Coles FY26 earnings preview

Coles overview 

Coles (ASX: COL) is one of Australia's two major supermarket operators, running a nationwide network of Coles supermarkets, Liquorland and First Choice liquor outlets, plus a growing e-commerce and retail media business (Coles 360). It competes head-to-head with Woolworths in the everyday essentials market.

When will Coles report its latest earnings?

Coles is scheduled to report its full-year (FY) 2026 results on Wednesday, 26 August 2026.

The backdrop

Coles delivered a mixed but ultimately resilient first half (H1) for FY26. While the underlying business continued to show solid momentum in a highly competitive grocery market, the headline profit number was dragged lower by a large one-off.

Key figures included:

• Group sales revenue of $23.62 billion, up 2.5%
• Supermarkets sales of $21.37 billion, up 3.6% (6.1% adjusted for the prior-year competitor industrial action and excluding tobacco)
• E-commerce sales up 27%, with online penetration reaching 13.1%
• Reported net profit after tax (NPAT) of $511 million, down 11.3% (impacted by a $269 million significant item related to a Federal Court underpayment ruling)
• Underlying NPAT (ex-significant items) of $676 million, up 12.5%
• Underlying earnings before interest and tax (EBIT) of $1.23 billion, up 10.2%
• Interim dividend of 41 cents per share (fully franked), up 10.8%

Liquor remained the soft spot, with sales down 3.2% as cost-of-living pressures and longer-term shifts in alcohol consumption continued to weigh.

Chief executive officer (CEO) Leah Weckert said: 'We have delivered another strong set of results in a highly competitive operating environment, successfully cycling the competitor industrial action disruption in November and December 2024. The momentum in our business has enabled us to continue offering a compelling value proposition to customers, particularly over the festive season.' 

Investors focused more on the headline profit decline and the competitive backdrop than the solid underlying earnings growth. Coles shares sold off sharply on the day, falling as much as 9% at one point before closing 7.35% lower at $20.56.

Coles HY26 chart

Highlights from the most recent update

On 1 May 2026 Coles released its third-quarter sales update, which was received positively by the market. Group sales revenue rose 3.1% to $10.7 billion. Supermarkets comparable sales grew 3.6% (total sales +4.0%), slightly ahead of the February trading update and in line with consensus. E-commerce growth moderated a little to 24.8% (from 27% in the first half) as the business cycled the ramp-up of the Ocado customer fulfilment centres, while online penetration still lifted to 13.6%. Liquor remained the clear soft spot, with comparable sales down 4.3%.

CEO Leah Weckert said: 'We delivered another strong sales result reflecting the strength of our customer offer and disciplined execution against our strategic priorities. Achieving consistent sales momentum for the period over multiple years demonstrates our commitment to remaining focused on long-term outcomes whilst successfully navigating short-term volatility in market conditions and supply chains.'

Q3 2026 sales results  

What to expect from Coles FY26 earnings

The market will be looking for confirmation that the solid supermarket momentum seen through the year has carried into the second half (H2), and whether management can deliver further underlying earnings growth despite persistent cost inflation and soft liquor sales.

Key watchpoints: 

• Underlying EBIT and NPAT growth after stripping out the HY26 significant items 
• Any update on the cost-out / SSI program and automated distribution centre benefits 
• Liquor performance — the decline accelerated in Q3 and is expected to keep weighing on second-half earnings 
• Final dividend and any commentary on capital management 
• Outlook comments on competitive intensity, cost pressures (fuel, freight, packaging) and consumer spending

Early fourth-quarter (Q4) trading was described as tracking broadly in line with Q3 (after adjusting for Easter and Anzac Day), so the focus will be on whether that momentum held through the balance of the year.

Key financial summary expectations

• Sales revenue: ~$45.63 billion (up ~2.9% on FY25’s $44.35 billion)
• EBIT: ~$2.30 billion (up ~8.9% on FY25)
• Underlying NPAT: ~$1.22 billion (up ~13% on FY25)
• EPS: ~92.2 cents (up ~14.5% on FY25)
• Dividend per share: ~77.1 cents (up ~11.7% on FY25’s 69 cents)

Coles underlying net profit

Coles technical analysis

From its October 2023 low of $14.82 to the record high of $24.59 reached in June this year, the Coles share price has advanced roughly 65%. From a technical perspective, the rally has been textbook in nature, carving out a clear sequence of higher highs and higher lows.

More recently, signs of bearish divergence have begun to emerge on the weekly relative strength index (RSI), suggesting the rally has become a little stretched. It is also noticeable that the share price has now recorded three highs in the $24.30 – $24.60 area.

With this in mind, we see a reasonable chance of a pullback towards the $22.18 – $22.00 support zone as part of an ongoing consolidation/corrective phase from the $24.59 high. Aware that a sustained break above resistance at $24.30 – $24.60 would be needed to signal that the correction is complete and the broader uptrend has resumed towards $26.50.

Coles weekly chart 

• _{Source: TradingView. The figures stated are as of 17 August 2026. Past performance is not a reliable indicator of future performance. This report does not contain and is not to be taken as containing any financial product advice or financial product recommendation.}