Computershare (CPU) H1 2026 earnings summary

Executive summary

• EBIT excluding margin income (MI) rose 12% year-over-year, with margin expanding to 16% and management EPS up 3.9% to 67.9cps.

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

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

• Full-year management EPS guidance upgraded to $1.44 per share, up 6% over the prior period.

• Sale of UK Mortgage Services business completed, aligning with a strategic focus on core business lines.

Financial highlights

• Total revenue for 1H26 was $1,565.9m, up 3.9% year-over-year; operating costs increased 6.4%.

• Margin income declined 5.4% to $372.9m, but proved resilient despite lower rates and was supported by higher balances.

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

• Corporate actions and corporate trust revenues up over 12%, driven by strong issuance and market activity.

• Operating cash flows decreased by $17.3 million to $336.9 million, mainly due to timing of payments and working capital movements.

Outlook and guidance

• FY26 management EPS expected at $1.44 per share, up 6% year-over-year, with MI forecasted at $730m.

• EBIT ex MI margin target of 20% by FY28, with 19% expected in FY27 and full year margin expected to exceed 18%.

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

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

• Focus on three core business lines post-divestment: Issuer Services, Employee Share Plans, and Corporate Trust.