Should you buy Wesfarmers shares following the strong earnings results?

A leading expert offers his outlook for Wesfarmers surging shares.

| More on:
Buy, hold, and sell ratings written on signs on a wooden pole.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Wesfarmers Ltd (ASX: WES) shares are pushing higher today.

Shares in the diversified S&P/ASX 200 Index (ASX: XJO) retailer – whose subsidiaries include Bunnings Warehouse, Kmart Australia, Officeworks, and Priceline – closed yesterday trading for $90.91. As we head into the Friday lunch hour, shares are swapping hands for $91.61 apiece, up 0.8%.

For some context, the ASX 200 is up 0.3% at this same time.

Today's outperformance is part of the course for Wesfarmers shares, which are up 32.4% since this time last year, racing ahead of the 11.0% gains delivered by the benchmark index over this same time.

And that's not including the $2.06 in fully franked Wesfarmers dividends eligible investors will have received (or shortly will) over the full year. The final dividend of $1.11 a share will be paid on 7 October. Wesfarmers shares traded ex-dividend on Tuesday, 2 September.

As you're likely aware, Wesfarmers reported some solid full-year FY 2025 results last week, on 28 August.

But with the ASX 200 stock already up more than 32% in a year, is Wesfarmers a good buy today?

Wesfarmers shares: Buy, hold, or sell?

Sanlam Private Wealth's Remo Greco recently ran his slide rule over Wesfarmers (courtesy of The Bull).

"The diversified industrial conglomerate and owner of the Bunnings hardware giant, Kmart Group and Officeworks is a consistent and reliable performer as shown by its full year 2025 results," he said of Wesfarmers shares.

Digging into those results, Greco said:

WES revenue of $45.7 billion was up 3.4% on the prior corresponding period. Net profit after tax of $2.926 billion was up 14.4%. Bunnings, Kmart and Officeworks delivered sales growth. The company declared a final and fully franked dividend of $1.11 a share. It also announced a proposed capital management initiative of $1.50 a share.

But Greco isn't ready to pull the trigger just yet. He noted, "The outlook is positive," with a hold recommendation on the stock.

What's ahead for the ASX 200 conglomerate?

Looking at what could impact Wesfarmers shares in the year ahead, CEO Rob Scott said last week, "Wesfarmers remains well positioned to deliver satisfactory returns to shareholders over the long term."

He added, "The group's largest divisions continued to perform well, with Bunnings and Kmart group's everyday low prices and market-leading offers driving sales and earnings growth."

The company revealed that the first eight weeks of FY 2026 saw stronger Bunnings' sales growth compared to the second half of FY 2025. Sales growth at Kmart and Office Works were reported to be broadly in line with H2 FY 2025.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Wesfarmers. 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.

More on Consumer Staples & Discretionary Shares

Happy couple doing grocery shopping together.
Consumer Staples & Discretionary Shares

At $31, are Woolworths shares still a slam-dunk buy?

After a difficult year, earnings are stabilising and confidence is slowly returning.

Read more »

A woman in a red dress holding up a red graph.
Consumer Staples & Discretionary Shares

As reporting season looms, where will the market head next and what should you be buying?

Check out what the experts are saying.

Read more »

Casino players throwing chips in the air.
Consumer Staples & Discretionary Shares

Is it still game on for Light & Wonder shares?

The rally may have stalled, but brokers still see some upside for the ASX gaming stock.

Read more »

Woman chooses vegetables for dinner, smiling and looking at camera.
Consumer Staples & Discretionary Shares

Why Goldman Sachs expects Woolworths shares to leap 21%, plus dividends!

Goldman Sachs has a buy rating on Woolworths' resurgent shares. Let’s see why.

Read more »

A baby's eyes open wide in surprise as it sucks on a milk bottle.
Consumer Staples & Discretionary Shares

Chinese birthrate punches a hole in the A2 Milk share price

This key market is looking challenging.

Read more »

a man frustrated looking at the engine of his car
Consumer Staples & Discretionary Shares

ARB shares are crashing 15% today. What's spooking investors?

ARB shares slide 15% after a profit downgrade rattles investors.

Read more »

Woman and 2 men conducting a wine tasting.
Consumer Staples & Discretionary Shares

Can this ASX 200 stock recover after losing 51%?

Broker enthusiasm is going flat for the prestigious wine share.

Read more »

A customer and shopper at the checkout of a supermarket.
Consumer Staples & Discretionary Shares

5 reasons to buy Woolworths shares in 2026

With bad news largely priced in and earnings expected to rebound, Woolworths could be an appealing large-cap recovery story in…

Read more »