revenue up 6% on the prior year, reflecting solid momentum.

Kogan share price snapshot

Over the past 12 months, Kogan shares have risen 8%, outperforming the All Ordinaries Index (ASX: XAO), which is flat over the same period.

View Original Announcement

The post Kogan surges past $1 billion in sales as margins grow 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 positions in and has recommended Kogan.com. The Motley Fool Australia has recommended Kogan.com. 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.

There are a lot of ASX dividend shares for investors to choose from.

So many, it can be hard to decide which ones to buy above others.

To narrow things down, let’s take a look at two dividend shares that Bell Potter has given buy ratings to this morning.

Here’s what the broker is recommending to clients:

DigiCo Infrastructure REIT (ASX: DGT)

Bell Potter believes that this data centre-focused REIT could be an ASX dividend share to buy now.

It was pleased with its performance in FY 2026 and thinks its growth outlook is very positive, which bodes well for dividends. It said:

While guidance for FY27 EBITDA came in below our and consensus estimates, material capex spend with associate customer LOIs points to earnings ramp up in FY28 as billing comes on line which should support the growing dividend in FY27(+25%), and into FY28 with prior potential capital return plans now appearing more multi year DPS growth oriented. We see valuation support trading at a -28% discount to NTA with an earnings growth pathway ahead next few years.

Bell Potter is forecasting dividend yields of 5.9% in FY 2027, 7.3% in FY 2028, and then 8.3% in FY 2029.

The broker currently has a buy rating and $3.35 price target on its shares.

Rural Funds Group (ASX: RFF)

Another ASX dividend share that has been given the thumbs up by Bell Potter is agricultural property company Rural Funds.

The broker notes that Rural Funds delivered an FY 2026 result that was broadly in line with its expectations.

And while its guidance for FY 2027 was short of expectations, Bell Potter still sees significant value in its shares at current levels. It said:

Our Buy rating is unchanged. FY27e guidance was disappointing, with the underperformance driven by farming returns (a 6-7% headwind against AFFO). While disposing assets in excess of book is a positive, there remains ~$356m in assets under development and either entering a lease or exiting these assets is realistically the only way to remove the agricultural volatility (on which there is limited granularity) inherent in the earnings base and bridge the gap to market NAV.

Bell Potter is forecasting dividend yields of 5.6% in FY 2027, FY 2028, and FY 2029. 

The broker has a buy rating and $2.55 price target on Rural Funds’ shares.

The post Why Bell Potter rates these ASX dividend shares with 5% to 8% yields as buys appeared first on The Motley Fool Australia.

More reading

• Why I’m planning to buy this cheap ASX stock next!
• Top brokers name 3 ASX shares to buy next week
• How much is needed in superannuation to target a $5,500 monthly passive income?
• Rural Funds Group FY26 earnings: Asset sales boost profit
• DigiCo Infrastructure REIT posts FY26 earnings beat, outlines expansion plans

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 positions in and has recommended Rural Funds Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.