Author: openjargon

Lendlease Corporation Ltd (ASX: LLC) shares hit a new 52-week low on Monday, falling to $4.31. During lunch-hour trade, the ASX share clawed its way back to $4.36, still down 4.8%.

Lendlease reported its results for the half year that ended on 31 December 2025 on Monday. Investors were less than impressed after the property and infrastructure group reported a statutory loss after tax of $318 million.

Prestigious precincts

Lendlease was once considered a global powerhouse in property development and urban regeneration. The real estate group designs, builds, and manages large commercial, residential, and infrastructure projects.

Its fingerprints are on some of the world’s most prestigious precincts, such as Sydney’s Barangaroo and the Elephant & Castle redevelopment in London. A series of earnings downgrades, budget blowouts, delayed project deliveries, and rising interest rates have battered the company, Lendlease shares, and investors’ sentiment.

Over the past 12 months, Lendlease shares have declined 30.5%, trailing the S&P/ASX 200 Index (ASX: XJO), which has risen 9% over the same period.

Loss signals transition

The reported loss on Monday was a sharp swing from profit in the prior period as investment property revaluations and impairments weighed heavily on the bottom line. Core operating profit after tax was also negative, underscoring the challenges still facing the group’s turnaround.

While the ASX 200 stock has lagged the broader market, the company has undergone a significant operational turnaround. Management exited international construction operations, simplified the business, and lifted distributions.

No surprise, management described the first half as transitional. It’s signalling expectations for stronger earnings in the second half and into FY27 as project completions and development milestones come through.

Group Chief Executive Officer, Tony Lombardo, who will be stepping down in August, commented:

FY26 is a transitional year, with our core operating segments performing in line with expectation. We anticipate stronger Investments, Development and Construction earnings in the second half and into FY27. The Group continues to make considerable progress on its strategy with momentum building across its core operations. Our Development and Construction pipelines remain strong, and we are seeing continued growth in investor partnering and mandate activity.

Billions in pipeline

Despite the headline loss, there were encouraging operational points buried in the results. The Investments, Development and Construction (IDC) segment delivered positive EBITDA, and the Australian construction arm performed well, securing $4 billion in new project work.

Lendlease also declared an interim distribution of 6.2 cents per security and managed to reduce net debt, a key part of its capital recycling strategy.

While the results highlight the bumps in Lendlease’s recovery path, the pipeline strength and capital management progress might give investors something to build on.

The post Lendlease shares hit fresh lows after reporting $318m loss appeared first on The Motley Fool Australia.

More reading

• Lendlease half-year results: $318m loss, construction steady, capital recycling on track
• Lendlease announces CEO succession as Tony Lombardo steps down
• Top Australian shares to buy right now with $2,000

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 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 S&P/ASX 200 Index (ASX: XJO) is starting the week in the red. In afternoon trade, the benchmark index is down 0.5% to 9,035.7 points.

Four ASX shares that are falling more than most today are listed below. Here’s why they are dropping:

Coronado Global Resources Inc (ASX: CRN)

The Coronado Global share price is down 6% to 28.7 cents. Investors have been selling this coal miner’s shares following the surprise exit of its CEO. According to the release, Douglas Thompson intends to resign from his role to pursue new opportunities. Subject to board approval, the company’s executive chair and former CEO, Gerry Spindler, will assume the role of interim CEO, and Greg Pritchard will transition to interim chair. In addition, it was revealed that Jeff Bitzer, Coronado’s chief development officer and formerly chief operating officer, has decided to step back from full-time responsibilities, effective as of 28 February.

G8 Education Ltd (ASX: GEM)

The G8 Education share price is down 15% to 39.2 cents. This follows the release of the childcare centre operator’s full-year results. G8 Education reported a 7% decline in revenue to $946.9 million and an 18.4% decline in underlying net profit after tax to $59 million. On a reported basis, G8 Education recorded a net loss of $303.3 million. This was driven by a $349.1 million goodwill impairment expense. The company also provided a trading update which revealed that its spot occupancy rate was 54.4% on 15 February. This is down 7.5 percentage points from the prior corresponding period.

Megaport Ltd (ASX: MP1)

The Megaport share price is down a further 15% to $8.17. This network-as-a-service provider’s shares have crashed since the release of its half-year results last week. This is despite them revealing record revenue and earnings. Megaport reported a 26% increase in revenue to $134.9 million and EBITDA growth of 28% to $35.3 million. Its CEO, Michael Reid, said: “Our global business continues to scale, with the United States delivering exceptional momentum, pushing the Americas to 24% YoY ARR growth. This performance was driven by rising NRR and consistent new logo acquisition.”

