Woolworths Group delivered solid earnings growth in FY26, with Group EBIT before significant items jumping 12.7% to $3,105 million as all trading segments contributed to the result. This performance reflects meaningful momentum in the company’s core Australian Food business alongside strengthened cost discipline and contribution from complementary operations, particularly in eCommerce and services.
The Australian Food segment, which remains the company’s largest earnings driver, recorded EBIT growth of 8.5%, with a more normalized underlying growth rate of 4.8% when adjusting for the prior year’s industrial action cycling. Sales increased 4.6%, with acceleration notably building through the second half as customer investment and improved retail execution took hold. The standout performance came from eCommerce, which surged 18.6% and benefited from material improvements in the delivery achievement performance for the On Demand service. Group-wide eCommerce sales of $10.6 billion grew 15.9%, indicating that digital remains a critical growth channel for the retailer.
Beyond the growth metrics, the company demonstrated improved operational discipline. Group net profit after tax before significant items expanded 15.4% to $1,599 million, with net finance costs remaining essentially flat despite the higher earnings base. The company reduced its cost of doing business by 24 basis points through productivity initiatives, contributing to bottom-line leverage. This cost control should resonate with investors given the company’s positioning around affordable prices for customers and the ongoing pressure on household budgets highlighted in management commentary.
Performance across the portfolio showed breadth. New Zealand Food grew earnings 8.8% despite sales growth of only 2.5%, suggesting improved profitability in that market. Australian B2B operations grew sales 4.2% with EBIT up 13.0%, while the company’s smaller W Living operations turned in EBIT of $116 million, up $147 million on the prior year. Most notably, BIG W returned to profit with EBIT of $64 million after recording a $33 million loss in the prior year, reflecting improved inventory management and product ranges. Petstock recorded a 33.5% EBIT increase, driven by underlying growth and strategic acquisitions.
For investors, the result suggests Woolworths is gaining traction with its customer-first strategy, as evidenced by Voice of Customer NPS improving four points year-on-year and sales momentum accelerating in the second half. The 15.6% increase in the final dividend offers confidence in management’s view of forward cash generation. Notably, profitability growth is outpacing sales growth, indicating operational leverage. Investors should monitor the company’s ability to maintain cost discipline and sales momentum if the economic environment does indeed remain challenging as expected, and track whether the second-half acceleration in Australian Food and eCommerce persists into FY27. This announcement is price sensitive and has been flagged as material by the ASX.
View the full ASX announcement (PDF)
About Woolworths Group Limited (ASX: WOW)
Woolworths Group is Australia’s largest supermarket operator and a major retailer, running Woolworths supermarkets, BIG W, and related businesses. It is a dominant player in Australian food and everyday needs retail.
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