Recap: Winners and losers from earnings season week 3

February earnings season is past the halfway mark. 

After a busy week of results, here are some of the key headlines you might have missed. 

Winners: Banks continue to beat 

Last week it was ANZ Group Holdings Ltd (ASX: ANZ), Westpac Banking Corp (ASX: WBC) and Commonwealth Bank of Australia (ASX: CBA) that pleasantly surprised many pundits. 

This week, it was National Australia Bank Ltd (ASX: NAB) that climbed after results beat expectations. 

On Wednesday, the bank delivered a strong start to FY26.

Its cash earnings climbed 15% and underlying profit up 12% compared to the prior equivalent period.

Following the result, NAB shares rose 6% to a record high of just over $48. 

Westpac, NAB and ANZ now all sit close to all-time highs. 

Experts believe that NAB shares can continue to rise, with optimistic ratings coming from UBS following the results. 

As for bank shares as a whole, valuations look full and expectations are mixed among brokers. 

Telstra hits record high

Another clear earnings season winner was Telstra Group Ltd (ASX: TLS). 

Shares lifted to a 9 year high on the back of HY 26 earnings season results. 

Some positives from the result included:

• Mobile services revenue rose 5.6% for the half, supported by higher ARPU and customer growth
• Group cash EBIT grew by 14% compared to the prior corresponding period
• Underlying operating expenses were reduced by $179 million, down 2.4%
• Interim dividend lifted to 10.5 cents per share (90.5% franked, was 9.5 cps fully franked 1H25). 

Its share price is now up 24% over the last 12 months. 

Wesfarmers tumble 

On the negative side of news, blue-chip stock Wesfarmers Ltd (ASX: WES) fell on earnings results on Thursday. 

The company behind Australian staples like Bunnings and Kmart posted 2026 HY results that included: 

• Revenue of $24,212 million, up 3.1% on the prior period
• Net profit after tax (NPAT) increased 9.3% to $1,603 million
• Earnings before interest and tax (EBIT) climbed 8.4% to $2,493 million
• Fully-franked interim dividend of $1.02 per share, up 7.4%.

However it seems investors were not impressed as the share price tumbled 5.6% on Thursday. 

ZIP tanks 34%

One of the biggest single day crashes this earnings season came from Zip Co Ltd (ASX: ZIP). 

Investors were exiting this stock in waves on Thursday after the company's 1H FY26 result missed expectations. 

While the company posted a record performance, the market appears uneasy about several key metrics. 

Revenue margin slipped slightly to 7.9%, net bad debts rose to 1.73% of total transaction value (TTV), and second-half cash EBITDA is forecast to be broadly in line with the first half. 

This outlook indicates profit growth may stabilise from here instead of accelerating further.

ZIP shares are now down 44% year to date. 

The post Recap: Winners and losers from earnings season week 3 appeared first on The Motley Fool Australia.

Motley Fool contributor Aaron Bell has positions in National Australia Bank. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Wesfarmers. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool Australia has recommended Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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