Perenti Ltd (ASX: PRN)

The Perenti share price is down 14% to $2.43. This morning, the diversified mining services company released its half-year results and revealed flat revenue and a 2% decline in EBITDA for the period. Looking ahead, management is forecasting revenue of $3.45 billion to $3.55 billion for FY 2026. This is broadly in line with the $3.49 billion it achieved in FY 2025. It seems that the market was expecting a stronger performance.

The post Why Coronado, G8 Education, Megaport, and Perenti shares are dropping today appeared first on The Motley Fool Australia.

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• Megaport shares tumble despite record results

Motley Fool contributor James Mickleboro has positions in Megaport. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Megaport. 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.

Wesfarmers Ltd (ASX: WES) shares are slipping today.

Shares in the diversified S&P/ASX 200 Index (ASX: XJO) conglomerate – whose retail subsidiaries include Bunnings Warehouse, Kmart Australia, Officeworks and Priceline – closed on Friday trading for $83.99. During the Monday lunch hour, shares are changing hands for $82.40 each, down 0.7%.

For some context, the ASX 200 is down 0.4% at this same time, pressured by a new round of global tariff threats from United States President Donald Trump over the weekend.

Taking a step back, Wesfarmers shares have gained 8.5% over the past 12 months, not including dividends. The stock trades on a fully franked dividend yield (partly trailing, partly pending) of 2.5%.

Now, here are four reasons you might want to pick up some shares today.

Should you buy Wesfarmers shares today?

Shaw and Partners’ Jed Richards recently ran his slide rule over the ASX 200 conglomerate (courtesy of The Bull).

The first reason he has a buy recommendation on Wesfarmers shares is one that legendary investor Warren Buffett would most likely agree with. Buffett, as you may recall, famously advises, “A great manager is as important as a great business.”

As for Wesfarmers, Richards noted, “This industrial conglomerate remains one of the best managed companies in Australia.”

Richards added:

Its management team consistently demonstrates smart capital allocation and a disciplined acquisition strategy amid maintaining a strong oversight on operations across its diverse group of businesses. This quality of leadership gives me confidence that Wesfarmers can continue delivering long term value, even through changing economic conditions.

The second reason Richards is bullish on the stock is the diversification it offers.

“Its diversified revenue streams across retail, chemicals and industrial operations also provide resilience that few companies can match,” he noted.

And Richards’ third reason for his buy recommendation relates to Wesfarmers’ strong half year (H1 FY 2026) results.

According to Ricards:

The company posted its first half results for fiscal year 2026 on February 19. Revenue of $24.212 billion was up 3.1% on the prior corresponding period. Statutory net profit after tax of $1.603 billion increased 9.3%.

And I’ll add a fourth reason you might want to buy Wesfarmers shares today. Though depending on when you’re reading this, you’ll have to be quick!

When the company reported its half year results last Thursday, management declared a fully-franked interim dividend of $1.02 per share, up 7.4%.

And Wesfarmers stock trades ex-dividend tomorrow, 24 February.

So if you want to score that passive income payout, you’ll need to own shares at market close. You can then expect to receive that Wesfarmers dividend on 31 March.

The post 4 reasons to buy Wesfarmers shares today appeared first on The Motley Fool Australia.

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

It has been a tough start to the week for the S&P/ASX 200 Index (ASX: XJO). In afternoon trade, the benchmark index is down 0.5% to 9,038.2 points.

Four ASX shares that are not letting that hold them back are listed below. Here’s why they are rising:

Clarity Pharmaceuticals Ltd (ASX: CU6)

The Clarity Pharmaceuticals share price is up 12% to $3.92. This morning, the company announced another patient in its SECuRE Phase II trial achieved undetectable disease following treatment with its 67Cu-SAR-bisPSMA therapy. Clarity’s executive chair, Dr Alan Taylor, said: “The momentum of data we are generating with our lead SAR-bisPSMA product in both theranostic and diagnostic trials is strong, with excellent results to date on all fronts. We are beyond excited to see yet another patient achieve undetectable disease following their 67Cu-SAR-bisPSMA treatments.”

