Wesfarmers’ operating outlook looks resilient but uneven: Bunnings and Kmart delivered stronger FY2026 earnings, while Officeworks earnings fell and lithium projects still need to execute. Early FY2027 sales trends were positive across the retail businesses, but they cover only seven weeks and do not establish a full-year result. Whether Wesfarmers shares are attractive depends on the price paid; the company’s results do not, by themselves, establish fair value or a share-price forecast.
What Wesfarmers’ FY2026 results say about earnings
In its full-year results released on 27 August 2026, Wesfarmers reported revenue of A$47,274 million, up 3.4% from FY2025. Earnings before interest and tax (EBIT), excluding significant items, rose 7.3% to A$4,493 million, and net profit after tax (NPAT), excluding significant items, rose 8.3% to A$2,874 million. There were no significant items in FY2026.
![[Brandon Turner]-The Book on Rental Property Investing- How to Create Wealth and Passive Income Through Intelligent Buy & Hold Real Estate Investing! (SoftCover)](https://m.media-amazon.com/images/I/51mMR6cQZCL._SL160_.jpg)
Statutory NPAT was also A$2,874 million, but fell 1.8% year on year. That comparison reflects significant items in FY2025, rather than a different FY2026 profit figure. For judging operating momentum, the growth in earnings excluding significant items is the more informative comparison; statutory results still matter because they show reported profit under the accounting treatment for each year. (Wesfarmers Limited, 2026 Full-year results, 27 August 2026.)
Retail performance was strong in some businesses and weaker in another
The FY2026 retail results were not uniform. Bunnings and Kmart Group both grew revenue and earnings, while Officeworks increased revenue but reported lower earnings.
#1 Best Overall
| Business | FY2026 revenue | Revenue change | FY2026 earnings | Earnings change |
|---|---|---|---|---|
| Bunnings | A$20,399 million | Up 4.1% | A$2,455 million | Up 5.1% |
| Kmart Group | A$11,751 million | Up 2.8% | A$1,109 million | Up 6.0% |
| Officeworks | A$3,698 million | Up 3.7% | A$165 million | Down 22.2% |
Wesfarmers attributed Officeworks’ earnings decline in part to one-off transformation costs. Even with that context, the gap between its sales growth and earnings decline is a reminder that revenue growth alone does not guarantee profit growth. Bunnings and Kmart’s earnings increases provide support for the group’s operating result, but the divisions face different customer demand and cost conditions. (Wesfarmers Limited, 2026 Full-year results, 27 August 2026.)
Household pressure and business costs remain important risks
Wesfarmers Managing Director Rob Scott described consumer demand as resilient, while saying cost-of-living pressure continued to affect households. In the 27 August 2026 results announcement, he also pointed to uncertainty around inflation, house prices, interest rates and tax settings as factors weighing on consumer sentiment. His comments are management’s assessment, not an independent economic forecast.
The company expected elevated labour, energy and supply-chain costs to persist into FY2027. For investors, the relevant question is whether sales growth and productivity improvements can offset those pressures without undermining value for customers. Wesfarmers said its retail businesses would focus on value, customer experience, omnichannel services, digital commerce, marketplaces and productivity initiatives. Those are management priorities, not evidence that cost pressure has already been resolved.
What the first seven weeks of FY2027 indicate—and what they do not
Wesfarmers’ 27 August update described early trading as positive, but mixed by division. It is a short-period indicator, not a full-year growth forecast.
The Tool Desk
Outbyte PC Repair FREEClear out junk files and repair common Windows errorsFree Scan →Outbyte Driver Updater FREEFix the driver behind crashes, sound loss and screen glitchesFind Drivers →| Business | First seven weeks of FY2027, compared with FY2026 second-half sales growth | Important qualification |
|---|---|---|
| Bunnings | Slightly stronger | Unseasonably dry July weather assisted the early comparison. |
| Kmart Group | In line | The update describes the early trend, not a full-year result. |
| Officeworks | Positive, but slightly slower | The update describes the early trend, not a full-year result. |
These comparisons use the second half of FY2026 as their reference point. They do not show how sales will develop through the rest of FY2027, or whether sales gains will translate into higher earnings after costs.
Lithium could add growth, but the ramp-up remains an execution test
Wesfarmers’ lithium exposure offers a potential source of growth beyond retail, but the outlook depends on operational progress. Management expected production rates at Covalent Lithium to accelerate through the second half of FY2027 as odour mitigation progressed and product qualification continued. That expectation is guidance, not a reported production outcome.
At Mt Holland, the company expected spodumene production of approximately 380 kilotonnes at nameplate capacity, with Wesfarmers’ share through Wesfarmers Chemicals, Energy & Fertilisers (WesCEF) approximately 190 kilotonnes. Around half of that output was expected to be sold to market. Investors should distinguish expected nameplate capacity from actual output and sales: reaching the target depends on project execution and operating conditions. (Wesfarmers Limited, 2026 Full-year results, 27 August 2026.)
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Capital spending, borrowing costs and dividends affect the return picture
Wesfarmers forecast FY2027 net capital expenditure of A$1.3–1.5 billion, including approximately A$200 million for the Mt Holland mine and concentrator expansion. Management also expected borrowing costs to be higher because of higher net debt, capital expenditure and cost of funds. Investment may support future operations, but it also uses cash and can increase financing costs while projects are being developed.
Do these 3 things before closing this tab:
1Scan for outdated or missing drivers - takes under a minute2Repair Windows errors before they cause bigger problems3Fix the driver behind crashes, sound loss and screen glitchesBest Value
The FY2026 ordinary dividend was A$2.22 per share, fully franked, up 7.8% from FY2025. It is distinct from the A$1.50 per-share capital-management distribution paid in December 2025; that distribution should not be treated as a recurring ordinary dividend. The FY2026 dividend is a historical payment, not a promise about future income. For a shareholder’s total return, dividend income and any capital gain or loss both matter, as does the purchase price.
Does this make Wesfarmers shares attractive?
The operating evidence supports a comparatively resilient business outlook, but it cannot settle the valuation question. The official company materials and announcement indexes reviewed through 30 September 2026 do not establish a current fair-value estimate, independent analyst consensus or reliable price target. No buy-or-sell conclusion follows from earnings growth alone.
To assess the shares at a particular date, an investor would need dated share-price information and a valuation method built on explicit assumptions about future earnings, cash flows, capital spending, debt and the share count. Without that work, it is more accurate to separate the business outlook from the share outlook: the former is supported by FY2026 growth and early positive trading; the latter remains dependent on valuation as well as future execution and consumer conditions.
The FY2026 figures and FY2027 expectations above come from Wesfarmers Limited’s 2026 Full-year results, released 27 August 2026. Its 2026 Half-year results, released 19 February 2026, are interim context and are superseded for the latest company outlook by the August full-year announcement. This is general information, not individualized investment advice.
Windows Errors? Fix Them Before They Spread
Repair common Windows errors and clear accumulated junk for a smoother, more stable PC - no reinstall needed.Free scan · no reinstallCrashes, No Sound, or Screen Glitches?
Random freezes, missing sound and display glitches usually trace back to one bad driver. Find and replace yours safely.Free scan · under a minuteQuick Recap
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
