ASX closes higher; Megaport leads second day of tech resurgence
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The news: The Australian sharemarket closed higher as the tech sector surged for a second day after investor confidence in the resilience of corporate profit margins in the AI age was bolstered on Wednesday.
The benchmark ASX index added 0.51% to end at 9,175.3, with seven of 11 sectoral indices in positive territory.
The tech sector (+5.2%) was the best performer Megaport (+12.6%) was the biggest gainer on the ASX 200. WiseTech (+2.6%), Xero (+8.6%), Technology One (+6.4%) and NextDC (+2.4%) also finished higher.
Biggest movers:
- Worley (-10.2%) — Reported a 30% drop in first-half statutory profit to $152 million.
- Qantas (-9.2%) — Beat market estimates for first-half profit before tax but issued softer-than-expected revenue guidance for FY26. CEO Vanessa Hudson doubled down on plans to deliver an 8,500-strong workforce expansion by 2030.
Other earnings:
- Ramsay Health Care (+10.4%) — Delivered half-year net profit after tax of $160.7 million, driven by performance improvements in the Australian business, after reporting a net loss of $104.9 million the prior corresponding period.
- Super Retail Group (+8.4%) — Reported a 19.8% drop in half-year statutory net profit to $104 million compared to a year ago. It cited higher costs of business and additional costs related to a new Victorian distribution centre and payroll systems.
- Perpetual (+8.3%) — Reported a surge in NPAT for the first half of FY26 due to lower transaction and integration costs. Posted a 349% rise in NPAT to $53.9 million and noted the half did not have any impairment losses.
- IDP Education (+7.6%) — Reported a 25% drop in interim net profit after tax to $48.6 million and a 5% decrease in total revenue to $462.2 million.
- Cleanaway Waste Management (+7.5%) — Reported a 17.8% jump in interim net profit after tax to $109.7 million, from $93.1 million the prior corresponding period.
- Atlas Arteria (+1.7%) — Posted a 39.4% drop in statutory net profit after tax to $181.8 million for the year ended 31 December 2025, driven by the Temporary Supplemental Tax in France.
- Sigma Healthcare (-1.7%) — Delivered a 19.2% year-on-year increase in normalised first-half NPAT to $392 million as the business continued rolling out new stores.
Deal news:
- DroneShield (+8.9%) — Has received a package of six standalone contracts for $21.7 million for delivery to an unnamed “western military end-customer”.
- Elders (+2.8%) — Agreed to sell its NSW-based beef production facility Killara Feedlot to Australian Meat Group for $195.8 million.
- Star Entertainment (0%) — Reached an agreement for a non-binding term sheet with US private credit investment manager WhiteHawk Capital Partners for the proposed refinancing of its debt.
- Corporate Travel Management (suspended) — Reported revenue of $348.5 million for the six months to December, up from $342.8 million in the prior reporting period. However, financial statements dating back to FY23 are currently being reviewed.
What’s ahead:
- TPG Telecom, Coles, Star Entertainment, PEXA, Block and Macquarie Technology Group are among the companies reporting earnings on Friday.
- The US Department of Labor will release weekly unemployment claims data on Friday at 12:30am AEDT.
