Woolworths Group Ltd's stock surged 8.01% during intraday trading on Wednesday, following the release of better-than-expected half-year financial results.

The Australian supermarket giant reported a 16.4% rise in underlying net profit after tax to A$859 million for the 27 weeks ended January 4, beating analyst estimates of A$813.5 million. The company attributed the strong performance to its focus on budget-friendly products and targeted discounts, which helped attract value-conscious customers in a cautious spending environment.

Adding to the positive sentiment, Woolworths provided encouraging forward guidance, indicating that reported FY26 EBIT growth for its Australian Food segment is expected to reach the upper end of the mid-to-high single digit range. The company also reported strong trading in the first seven weeks of the second half, with Australian Food sales growing 5.8%. Furthermore, Woolworths declared an increased interim dividend of 45 Australian cents per share, up from 39 cents a year earlier.