Tag: Stock pick

Block Inc (ASX: XYZ) shares are pushing higher on Friday morning.

At the time of writing, the Cash App and Square owner’s shares are up over 6% to $104.87.

What is lifting Block shares today?

Investors have been fighting to get hold of the payments company’s shares following the release of a strong quarterly result.

According to the release, Block delivered gross profit of US$2.91 billion for the first quarter of 2026. This was up 27% year on year.

This was driven by strong growth across Cash App and Square, with Cash App gross profit up 38% to US$1.91 billion and Square gross profit up 9% to US$982 million.

Growing at a strong rate was its reported adjusted operating income. It came in at US$728 million for the quarter, representing a margin of 25%. This was a record result for the company and up 56% on the prior corresponding period.

Adjusted EBITDA also reached a record US$1.01 billion, while adjusted diluted earnings per share increased 52% year on year to US$0.85.

Cash App continues to grow

Cash App was a major driver of the result.

Its gross profit increased 38% year on year, supported by strong growth in Cash App Borrow, Afterpay buy now pay later products, and Cash App Card.

Cash App consumer lending origination volume surged 82% year on year to US$17.6 billion, while Primary Banking Actives increased 18% to 9.7 million in March.

Square momentum improves

The Square business also delivered an improved performance.

Square gross payment volume (GPV) increased 13% year on year to US$61.2 billion, with international GPV up 35%.

Management said growth was supported by strong new seller acquisition, field sales investments, and momentum among larger merchants.

Outlook

Commenting on the quarter and its outlook, Block’s CEO, Jack Dorsey, said:

We continued to deliver strong financial performance in the first quarter as AI became more central to how Block operates and what we build for customers. We exceeded our guidance across gross profit, Adjusted Operating Income, and Adjusted EPS. We are raising our full year outlook and now expect gross profit growth of 19% in 2026, along with margin expansion and Adjusted Diluted EPS growth of 62%.

Speaking about the use of AI at Block, Dorsey adds:

Our roadmap is differentiated because it connects AI directly to the financial decisions customers and sellers already make every day. Internally, AI is helping us move faster and improve quality. Externally, it is helping us build products that act earlier for customers and sellers. We are building tools that absorb complexity for people rather than just helping them manage it. That is the shift we believe few companies are ready to deliver. We are.

The post Afterpay and Square owner Block shares jump 6% on strong results appeared first on The Motley Fool Australia.

More reading

• Block shares: Profit jumps 27% as outlook upgraded
• 5 things to watch on the ASX 200 on Friday
• These ASX financial stocks are bouncing, is it just the start?
• Here are the top 10 ASX 200 shares today
• Where I’d invest $3,000 in ASX growth shares now

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 Block. 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.

Light & Wonder Inc. (ASX: LNW) shares have been having a tough time recently.

So much so, the ASX 200 share is down almost 35% since the start of the year.

Is this a buying opportunity? Let’s see what analysts at Bell Potter are saying about the gaming technology company.

What is the broker saying?

Bell Potter highlights that the ASX 200 share released its first-quarter update, which was a touch weaker than expected. This was due to soft international shipments and SciPlay revenue. It said:

LNW reported AEBITDA -1% and -3% below BPe and VA consensus, respectively. Profit & loss: LNW reported +2% YoY revenue growth (incl. inorganic) to US$790m below BPe of US$811m and consensus of US$827m, driven by +3% YoY growth in Gaming (BPe +9%), -7% YoY decline in SciPlay (BPe -7%) and +18% YoY growth in iGaming (BPe +8%).

The AEBITDA miss to consensus was driven primarily by weaker than expected International shipments and SciPlay revenue.

In response, the broker has trimmed its earnings estimates for the near term. It adds:

EPS changes: -2%/-1%/0% over CY26/27/28e primarily reflecting: lower international shipments, SciPlay revenue, Nth. Am. non-premium install base growth partially offset by higher Fee per Day (FPD), Gaming margins and buybacks.

Should you buy this ASX 200 share?

While Bell Potter acknowledges that Light & Wonder delivered a disappointing update, it remains positive on the investment opportunity here.

According to the note, the broker has retained its buy rating on its shares with a reduced price target of $190.00 (from $220.00).

Based on its current share price of $102.66, this implies potential upside of 85% for investors over the next 12 months.

