Woolworths Group posted solid full-year results for FY26, driven by strong Australian Food sales and complementary businesses, alongside a 15.6% increase in the fully franked final dividend.
- 3.6% revenue growth to $71.5 billion
- 15.4% profit increase before significant items
- Final dividend raised to 52 cents per share
- BIG W returns to profitability
- Sustainability progress with 100% renewable electricity
Solid Sales and Profit Momentum Across All Segments
Woolworths Group Limited (ASX:WOW) reported a 3.6% increase in revenue to $71.5 billion for the year ended 28 June 2026, underpinned by solid growth in its Australian Food business and contributions from complementary segments. Earnings before interest and tax (EBIT) before significant items rose 12.7% to $3.1 billion, reflecting improved operational execution and cost discipline across the Group.
Australian Food sales grew 4.6% to $53.9 billion, with the second half accelerating to 5.7% growth. EBIT increased 8.5% to $2.95 billion, boosted by investments in value, fresh produce, and convenience offerings, as well as productivity gains and cycling of prior year industrial action impacts. Excluding industrial action and supply chain implementation costs, EBIT growth was a still-respectable 4.8%.
Complementary businesses & services contributed strongly, with BIG W returning to profitability with $64 million EBIT after previous losses, driven by improved range and execution, and Petstock posting 12.3% sales growth and a 33.5% EBIT increase. Australian B2B sales rose 4.2%, supported by PFD Food Services and export meat sales, with EBIT up 13.0%.
Digital and eCommerce Growth Accelerates
Group eCommerce sales jumped 15.9% to $10.6 billion, with penetration reaching 15.9% in Q4, up 170 basis points on the prior year. On Demand delivery continues to be a standout, with nearly half of online orders delivered within two hours. The expansion of Direct to Boot services to 785 stores and partnerships with DoorDash have further enhanced convenience.
Everyday Rewards loyalty membership grew 3.4% to a record 10.8 million active members, with increased engagement driven by new campaigns and partners including ANZ and American Express. Retail media business Cartology saw revenue growth of 7.8%, supported by new in-store digital screens and self-service advertising platforms.
Sustainability and Supply Chain Investments
Woolworths Group achieved a key milestone of sourcing 100% renewable electricity across its Australian and New Zealand operations as of December 2025, contributing to a 45% reduction in Scope 1 and 2 emissions from 2023 levels. The Group’s ambitious 2030 emissions targets remain on track, supported by investments in low-emission refrigeration and electrification of its home delivery fleet, which now includes 178 electric vehicles.
Significant supply chain investments continue, including the opening of the Moorebank Regional Distribution Centre in November 2025, which services over 300 stores with state-of-the-art automation. This facility is ramping up ahead of plan and is expected to unlock further efficiencies and support future growth.
Legal Provisions and Dividend Increase
The Group has recognised a $710 million provision related to historical underpayments to salaried store team leaders following a Federal Court decision in September 2025, with an additional $20 million interest accrual recognised in H2. The Board has declared a fully franked final dividend of 52 cents per share, up 15.6% on the prior year, bringing the total dividend for FY26 to 97 cents per share, reflecting the improved earnings performance.
Net debt excluding leases decreased to $3.75 billion, with leverage at 2.5 times EBITDA before significant items, supported by strong cash flow generation and disciplined capital management. The Group maintains solid investment-grade credit ratings from both S&P and Moody’s.
Outlook and Strategic Focus for FY27
Trading in the first eight weeks of FY27 shows continued momentum in Australian Food with 7.6% sales growth, aided by the Disney Ooshies collectibles campaign. New Zealand Food sales rose 4.2% in local currency, while BIG W sales declined modestly amid ongoing cost-of-living pressures.
CEO Amanda Bardwell emphasised the Group’s commitment to maintaining value for customers amid inflationary pressures and wage growth, while leveraging technology and productivity to reinvest in the business. The Group expects subdued trading conditions in New Zealand and ongoing challenges for BIG W but aims to build on progress through targeted investments and improved customer experiences.
Woolworths Group continues to focus on its medium-term strategic priorities: becoming the first choice for the freshest Australian food, improving returns in New Zealand Food and BIG W, and growing complementary businesses and services. The Board and management remain confident in the Group’s potential to deliver long-term sustainable growth and shareholder value.
Bottom Line?
Woolworths Group’s FY26 results demonstrate solid operational recovery and strategic progress, but legal provisions and market challenges underscore the need for continued execution and efficiency.
Questions in the middle?
- How will Woolworths manage ongoing legal and regulatory risks related to payroll remediation?
- Can the Group sustain sales momentum in Australian Food amid inflation and wage pressures?
- What impact will evolving consumer behaviours and AI-driven digital tools have on Woolworths’ competitive position?