Electro Optic Systems Holdings Ltd (ASX: EOS)

The EOS share price is up 17% to $8.57. This follows the release of the defence company’s FY 2025 results. EOS reported revenue from continuing operations of $128.5 million, which is down 27% year on year. However, looking ahead, management revealed that its unconditional order book stood at $459 million on 31 December 2025. This is up 238% from $136 million a year earlier. Importantly, EOS aims to realise 40% to 50% of the current order book during 2026.

Nuix Ltd (ASX: NXL)

The Nuix share price is up 16% to $1.58. Investors have been buying this investigative analytics and intelligence software provider’s shares after it released its half-year results. Nuix reported an 8.4% increase in annualised contract value (ACV) to $234.4 million. A key driver of this has been the Nuix Neo offering, which reported ACV growth of 148% year on year to $46.8 million. It now represents 20% of the company’s total ACV. Commenting on the AI threat, Nuix’s interim CEO, John Ruthven, said: “The rapidly evolving AI landscape presents both challenges and opportunities for enterprise software companies. Nuix is well positioned to capitalise on these dynamics through our BYO AI framework, which allows customers to integrate their preferred AI models whilst Nuix Neo provides the critical enterprise infrastructure required by regulated industries.”

Reece Ltd (ASX: REH)

The Reece share price is up 16% to $16.15. This follows the release of the plumbing parts company’s half-year results. Reece reported a 6% increase in revenue to $4,648 million but a 20% decline in net profit after tax to $144 million. The latter is better than Morgans was expecting. It was forecasting a 22.9% decline in net profit to $139.5 million.

The post Why Clarity Pharmaceuticals, EOS, Nuix, and Reece shares are racing higher today appeared first on The Motley Fool Australia.

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• Why are ASX 300 tech stock Nuix shares jumping 27% in Monday’s falling market?
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• Reece HY26 results: Profit falls despite higher sales revenue
• 5 things to watch on the ASX 200 on Monday

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

Shares in gold and antimony project developer Nova Minerals Ltd (ASX: NVA) have held up in the face of an attack from a short seller, which claims the company’s value could fall to zero.

Over the weekend, Spruce Point Management issued a research report on Nova Minerals, casting doubt on the company’s ability to bring its Estelle project in Alaska into development.

Claim Nova’s not up to the task

Spruce Point, which is a short seller and would stand to gain from a fall in Nova’s shares, said it had looked at the company’s project and management, and concluded that “investor expectations are too high”.

They went on to say:

While the mining exploration and resource production business is notoriously risky with many factors outside of the company’s control, we express concerns with management’s lack of consistent focus, inability to meet deadlines, and difficulties realising value in previously promoted strategic investments. We estimate that Nova’s share price has near-term downside risk of approximately 45% – 60% but under certain scenarios, including a potential loss of a $43.5m Department of War award, up to 100% downside and we believe it is likely to significantly underperform the junior gold mining index.

Spruce said there were significant challenges in bringing the Estelle project to fruition, including the harsh Alaskan environment, and also cast doubt on whether the geologist who signed off on Nova’s resource estimations even exists.

Nova: Report is hogwash

Nova’s three-page response to the report says that, while it sees a place for short selling in a functioning market, the claims put forward by Spruce were incorrect.

The company said:

The majority of the report consists of statements that are historical, selective, or non-material, and whether accurate or not, are wholly irrelevant to the Company’s operations, assets, or prospects. The company will not be responding to these statements and provides the following examples for context only.  

One example cited by Nova was regarding Spruce’s claim that “Alaska is cold, receives snowfall, has harsh weather conditions, lacks urban infrastructure in its mountainous interior, and that some community members oppose development.”

The company went on to say:

The company can confirm that all of this is true and has been true for quite some time. Alaska’s climate and geography have been well documented since at least 1867, when the United States purchased the territory. These are inherent characteristics of resource development in Alaska and have been consistently disclosed by the company. Every major gold mine operating in Alaska today was developed in the same conditions.

Nova also confirmed that other companies had previously held its mining claims, but said that it had invested more than $100 million in exploration and development at the project, and added that the company’s US$43.4 million grant from the Department of War followed a rigorous two-year due diligence project.

Nova added:

A refinery site has been secured, procurement of key mining and processing equipment is well underway, with initial deliveries to site imminent, and first production targeted for late 2026/2027. At the same time, the company is also progressing its pre-feasibility study on one of the world’s largest undeveloped gold deposits.

The company also confirmed that the consulting geologist who had signed off on the company’s reports was registered with the Australian Institute of Geologists.

