Earnings call transcript: Medibank H2 2026 profit rises, shares fall 8%

Medibank Limited reported a 6.7% increase in group operating profit to AUD 813.5 million and a 4.6% rise in revenue to AUD 3.77 billion for FY 2026. However, the stock fell 7.95% to $4.63 in pre-market trading after the earnings call. Investors appeared more concerned with competition, claims trends, and the lack of a direct earnings per share (EPS) and revenue comparison with the forecast.

CEO David Koczkar stated that private health insurance remained "non-discretionary," helping support demand even as households faced tougher budgets. Resident health insurance growth was 1.1%, with Medibank's own brand growing 0.6% and ahm growing 2.4%. The health services business was a significant positive factor, with Medibank Health profit rising 31.3% due to organic growth and the first full contribution from the Better Medical acquisition.

The company aims to build a broader health platform including primary care, home care, community services, and wellbeing products. Management reiterated its FY 2030 Medibank Health earnings target of at least AUD 200 million and emphasized the importance of quality over quantity, as well as the need to manage costs and maintain margins.