Why is Coles stock rising today?

Coles stock experienced a 2.5% increase, reaching A$23.20 on Tuesday, following the Australian supermarket chain's release of mostly positive FY2026 full-year results. The company reported an underlying net profit after tax of A$1.26 billion, marking a 13.7% increase compared to the previous year and surpassing analyst expectations.

Additionally, Coles' group EBIT excluding significant items rose by 9.9% to A$2.322 billion, while total sales revenue grew by 2.8% to A$45.6 billion. The supermarkets division was identified as the primary driver of growth, with its EBIT margin expanding by 43 basis points to 5.7%.

One notable aspect of the results was the impressive performance of Coles' eCommerce, which saw a substantial 26.4% increase in online sales to A$5.6 billion, achieving a 13.6% penetration rate. This surge in eCommerce sales highlighted the positive impact of years of investment in automated distribution infrastructure. In response to shareholders' backing of the long-term automation strategy, Coles announced a full-year dividend of 78 cents per share, representing a 13% increase from the previous year.

Coles' strong performance contributed to a 0.5% rise in the ASX 200 index, further solidifying its position in the market. The positive report was released just a day before rival Woolworths, allowing Coles to capitalize on the favorable market sentiment.