Sydney, Feb 17, 2026, 16:59 AEDT — Market shut its doors for the day
- JB Hi-Fi jumped roughly 8% by the close, after releasing its HY26 results and bumping up the interim dividend.
- Retailer bumped up first-half sales and profit, and also increased its target for dividend payout ratio.
- Attention is now on how January sales shaped up, along with upcoming dividend dates set for late February.
JB Hi-Fi jumped 8.1% Tuesday, finishing the day at A$89.10. That move easily beat the S&P/ASX 200, which added just 0.24%. (Investing.com)
This development is grabbing attention as traders lean on earnings season to gauge one thing: are Australians keeping up their appetite for big-ticket purchases, or is the pullback finally here. JB Hi-Fi is right at the heart of it.
Dividends play a major role here. Whenever the payout rises, traders often shift their view—suddenly, the stock looks less like a typical retailer and, for a day or so, more like an income play.
JB Hi-Fi Limited posted a 7.3% jump in first-half sales, reaching A$6.10 billion, while net profit after tax rose 7.1% to A$305.8 million. The retailer declared a fully franked interim dividend of 210 cents per share, and raised its dividend payout ratio target to 70%-80% of NPAT, up from 65%. “We are pleased to report record sales and strong earnings for HY26,” CEO Nick Wells said. (Contentful Assets)
JB Hi-Fi, best known for consumer electronics and appliances, operates The Good Guys chain as well. Beyond that, it has stores in New Zealand and also controls the smaller e&s appliance brand.
JB Hi-Fi’s Australian sales climbed 6.3% to A$4.12 billion, with like-for-like sales up 5% after adjusting for new stores. Online revenue jumped 11.2% to A$759 million, making up 18.4% of total sales. Gross margin edged up 11 basis points to 21.95%—that’s 0.01 percentage point per basis point. The January figures pointed to slower momentum: JB Hi-Fi Australia posted a 4% rise, The Good Guys added 2.7%, while e&s slipped 4.6%. (ARN)
Next up for debate: that January slowdown. It’s the stretch where, if promotions ramp up and margins take a hit, the stock could start to look pricey in a hurry.
Atlas Funds Management’s chief investment officer Hugh Dive pointed to the larger dividend as a key factor behind the buyer interest that followed JB Hi-Fi’s earlier share swings. “In this tighter environment with higher interest rates, JB Hi-Fi is well positioned to keep taking share,” Dive told Livewire Markets. He also flagged upcoming peer results as potential mood-setters for the rest of reporting season. (Livewire Markets)
There’s a caveat to the bullish scenario. Morningstar’s Johannes Faul isn’t on board for a breakout, writing, “We expect JB Hi-Fi’s sales growth to moderate,” and flagging the risk of shrinking margins if retailers are forced into deeper discounting, especially with Amazon and omnichannel competitors circling. Faul left his fair value at A$57—well below where the stock’s trading—and described the shares as “significantly overvalued.” (Morningstar)
Next session, the focus turns to whether momentum holds after that 8% pop, and if any fresh broker notes shake things up post-earnings. Another signal: does the market stick with dividend-heavy names, or does that trade unwind just as fast?
Dividend-watchers have their eyes on next week’s calendar: ex-dividend for the stock lands Feb. 26, with a record date following on Feb. 27. Payment hits March 13. (JB Hi-Fi Investors)