As mentioned above, Bell Potter thinks Light & Wonder has had a poor start to the year. But it believes this is largely a one-off and expects a stronger performance in the coming quarters. It said:

1Q26 represents a poor start to the year, however, we note that International shipments, the primary driver for the miss, is typically lumpy QoQ. We believe the decline in GO base install reflects a one-off occurrence that should benefit future quarters.

Notwithstanding the continued disappointment in SciPlay revenue growth, which we now forecast flat YoY for FY26, we continue to believe improving game performance will support BPe and consensus forecasts across CY26-28e. We lower TP on higher RFR and retain Buy. LNW trades on a compelling 9x CY26 EBITA.

The post Down 35%: Is this ASX 200 share a strong buy now? appeared first on The Motley Fool Australia.

More reading

• Why Tabcorp, Light & Wonder and Amcor shares are making waves on Thursday
• Why Light & Wonder, Super Retail, Tabcorp, and Woodside shares are falling today
• Why are Light & Wonder shares sinking 11% today?
• Down 16% year to date, Bell Potter thinks now is the time to buy low on this ASX 200 stock
• Have beaten-down ASX gaming stocks finally hit a bottom?

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

Smartgroup Corporation Ltd (ASX: SIQ) could be an ASX 300 share to buy.

That’s the view of analysts at Bell Potter, who are recommending the salary packaging company’s shares to clients this week.

What is the broker saying?

Bell Potter notes that a trading update reveals that new vehicle order trends have improved, which bodes well for the ASX 300 share. It said:

New vehicle order growth has accelerated for the first time since the introduction of the Electric Car Discount Policy. SIQ reaffirmed mid-40s EBITDA margin guidance, delivering 1Q26 settlements which grew +7% on the pcp and orders +22%. This follows gradual convergence. While the revenue run-rate was unchanged, backlogs are re-emerging to support future periods. We see good potential as delivery times improve further. We had been cautious about the impact from sunsetting exemptions (plug-in electric hybrids). However, SIQ absorbed this, and we upgrade settlements.

In light of this, the broker believes that Smartgroup’s outlook is now in better shape. It adds:

The trading update featured firmer outlook language. Last year the run-rates had modest improvement and management were cautious but optimistic. Looking ahead, operating conditions remain favourable, with positive demand drivers. SIQ highlighted that 80% of battery electric vehicle orders are less than $75k; 88% below $80k. Under proposed policy changes (effective 1 April 2027), the full tax exemption would remain available for battery electric vehicles priced under $75k.

We view this de-risking the outlook of further dampening demand. Supply timeframes on average reduced from 31-24 days. This marks normalisation back to pre-covid conversion rates. Most of the improvement has been driven by internal combustion engines. Turnaround times for both traditional and battery electric vehicles now stands at around 24 days. Required expenses are unchanged with guidance for $11-13m intangible purchases.

ASX 300 share upgraded

According to the note, Bell Potter has upgraded Smartgroup’s shares to a buy rating with an $11.50 price target (from $9.30).

Based on its current share price of $10.19, this implies potential upside of 13% for investors over the next 12 months.

In addition, the broker is expecting the company to provide a generous dividend yield of 5.8%. This lifts the total potential return to almost 19%.

Commenting on its upgrade, Bell Potter said:

We upgrade our recommendation to Buy, reflecting +8%/+9%/+10% EPS upgrades. SIQ has performed well, lifting install base growth, with modest penetration. Renewed vehicle orders and pipeline revenue turn us positive. Our revised target price equates to 15x blended earnings, similar to the environment in which leasing demand took off.

The post Upgrade! Which ASX 300 share is Bell Potter recommending to clients this week? appeared first on The Motley Fool Australia.

More reading

• Alcoa announces June 2026 dividend
• Why an investor shouldn’t support gas reservation
• News Corporation reports Q3 FY26 profit jump as digital arms shine
• Block shares: Profit jumps 27% as outlook upgraded
• Despite a recent trading downgrade this ASX small cap could still return more than 100%: Broker

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

The Alcoa Corporation CDI (ASX: AAI) share price is in focus after the company declared a quarterly unfranked dividend of US$0.10 per CHESS Depositary Interest (CDI) for the period ended 31 March 2026.

What did Alcoa report?

• Quarterly dividend of US$0.10 per CDI declared
• Dividend is 100% unfranked
• Ex-dividend date: 18 May 2026
• Record date: 19 May 2026
• Payment due on 5 June 2026
• Default non-resident withholding tax rate: 30%

What else do investors need to know?

