Category: Stock Market

The GrainCorp Ltd (ASX: GNC) share price is in focus today after the company reported underlying EBITDA of $136 million and net profit after tax of $5 million for the half-year ending 31 March 2026.

What did GrainCorp report?

• Underlying EBITDA: $136 million (down from $202 million in 1H25)
• Net Profit After Tax (NPAT): $5 million (down from $58 million in 1H25)
• Underlying NPAT: $33 million (vs $69 million in 1H25)
• Core cash: $163 million (vs $321 million at FY25)
• Interim ordinary dividend: 14 cents per share, fully franked
• FY26 earnings guidance reaffirmed: Underlying EBITDA $200-240 million, Underlying NPAT $20-50 million

What else do investors need to know?

GrainCorp’s agribusiness segment saw EBITDA fall to $104 million, with softer domestic and export grain volumes as oversupply and low prices dampened grower selling activity. In East Coast Australia, total grain handled slipped to 26.5 million metric tonnes.

The nutrition and energy division reported weaker earnings, largely from lower edible oils demand and challenging global biofuel policy. Animal Nutrition, however, achieved record sales of 390,000 tonnes. GrainCorp closed the period with a strong balance sheet, maintaining capital management flexibility and an ongoing share buy-back extension.

In portfolio moves, GrainCorp is progressing the exit from its GrainsConnect Canada joint venture, with completion expected in the second half of 2026. The company is also investing in processing upgrades and animal nutrition capacity to support long-term growth.

What’s next for GrainCorp?

GrainCorp reaffirmed its FY26 underlying EBITDA and NPAT forecasts, expecting conditions to gradually improve. The company has flagged good soil moisture across key areas in Victoria and southern NSW, though some northern regions face mixed weather.

Looking ahead, GrainCorp is focused on supply chain execution, asset optimisation, and continued progress on its transformation program. The business is also investing in renewable fuels supply chains, positioning itself to benefit from anticipated government support for low-carbon fuel production.

GrainCorp share price snapshot

Over the past 12 months, GrainCorp shares have declined 13%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.

View Original Announcement

The post GrainCorp shares: 1H26 profit drops but guidance stands appeared first on The Motley Fool Australia.

More reading

• ASX 200 stock crashes 12% on half-year results
• Air New Zealand flags sharp FY26 loss as rising fuel costs bite
• Megaport secures $254 million in contracts, boosts ARR and outlook
• Xero FY26 result: Revenue surges 31% but profit dips due to Melio acquisition costs
• 9 ASX 200 shares with renewed buy calls from the experts this week

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.

Synlait Milk Ltd (ASX: SM1) has lost its Chief Executive Officer Richard Wyeth in the midst of the company’s attempt to turn its fortunes around.

Directors and execs depart

It’s also the latest in a string of executive and director resignations in recent weeks, with independent director Paulk McGilvary resigning earlier this week.

Last month Chief Quality Officer Hila Mory resigned, and Chief Supply Chain and Technology Officer Robert Stowell also resigned in early April.

Turnaround story?

Synlait in March released a letter to its shareholders saying it had been “another period of challenge” for the company.

The company acknowledged that shareholders would find the company’s performance “frustratingly disappointing”.

The company added:

The result reflects a period where Synlait faced multiple headwinds with little choice as to how to deal with them. At every stage we carefully analysed, costed and weighed up our options. Even with the benefit of hindsight, there is little we could have done differently that would have improved this result. Suffice to say building optionality into the business is a critical focus for our recovery.

For the first half ending January 31, Synlait posted a net loss of NZ$80.6 million, compared with a net profit of NZ$4.8 million for the previous corresponding period, on revenue of NZ$777.5 million, down from NZ$779 million.

In a joint statement at the time of the results release Mr Wyeth said the company was focused on six main levers to turn the company around.

He has now resigned, however will remain with the company until 30 June “to support an orderly transition and handover”.

Current board director Leon Fung will take over as acting chief executive while a new leader for the company is found.

Recall flagged

Synlait said earlier this month it was assisting The a2 Milk Company Ltd (ASX: A2M) with its voluntary recall of batches of a2 Platinum USA infant milk formula due to the presence of cereulide.

Synlait said it had manufactured the product in compliance with relevant standards at the time.

The company added:

The recall was initiated after cereulide was detected through additional testing that was undertaken after new directives from New Zealand’s Ministry for Primary Industries. The product was discontinued prior to the recall.  

Synlait also this month said it had received two waivers in relation to its syndicated banking facilities.   