Nova shares were 2.7% higher in early trade at 77 cents. Nova was valued at $342.1 million at the close of trade on Friday.

The post A short-seller attack has failed to dent this gold developer’s prospects appeared first on The Motley Fool Australia.

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• Why DroneShield, Life360, Nova Minerals, and Santana shares are falling today

Motley Fool contributor Cameron England 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.

Shares in Adairs Ltd (ASX: ADH) are trading higher after the company reported higher first-half revenue but lower profits, in a period management characterised as a “resetting” phase for the business.

In a statement to the ASX on Monday, Adairs said revenue was up 5.9% to $329 million for the first half, while gross margin fell 120 basis points to 57.7% and net profit was 33.8% lower at $12.8 million.

The company added:

Adairs sales and margin gained momentum through Q2 after a challenging Q1 where heavy clearance activity was undertaken. Mocka achieved another outstanding result and is poised to accelerate further with the opening of retail stores. The management changes at Focus on Furniture provides the opportunity to reset operations and strategy to unlock the potential of this business.

Breaking down the results

The Adairs division delivered first-half sales of $229.4 million, up 4%, supported, the company said, by strong execution through sales events including Black Friday, Christmas, and Boxing Day.

Underlying earnings of $18.6 million were down 10%, primarily attributable to Q1 clearance sales, the company said.

During the half, two new stores were opened, two were upsized and refurbished, and one closed.

In the Focus on Furniture division, sales were up 1% to $63.1 million while like for like sales declined 3.3%.

In the Mocka division, sales hit a record $36.5 million, up 29.8%, “driven by product innovation and effective customer acquisition strategies, particularly in Australia”, Adairs said.

Adairs added:

Australian sales increased +44.5%, with customers responding to on-trend, great-value new ranges. New Zealand returned to growth, with sales up +8.2%, supported by new product and continued positive results from the shop-in-shop trial, which contributed $1.2 million in sales.

Mocka will open its first standalone retail store in May this year, the company said.

Managing director Elle Roseby said regarding the results that they were heading in the right direction.

Whilst the results across the brands were mixed, I’m pleased with the material progress we have made and the significant decisions we have actioned to reposition and reset our businesses. This work positions us well for sales growth, margin expansion and earnings improvement into 2H. Specifically, I’m pleased with the extent to which we were able to clear excess inventory in Q1 at Adairs, leading to improved performance in Q2. At Focus on Furniture we have made the important changes to the leadership team which allows us to reset our operational approach and strategy. Finally, I’m delighted with the continued growth at Mocka and the opportunity that gives us to open our first standalone retail store for Mocka in 2H

Adairs shares were trading 4.1% higher at $1.898 on Monday morning. The company was valued at $320.9 million at the close of trade on Friday.

The post This retailer’s shares are up despite mixed results, as the business goes through a reset period appeared first on The Motley Fool Australia.

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• 2 ASX shares that are absurdly cheap right now

Motley Fool contributor Cameron England 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 Adairs. The Motley Fool Australia has positions in and has recommended Adairs. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Minerals 260 Ltd (ASX: MI6) shares are soaring on Monday.

At the time of writing, the ASX gold stock is up 33% to a 52-week high of 56 cents.

Why is this ASX gold stock surging?

The catalyst for today’s explosive move is the release of a major strategic funding agreement that significantly strengthens the company’s balance sheet and accelerates development of its flagship gold project.

According to the release, the ASX gold stock has signed a $220 million strategic funding package with Canadian gold royalties and streaming giant Franco-Nevada Corp (NYSE: FNV) to accelerate and de-risk the development of the 4.5Moz Bullabulling gold project located 65km from Kalgoorlie in Western Australia.

Management notes that the funding has been secured on highly attractive terms, which it believes validates the quality of Bullabulling as one of Australia’s leading gold development projects.

In exchange for $170 million, Franco-Nevada Corp will increase its total royalty over the project to 2.45%. This compares to a 1% royalty that currently exists over certain project tenements.

Franco-Nevada Corp will also invest $50 million by subscribing for approximately 111 million Minerals 260 shares at an issue price of 45 cents per new share. This was a 7% premium to its last closing price.

The gold giant will hold 4.9% of shares on issue following this investment.

Commenting on the funding package, the ASX gold stock’s managing director, Luke McFadyen, said:

This is a fantastic outcome for Minerals 260 and our shareholders. Securing a $220 million funding package with the world’s leading gold royalty company at this early stage of Bullabulling’s development is a major endorsement of the project and a milestone that will allow us to accelerate the Project towards production, expand our exploration strategy and de-risk our funding pathway.