Alcoa CDI holders can receive their dividend payment in Australian dollars as the default, or elect to receive payment in US dollars, New Zealand dollars, or British pounds by providing up-to-date banking details. Holders have until 5pm AEST on 19 May 2026 to update or confirm their preferred payment method.

For CDI holders who don’t register valid payment instructions or don’t reside in Australia, New Zealand, the UK, or the US, the payment may be withheld (without interest) until those details are provided, or paid by cheque in Australian dollars for overseas holders. Non-residents should be aware that a 30% US withholding tax applies by default, unless eligible for tax treaty benefits and the correct forms are submitted before the record date.

What’s next for Alcoa?

Alcoa’s consistent dividend payments highlight its ongoing focus on shareholder returns. Investors should watch for any currency conversion updates on 1 June 2026, as well as consider updating tax and banking details to ensure timely payment.

Looking ahead, the company’s next scheduled dividend update will likely reflect any operational or commodity market changes impacting Alcoa’s ongoing capital management strategy.

Alcoa share price snapshot

Over the past 12 months, Alcoa shares have risen 125%, strongly outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 8% over the same period.

View Original Announcement

The post Alcoa announces June 2026 dividend appeared first on The Motley Fool Australia.

More reading

• News Corporation reports Q3 FY26 profit jump as digital arms shine
• Block shares: Profit jumps 27% as outlook upgraded
• QBE Insurance Group reports Q1 2026 earnings
• REA Group shares: Q3 revenue climbs and user engagement breaks records
• Macquarie Group posts strong FY26 earnings growth

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.

So, I stewed on this yesterday afternoon.

And the more time I spent thinking about it, the crankier I got.

See, the government has announced something that I’m sure is wonderful politics. It’s just also terrible economics.

The announcement? That 20% of the output from new gas projects would be ‘reserved’ for Australians.

Great politics, right? ‘We should keep our gas’ the tabloids would scream. After all, why wouldn’t we?

I’m sure it’s ‘cleverly’ designed, by the spin doctors, for exactly that reaction.

But in reality?

In reality the ‘modest oversupply’ that the reservation would create isn’t really about whether or not we have enough gas. It’s designed to be a de-facto price cap, instead.

But because ‘price caps’ are very 1980s, they pretend it’s a ‘reservation’ instead. Nudge, nudge, wink, wink.

What’s so bad about price caps?

Well, nothing… if you think that discouraging new drilling projects and spending our national resource wealth to buy votes is a combination that’s a good idea.

See, not only is capping prices awful policy (Russian breadlines, anyone?), but it encourages the (over)use of eternal resources and captures none of that value for the future.

It means the chances of a higher gas royalty in future is now far, far lower (because we’re already costing the gas companies money by making them supply at a below-market price).

And it means the chances of using those royalties to seed a Sovereign Wealth Fund are also far lower, for the same reason.

Yes, rather than demanding more value for our resources, and putting that money aside for future generations, the government has decided to just make the gas companies supply us with cheaper gas, now.

It’s bad policy.

Not only overall, but I hope very clearly specifically for my audience, here.

If you’re reading this, you’re probably an investor. Or on the way to becoming one.

And what is the defining characteristic of an investor?

The ability to ‘defer consumption’.

To put a little away, today, for a lot more, later.

Which is… precisely the opposite of what this policy does.

And not only is it not putting money away for the future, it’s actively preventing future governments doing the same, by shackling future gas projects with this reservation scheme… and encouraging extra use today.

They’re poisoning the well for future governments… and future generations.

All so, as The Whitlams sang, ‘so they can say that the trains run on time’.

Or, well, for a few votes.

The policy would be reckless if it just impacted current revenues and current gas production.

But by locking in future production, they’re undermining future generations.

Sure, gas might be cheaper next year. Maybe even for 5 or 10 or even 20 years.

And then?

And then we’ll have nothing to show for it, having burned through (literally and metaphorically) the potential proceeds that could have funded a far better future.

The more I type, the more disappointed I feel.

They’ve given up a golden opportunity for now, but also stolen that opportunity from the future.

What a terrible legacy.

Can I stretch for an investing ‘so what’ here?

Only by negative example.

The sensible investor should do the opposite of what the government announced yesterday.

We should defer consumption, today, and use the savings to fund a compounding machine that’s very likely to generate funds for far, far more consumption in the future.

We should exercise self-discipline.

We should focus on the future, not the present.

We should build, rather than consume.

