Goodman Group (ASX:GMG) Shares Trail A$2.675b Profit And Data Centre Push

Goodman Group went into this result with the stock drifting, down roughly 10% over three months and closing at A$27.27 ahead of investors digesting the full year picture. The big headline is not a one off revaluation swing. It is the earnings engine behind the shift into large scale logistics and data centres, with operating profit reported at A$2.675b and operating earnings per security up 10.1%.

This is the gap investors now need to weigh: a soft share price into the print against a business putting more profit behind its long term thesis.

Love Goodman Group’s growing operating earnings but wary of paying up when the share price has been soft into the result? Compare it with a wider set of resilient, cash generative businesses in our list of solid balance sheet and fundamentals stocks (20 results).

FY 2026 Earnings Summary

• Revenue (FY 2026 vs FY 2025 TTM): A$4,060.1m vs A$3,409.9m (reported higher year on year)
• Net Income (Excl. Extra Items, FY 2026 vs FY 2025 TTM): A$2,778.7m vs A$1,666.4m (reported higher year on year)
• Basic EPS (Earnings Per Security, FY 2026 vs FY 2025 TTM): A$1.3604 vs A$0.8542 (reported higher year on year)
• Net Profit Margin (FY 2026 vs FY 2025): 68.4% vs 48.9% (margin improved over the year)

Prefer interactive charts over another wall of earnings tables and raw figures? See Goodman Group’s full financial picture, including how earnings power feeds into its valuation, in the visual company report for Goodman Group.

Goodman’s data-centre pivot meets key earnings tests

The bullish story on Goodman Group is that the shift to data centres and large scale logistics turns into consistent, higher quality earnings. The latest result gives that thesis real backing. Operating profit is A$2.675b with operating EPS up 10.1%. That lines up with earlier commentary that data centres and modern logistics would support at least high single digit EPS growth. Development earnings are materially higher, with annualised production at more than A$7.5b. Data centre work in progress exceeds A$15b and about 500MW of capacity, and management has a 20 year lease in place for the first 50MW phase at Tsukuba Tech Central in Tokyo. Around 90% of data centre work in progress is funded via partnerships, which supports the idea of a capital light, fee rich model feeding recurring earnings over time.

Testing bear concerns on execution, funding and timing

The bearish view is that Goodman Group’s data centre push is too capital heavy, slow to monetise and vulnerable to funding or leasing setbacks. The numbers challenge some of that. Group gearing sits at about 6.5% with A$6.4b of cash and undrawn facilities. Around 90% of data centre work in progress is already in partner structures, which spreads capital load and keeps the interest line low, with net weighted average cost of debt at about 1% after hedging. Execution milestones are emerging, including the long dated Tsukuba lease and progress at projects near LAX, Hong Kong and Amsterdam. The bear case on timing is not fully cleared. The Tsukuba facility is only expected to be ready in early 2028 and management flags an earnings skew to the second half of FY27, which keeps timing and working capital risk in play.

Compare Goodman Group’s expanding data centre pipeline, low reported gearing and long dated leases with the risk that earnings are skewed toward later years, while the stock has already reacted to the latest result. See the consensus price target analysis for Goodman Group to gauge how closely Wall Street price targets line up with this story.

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If Goodman Group’s mix of growing operating earnings, data centre exposure and a recently softer share price has your attention, register free with Simply Wall St and add it to your Watchlist to track price against fair value and watch for a more attractive entry point. After you invest, keep on top of what really matters with the Portfolio Command Center that filters out noise and highlights key changes to your holdings. For a longer term view, use the Community to see how other investors are thinking about the same risks and catalysts. By spotting potential shifts in the story early, you can monitor potential drivers and stay alert to emerging risks before the wider market reacts.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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