a2 Milk surges as H1 FY26 results spark upgrade

The a2 Milk Company (ASX:A2M) delivered a commanding performance for the first half of FY26, reporting double-digit growth across its primary metrics and subsequently raising its full-year outlook.

Revenue went up 18.8% to NZ$993.5 million, underpinned by aggressive expansion in the infant milk formula sector and a breakthrough 29% revenue jump in the US market.

The company’s "English label" IMF products saw a notable 20.9% growth, bolstered by the a2 Genesis line, while its China label reached record market share despite a challenging demographic landscape.

The operational momentum translated into significant bottom-line gains; EBITDA rose 18.4% to NZ$155 million, while underlying net profit after tax climbed nearly 20% to NZ$112.1 million.

The completion of the a2 Pokeno acquisition and a new long-term supply agreement with Fonterra are central to building a more profitable, lower-risk "end-to-end" business model.

These strategic shifts, combined with a 42.9% growth in the "other nutritionals" segment, have given management the confidence to upgrade FY26 revenue guidance from low double-digits to the mid-double-digits.

Investors are also set to benefit directly from this surge, with the board declaring an interim dividend of 11.5 New Zealand cents per share.