Bottom line? We should act, today, as our future selves would like us to act.

Not like the future Australians who will look at Sovereign Wealth Funds in other countries and wonder what we were thinking in 2026, when we decided that we’d just spend their inheritance today, instead.

I suspect they won’t look back with fondness. And nor should they.

Fool on!

The post Why an investor shouldn’t support gas reservation appeared first on The Motley Fool Australia.

More reading

• Upgrade! Which ASX 300 share is Bell Potter recommending to clients this week?
• Alcoa announces June 2026 dividend
• News Corporation reports Q3 FY26 profit jump as digital arms shine
• Block shares: Profit jumps 27% as outlook upgraded
• Despite a recent trading downgrade this ASX small cap could still return more than 100%: Broker

Motley Fool contributor Scott Phillips 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 News Corporation (ASX: NWS) share price is in focus after the company reported a 9% jump in third quarter revenue to US$2.19 billion and a 13% lift in net income from continuing operations to US$121 million, powered by digital real estate, Dow Jones, and book publishing gains.

What did News Corporation report?

• Revenue rose 9% year on year to US$2.19 billion (Q3 FY25: US$2.01 billion).
• Net income from continuing operations grew 13% to US$121 million.
• Total Segment EBITDA increased 18% to US$343 million.
• Reported EPS from continuing operations was US$0.16 (Q3 FY25: US$0.14); Adjusted EPS was US$0.21 (Q3 FY25: US$0.17).
• Dow Jones revenues increased 8% to US$619 million, with strength in digital and Risk & Compliance.
• Book Publishing revenues up 8% to US$555 million; REA Group’s revenue rose 20% to US$325 million.

What else do investors need to know?

News Corp’s Digital Real Estate Services and Dow Jones segments saw double-digit growth, partly thanks to positive foreign exchange movements and a resilient Australian property market. The company also highlighted strong momentum in its book publishing arm, boosted by bestselling titles tied to new media releases.

News Corp continues to invest in digital expansion, with almost all of Dow Jones’ Wall Street Journal subscriptions now digital-only. Importantly, management remains focused on defending its intellectual property against unauthorised use by AI platforms and “dodgy digital firms,” while also benefiting from new licensing deals with tech firms such as Meta and OpenAI.

What’s next for News Corporation?

News Corp expects continued top-line growth, with strong contributions from digital real estate and information services. The company is optimistic about free cash flow generation for the full year, balancing higher capital expenditures with operational gains.

Investors can also look to developments in digital content licensing and subscription models, as well as the ongoing buyback program, which management believes showcases confidence in News Corp’s long-term value.

News Corporation share price snapshot

Over the past 12 months, News Corporation shares have declined 17%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 8% over the same period.

View Original Announcement

The post News Corporation reports Q3 FY26 profit jump as digital arms shine appeared first on The Motley Fool Australia.

More reading

• Alcoa announces June 2026 dividend
• Block shares: Profit jumps 27% as outlook upgraded
• QBE Insurance Group reports Q1 2026 earnings
• REA Group shares: Q3 revenue climbs and user engagement breaks records
• Macquarie Group posts strong FY26 earnings growth

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 Block CDI (ASX: XYZ) share price is in focus today after the company posted a first quarter gross profit of US$2.91 billion, up 27% year-over-year, and lifted its full-year outlook.

What did Block report?

• Gross profit grew 27% year-over-year to US$2.91 billion
• Adjusted operating income jumped 56% to US$728 million (25% margin)
• Adjusted diluted EPS rose 52% to US$0.85
• Total net revenue reached US$6.06 billion
• Cash App gross profit increased 38% to US$1.91 billion, while Square grew 9% to US$982 million
• Operating loss was US$172 million, impacted by US$852 million in restructuring and legal costs

What else do investors need to know?

Block accelerated its AI-driven productivity, with “Builderbot” and “Moneybot” tools now reviewing most production code changes and making customer recommendations. As a result, employee output is up and system reliability has improved. The company is also scaling new features, like Cash App managed accounts for children and community engagement tools through Neighborhoods, both showing early adoption.

The company’s lending portfolio continued to expand, with consumer lending origination volumes up 82% and Cash App Borrow originations nearly tripling year on year. Importantly, Block increased share repurchases to US$636 million in Q1, with US$4.7 billion remaining authorised.

What’s next for Block?

