Key Highlights

• Total Revenue of $15.8 billion in FY26 declined 1% on the prior comparable period; underlying NPATA fell 2% to $3.1 billion.

• Pre-tax asset impairments of $7.1 billion recognised in FY26 triggered a reported NPAT loss of $2.6 billion.

• The transformation program delivered approximately $176 million in cost savings, ahead of target, with $799 million in one-off pre-tax restructuring costs.

• FY27 guidance targets underlying NPAT growth of approximately 5%, with CSL Vifor revenue expected to decline approximately 25% due to generic competition.

CSL Limited (ASX:CSL), one of Australia's largest companies by market capitalisation, reported full-year results for the year ended 30 June 2026 on 18 August 2026. Total revenue reached $15.8 billion, a 1% decline compared to the prior comparable period. The result reflected the cumulative impact of pricing pressures, generic competition, government cost-containment measures, and the non-recurrence of prior year avian influenza revenue within CSL Seqirus. Despite the revenue softness, Cash Flow from operations remained relatively stable at $3.5 billion, down 1%, reflecting the underlying operational resilience of the business.

Underlying net profit after tax attributable to shareholders (NPATA) declined 2% to $3.1 billion. However, the reported net profit swung to a loss of $2.6 billion — a 184% deterioration — driven by the recognition of $7.1 billion in pre-tax asset impairments across the second half of FY26, which totalled $5.5 billion for that period alone. The impairments were attributed to adverse changes in commercial outlook, the timing of generic competition entry, regulatory developments, market conditions, and site utilisation assumptions across CSL's asset base.

CSL Behring: Immunoglobulin and Albumin Drag on an Otherwise Diverse Portfolio

CSL Behring, the largest of the three divisions, reported total revenue of $11.4 billion, down 1% against the prior comparable period. Immunoglobulin (Ig) sales of $6.2 billion were flat, impacted by the company's deliberate decision to normalise US Ig channel inventory, changes to Medicare Part D, and prior-year tender losses. Albumin sales declined 17% to $1.1 billion following the implementation of government cost-containment measures in China, a key market for that product.

Haemophilia revenue of $1.5 billion fell 1%, with HEMGENIX sales growing 25% and IDELVION growing 1%, offset by a decline in the legacy Factor VIII portfolio. In the Hereditary Angioedema segment, ANDEMBRY achieved $240 million in sales in its first full year on market. KCENTRA declined 17% due to pricing pressure in the US market. The Hereditary Angioedema and gene therapy programmes remain growth areas within a segment experiencing mixed performance across its product lines.

CSL Vifor and CSL Seqirus: Mixed Outcomes

CSL Vifor posted total revenue of $2.4 billion, up 3% against the prior comparable period. Growth in nephrology was partially offset by declining iron product revenue due to generic competition and a second-half softening in VELPHORO sales as the product approaches the end of its TDAPA period. Looking into FY27, CSL Vifor faces a significant revenue headwind: management guided for an approximately 25% revenue decline, driven by generic competition in iron products, the conclusion of the TDAPA period for VELPHORO, and the revocation of the Marketing authorisation for TAVNEOS.

CSL Seqirus, the influenza vaccines division, reported total revenue of $2.0 billion, down 8%, largely due to the non-recurrence of avian influenza outbreak-related revenue recorded in FY25. On an underlying basis, global seasonal influenza sales grew 4%, with CSL Seqirus described as the only global company to achieve year-on-year seasonal influenza revenue growth. FLUAD sales reached $968 million, up 5%, with successful new launches in Germany and France. FLUCELVAX sales grew 5% to $503 million.

Transformation Program: Cost Savings Ahead of Schedule

CSL's transformation program, in place for 12 months as at the end of FY26, delivered approximately $176 million in cost savings — ahead of the company's stated target. The program has involved reducing fixed infrastructure, integrating Behring and Vifor commercial and medical affairs functions, and eliminating organisational duplication. One-off pre-tax restructuring costs of $799 million were recognised in FY26 in connection with these activities. During the year, CSL also entered a strategic collaboration with Dutch biotechnology company VarmX for a potential novel blood coagulation treatment, and announced approximately $1.5 billion in planned spending to expand US plasma Manufacturing capacity through its Horizon 2 Yield improvement program. The FDA and EMA engagement on regulatory evidence for Horizon 2 is ongoing.

Balance Sheet and Capital Returns

CSL's Balance Sheet maintained net Assets of $16.3 billion at year end, with financial Leverage of 1.8 times. The company completed a $1 billion share buyback program during FY26 and subsequently announced a further A$1.1 billion on-market share buyback program. A final Dividend of $1.62 per share was declared. For FY27, management guided for revenue broadly in line with FY26 and underlying NPAT growth of approximately 5%, underpinned by mid-single-digit revenue growth at CSL Behring and Ig growth at mid-to-high single digits, partially offset by the anticipated headwinds at CSL Vifor.

Conclusion

CSL's FY26 results reflect a Business absorbing meaningful impairments and restructuring charges while demonstrating the underlying Earnings resilience of its diversified biotherapeutics platform. The $7.1 billion in impairments and a reported net loss of $2.6 billion are significant headline items, but the underlying NPATA of $3.1 billion and Operating Cash Flow of $3.5 billion provide context for the company's true earnings capacity. The FY27 outlook is cautiously constructive at the group level, though the headwinds at CSL Vifor and the ongoing clinical pathway for Horizon 2 will be monitored closely by analysts and institutional investors.