ASX Follows Wall Street Higher as NEXTDC Swings to Profit, WAM Slips

ASX 200 Rises 0.6% as NEXTDC Swings to FY26 Profit

Australian equities closed higher on Friday, adding 54.10 points, or 0.6%, to 9,092.30 on the S&P/ASX 200. The advance tracked a technology-led rally in the United States, where the Nasdaq Composite rose 1.6%, the S&P 500 gained 0.7% and the Dow Jones added 0.2%.

Among the reporting companies, data-centre operator NEXTDC swung to a fiscal 2026 profit of AU$0.122 per share from a loss of AU$0.0959 a year earlier, while revenue rose to AU$496.5 million from AU$427.2 million. Harvey Norman posted earnings per share of AU$0.4236, up from AU$0.415, with total system sales revenue of AU$9.64 billion, compared with AU$9.35 billion previously.

WAM Capital, by contrast, reported a loss per share of AU$0.1113 for fiscal 2026, reversing a profit of AU$0.1963 a year earlier, and set a fiscal 2027 target dividend of AU$0.08, comprising an interim and final payout of AU$0.04 each. Its shares had earlier touched a 16-year low. Brent crude fell to around US$89 a barrel after Iran and Oman agreed on control of the Strait of Hormuz and revenue sharing.

Why NEXTDC, Harvey Norman and WAM Capital Moved in Opposite Directions

NEXTDC's profit swing highlights rising data-centre demand

The turn from a per-share loss of AU$0.0959 to a profit of AU$0.122 is notable because it moves the data-centre operator into positive earnings territory, while the revenue increase from AU$427.2 million to AU$496.5 million indicates that demand for capacity remains strong. The release does not disclose margin detail or one-off items, so the underlying quality of the profit still needs to be tested.

Harvey Norman's growth looks steady but not accelerating

Total system sales revenue of AU$9.64 billion was up only about 3% from AU$9.35 billion, while earnings per share rose by roughly 2%. Without segment or margin data, that suggests modest top-line growth and limited operating leverage in a discretionary retail environment where costs and consumer caution are in focus.

WAM Capital's loss and dividend target signal a payout reset

The swing from a profit of AU$0.1963 per share to a loss of AU$0.1113 per share, combined with a targeted full-year dividend of just AU$0.08, represents a sharp reduction in income for shareholders. The fact the share price reached a 16-year low indicates the market had already been discounting weak portfolio performance or persistent pressure on the listed investment company's valuation.

The Strait of Hormuz agreement removes an oil-price risk premium

Brent's fall to around US$89 a barrel after the Iran-Oman announcement is a de-escalation signal for energy markets. For Australian equities, lower crude prices can ease inflationary and input-cost pressure, although energy producers may face a near-term headwind. Friday's gain was primarily technology-led rather than oil-driven.

What Friday's Results Ask of NEXTDC, Harvey Norman and WAM Shareholders

• NEXTDC shareholders should compare the profit swing against underlying EBITDA, utilisation and recurring revenue when the full annual report is released, because the EPS and revenue figures alone do not show whether one-off items or recurring operations drove the result.
• Harvey Norman watchers need comparable-store sales and margin disclosure to judge whether the modest increase in system sales can offset cost inflation in the 2027 period.
• WAM Capital investors should model the AU$0.08 target dividend against net tangible assets and portfolio performance; the 16-year low suggests the discount may persist unless the fund's underlying returns stabilise.
• Broad ASX exposure should recognise the technology-led link to Wall Street and lower Brent as short-term sentiment supports, not as evidence of a durable market trend from a single 0.6% session.