Block has lifted its 2026 guidance, now targeting gross profit of US$12.33 billion, up 19% year on year, and adjusted operating income margin of 27%. Adjusted diluted EPS is forecast to jump 62% to US$3.85. For the June quarter, Block expects another 20% gross profit growth and Adjusted EPS of US$0.86.

The business is committed to growing through AI-powered innovation, strengthening its lending offerings, and investing further in high-return areas like sales and customer engagement. Management expects further margin expansion while funding long-term growth.

Block share price snapshot

Over the past 12 months, Block shares have risen 31%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 8% over the same period.

View Original Announcement

The post Block shares: Profit jumps 27% as outlook upgraded appeared first on The Motley Fool Australia.

More reading

• Alcoa announces June 2026 dividend
• News Corporation reports Q3 FY26 profit jump as digital arms shine
• QBE Insurance Group reports Q1 2026 earnings
• REA Group shares: Q3 revenue climbs and user engagement breaks records
• Macquarie Group posts strong FY26 earnings growth

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 Block. 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.

Shares in Gentrack Group Ltd (ASX: GTK) have lost much of their value over the past 12 months, but with a recent acquisition announced as well as a share buyback, the analysts at Shaw and Partners are calling the share a buy.

Share price weakness presents opportunity

Gentrack’s share price peaked at $12.08 back in July last year but has been steadily trading lower since that time, changing hands now for $3.16.

Shaw and Partners says this provides an attractive entry point from a valuation perspective, despite the company’s recent revenue forecast downgrade.

Gentrack said earlier this week that they expected revenue for the full year to come in at $229 to $238 million, which was “lower than our previous guidance”.

They added:

Recurring revenues in FY26 are expected to grow by more than 10% to around $174 million, while non-recurring revenues will be lower than FY25. We expect H1 revenue to be about $110 million of which about $85 million is recurring.

The company did say that based on its pipeline and the market opportunity in both its utilities division and the Veovo division, which services airports, “we stand by our medium-term revenue target of more than 15% CAGR”.

Gentrack said it had taken the strategic decision to prioritise growth and global leadership over short-term earnings.

The company added:

We are continuing to invest in international expansion and product development. Furthermore, for new customer wins and upgrades, with g2.0 we are transitioning our business model to drive higher recurring revenue and lower cost for customer onboarding. In FY26, we expect full year EBITDA to be between $13.5m and $20m and H1 EBITDA to be about $7.8m (all excluding acquisition costs). With strong recurring revenue growth we expect margins to improve to our medium-term target of 15% to 20% EBITDA margin (after expensing all development costs).

The company also said it would conduct a share buyback worth up to $20 million following the release of its first-half results.

Also in late April, the company announced the US$10 million acquisition of Dubai Technology Partners, a premier airport technology business which would be integrated into the Veovo division.

Upside potential

Shaw and Partners said while the downgrade announced would be frustrating for investors, Gentrack shares were now trading on an attractive earnings multiple.

They added:

If GTK, can deliver on its pipeline, grow revenue at more than 15% and lift margins to between 15-20% this should drive a re-rate.

The Shaw and Partners team cut its price target on Gentrack shares to $8 from $11.30, still well above the stock’s current price.

The post Despite a recent trading downgrade this ASX small cap could still return more than 100%: Broker appeared first on The Motley Fool Australia.

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• Why Appen, Gentrack, Magellan, and Regis Resources shares are falling today
• Leading brokers name 3 ASX shares to buy today
• Why this ASX tech stock could rocket 80% according to a top broker

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

The QBE Insurance Group Ltd (ASX: QBE) share price is in focus today as the insurer reported 11% gross written premium growth for the first quarter of 2026 and continued strong investment returns, underpinned by resilient underwriting.

What did QBE Insurance Group report?

• Gross written premium (GWP) up 11% year-on-year; 7% on a constant currency basis
• Ex-rate GWP growth of 6%, with strength in North America Crop and International portfolios
• Net cost of catastrophe claims at approximately $300 million for January to April 2026
• Investment income of about $500 million in the first four months of 2026
• Core fixed income yield increased to 4.1% at 1Q26 (from 3.7% at FY25)
• Total funds under management of $36.1 billion at 1Q26

What else do investors need to know?

QBE reported that premium growth was particularly strong in targeted areas, including North America Crop and select portfolios in its International division. Market conditions remain supportive, with Group premium rate increases of around 2% in the quarter, although competitive pressures were flagged in commercial property and at Lloyd’s.

