ASX Limited has provided updated financial guidance signalling substantial investment in technology infrastructure, with FY27 total expense growth guidance of 18 to 21 percent compared to FY26. The lion’s share of this increase stems from technology modernisation, reflecting both industry-wide cost inflation and the costs of supporting multiple technology platforms during transition periods, most notably following the recent deployment of CHESS Release 1 and enterprise cloud systems.
The Australian Securities and Investments Commission inquiry into the exchange identified historical underinvestment in critical market infrastructure relative to global peers, a gap ASX has committed to address at pace. The updated guidance reflects this commitment, with capex raised to between $180 million and $200 million for FY27, up from prior guidance of $160 million to $180 million, and FY28 capex guidance of $170 million to $190 million. Operating expense growth, excluding depreciation and amortisation, is guided to 13 to 16 percent, signalling that core operational costs are growing at a slower rate than the overall expense base.
For investors, this marks a near-term headwind on earnings as ASX invests to modernise its platform and meet regulatory expectations. However, the company has signalled that dividend policy remains unchanged, with payout ratios between 75 and 85 percent of underlying net profit after tax, though ASX expects to target the bottom end of that range for at least the next two dividend payments. The operating revenue figure through 30 April 2026 showed underlying strength, reaching $1.03 billion and up 12.5 percent year-on-year, providing a degree of offset to the expense growth trajectory.
ASX is also divesting its 49 percent stake in Sympli to joint venture partner ATI Group for a nominal amount, crystallising an approximate $12 million after-tax loss as a significant item in FY26. More meaningfully, eliminating Sympli will remove the drag of $4.4 million in after-tax operating losses recorded in the first half of FY26, equivalent to 1.7 percent of underlying net profit after tax at that time. This disposal improves the underlying earnings trajectory post-FY26 and simplifies the company’s operational footprint.
The company has adjusted its medium-term return on equity target to between 12.0 and 14.0 percent, down slightly from the prior range of 12.5 to 14.0 percent, a reflection of the capex-heavy investment program ahead. Investors should monitor ASX’s progress in delivering the technology modernisation program, given inherent execution risks noted in the guidance, and track how cost inflation in the technology budget influences future capex requirements. This announcement is price sensitive and has been flagged as material by the ASX.
View the full ASX announcement (PDF)
About ASX Limited (ASX: ASX)
ASX Limited is Australia’s primary securities exchange operator and a vertically integrated multi-asset exchange company based in Sydney, Australia. The company provides trading, clearing, settlement, and post-trade services for equities, fixed income, commodities, derivatives, and other financial instruments. As the largest exchange in the southern hemisphere and one of the top 20 global exchange groups, ASX serves as the central market operator for Australian securities and financial markets.
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