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Stock of the day
Tabcorp Holdings
Tabcorp experiences a significant stock increase as investors respond to its strategic turnaround, despite volatile profits and new capital expenditure guidance.
(AI video summary)
This video was created on 25 February 2026 for IG audiences by ausbiz.
ASX code: TAH
Tabcorp shows strong stock performance amid challenges
Tabcorp Holdings Limited surged as one of today's top performers, with shares rising 17% by noon in Sydney. Despite an unfranked interim dividend of 1.5 cents per share, Tabcorp stated it is unlikely to frank dividends soon. First-half revenue increased by 1% to $1.3 billion, while profit fell 14.2% to $21.7 million. The company projects capital expenditure (capex) for financial year (FY) 2026 to be between $120 million and $140 million.
Turnaround strategy under new leadership
Tabcorp's performance is credited to strategic changes under new leadership, including restructuring and cost-cutting aimed at growth. Analysts note that although Tabcorp is not currently in their portfolios, the turnaround presents a high-risk, high-reward scenario.
Investment outlook
Analysts highlight Tabcorp's profit volatility, with swings from $40 million losses to $6.8 billion profits. As a result, some prefer stable options like Jumbo Interactive, noted for its software focus, higher returns, no debt, and a lower price-to-earnings (P/E) ratio compared to Tabcorp's approximate 55.
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