On the claims front, QBE noted a net cost of catastrophe claims of roughly $300 million during the first four months of the year, primarily due to multiple events in Australia and storms in the Northern Hemisphere. Direct underwriting exposure to the Middle East conflict remains limited, with estimated net claims around $60 million included in catastrophe costs.

What did QBE Insurance Group management say?

CEO Richard Pryce said:

We are pleased with performance through the start of 2026, underpinned by targeted premium growth alongside resilient underwriting and investment management. We expect mid-single-digit GWP growth with a Group combined operating ratio of ~92.5% in FY26 and remain confident in sustaining strong performance over the medium-term.

What’s next for QBE Insurance Group?

Looking ahead, QBE reiterated its full-year 2026 outlook, expecting mid-single-digit gross written premium growth on a constant currency basis, and a Group combined operating ratio of around 92.5%. Over the medium term, management aims for an adjusted return on equity above 15% and ongoing GWP growth.

The company will release its 1H26 results on Friday 14 August 2026. QBE says it remains focused on disciplined underwriting, portfolio management, and navigating dynamic global insurance markets.

QBE Insurance Group share price snapshot

Over the past 12 months QBE shares have risen 4%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 8% over the same period.

View Original Announcement

The post QBE Insurance Group reports Q1 2026 earnings appeared first on The Motley Fool Australia.

More reading

• Alcoa announces June 2026 dividend
• News Corporation reports Q3 FY26 profit jump as digital arms shine
• Block shares: Profit jumps 27% as outlook upgraded
• REA Group shares: Q3 revenue climbs and user engagement breaks records
• Macquarie Group posts strong FY26 earnings growth

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.

Three S&P/ASX 200 Index (ASX: XJO) shares have delivered extraordinary returns over the past 12 months. PLS Group Ltd (ASX: PLS) has surged around 328%, Mineral Resources Ltd (ASX: MIN) is up roughly 248%, and Lynas Rare Earths Ltd (ASX: LYC) has climbed about 137%.

What do they have in common? All three are deeply tied to the global push toward electrification. Lithium and rare earths sit at the centre of electric vehicles, battery storage, and clean energy technologies. That structural demand has powered their massive share price gains.

But after such a strong run, the big question is simple: Can the ASX 200 shares keep going?

PLS Group: Global hard-rock leader

This $20 billion ASX 200 share has been the standout beneficiary of the lithium boom. The company operates one of the world’s largest hard-rock lithium operations in Western Australia and benefits directly from demand for battery-grade lithium spodumene.

The long-term outlook remains positive, supported by electric vehicle adoption and energy storage demand. However, lithium prices have been volatile, and earnings are highly sensitive to commodity cycles.

That’s reflected in broker sentiment. Morgans Financial recently downgraded PLS shares to a “trim” rating with a $5.40 price target, which sits below its current share price of around $6.37. That suggests limited near-term upside after such a strong rally.

Mineral Resources: Multi-commodity growth story

Mineral Resources offers a different angle on the resources boom. The company operates across iron ore, lithium, and mining services, giving it more diversification than pure-play peers.

The ASX 200 share also benefits from its integrated model, controlling both mining operations and infrastructure. That can help improve margins and operational efficiency over time.

Still, the business is capital-intensive and exposed to commodity price swings, particularly in iron ore and lithium markets.

Despite those risks, Morgans remains more constructive here. The broker has an accumulate rating and recently lifted its 12-month price target from $67 to $71, suggesting no further upside from current levels.

Lynas: Critical rare earths supplier

Lynas Rare Earths sits at the centre of another critical supply chain: rare earths magnets used in electric vehicles, wind turbines, and advanced electronics.

As one of the few major rare earths producers outside China, Lynas has benefited from geopolitical concerns around supply security and diversification.

However, rare earths prices can be cyclical, and project expansion comes with execution risk.

UBS Group recently trimmed its price target on the ASX 200 share from $23.90 to $23.65, though this still sits comfortably above the current share price of around $19.93.

Foolish Takeaway

So, where does that leave investors?

These ASX 200 shares have already delivered extraordinary gains, driven by strong thematic tailwinds in electrification and critical minerals. But with valuations stretched and commodity cycles inherently volatile, future returns may be more uneven.

The long-term story remains intact. The short-term question is whether expectations have simply run ahead of fundamentals.

The post After gains of up to 330%, can these ASX 200 shares go higher? appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Van Dinther has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Lynas Rare Earths Ltd. 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.