ASX Group H1 2026 Margin Compression Reinforces Bearish Profitability Narratives

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Feb 14

ASX (ASX:ASX) has posted its H1 2026 numbers with revenue of A$606 million and net income of A$263.6 million, translating to basic EPS of A$1.36 and sitting against a trailing twelve month earnings ...

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The company has seen half year revenue move from A$544.8 million in H1 2025 to A$261.1 million in H2 2025 and then to A$606 million in H1 2026. Basic EPS stepped from A$1.26 to A$1.33 and then to A$1.36 over the same periods. This sits alongside multi year earnings growth of...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK7039":"金融交易所和数据","ASX.AU":"ASX LTD"},"translate_title":"澳大利亚证券交易所集团2026年上半年利润率压缩强化了看跌盈利能力的叙述","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"ASX.AU":1},"content_text":"ASX (ASX:ASX) has posted its H1 2026 numbers with revenue of A$606 million and net income of A$263.6 million, translating to basic EPS of A$1.36 and sitting against a trailing twelve month earnings growth rate of 7.3%. The company has seen half year revenue move from A$544.8 million in H1 2025 to A$261.1 million in H2 2025 and then to A$606 million in H1 2026. Basic EPS stepped from A$1.26 to A$1.33 and then to A$1.36 over the same periods. This sits alongside multi year earnings growth of 1.2% per year and a current net profit margin of 44.4% versus 59.8% last year, so investors are likely to focus on how this mix of steady EPS and softer margins shapes the quality of the result. See our full analysis for ASX. With the headline numbers on the table, the next step is to see how these results line up with the widely held narratives about ASX’s growth prospects, risks, and margin profile, and where the latest figures push back against those stories. See what the community is saying about ASX ASX:ASX Revenue & Expenses Breakdown as at Feb 2026 AdvertisementMargins Under Pressure at 44.4%  ASX’s net profit margin over the last year sits at 44.4%, down from 59.8%, while trailing twelve month net income is A$522.7 million on A$1.18b of revenue. Critics highlight that rising costs and regulatory work could keep pressure on profitability, and the margin slide from 59.8% to 44.4% lines up with that concern.\n     Guidance pointing to expense growth of 14% to 19%, including ASIC inquiry costs, is consistent with margins feeling tighter even as earnings grew 7.3% over the last year. The bearish narrative around high project and compliance spending finds support in these margin figures, as earnings growth of 1.2% per year over five years looks modest alongside a lower recent margin.    Stay curious about whether these thinner margins are a short term cost spike or a longer term reset for ASX’s profitability. 🐻 ASX Bear Case Earnings Growth Outpaces Long Term Trend  Trailing twelve month earnings of A$522.7 million reflect 7.3% earnings growth over the last year compared with 1.2% per year over the past five years. Supporters of the bullish view argue that this stronger recent earnings growth, alongside technology and data projects, points to a business that can keep monetising its core infrastructure.\n     The bullish narrative leans on ongoing upgrades to trading and post trade systems and new data products, which sit behind the A$1.18b of trailing revenue and provide more fee and service lines to earn from. At the same time, earnings are forecast to grow 2.1% per year compared with the market at 12.4%, so the 7.3% recent growth gives bulls a stronger starting point than the longer term 1.2% trend suggests.    If you want to see how bullish investors stitch these earnings and tech upgrades into a bigger story, 🐂 ASX Bull Case Mixed Valuation Versus DCF and Peers  At a share price of A$54.76, ASX trades on a P/E of 20.3x, in line with the Australian Capital Markets industry at 20.3x, below the broader Australian market at 21x and well below the peer average of 44.9x, while the DCF fair value is A$47.02. Analysts’ consensus view is that ASX sits in a middle ground, where peer relative P/E looks reasonable but the share price above the A$47.02 DCF fair value and an analyst price target of A$58.68 give investors a fairly tight range to weigh.\n     Supporters of the stock can point to the modest valuation versus peers and high quality earnings record, while skeptics can point to slower forecast growth, a current margin of 44.4% and an unstable dividend track record. The tension between a P/E that looks restrained versus peers and a share price that sits above modeled cash flow value is central to how investors judge whether A$54.76 already reflects those earnings and margin trends.     Next Steps To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for ASX on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves. See the numbers differently? Take a couple of minutes to put your own spin on this result and frame the story your way: Do it your way. A great starting point for your ASX research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision. Explore Alternatives ASX’s tighter 44.4% margin, modest 1.2% multi year earnings growth and slower forecast growth versus the market raise questions about its risk reward trade off. If those softer trends are making you cautious, use 5 resilient stocks with low risk scores today to quickly identify companies with more resilient profiles that may better match your comfort level.  This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.New: Manage All Your Stock Portfolios in One PlaceWe've created the ultimate portfolio companion for stock investors, and it's free.• Connect an unlimited number of Portfolios and see your total in one currency• Be alerted to new Warning Signs or Risks via email or mobile• Track the Fair Value of your stocksTry a Demo Portfolio for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"}}}