ASX Limited (ASX: ASX) Revenue Jumps as Costs Weigh on Profit

ASX Limited reported stronger underlying earnings for fiscal 2026 as volatile markets lifted trading, clearing and data revenue. However, higher technology spending and significant items pushed statutory profit lower.

Operating revenue increased 13.3% to $1.25 billion, with all four business units delivering growth. Underlying net profit after tax rose 5.2% to $536.4 million.

ASX operates Australia’s main securities exchange and critical clearing and settlement infrastructure. Its revenue is influenced by trading volumes, listings activity, post-trade demand and data subscriptions. Elevated market volatility supported activity during FY26. Yet the results also show the cost of modernising ageing infrastructure and responding to regulatory scrutiny.

Revenue Growth Outpaces Underlying Earnings

Statutory net profit after tax fell 3.5% to $484.9 million. The decline reflected $51.5 million of significant items after tax.

Those items included penalties and legal costs from settling ASIC proceedings. They also covered CHESS Replacement Partnership Program payments and the loss on ASX’s Sympli stake sale.

Total expenses climbed 21.1% to $557.4 million. Operating expenses rose 18.9%, while depreciation and amortisation increased 40.1% as technology projects entered operation.

EBITDA advanced 10% to $765 million, while net interest income declined 15.7% to $73.2 million. Underlying return on equity increased 10 basis points to 13.7%.

Dividend Falls Across the Full Year

ASX declared a fully franked final dividend of 104.7 cents per share. That was 2.8% above the first-half distribution.

However, the total FY26 dividend fell 7.5% to 206.5 cents per share. The annual payout represented 75% of underlying net profit after tax.

A dividend reinvestment plan will offer shares at a 2.5% discount. Pricing will use a nine-day volume-weighted average price period beginning August 26.

Trading Activity Drives Every Division

Markets revenue rose 18.6% to $414.1 million. Futures and over-the-counter revenue increased 18.4%, supported by a 14.4% rise in futures and options volumes.

Cash market trading revenue jumped 24.2% as on-market traded value increased 22.5%. Securities and Payments revenue rose 19.4% to $327.7 million, led by stronger clearing and settlement activity.

Technology and Data revenue gained 8% to $297.6 million. Listings revenue increased 3.5% to $215.2 million.

ASX recorded 100 new listings, up 45% and its strongest result since FY22. New listings added $32.6 billion in quoted market capitalisation.

Spending Remains Elevated

ASX delivered CHESS Release 1 and TradeAccept during the year. It also began modernising the ASX Trade cash-market platform.

Interim CEO Darren Yip said: “Our elevated expense profile reflects the investment needed to deliver a more resilient ASX that will support our customers and shape tomorrow’s markets.”

ASX reaffirmed FY27 total expense growth guidance of 18% to 21%. Operating expense growth, excluding depreciation and amortisation, is expected between 13% and 16%.

FY27 capital expenditure remains forecast at $180 million to $200 million. FY28 capital expenditure guidance remains $170 million to $190 million, mainly reflecting continued technology modernisation.