To The Moon

The Australian sharemarket has recorded its biggest monthly rise in 10 months, capping a volatile reporting season that ended with Coles’ shares falling sharply after the supermarket giant reported a weaker-than-expected first-half result.

As of the close on Friday, $S&P/ASX 200(XJO.AU)$ closed at 9,198.60, up 0.97% in the past 5 days.

These shares surge align with ASX 200 hitting record closes around this period, driven by earnings season tailwinds in resources (lithium/rare earths rebound) and select defensives (retail).

1. $Block Inc(XYZ.AU)$ +27.23%

Block surged primarily on its Q4 FY2025 and full-year results release (announced ~Feb 26-27, 2026), combined with a major restructuring pivot to AI.

• Strong Q4/full-year earnings beat: Gross profit +17% YoY to ~US$10.36B (full year), with Cash App gross profit +21% to US$6.34B and Square +9% to US$3.94B; adjusted operating income guidance raised.

• Upgraded 2026 full-year outlook: Gross profit now expected at US$12.20B (+18% YoY growth from prior ~17% view), adjusted operating income US$3.20B (26% margin), and adjusted diluted EPS ~US$3.66.

• Bold AI-native restructuring: Announced ~40% workforce cut (from >10,000 to <6,000) to embrace "intelligence tools" for efficiency; CEO Jack Dorsey emphasized compounding AI capabilities enabling smaller teams to outperform.

• Margin expansion and cost discipline: Structural changes expected to drive higher margins and "rule of 40" compliance (growth + profitability metric).

2. $PLS Group Ltd(PLS.AU)$ +24.16%

PLS (lithium producer) rose sharply amid a broader lithium sector rally, driven by supply constraints and price rebound signals.

• Zimbabwe lithium export ban impact: Overnight news of Zimbabwe's shock ban tightened global supply outlook, boosting sentiment for Australian producers like PLS (major spodumene player).

• Strong H1 FY2026 results momentum: Revenue +47% YoY to A$624M, net profit +147% to A$33M; ongoing restart of Ngungaju plant and feasibility studies for expansions (P2000, Colina in Brazil).

• Analyst upgrades and price leverage: Forecasts lifted for 2026 revenues ~A$1.6B (+109% annualized growth expected); preferred exposure in broker notes due to high price sensitivity.

• Lithium price rebound thesis: Improving demand + constrained supply setting stage for 2026 rebound; PLS highlighted for strong balance sheet (~A$1B cash, A$1.6B liquidity).

3. $LYNAS RARE EARTHS LTD(LYC.AU)$ +21.05%

Lynas (world's largest non-China rare earths producer) extended gains from its H1 FY2026 results (released ~Feb 25-26, 2026), with momentum into Feb 27.

• Best H1 profit in three years: Net profit after tax A$80.2M (vs A$5.9M prior year); revenue +63% to A$413.7M on higher volumes and elevated prices (e.g., NdPr benchmarks up due to China supply curbs).

• Strong rare earth price momentum: Average realized prices surged (e.g., prior Q2 ~A$85.60/kg vs A$49.2/kg YoY); China export restrictions unwinding glut and boosting benchmarks.

• Strategic relevance in US/Trump era: Gains tied to US critical minerals push (e.g., pre-Albanese-Trump talks on supply chains); Lynas positioned as key non-China supplier for EVs/defense.

• Production ramp and outlook: Higher sales volumes; analysts lifted targets (e.g., Ord Minnett to A$14 from A$11), focusing on margin recovery and pipeline despite some misses.

4. $MINERAL RESOURCES LTD(MIN.AU)$ +18.99%

Mineral Resources (diversified miner: iron ore + lithium) participated in the lithium/iron ore rally, with positive operational updates.

• Lithium sector tailwinds + price leverage: Benefited from same Zimbabwe ban/supply tightening as peers; upgraded FY2026 production guidance on stronger lithium prices.

• Strong operational performance: Q2 FY2026 highlights included liquidity/debt improvements; iron ore and lithium divisions showed robustness despite price volatility.

• Broker optimism: Targets lifted (e.g., Bell Potter to A$70 from A$68, implying 15%+ upside); seen as leveraged to commodity rebound.

5. $WOOLWORTHS GROUP LTD(WOW.AU)$ +15.27%

Woolworths (retail/supermarkets) surged post its H1 FY2026 results (released ~Feb 24-25, 2026), with carryover strength into Feb 27.

• Earnings beat and guidance upgrade: NPAT before significant items +16.4% to A$859M; EBIT +14.4% to A$1.66B; full-year growth guided to upper end of mid-to-high single digits.

• Strong food sales momentum: Australian food sales +5.8% in early H2 (ahead of consensus ~3.4%); value-focused price cuts drove shopper response amid cost-of-living pressures.

• Dividend increase: Interim dividend +15.4% to 45 cps (fully franked); all segments (food, Big W, Petstock) improved profitability via cost savings (~A$400M run-rate) and e-commerce gains.

• Market share stabilization: Narrowing gap vs rivals (e.g., Coles weaker post-results); investor upgrades on resilient consumer demand for value.