The company had asked for its financiers to waive the quarterly minimum EBITDA “event of review threshold” and waive its interest cover ratio for the April 30 test date.

Synlait Milk shares closed at 38.5 cents on Wednesday afternoon. The company is valued at $232.2 million.

The post Synlait Milk CEO resigns – the latest in a line of executive departures appeared first on The Motley Fool Australia.

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• Warning! Experts name 3 ASX 200 shares to sell
• Sell alert! Why this expert is calling time on Metcash and A2 Milk shares
• Are A2 Milk shares a buy after the 10% selloff on Monday?
• Why are A2 Milk shares crashing 13% to fresh 52-week lows?
• Why A2 Milk, Accent, Endeavour, and Woodside 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.

The Air New Zealand Ltd (ASX: AIZ) share price is in focus as the airline flags an expected full-year loss before tax of $340 million to $390 million, driven by a sharp rise in global jet fuel prices. Management points to improved liquidity and early progress returning grounded aircraft to service as key positives.

What did Air New Zealand report?

• FY26 loss before taxation now forecast at $340 million to $390 million
• Estimated 2H26 fuel cost to reach $980 million, up from $740 million previously assumed
• Airline about 85% hedged on 2H26 Brent crude exposure
• Total available liquidity remains around $1.3 billion
• Up to $100 million in annualised cost savings identified, to benefit FY27 and beyond

What else do investors need to know?

Air New Zealand has made targeted network reductions, lowering overall group capacity by around 3% to 5%, aiming to minimise disruption while controlling costs. Fare increases have also been implemented, with further adjustments expected if fuel prices remain high.

Aircraft availability is improving, with all Boeing 787s set to return to service by late June. The company’s pro-forma liquidity will rise by about $670 million once a new US$400 million secured revolving credit facility is completed. Moody’s reaffirmed Air New Zealand’s Baa1 credit rating, but changed the outlook to negative.

What’s next for Air New Zealand?

Air New Zealand’s strategy update through to FY31 is progressing and management expects to outline more details soon, focusing on performance, network, and fleet growth. Cost savings programs and capital expenditure reviews continue as the airline adapts to elevated operating costs.

The outlook for FY26 remains subject to uncertainty from fuel price volatility, possible further schedule adjustments, and ongoing maintenance costs. Management is taking a cautious approach to pricing and capacity as the market evolves.

Air New Zealand share price snapshot

Over the past year, Air New Zealand shares have declined 37%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.

View Original Announcement

The post Air New Zealand flags sharp FY26 loss as rising fuel costs bite appeared first on The Motley Fool Australia.

More reading

• Megaport secures $254 million in contracts, boosts ARR and outlook
• Xero FY26 result: Revenue surges 31% but profit dips due to Melio acquisition costs
• 9 ASX 200 shares with renewed buy calls from the experts this week
• Air NZ warns of ‘fuel shock’, what this means for Qantas shares
• 5 things to watch on the ASX 200 on Thursday

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 Megaport Ltd (ASX: MP1) share price is in focus today after the company announced contract wins worth AUD$254 million, expected to deliver around AUD$90.6 million in annual recurring revenue.

What did Megaport report?

• Secured three major contracts with total contract value (TCV) of USD$182.9 million (AUD$254.0 million)
• Annualised Recurring Revenue (ARR) from new contracts estimated at USD$65.2 million (AUD$90.6 million)
• Contracts span fixed terms: two for 36 months, one for 24 months
• Requires approximately USD$101.0 million (AUD$140.3 million) in new capital investment
• Capex for customer contracts to be funded by existing cash and a newly upsized AUD$150.0 million debt facility

What else do investors need to know?

Megaport’s new contracts are with two US-based technology providers powering AI applications. Notably, one customer is an existing client, highlighting opportunities for upselling on Megaport’s global platform. The contracts secure revenue regardless of actual usage, providing predictable long-term returns.

To support these deals, Megaport will invest in high-performance hardware—mainly NVIDIA GPUs, compute, network, and storage. Deployment of equipment will begin in the first half of FY27, and by contract end, hardware will be reused within Megaport’s Latitude.sh platform for ongoing revenue potential.

What’s next for Megaport?

Looking ahead, Megaport has reaffirmed its FY26 revenue and EBITDA guidance for the expanded group, excluding these new contracts. Additional capital expenditure for the new deals could lift overall FY26 capex by up to AUD$140.3 million, depending on equipment delivery timing.

The company plans to provide more financial updates and performance details at its full-year results in August 2026. Megaport continues to focus on disciplined growth, aligning with strategy and shareholder value.

