Woolworths is experiencing a significant surge in its share price after releasing a trading update that exceeded expectations. In afternoon trading, the supermarket giant’s shares jumped by 11.8 per cent, positioning the company for its largest single-day gain on record, potentially surpassing the previous high of 11.7 per cent set in October 1997. Should the increase fall slightly below this level, it would still represent the most substantial increase since the onset of the COVID-19 pandemic in March 2020. Woolworths Group operates supermarkets, retail stores, and related services across Australia and New Zealand. The company focuses on providing customers with a wide range of food, groceries, and everyday needs.
The surge in share value is attributed to the company’s underlying earnings before interest and taxes, which reached $1.66 billion. This figure is 6 per cent higher than consensus estimates, driven by a notable turnaround in the performance of Big W. According to Citi analyst Adrian Lemme, the Australian Food division also performed slightly above expectations. Sales momentum accelerated to 5.8 per cent in the first seven weeks of the second half of fiscal year 2026, despite prior industrial action.
Lemme highlighted the remarkable performance of Big W, which doubled its EBIT to $70 million, significantly exceeding forecasts. Furthermore, the Australian Food division’s EBIT for fiscal year 2026 is now anticipated to be at the upper end of mid-to-high single-digit growth, projecting around $3.0 billion. The company has declared an interim dividend of 45 Australian cents per share, surpassing Citi’s forecast of 39 cents.