Franco-Nevada is an existing royalty holder and expanding our relationship with this financing is highly value accretive relative to other available funding options. Their extensive due diligence across all areas of the Project validates Bullabulling as one of the leading gold projects in Australia.

Franco-Nevada’s president and chief executive officer, Paul Brink, added:

Bullabulling is a large and growing orebody and one of the most attractive gold development projects in Australia. After a full review by our team of the rapid and impressive progress made by Minerals 260, we are excited to increase our exposure to the Project.

The post Why is this ASX gold stock surging 33% today? appeared first on The Motley Fool Australia.

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S&P/ASX 200 Index (ASX: XJO) energy stock Ampol Ltd (ASX: ALD) is sinking today.

Shares in the Aussie fuel supplier closed on Friday trading for $28.98. In late morning trade on Monday, shares are swapping hands for $27.82 apiece, down 4.0%.

For some context, the ASX 200 is down 0.2% at this same time amid investor concerns over the new global tariffs proposed by United States President Donald Trump over the weekend.

Taking a step back, Amplo shares remain up 2% over the past 12 months, not including dividends. Ampol currently commands a market cap of around $6.6 billion.

Here’s why the stock looks to be facing headwinds today.

ASX 200 energy stock drops on full year results

Investors are bidding down Ampol shares following the release of the company’s full year results for the 2025 calendar year, despite some positive growth figures.

Highlights include a 20% year-on-year increase in replacement cost operating profit (RCOP) earnings before interest tax depreciation and amortisation (EBITDA) of $1.44 billion.

Management noted that in 2025 Ampol achieved earnings growth achieved across its Convenience Retail, Fuels and Infrastructure and New Zealand segments.

Turning to profits, RCOP net profit after tax (NPAT) leapt 83% to $429 million.

However, the ASX 200 energy stock could be catching headwinds today due to the company reporting a 33% year-on-year decline in statutory NPAT, which fell to $82.4 million in 2025.

On the passive income front, Ampol declared a fully franked final dividend of 60 cents per share. That’s up 20% from the 2024 final dividend. At the current share price, that represents an instant yield of 2.2%.

If you want to bank the final Ampol dividend, you’ll need to own shares at market close on 5 March. The ASX 200 energy stock trades ex-dividend on 6 March.

What did management say?

Commenting on the results, Ampol CEO and managing director Matt Halliday said:

The financial performance in 2025 is a high quality and broad-based result that reflects the steps taken in recent years to strengthen our delivery and increase our exposure to the more stable and growing business segments. The five-year compound annual growth rate of the combined EBIT from these businesses is about 11%.

Halliday added that this earnings growth includes the contribution of Ampol’s acquisition of Z Energy.

With a look ahead, Ampol shares could also be under some pressure today with the ASX 200 energy stock noting that “global market uncertainty remains elevated amid geopolitical developments involving Iran, Venezuela and Russia/Ukraine”.

Ampol concluded:

While it is too early to be conclusive on the implications, the integrated nature of Ampol’s value chain means we are well placed to navigate changing conditions through our Trading and Shipping operations and the Lytton refinery to maintain supply for our customers.

The post Why is this $6.5 billion ASX 200 energy stock starting the week with a whimper? appeared first on The Motley Fool Australia.

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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 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.

Shares in Data#3 Limited (ASX: DTL) were down 6% on Monday morning (at the time of writing) after the IT services group delivered modest profit growth for the first half of FY26, with softer margins in its Software Solutions business tempering investor enthusiasm.

While gross sales reached record levels, the market appeared focused on margin pressure and ongoing headwinds in parts of the Services segment.

What did Data#3 report?

Data#3 reported gross sales of $1.54 billion for the half year to 31 December 2025, up 9% on the prior corresponding period.

Statutory revenue increased 8% to $423 million, while gross profit edged up 0.3% to $144 million.

Net profit before tax rose 4.5% to $33.5 million, and net profit after tax increased 3.7% to $23 million. Basic earnings per share lifted 3.6% to 14.95 cents.

The board declared a fully franked interim dividend of 13.50 cents per share, up 3%, representing a payout ratio of 90.3%.

What else do investors need to know?

The key issue this half was margin pressure in Software Solutions.

Gross margin on sales declined to 9%, down from 10% in the prior period, primarily due to Microsoft incentive program changes that took effect from 1 January 2025.