Megaport share price snapshot

Over the past 12 months, Megaport shares have fallen 24%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.

View Original Announcement

The post Megaport secures $254 million in contracts, boosts ARR and outlook appeared first on The Motley Fool Australia.

More reading

• Air New Zealand flags sharp FY26 loss as rising fuel costs bite
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• 9 ASX 200 shares with renewed buy calls from the experts this week
• 5 things to watch on the ASX 200 on Thursday
• Here are the top 10 ASX 200 shares today

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 Megaport and Nvidia. The Motley Fool Australia has recommended Nvidia. 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.

With oil prices surging, many investors are seeking exposure to ASX oil shares.

While Woodside Energy Group Ltd (ASX: WDS) and Santos Ltd (ASX: STO) are popular options, they are not the only ones out there.

In fact, Bell Potter has just initiated coverage on one speculative oil share and has good things to say about it.

Which ASX oil share?

The share that Bell Potter has been running the rule over is Omega Oil & Gas Ltd (ASX: OMA).

Bell Potter has described the investment opportunity here as a geology-led unlock of an unconventional oil and gas play.

Commenting on the company, the broker said:

OMA is taking a geology-led approach to unlocking a significant new unconventional oil and gas play in Queensland’s Taroom Trough. Its acreage is located within 50km of existing gas pipelines and 150km from the Wallumbilla Gas Hub. In 2025, the Canyon-1H (horizontal) well flowed oil at peak daily rates of 452bbl oil and 0.60mmscf gas. SLB’s (Schlumberger) Estimated Ultimate Recovery for a 2,000m horizontal well is 0.95mmboe with OMA’s estimated potential gross wellhead revenue of $93m; at the time of assessment, OMA’s acreage could accommodate up to 418 wells.

OMA’s most recent 2C Contingent Resource estimate of 1.7tcf (October 2023) does not yet incorporate this latest technical success and geological data. OMA is also working adjacent joint venture acreage with its major shareholder Tri-Star and Beach Energy (BPT, Hold, Target Price $1.15/sh), and has a 19.08% interest in Elixir Energy (EXR, not rated) which is operating on the western flank of the Taroom Trough.

Initiation with buy rating

According to the note, the broker has initiated coverage on the ASX oil share with a speculative buy rating and $1.45 price target.

Based on its current share price of 85 cents, this implies potential upside of 70% for investors over the next 12 months.

Commenting on its recommendation, Bell Potter said:

OMA is leveraged to de-risking of a new unconventional oil and gas play located close to Australia’s east coast energy markets. Over 2026-27, OMA’s appraisal program should add significant scale to current its current Resource position and inform initial Reserves and production parameters. Australia’s east coast gas market is attractive with established basins in decline, limited sources of new supply and secure demand from domestic and export customers. Oil prospectivity provides another strategic element to the OMA value case.

The post Top broker just slapped a buy rating on this ASX oil share appeared first on The Motley Fool Australia.

More reading

• Up more than 300% over a year, this ASX energy share is hitting new highs
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Motley Fool contributor James Mickleboro has positions in Woodside Energy Group Ltd. 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.

Yesterday, CSL Ltd (ASX: CSL) shares remained flat after the savage sell-off earlier this week.

But the damage remains severe. The ASX healthcare giant is still down around 18% over the past three trading days, 29% over the past month, and roughly 43% year to date.

So, are CSL shares finally bottoming out or could more pain still be ahead?

Another downgrade hurts sentiment

The latest sell-off was triggered after CSL downgraded its FY26 guidance. The company now expects FY26 revenue of US$15.2 billion on a constant currency basis and NPATA of around US$3.1 billion. That compares with FY25 revenue of US$15.6 billion and profit of US$3.3 billion.

The downgrade immediately added further pressure to already weak investor confidence.

CSL shares were once considered one of the ASX’s most dependable long-term growth companies. However, over recent years the company has faced slowing earnings growth, operational challenges and multiple negative surprises.

Those issues have included weaker vaccine demand, restructuring changes and the shock departure of management leadership. At the same time, the broader market has rotated away from healthcare stocks throughout 2026, amplifying the weakness across the sector.

Why investors remain nervous

Dwindling investor confidence appears to be the biggest reason CSL shares continue falling so aggressively. For years, investors were willing to pay premium valuations because CSL consistently delivered strong earnings growth and operational execution.

That confidence has now weakened significantly. The latest guidance downgrade reinforced concerns that near-term earnings momentum remains under pressure.

