CBA delivers, and the market noticed

Hey Superheroes,

February reporting season is in full swing and the results are coming in hot and heavy.

This week alone, we saw CBA and CSL report on Wednesday, with Macquarie Group (ASX:MQG) dropping numbers on Tuesday. Next week ramps up even further with BHP reporting on Tuesday, Zip Co (ASX:ZIP), Wesfarmers (ASX:WES) and Telstra Group (ASX:TLS) on Thursday, and QBE Insurance (ASX:QBE) closing out the week on Friday.

Markets are reacting swiftly to earnings beats and misses, and this reporting season is already proving to be one of the most volatile in recent memory.

In February 2020 CSL overtook CBA as the Top Stock on the Australian sharemarket. 6 years on let’s see how they are both doing this week.

CBA delivers a blinder as profits soar 

Commonwealth Bank (ASX:CBA) outpaced expectations on Wednesday, sending shares rocketing as much as 8% after the bank posted a AU$5.4 billion first-half profit.

In a market worried about competition and margin pressure, CBA showed it can still hold its ground.

💰 The numbers looked strong 

Cash net profit after tax came in at AU$5.45 billion, up 6% year-on-year. Revenue lifted, fewer customers fell behind on loan repayments and the bank pointed to improving economic conditions, including stronger consumer spending and ongoing investment in AI and the energy transition.

Shareholders were rewarded with a fully franked interim dividend of AU$2.35 per share, up 4% from last year.

Investors had been watching closely as competitors like Macquarie expanded in retail banking. But CBA held its home loan market share above 25%, grew its share of household deposits to 26.6% and increased its presence in business banking.

🏦 What drove the rally 

One key focus was CBA’s net interest margin — the gap between what it pays to fund loans and what it earns from customers.

The bank reported a margin of 2.04% compared with the June half, and said margins were flat on an underlying basis. In other words, stable.

Investors appeared relieved. Strong earnings growth, resilient margins and low bad debts helped fuel the rally.

The surge pushed CBA back into the top spot as Australia’s largest listed company, reclaiming the crown from BHP just two weeks after losing it. By the close on Wednesday, CBA’s market value sat at AU$283.8 billion, ahead of BHP’s AU$259.4 billion.

CSL hits 8-year low following earnings miss

While CBA rallied, CSL (ASX:CSL) headed the other way.

Shares plunged 17% this week to an 8-year low of AU$150 after the biotech giant announced weak earnings and the sudden departure of CEO Paul McKenzie.

The stock is now trading at levels not seen since February 2018. That caps off a tough stretch, with CSL sliding from nearly AU$280 in August 2025 to around AU$150.

📉 The numbers fell short

Net profit after tax dropped 81% to AU$401 million for the six months to December, weighed down by around AU$1.1 billion in one-off restructuring costs and asset impairments.

Revenue slipped 4% to $8.3 billion, missing consensus estimates of AU$8.51 billion.

On an underlying basis, NPATA fell 7% to AU$1.95 billion, below expectations of AU$2.05 billion. The interim dividend was held flat at 130 cents per share, also slightly under forecasts.

CSL said government policy changes had created headwinds. It flagged that its Seqirus flu vaccine division expects a softer second half due to normal seasonality, while Vifor will feel pressure from generic competition in iron products.

Despite the weak first half, CSL reaffirmed its FY26 guidance, including NPATA growth of 4–7% and revenue growth of 2–3%.

🚪 CEO departure adds to the market’s uncertainty

Adding to the market reaction was the announcement that CEO Paul McKenzie would step down.

Long-serving executive Gordon Naylor, who has been with CSL for 33 years, was appointed interim CEO while the board searches for a permanent replacement.

The timing raised eyebrows. The announcement landed at 4:05pm, just minutes before the market closed. Shares were up around 2% at the close but quickly swung lower in after-hours trade as investors digested the news.

In markets, trust and communication matter. Sudden leadership changes can amplify uncertainty, especially when performance is already under pressure.

💊 Testing investor confidence in its blue-chip resilience

CSL has long been considered one of the market’s blue-chip names. But recent challenges have tested that reputation.

Some analysts have noted the lower entry point, while others remain cautious due to structural risks. As always, sharp moves can cut both ways. For now, investors are weighing whether this is a reset moment — or a sign of deeper challenges ahead.

🔦 Some other things we’re shining the Spotlight on: 

TEMPLE & WEBSTER TUMBLES: Temple & Webster (ASX:TPW) shares sank 25% on Thursday after profits fell 36% to $5.8 million. Revenue rose 20% to AU$376 million and customers grew 14%, but heavy discounting squeezed margins. Investors weren’t impressed. CEO Mark Coulter is sticking to the plan, prioritising market share over short-term profit. Shares have slid from above AU$20 in November to around AU$8.

ANTHROPIC DOWN UNDER: AI player Anthropic is setting up shop locally, registering Anthropic Australia and hiring to build out sales, partnerships and applied AI teams. Its Claude model is already used by Commonwealth Bank (ASX:CBA) and approved for non-corporate federal government agencies. The move comes as Anthropic’s revenue run-rate surges toward US$5 billion, with more than 300,000 enterprise customers globally. 

ASX PROFIT UP, COSTS CLIMB: ASX Ltd (ASX:ASX) lifted first-half net profit 8.3% to $264.6 million, beating expectations. But operating expenses jumped 20% as the exchange deals with the fallout from a regulator probe and ongoing transformation work. CEO Helen Lofthouse (who also resigned this week) confirmed dividends will be trimmed to help fund a AU$150 million capital requirement tied to those plans. 

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