Woolworths Group (WOW) H1 2026 earnings summary

Executive summary

• Group sales for H1 FY26 rose 3.4% to AUD 37.1 billion, with all segments reporting growth and Australian Food showing strong momentum.

• EBIT before significant items increased 14.4% to AUD 1.66 billion, with margin up 43 bps and NPAT before significant items up 16.4% to AUD 859 million.

• E-commerce sales grew 14.6% year-over-year, with double-digit growth across all major businesses and improved customer satisfaction.

• Strong cost discipline, productivity initiatives, and leadership changes enhanced execution and customer momentum.

• Net profit attributable to equity holders was AUD 374 million, a significant decrease from the prior period, mainly due to a large payroll remediation provision.

Financial highlights

• Group EBIT before significant items was AUD 1.66 billion, up 14.4% year-over-year; NPAT before significant items was AUD 859 million, up 16.4%.

• Including significant items, NPAT fell 49.4% to AUD 374 million due to a one-off payroll remediation cost.

• Operating cash flow before interest and tax was AUD 3.2 billion, up 4.5%.

• Basic EPS before significant items rose 16.4% to AUD 0.704 per share; after significant items, EPS fell to 30.6 cents.

• Final/interim dividend of AUD 0.45 per share, up 15.4% year-over-year, fully franked.

Outlook and guidance

• On track to deliver mid to high single-digit EBIT growth in Australian Food for FY26, with sales up 5.8% in early H2.

• Expect continued improvement in New Zealand Food and BIG W, with BIG W expected to be EBIT and cash flow positive for FY26.

• Operating CapEx for FY26 expected to be around AUD 2 billion.

• Directors have reasonable expectations of adequate resources for continued operations.

• Anticipate ongoing competitive intensity and customer focus on value.