Shares of Magellan Financial Group Ltd surged 5.17% during intraday trading on Wednesday, following the release of the company's fiscal first-half financial results.

The financial services firm reported operating earnings of AU$0.486 per share for the six months ended December 31, 2025, which exceeded analyst expectations of AU$0.42 per share. While total revenue and other income declined to AU$121 million from AU$178.6 million a year earlier, it still came in above the AU$130.5 million forecast by analysts.

Additionally, the company announced a significant increase in its interim dividend to AU$0.395 per share, up from AU$0.264 a year ago, payable in March to shareholders of record in February. The combination of better-than-expected earnings and the enhanced shareholder return through a higher dividend appears to have driven investor optimism.