Highlights

• ASX Limited reported FY26 operating revenue of AU$1.254 billion, up 13.3% year over year, while underlying net profit after tax increased 5.2% to AU$536.4 million.
• Revenue increased across all four major business units, led by Securities & Payments, up 19.4%, and Markets, up 18.6%, supported by stronger trading and post-trade activity.
• ASX declared a 104.7-cent fully franked final dividend, taking the total FY26 dividend to 206.5 cents per share, while reaffirming FY27 expense and capital expenditure guidance.

Strong FY26 Revenue Growth Attracts Investor AttentionASX Limited (ASX: ASX) attracted strong buying interest following the release of its FY26 financial results, as investors appeared to focus on robust revenue growth, improved underlying earnings and increased activity across Australian capital markets.At the time of writing, ASX shares were trading at AU$59.640, surging 7.44%. The positive market reaction appears to reflect the strength of the exchange operator's core businesses despite elevated technology expenditure, regulatory scrutiny and transformation-related costs.For the year ended 30 June 2026, ASX generated operating revenue of AU$1.254 billion, compared with AU$1.107 billion in FY25, representing growth of 13.3%. EBITDA increased 10.0% to AU$765.0 million, while EBIT advanced 7.8% to AU$697.2 million.Underlying Earnings Rise Despite Elevated ExpensesUnderlying NPAT increased 5.2% to AU$536.4 million, compared with AU$510.0 million in FY25. However, statutory NPAT declined 3.5% to AU$484.9 million, reflecting the impact of significant items totalling AU$51.5 million after tax.The AU$51.5 million in significant items reflected costs linked to the resolution of ASIC proceedings, payments made under the CHESS Replacement Partnership Program, and the financial impact from disposing of ASX’s stake in Sympli.Meanwhile, total expenses increased 21.1% to AU$557.4 million. Higher costs were associated with the Accelerate program, additional technology capabilities, increased depreciation and amortisation as technology projects became operational, and one-off ASIC Inquiry expenses.Markets and Securities Businesses Drive GrowthASX recorded revenue growth across all four of its major business units, demonstrating broad-based momentum.The Markets division generated revenue of AU$414.1 million, representing growth of 18.6%. Futures and OTC revenue rose 18.4%, benefiting from stronger market activity as combined futures and options-on-futures volumes expanded 14.4% during FY26. Cash market trading revenue climbed 24.2%, while total ASX on-market traded value increased 22.5%.Securities & Payments revenue rose 19.4% to AU$327.7 million. Cash market clearing revenue increased 25.4%, cash market settlement revenue advanced 23.1%, and Austraclear revenue increased 15.8%.The strong performance indicates that heightened market activity and volatility translated into increased demand across ASX's trading, clearing and settlement infrastructure.Technology & Data Adds DiversificationASX's Technology & Data division generated revenue of AU$297.6 million, an increase of 8.0% from AU$275.6 million in FY25.Information Services revenue increased 9.0% to AU$186.7 million, supported by strong demand for real-time equities and derivatives data. Technical Services revenue advanced 6.3% to AU$110.9 million, reflecting increased demand for core Australian Liquidity Centre infrastructure services and ASX applications.Continued expansion in data and infrastructure services provides ASX with additional revenue diversification alongside its more transaction-sensitive operations.Listings Activity Reaches Strongest Level Since FY22Capital-market activity showed notable improvement during FY26, with ASX recording its strongest listings year since FY22.A total of 100 new entities were listed, representing an increase of 45% over FY25. Total new capital quoted reached AU$91.0 billion, while new listings contributed AU$32.6 billion in quoted market capitalisation. Net new capital quoted stood at AU$37.1 billion.ASX also added a record 72 new listed ETFs during FY26. Listings revenue increased 3.5% to AU$215.2 million, with annual listing fees rising 4.4% and secondary raisings fees increasing 3.9%.CHESS Release 1 Strengthens Technology InfrastructureThe successful delivery of CHESS Release 1 represented an important operational milestone during FY26.The project strengthened ASX's clearing infrastructure while establishing foundational cloud, data and integration capabilities intended to support future technology upgrades and broader platform modernisation.ASX also delivered TradeAccept in June, enabling participants to report and confirm off-market derivatives trades, while commencing the process of modernising the ASX Trade cash-market trading platform.Fully Franked Final Dividend Reinforces Shareholder ReturnsASX declared a 104.7-cent-per-share fully franked final dividend, with the distribution equivalent to 75% of the company’s underlying NPAT.The final distribution takes the total FY26 dividend to 206.5 cents per share, although this represents a 7.5% decline from FY25.For the final payout, ASX will offer a dividend reinvestment plan at a 2.5% discount, with the issue price determined using the nine-day VWAP period beginning 26 August 2026.Underlying return on equity also improved slightly to 13.7% from 13.6% in FY25.FY27 Spending Remains a Key Factor to MonitorASX reaffirmed its FY27 expense and capital expenditure guidance, signalling that substantial investment in technology modernisation will continue.Total expenses are expected to increase 18%–21% in FY27, while operating expenses excluding depreciation and amortisation are expected to rise 13%–16%. Management attributed the anticipated increase primarily to technology modernisation; the reset Accelerate Program and investment supporting customer-driven growth.FY27 capital expenditure is expected to range between AU$180 million and AU$200 million, followed by AU$170 million–AU$190 million in FY28.OutlookASX's FY26 performance provides several potential explanations for the 7.44% surge in its share price to AU$59.640. Double-digit revenue growth, higher underlying earnings, strong transaction volumes, improving listings activity and continued shareholder distributions collectively strengthened the operating picture.Market conditions also remained favourable for transaction-driven revenue. During the second half of FY26, ASX recorded its highest-ever month for futures trading volumes and its second-largest equities trading day by number of executed trades. Importantly, its core systems performed strongly during these periods of elevated activity.Management also indicated that its new-listings pipeline is the strongest in several years, while ongoing market volatility and increasing auction activity continue to support trading volumes.Nevertheless, elevated expenditure, execution of technology-modernisation initiatives and regulatory considerations remain important factors to monitor. ASX enters FY27 with stronger revenue momentum, but the sustainability of earnings growth will depend partly on maintaining capital-market activity while effectively managing its sizeable technology investment program.Note- All data presented is based on information available at the time of writing.Disclaimer for Kapitales ResearchThe materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), are intended for personal, non-commercial use only. 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