(AI video summary)

This video was created on 6 February 2026 for IG audiences by ausbiz.

ASX code: REA

REA Group's financial performance and market reaction

REA Group reported a 24% decrease in its half-year net profit to $336 million, primarily due to a prior gain on the sale of its investment in a property group. Despite fewer listings, profit from core activities increased by 9% to $341 million, supported by stronger yields in the residential sector. The company also announced an increase in its fully franked interim dividend to $1.14 per share and initiated an on-market share buyback of $200 million.

Following the earnings report, REA Group's share price declined nearly 9% and is now near two-year lows. RBC Capital noted that the results missed consensus expectations, projecting a 1% to 3% decline in new listings for fiscal year (FY) 2026. Analysts highlight that the company faces easily comparable periods in the upcoming financial outlook, suggesting potential growth in listing volume by 2027. Enhanced yield expectations are viewed positively, supporting double-digit growth for the next FY.

Assessing AI impact 

There is much speculation about the potential impact of artificial intelligence (AI) on REA Group's business model. REA Group's stronghold on Australian real estate listings provides a unique advantage against larger aggregators. The company plans to leverage AI tools to enhance efficiency and improve yield growth.

Investment outlook

REA Group remains a high-quality stock with a solid market position, benefiting from one of the best data sets in the industry. While mindful of potential long-term risks, analysts maintain confidence in the stock’s value proposition.