CSL specifically pointed to China albumin price pressure, US immunoglobulin channel inventory normalisation and several other operational impacts affecting earnings. Importantly, investors now want proof that earnings growth can recover before sentiment improves meaningfully.

That likely means the biotech company needs to demonstrate several periods of stabilising revenue growth and stronger profitability before confidence fully returns.

Could the shares rebound?

Despite the negativity, it may still be too early to completely write off CSL shares.

CSL remains Australia’s largest global biotechnology business with significant scale, strong plasma operations and leading healthcare products.

If earnings growth begins accelerating again, investor sentiment could improve rapidly. That is particularly relevant given how sharply the valuation has compressed during the sell-off.

What do analysts think?

Broker opinion remains mixed but still leans cautiously positive overall.

This week, Morgans retained their buy rating on CSL shares despite lowering their price target to $147.59. That points to a potential upside of roughly 50%. The broker acknowledged disappointment around the FY26 downgrade but noted the issues appear “primarily executional rather than structural”.

Meanwhile, Bell Potter maintained its hold rating while sharply reducing its target price from $155.00 to $100.00. That target now sits only modestly above the current CSL share price of $98.79 at the time of writing.

Bell Potter noted:

We think a discount is warranted for CSL considering the declining underlying earnings outlook across FY26-27, the lack of stable management, and series of credibility hits following several disappointing results/trading updates.

For now, CSL shares appear stuck between long-term quality and short-term uncertainty.

The post Is the worst over for CSL shares after this week’s sell-off? appeared first on The Motley Fool Australia.

More reading

• 9 ASX 200 shares with renewed buy calls from the experts this week
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• Is CSL now an ASX dividend stock to buy?

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 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.

There was at least some reprieve for battered investors in Life360 Inc (ASX: 360) shares on Wednesday.

The family safety technology company’s shares jumped 5% to $18.76 after suffering an 11% plunge on Tuesday following another sharp sell-off across the tech sector.

Even after Wednesday’s rebound, the shares are still down 6% for the week, 42% since the start of 2026, and roughly 66% below their all-time high reached in October last year.

So, is this a buying opportunity or a classic value trap?

Broad-based tech sell-off

Life360 operates a family safety and location-sharing platform that allows users to track loved ones, driving behaviour, and emergency alerts in real time. The company generates revenue primarily through subscription services, while also expanding its advertising and data monetisation capabilities.

Life360 shares have been swept up in the broad-based sell-off that has hammered growth shares over the past eight months. Investors have increasingly dumped technology stocks amid fears that artificial intelligence could disrupt or replace parts of many companies’ core services.

At the same time, concerns had been growing that valuations across the tech sector — including Life360 — had become overheated after a huge rally last year. That pressure appeared to intensify again this week, with technology shares broadly weaker on Tuesday.

Strong quarter and guidance

Unfortunately for Life360, the negative sentiment overshadowed what was actually a strong first-quarter FY26 result. The company reported a 38% increase in total revenue for the quarter, driven by a 32% lift in subscription revenue and a 36% increase in core subscription revenue.

Just as importantly, management upgraded its FY26 guidance. Life360 now expects consolidated revenue between US$650 million and US$685 million, up from prior guidance of US$640 million to US$680 million. That represents expected annual growth of between 33% and 40%.

The result suggests customer demand remains strong despite the heavy selling of Life360 shares.

What next for Life360 shares?

Analysts also appear firmly bullish on the outlook for Life360 shares.

According to TradingView data, 13 of 14 analysts currently rate the stock as either a buy or strong buy. The average target price sits at $31.37, implying potential upside of roughly 67% from current levels.

Some analysts are even more optimistic, with the highest target price of $38.71 suggesting the shares could more than double from here.

Following the quarterly update, Citi retained its buy rating and $32.10 price target on Life360 shares. The broker believes recent product improvements could drive stronger engagement and improve monetisation through the company’s advertising business.

Meanwhile, Bell Potter also maintained its buy rating, although it trimmed its price target from $35.50 to $32.50.

Foolish Takeaway

Of course, risks remain. Tech-sector volatility could continue, and investor sentiment toward growth shares remains fragile. Life360 shares also still trade on high growth expectations, which leaves little room for operational missteps.

But with revenue growth accelerating, guidance rising, and analysts overwhelmingly positive, the sharp share price decline could look more like an opportunity than a value trap for long-term investors willing to stomach some volatility.

