Computershare (CPU) H1 2026 earnings summary

Executive summary

• EBIT excluding Margin Income (MI) rose 12% year-over-year, with margin expanding to 16% and strong underlying business performance.

• Management EPS increased 3.9% to 67.9cps, with ROIC above 36% and debt leverage reduced to 0.3x.

• Interim dividend increased by 22% to AUD 55cps, reflecting strong cash generation and a capital-light business model.

• Full-year management EPS guidance upgraded to around 144cps, up 6% over the prior year.

• Revenue rose 5.4% year-over-year to $1,579.4 million, driven by higher core fees and increased event and transactional revenue.

Financial highlights

• Management revenue reached $1.6bn, up 3.9% year-over-year; operating costs increased 6.4%.

• Margin Income was resilient at $372.9m, down 5.4% year-over-year, with average client balances up 2%.

• Event and transaction revenues up nearly 13%; employee share plan transaction volumes and revenues grew 5%.

• Corporate actions revenues up over 12%, with Hong Kong IPOs and retail participation surging.

• Corporate Trust fee revenue up over 12%, driven by strong issuance in structured products.

Outlook and guidance

• FY26 Management EPS guidance upgraded to around 144cps, up 6% year-over-year.

• Margin income guidance raised to $730 million for FY26, with hedged yield expected to rise above 3.5% in FY27.

• EBIT ex MI margin target of 20% by FY28, with 19% expected in FY27.

• Dividend payout ratio expected to remain in the low- to mid-50% range.

• Group tax rate expected between 24%-25%.