How did Woolworths (ASX:WOW) perform in the first half of FY26?

Woolworths reported a 16.4% increase in net profit to $859 million, driven by a recovery in its core supermarket operations. Total sales grew 3.4% to $37.14 billion for the half-year period.

Why is there a difference between the $859 million profit and the $374 million statutory NPAT?

The discrepancy is due to a $485 million "significant item" charge related to historical staff underpayment issues. While the underlying business generated $859 million in profit, this legal and remedial cost had to be deducted to reach the final statutory net profit of $374 million.

How does the Woolworths (ASX:WOW) sales growth compare to Coles (ASX:COL)?

Woolworths is successfully narrowing the competitive gap with its primary rival, Coles, after trailing for much of the previous year. The company saw momentum shift in the second quarter, aided by a strong Christmas trading period.

What drove the nearly 10% earnings growth in the Australian Food division?

The Australian Food division, which includes Woolworths' supermarkets and e-commerce, benefited from a strategic focus on "value" and "fresh" product offerings. CEO Amanda Bardwell noted that strong execution during the December holiday period was a major catalyst.

What is the current dividend yield for Woolworths (ASX:WOW) shareholders?

Woolworths declared an interim dividend of 45 cents per share following its H1 FY26 results. At the reporting share price of $34.84, this represents an immediate payout to shareholders and signals management's confidence in the company's cash flow.

Has Woolworths (ASX:WOW) changed its financial guidance for the rest of FY26?

No, the company has maintained its existing full-year guidance despite the one-off hit from underpayment costs. Management cited "stabilising market share" and "strong trading momentum" heading into the second half of the financial year as reasons for sticking to their original targets.

What are the main bull and bear points for Woolworths (ASX:WOW) after this news?

The bull case focuses on the 16.4% underlying profit jump and the successful narrowing of the gap with Coles. The bear case centres on the massive $485 million underpayment hit, which highlights ongoing regulatory and ESG (Environmental, Social, and Governance) risks.

How risky is Woolworths (ASX:WOW) stock following the H1 FY26 report?

As a consumer staple, Woolworths remains a relatively defensive investment, but it faces moderate risk from regulatory scrutiny and cost-of-living pressures on shoppers. The resolution of staff underpayment issues removes some uncertainty, though it came at a high financial price.

Australia's Woolworths H1 FY26 profit soars 16% to $859M

Woolworths H1 FY26 profit soars 16% to $859M

Published Feb. 25 2026Last Updated Feb. 25 2026

Woolworths (ASX:WOW) has signalled a robust recovery in the first half of FY26, posting a 16.4% jump in net profit to $859 million as it narrows the competitive gap with rival Coles (ASX:COL).

Despite a heavy $485 million hit related to historical staff underpayment issues—which pulled statutory net profit down to $374 million—the retail giant saw total sales climb 3.4% to $37.14 billion.

CEO Amanda Bardwell credited the turnaround to a strategic focus on "value and fresh offer" and a powerhouse Christmas trading period, particularly within the Australian Food division, where earnings rose nearly 10%.

With market share stabilising and momentum building into the second half, the group has maintained its full-year guidance and declared an interim dividend of 45 cents per share.

At the time of reporting, Woolworths' share price was $34.84.