The post Down 42% this year, is it time to jump into Life360 shares? appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Top brokers name 3 ASX shares to buy now
• Life360 shares rebound 4.5% today: Buy, sell or hold?
• Does Bell Potter think the Life360 share price is dirt cheap?
• 5 things to watch on the ASX 200 on Wednesday

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 Life360. The Motley Fool Australia has positions in and has recommended Life360. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Superannuation is a great tool to help Australians build wealth and financial security for their retirement years. 

But it’s very easy to make the wrong decisions. 

Even small mistakes can end up costing you a fortune, and a lot of regret, down the line. 

And some of them could compound over time too.

Here are three superannuation decisions which you’ll regret making when you reach retirement.

1. Leaving your super in the wrong investment option or an underperforming fund

Default superannuation investment options are generally designed to benefit a range of investors, from those starting their first job to those nearing retirement. 

But the problem is that what is considered an appropriate risk for one person doesn’t apply to the next. And, by putting (or leaving) your money into the wrong type of fund, it can quickly chip away at your balance. 

By being too conservative too early you’ll lose out on the potential for more growth. Younger Australians, with time to ride out any market fluctuations would benefit from growth assets, such as good momentum stocks like Droneshield Ltd (ASX: DRO) or Electro Optic Systems Holdings Ltd (ASX: EOS).

But for those closer to retirement, it makes sense to be more conservative. This pool of Australians  might be more suited to stable assets that can weather a share market crash. Dividend-paying shares, such as ANZ Group (ASX: ANZ) and Wesfarmers Ltd (ASX: WES), are also a great option for retirees who want to benefit from additional passive income.

Even worse than the wrong investment option, is leaving your superannuation in an underperforming fund.

The difference between an average superannuation fund and a top-performing one can be the difference between scraping by in retirement and living comfortably.

2. Not taking advantage of concessional contributions before retirement

Relying only on employer contributions is unlikely to be enough for a comfortable retirement. 

Even a small additional contribution can make a big difference when it comes to retirement. 

After all, the power of compounding returns means that the more money you can invest when you’re younger, the more impact it will have on your final balance.

Failing to take advantage of concessional contributions before retirement could cost you dearly when the time comes and you don’t have enough money to live off comfortably. 

Take advantage of additional concessional or non-concessional contributions, whether this is salary sacrificing or after-tax payments (within your annual limits) while you can.

If you don’t have the funds to add more money yourself, you can also look into government initiatives. There’s the downsizer contributions rule, the bring-forward rule, the government co-contribution rule, and many others. 

These can help boost your balance just a little bit further while you still can.

3. Withdrawing too much superannuation, or too early

Many retirees treat their super balance like a large savings account once they reach preservation age. They withdraw too much cash or too early because they want immediate income.

Whether the funds are used for renovations, a holiday, to help family or to more entirely to cash after retirement, drawing far more than the minimum requirement can leave you short further down the road. 

Accessing your superannuation too aggressively, or even relying too heavily on the Age Pension without preserving investment growth, means you could easily outlive your savings. 

Inflation can quietly make the situation worse too as retirees sometimes find that their remaining superannuation is no longer enough to fund their retirement.

Ideally you want to draw up a plan of how many retirement years you expect to have, and how much you expect to spend during that timeframe. Then withdraw money from your superannuation only when you need it and let the rest continue to grow. 

The post 3 superannuation decisions you’ll regret in retirement appeared first on The Motley Fool Australia.

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• Can DroneShield shares climb back to their $6.71 high?

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 DroneShield, Electro Optic Systems, and 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.

The Xero Ltd (ASX: XRO) share price is in focus today after reporting its FY26 result, with revenue up 31% to $2.8 billion and adjusted EBITDA growing 18% to $757.4 million.

What did Xero report?

• Operating revenue of $2.75 billion, up 31% on FY25
• Adjusted EBITDA of $757.4 million, up 18%
• Net profit after tax of $167.4 million, down 27% due to Melio acquisition costs
• Free cash flow of $554.0 million, up 9%
• Net customers grew by 506,000, reaching a total of 4.92 million globally
• Annualised monthly recurring revenue (AMRR) lifted 37% to $3.27 billion

What else do investors need to know?

Xero’s international segment delivered strong revenue growth, with the US standing out—core revenue jumped 240%, boosted by the integration of Melio, a US bill pay platform acquired during the period. The business added 110,000 US customers, and ARPC (average revenue per customer) rose 23% to $55.44 across the group.

