Woolworths Group Limited (ASX:WOW) operates supermarkets and retail businesses across Australia and New Zealand, including Woolworths Supermarkets, BIG W and other food and retail operations. FY26 delivered higher sales and a larger increase in profit before significant items, reflecting improved Earnings across its main trading segments. Statutory profit also increased, although remediation-related significant items continued to weigh on the reported result.

Sales Increase 3.6%

Group sales increased 3.6% to A$71.539 billion in FY26.

Growth was recorded across the group’s main trading businesses, supported by Australian Food, New Zealand Food, Australian B2B and W Living.

The increase in sales was smaller than the rise in earnings, indicating that Margin improvement and operating performance contributed materially to the FY26 profit recovery.

Underlying EBIT Rises 12.7%

EBITDA before significant items increased 6.7% to A$6.089 billion.

EBIT before significant items rose 12.7% to A$3.105 billion from A$2.754 billion.

The faster growth in EBIT relative to sales reflected improved performance across all trading segments and lower comparative impacts from prior-year operational disruptions.

Return on funds employed also improved during the year.

Underlying NPAT Reaches A$1.60 Billion

NPAT attributable to shareholders before significant items increased 15.4% to A$1.599 billion.

Basic earnings per share on the same basis rose 15.4% to 130.9 cents.

The improvement was primarily driven by higher EBIT, while net finance costs remained broadly stable.

The result marked a recovery from the lower FY25 operating base.

Statutory Profit Also Improves

Statutory NPAT attributable to shareholders was A$1.138 billion, up 18.1% from A$963 million.

The result included A$461 million of after-tax significant items.

These were mainly associated with salaried team-member remediation following the Federal Court ruling, together with related interest and tax adjustments.

Statutory profit therefore remained below the underlying result despite improving year on year.

Australian Food Remains the Core Earnings Driver

Australian Food sales increased 4.6% during FY26.

EBIT rose 8.5%, supported by improved store execution, customer propositions and operating performance.

The second half showed better momentum as the Business cycled industrial-action disruption from the prior year and benefited from improved supply-chain conditions.

Australian Food remains the largest contributor to Woolworths Group earnings.

New Zealand Food Continues Its Recovery

New Zealand Food delivered higher sales and EBIT during FY26.

The business benefited from transformation initiatives, store rebranding and operating-model changes, although market conditions remained competitive.

Management noted a greater customer focus on value during the second half.

Continued execution on the transformation program remains important to sustaining earnings improvement.

BIG W Returns to Profit

W Living sales increased 1.7%.

The division reported EBIT of A$116 million, an improvement of A$147 million from FY25.

BIG W returned to profitability with EBIT of A$64 million compared with a A$33 million loss in the prior year.

Improved stock flow and improved Clothing performance contributed to the turnaround.

Petstock also recorded higher earnings during FY26.

E-Commerce Growth Remains Important

Group eCommerce sales continued to expand during FY26.

Digital adoption remains important across Australian Food, New Zealand Food and BIG W as customers increasingly use online ordering, delivery and pick-up services.

Woolworths continues investing in fulfilment, Supply chain and digital capabilities to support this growth while seeking to improve productivity.

The return on those investments remains important to future margin performance.

Dividend Rises to 97 Cents

Woolworths declared a fully franked final Dividend of 52 cents per share.

Combined with the 45-cent interim dividend, total FY26 dividends reached 97 cents per share.

This compared with 84 cents in FY25.

The final dividend was paid on 25 September 2026.

The higher distribution reflected improved underlying earnings and cash generation.

FY27 Begins With a Focus on Execution

Woolworths has not provided a single formal group earnings guidance figure for FY27.

Management remains focused on customer value, productivity, supply-chain efficiency and maintaining momentum in Australian Food.

New Zealand Food is continuing its transformation, while BIG W must demonstrate that its return to profitability is sustainable.

Cost inflation, customer budgets and competitive pricing remain important variables.

Next Trading Update Arrives in October

Woolworths is scheduled to release its Q1 FY27 sales update on 28 October 2026.

The Annual General Meeting follows on 29 October.

The FY27 half-year result is scheduled for 24 February 2027.

The Q1 update should provide the first detailed indication of whether FY26’s improved operating momentum has continued into the new financial year.

Key Risks and Areas to Watch

Competitive pricing remains a central risk in Australian grocery retail.

Wage, energy, freight and supply-chain costs can pressure margins if they rise faster than productivity gains.

Regulatory scrutiny and remediation costs can also affect statutory earnings.

BIG W remains more exposed to discretionary consumer spending than the supermarket businesses, while New Zealand continues to operate in a competitive market.

Australian Food comparable sales, margin trends and cost control will remain key indicators.