Sydney, June 13, 2026, 05:13 AEST
- Woolworths Group finished at A$38.33 on June 12, up 24 cents, or 0.63%. Shares have risen 8.71% over the past week.
- The S&P/ASX 200 climbed 1.98% to finish at 8,804. That move gave large-cap Australian stocks a lift from the wider market rally.
- Woolworths’ F26 full-year result is up next, set for release on August 26, 2026.
Woolworths Group Ltd shares pushed higher Friday, finishing at A$38.33. The stock traded as low as A$38.09 and as high as A$38.50 during the session, based on company price data. Woolworths is up 8.71% over the past week, according to Intelligent Investor, a notable gain given the size and defensive profile of the retailer. The S&P/ASX 200 rallied too, up 1.98% to 8,804 as part of a wider move.
Woolworths is seen as a defensive name since it sells essentials like groceries, so investors look for its earnings to hold up when the economy slows. But after a rally that pushed Woolworths’ shares up almost 9% in a week and 30% since the start of 2026, some investors are questioning if the stock is now getting ahead of itself, betting on too much improvement too soon.
Woolworths put cost cuts in focus for investors this week. ABC News said on June 10 the grocer plans to move hundreds of corporate jobs offshore, with staff in People, IT, and Finance told that consultations are starting. Shares traded up 1.75% to A$37.12 at midday. CEO Amanda Bardwell already had a plan in place to save A$400 million from above-store support office costs, according to ABC.
Bulls still have some support from the sales numbers. Woolworths posted group sales of A$18.1 billion for the third quarter, up 4.5%. Australian Food climbed 5.9% and Woolworths Food Retail gained 7.3% if you strip out tobacco. Online, group eCommerce sales jumped 20.2% to A$2.7 billion. The company said its forecast for FY26 Australian Food EBIT growth is still mid-to-high single digits, but it’s no longer guiding for growth at the very top of that band. EBIT is earnings before interest and tax.
Bullish investors point to Woolworths picking up speed in supermarkets, cutting costs and working to hold on to shoppers by offering better prices. Reuters said Woolworths’ first-half underlying net profit rose 16% to A$859 million, beating Visible Alpha consensus, as shoppers went for the price cuts. “Customers want value but they also want reliable value,” Bardwell told Reuters. Reuters
Bears say the rebound could already price in most of the upside. Woolworths’ Q3 update flagged lower average prices from price investment — which means cutting or holding prices to protect market share, often hitting margins — plus shopper caution, problems at New Zealand Food, and higher Q4 costs tied to direct fuel exposures. The company said New Zealand Food’s H2 EBIT was set to come in slightly below last year, but that FY26 EBIT should still beat FY25.
The F26 full-year result is set for release on the ASX on August 26, 2026. The focus will be on Australian Food and its mid-to-high single-digit EBIT growth target. Investors are also looking to see if cost savings can balance the higher fuel and price investment costs, and if BIG W stays on course for positive EBIT and cash flow in FY26.
Woolworths doesn’t screen as cheap after its recent run, trading closer to fair or even risky levels. MarketScreener consensus shows 16 analysts rate the stock “Outperform” on average, but their average target is A$34.84—under the last close at A$38.33. Price targets are analyst estimates, not promises. Targets range from A$31.50 up to A$39.00, so there’s not much headroom to the high end, with more room on the downside if margins slip. MarketScreener
