Australian Corporate Earnings Outlook Positive

Australian Corporate Earnings Outlook Positive

Ausbil Investment Management is positive on the outlook for Australian corporate earnings growth. It expects a return to earnings growth in FY26 and FY27 after declines in each of the past three fiscal years due to a range of challenges.

For FY27, Ausbil says "we are again forecasting earnings to be ahead of the market, driven by resources, a recovery in financials and strong growth in the industrials sector." The upbeat earnings outlook is underpinned by strength in metals and critical minerals, Australian tech companies monetizing AI, and domestic productivity and inflation challenges favoring global earnings streams over local.

"With the volatility and uncertainty in markets, an active approach to equities makes sense, particularly in seeking earnings and earnings growth, and avoiding surprises," Ausbil says.