AI remains a key strategic focus. Xero extended its partnership with Anthropic to integrate Claude’s AI, ramped up GenAI-powered features like Just Ask Xero and smart document capture, and launched XeroForce, a natural language AI agent builder currently in early testing.

To offset staff share-based compensation dilution, the board authorised a $550 million share buyback for FY27.

What did Xero management say?

CEO Sukhinder Singh Cassidy said:

Our strong full year results demonstrate Xero’s disciplined execution and macro-resilience. Our 3×3 strategy is hitting its stride, demonstrated by accelerating US growth with 110,000 new customers, including new Melio direct payments customers, and pro-forma revenue growth of 50%. We have powerful momentum across our markets, and delivered strong EBITDA growth while absorbing Melio. This has moved us beyond single-job workflows in the US by integrating Melio to unite accounting and payments on one platform. Globally, we are providing a small business financial operating system for the AI era, driving value for customers while deepening our technology foundations, compliance capability and data advantages, and driving stronger unit economics.

What’s next for Xero?

Looking to FY27, Xero expects operating revenue between $3.62 billion and $3.73 billion and adjusted EBITDA of $860 million to $920 million, including extra brand investment in the US market. The business plans to roll out its Ultra plan for larger businesses, expand AI-powered product features, and build on its strategy to unify accounting, payroll, and payments.

Longer term, Xero is aiming to double group revenue by FY28 (compared to FY25) and achieve Rule of 40 outcomes, driven by ongoing US momentum and wider adoption of its financial operating system.

Xero share price snapshot

Over the past year, the Xero shares have declined 53%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.

View Original Announcement

The post Xero FY26 result: Revenue surges 31% but profit dips due to Melio acquisition costs appeared first on The Motley Fool Australia.

More reading

• Air New Zealand flags sharp FY26 loss as rising fuel costs bite
• Megaport secures $254 million in contracts, boosts ARR and outlook
• 9 ASX 200 shares with renewed buy calls from the experts this week
• 5 things to watch on the ASX 200 on Thursday
• Here are the top 10 ASX 200 shares today

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 Xero. The Motley Fool Australia has positions in and has recommended Xero. 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 ASX dividend share WAM Microcap Ltd (ASX: WMI) is a leading listed investment company (LIC) that I think is one of the leading options for a high level of passive income.

WAM Microcap is certainly not as high profile as names like Commonwealth Bank of Australia (ASX: CBA) and BHP Group Ltd (ASX: BHP), but I think it could better for dividend income in the years ahead.

The job of a LIC is to invest in other shares/assets that the investment team believes can deliver pleasing returns. WAM Microcap specifically aims to invest in the most exciting undervalued growth opportunities in the Australian microcap market.

Let’s look at three reasons why I think this ASX dividend share is a good, long-term buy.

Good performance

With LICs, I think it’s important to look at the capability of that LIC to deliver good returns. Only good ones are worth investing in.

A LIC pays for its dividends from the net investment returns that it generates. For a dividend to be sustainable, a LIC needs to generate strong enough returns to pay those payments (and hopefully more for capital growth).

I believe the WAM Microcap investment team are very skilled at finding investment opportunities at the small-cap end of the market to help outperform the broader ASX share market.

In its April 2026 update, WAM Microcap said that its portfolio had generated an average return per year of 14.2% since inception in June 2017, twice as good as the small-cap market return.

This great performance over the long-term has allowed WAM Microcap to grow its profit reserve to 55.4 cents per share.

Great dividend yield

One of the main reasons why the business is a compelling passive income idea is that it pays a very large dividend yield.

The ASX dividend share expects to pay an annual dividend per share of 10.7 cents in FY26.

That means, at the timing of writing and the current WAM Microcap share price, it offers a FY26 grossed-up dividend yield of around 9.5%, including franking credits.

There are not many ASX dividend shares with a dividend yield that high that I expect can continue growing the payout.

Track record of payout growth

The LIC has grown its annual dividend almost every year since FY18, with the only year it didn’t grow the payout being FY24.

It started paying a dividend in FY18 and then increased its payout in FY19, FY20, FY21, FY22, FY23, FY25 and FY26.

If I invest in an ASX dividend share, I want to have a high level of confidence the business is likely to increase the payout again in the following financial year. With the large profit reserve, I think WAM Microcap is capable of ongoing dividend growth.

Even a slight increase each year is very welcome to help offset inflation impacts.

But, WAM Microcap isn’t the only ASX share I’d consider for long-term passive income.

The post Why I think this ASX dividend share with a 9.5% dividend yield is a buy appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Wam Microcap. 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 BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.