Hold the champagne. Australian profits are growing, but not much. Our listed companies are getting lapped by their counterparts in the United States, just like on the sharemarket, and there’s little they can do about it.One-third of the way through reporting season (by market capitalisation), revenue growth is slow, profit growth (at the market level) is about 10 per cent, or only 5 per cent outside the mining and energy sectors, and guidance on FY27 profits is weaker than expected. Ramping up dividends is the best way to get investors’ attention.Subscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber? Fetching latest articles
Dividend dependent: Profit season exposes ASX’s missing animal spirits
The stark reality of Australia’s pedestrian reporting season should worry everyone.
TL;DRAI
ASX-listed companies report 5-10% profit growth with weak FY27 guidance, shifting to dividend hikes over reinvestment. Subdued capex capacity constrains digital transformation budgets and signals consolidation pressure for tech vendors selling into Australian enterprises.
112 words~1 min read