While Software gross sales rose 8.9% to $1.1 billion, gross profit from that segment fell 4.6%, and profit declined 9.4%.

In contrast, Infrastructure Solutions delivered strong growth. Gross sales increased 17.6% to $275.2 million, with management profit more than doubling as operating leverage improved.

Services delivered mixed results, with Managed Services and Consulting growing, but Project Services and recruitment remaining challenged amid softer economic conditions.

The balance sheet remains strong, with no borrowings and closing cash of $125.4 million.

What did management say?

Managing Director Brad Colledge said first-half performance was in line with expectations and highlighted ongoing cost discipline and automation initiatives.

He noted that the Microsoft incentive changes were most impactful in the first half, but mitigation strategies are in place and Software gross profit is expected to return to growth in the second half.

What’s next for Data#3?

The company did not provide specific FY26 guidance but reiterated that earnings are typically skewed to the second half, with a sales peak in May and June.

Management expects Infrastructure Solutions to remain strong, driven by Windows 11 device refresh cycles and AI-related demand, while Software gross profit is forecast to be consistent with FY25 for the full year.

Share price snapshot

Despite steady profit growth and a rising dividend, the 6% share price fall suggests investors were hoping for stronger margin expansion.

For now, the market appears to be weighing short-term Software margin pressure against the company’s longer-term positioning in AI, cloud and infrastructure growth themes.

Data #3 shares are up 8% over the last 12 months.

The post Data#3 shares fall 6% despite steady profit growth appeared first on The Motley Fool Australia.

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Motley Fool contributor Kevin Gandiya has no positions 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.

S&P/ASX 300 Index (ASX: XKO) tech stock Nuix Ltd (ASX: NXL) shares are on fire today.

Shares in the investigative analytics and intelligence software provider closed on Friday trading for $1.36. In early trade on Monday, shares leapt to $1.73, up 27.2%. After some likely profit-taking, in later morning trade, shares are changing hands for $1.65 apiece, up 21.3%.

For some context, the ASX 300 is down 0.3% at this same time.

Here’s what’s grabbing investor interest today.

Nuix shares leap on return to profitability

Investors are bidding up Nuix shares following the release of the company’s half-year results covering the six months to 31 December (H1 FY 2026).

Highlights include an 8.4% year-on-year increase in annualised contract value (ACV) to $234.4 million. Management highlighted that ACV has increased by 2.6% since June.

And Nuix Neo demonstrated tremendous growth, with ACV up 148% year on year (and up 67% since June) to $46.8 million. This now represents 20% of the company’s total ACV.

According to the ASX 300 tech stock, Nuix Neo’s AI strategy centres on a “Bring Your Own AI” framework, which allows customers to integrate any AI model they wish, helping to safeguard AI tools when working with sensitive data.

First-half revenue, meanwhile, was up 15.2% to $121.2 million. While statutory earnings before interest, taxes, depreciation and amortisation (EBITDA) of $26.5 million increased by 72.7% from H1 FY 2025.

Underlying cash flow also surged over the six months, rising 307.3% year on year to $28.4 million.

And Nuix shares look to be getting a big lift with the company reporting a statutory net profit after tax (NPAT) of $11.1 million, up from a net loss of $10.4 million in H1 FY 2025.

As at 31 December, the ASX 300 tech stock had a cash balance of $57.8 million, up 88.4% from a year earlier.

Looking ahead, the company reaffirmed its full-year FY 2026 ACV guidance range of $240 million to $260 million. ACV is expected to be weighted to the second half, in line with previous years.

What did management say?

Commenting on the results sending Nuix shares surging today, interim CEO John Ruthven said, “The first half results demonstrate further momentum in our business transformation, with ACV growth of 8.4% and particularly impressive Nuix Neo growth of 148%.”

As for potential impact of the ongoing AI revolution, Ruthven added:

The rapidly evolving AI landscape presents both challenges and opportunities for enterprise software companies. Nuix is well positioned to capitalise on these dynamics through our BYO AI framework, which allows customers to integrate their preferred AI models whilst Nuix Neo provides the critical enterprise infrastructure required by regulated industries.

This approach creates competitive advantages through robust enterprise controls whilst enabling flexible integration with emerging AI technologies, creating a strong structural advantage as the AI ecosystem continues to evolve.

The post Why are ASX 300 tech stock Nuix shares jumping 27% in Monday’s falling market? appeared first on The Motley Fool Australia.

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