The share price of Computer Share (ASX: CPU) was up over 10% to a record high of $40.02 at the open today after the financial services company reported a stronger-than-expected 1H25 result, with earnings per share (EPS) above the consensus estimate by 6%.
While operating costs were higher than expected reflecting additional investment for growth, net profit beat forecasts on a lower tax rate, and revenue across all divisions outperformed expectations.
Benefitting from stronger transactional revenues and higher margin income balances, the company’s 1H results reflect a more buoyant equity and capital market environment post the U.S. election.
In addition to some strong 1H FY25 numbers, including a 24.9% lift in interim profit from continued operations of $286.5 million, the company also declared an interim dividend of 45 cents per share (unfranked) up 12.5% from last year's interim dividend.
While total revenue for the six months fell 6.9% to $1.49 billion during the half, the drop can be attributed to the sale of the U.S. mortgage services business.
Here are other key numbers from today’s results:
- Earnings of $597.9 million, down 3.8%.
- 6.4% year-on-year increase in management revenue to $1.5 billion.
- Management earnings (excluding margin income) were $171 million, up 27.9% yoy.
- Management EPS of 65 CPS was up 18.7% from 1H FY 2024.
- Margin income slipped 0.8% from the previous period to $392 million.
Commenting on the 1H FY25 result, Computershare CEO Stuart Irving noted that lower rates over the six months contributed to improved activity levels across the group, leading to a $3 billion uplift in average client balances, which offset the impact of lower interest rates on the ASX 200 stock.
Looking forward
Based on reduced complexity and multiple earnings drivers, the company now expects Management EPS in FY 2025 to be around 135 CPS, up 15% from FY24 and represents a 7.5% increase from Computershare's prior guidance.
Irving also referred to the company’s investments in digitisation which is creating more opportunities to enhance service offerings to clients and improve efficiencies.
While corporate action volumes were broadly flat, Irving reminded investors that the pipeline is encouraging with average fees per event up over 10%.
In December, the company acquired Ingage and CMi2i which are expected to help further enhance the company’s product offerings in Investor Relations and beneficial ownership intelligence.
“It is pleasing to see the Computershare results demonstrate the momentum in our high quality, capital light business, and the execution of our strategy to reduce complexity and increase returns,” said Irving.
“We have a confident outlook for FY25. Computershare’s high quality, capital light business has momentum and scope for enduring growth.”
Other noteworthy numbers
In response to today’s results, Macquarie raised its FY25 EPS guidance to $1.35 from $1.26 mainly due to the inclusion of a 1.3c buyback benefit and the reduction of the expected tax rate.
Computershare has a market cap of $23.7 billion making it the 25th largest stock on the ASX; the share price is up 67% in one year and up 19% year to date.
The stock is in a strong bullish trend confirmed by multiple indicators. Specifically, the 5-day moving average of the stock price is above the 50-day moving average.
Additionally, both the 200 and 20-day moving averages are trending higher.
Consensus on the stock is Hold.

The author owns shares in Computershare, as referenced in this article.
This article does not constitute financial product advice. You should consider independent advice before making financial decisions.