Computershare (CPU) H2 2026 earnings summary

Executive summary

• Management EPS rose 7.3% to 145.2cps (AUD 1.45 per share), exceeding upgraded guidance.

• Revenue increased 3% to $3.2bn, or over 5% excluding disposals, with all business lines contributing positively.

• Final dividend increased 35.4% to AUD 0.65 per share, totaling AUD 1.20 for the year and a 58% payout ratio.

• Return on Invested Capital rose to 36.5%, up 70bps year-over-year.

• Balance sheet strengthened, with leverage reduced to 0.11x, supporting higher dividends and acquisition capacity.

Financial highlights

• EBIT ex Margin Income (MI) rose 8.3% to $447.5m, with margins expanding 70bps to over 18%.

• Margin income declined 1.6% to $748.7m but exceeded expectations.

• Management NPAT increased 5.8% to $839.8m.

• Operating cash flow conversion remained strong at 65%.

• Operating costs increased 3.6% to $1,944.0m; cost out benefits of $29.8m achieved.

Outlook and guidance

• FY27 management EPS expected to grow ~6% to around 154cps (AUD 1.54 per share).

• Margin income forecasted at ~$770m, with exposed yields expected to rise and higher average client balances.

• EBIT ex MI projected to grow ~3.5%, with full-year EBIT ex MI margin of ~19%.

• Cost inflation projected below 3% for FY27; $22m in cost reductions targeted.

• Interest expense expected to decline ~15% due to lower debt levels.