Zip soars and eyes U.S.

Hey Superheroes,

New Zealand clocked its sixth rate cut in 12 months this week slashing the cash rate to 3% – a fresh three-year low. It’s the first major central bank to blink, moving decisively as weak demand, rising joblessness and slowing growth pile on the pressure.

Back home, earnings season is in full swing with some standout wins – and brutal misses. From Zip’s breakout profit to CSL’s restructure and GYG’s growing pains, the reporting season is throwing up plenty for investors to chew on.

Let’s dive into the week’s biggest stories.

Zip flips to profit and eyes the Nasdaq

BNPL is back and Zip’s flying high.

Zip Co surged more than 25% this week after reporting a record-breaking full-year result and revealing it’s considering a dual-listing on the Nasdaq. The company posted a net profit of A$79.9 million, well ahead of consensus estimates and a dramatic turnaround from last year’s A$3.7 million result.

🔁 From red ink to runway

Revenue jumped 23% year-on-year to A$1.08 billion, while cash EBTDA soared 147% to A$170.3 million. The U.S. remains its growth engine, contributing over 80% of divisional earnings, with transaction volumes there up 43.9%. Zip’s active customer base now sits at 6.3 million globally and it’s signed more than 85,000 merchants.

Analysts flagged Zip’s FY26 guidance may be conservative. Its forecast 1.3% cash EBTDA margin already trails Q4’s 1.6% margin.

🇺🇸 Gunning for Wall Street

Zip is now exploring a Nasdaq listing to tap into offshore capital and gain deeper access to US institutional investors who already hold 16% of Zip’s shares. The move would cement its shift from regional BNPL player to global fintech contender.

With strong margins, core growth verticals (like grocery, health and education), and fresh US-facing partnerships (e.g. Google Pay), Zip is showing that profitability and scale aren’t mutually exclusive.

CSL’s Behring disappoints and restructure begins

CSL’s stock is under pressure and not just from earnings.

Shares in biotech giant CSL dropped 10.2% this week, leading losses on the ASX 200 after the company unveiled a mixed full-year result and major structural changes.

🧪 Soft plasma performance drags the group

CSL posted a 17% rise in statutory net profit to US$3 billion (A$4.6 billion) beating expectations. However CSL Behring – its key plasma therapy division – missed revenue and margin forecasts, dragging down sentiment.

Revenue rose 5% to US$15.6 billion, but underlying profit guidance for FY26 fell short of consensus expectations. Analysts called the result a “messy mix” of top-line growth, margin compression, and forward uncertainty.

🧬 Strategic shake-up

To simplify operations and reduce costs, CSL announced plans to cut 15% of its global workforce and spin off its flu vaccine business, Seqirus, into a separate ASX-listed company by the end of FY26. The demerger aims to give Seqirus more strategic autonomy and reduce complexity within the group.

CSL also flagged up to US$620 million in one-off restructuring costs with expected cost savings of up to US$550 million annually by FY27.

While CSL remains one of the most defensive names on the ASX, this week’s update reminds investors that even giants aren’t immune to operational headwinds. Whether these bold moves reignite confidence – or add to the volatility – remains to be seen.

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

META SIGNS MEGA CLOUD DEAL: Meta has inked a six-year, US$10 billion+ cloud services deal with Google Cloud. The partnership will support Meta’s AI infrastructure buildout including its massive new data centres. It follows CEO Mark Zuckerberg’s pledge to ramp up AI spend with 2025 capex forecast now hitting up to US$72 billion.

GYG FEELS THE HEAT: Guzman y Gomez plunged 21% today after it warned U.S. expansion losses will deepen in FY26. While FY25 profit beat expectations, slower Aussie sales and margin concerns spooked investors, especially given its lofty IPO valuation just one year ago.

NOVO’S DOUBLE WIN: Novo Nordisk shares jumped 5% after slashing Ozempic’s U.S. out-of-pocket cost to US$499/month and securing FDA approval for Wegovy’s expanded use. The approval targets liver fibrosis adding fuel to Novo’s dominance in the booming GLP-1 drug market.

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