Westpac Banking Corp (ASX: WBC) shares have had a solid start to the year.
The banking giant is up around 4% year to date and hit a record high last week. That kind of momentum tends to attract attention, but it can also raise questions about how much upside is left.
With bank earnings growth expected to remain modest and valuations stretched relative to history, I think investors looking for outperformance in 2026 may want to look elsewhere on the ASX 200.
One name that stands out to me is Breville Group Ltd (ASX: BRG).
Image source: Getty Images
A record half in a challenging backdrop
Breville delivered a record first-half result for FY 2026, with revenue climbing 10.1% to $1.1 billion. That marks a doubling of revenue over the past six years, which is no small achievement for a consumer products company.
Importantly, this growth came despite a difficult tariff backdrop in the US. Gross margins dipped to 35.4% due to US tariffs, but the company successfully mitigated much of the impact through manufacturing diversification, pricing actions, and distribution mix optimisation.
By December, 80% of US gross profit was generated from products manufactured outside of China. That shows management is not standing still in the face of geopolitical risk.
Coffee continues to power growth
One of the most attractive parts of the Breville story is coffee.
According to the result, coffee delivered strong double-digit revenue growth, supported by premium new product launches such as the Oracle Dual Boiler and Encore Esp Pro. In the Americas, coffee growth was again in double digits, with very strong demand for flagship machines like the Barista Express.
Coffee is not just a category for Breville. It is a global lifestyle trend. Premium at-home coffee has proven resilient, and Breville has positioned itself at the higher end of the market, where brand and performance matter more than price alone.
That premium positioning is important. It allows Breville to protect margins and maintain pricing power, even when broader consumer spending softens.
Geographic expansion and AI transformation
Beyond coffee, Breville's growth story is increasingly global.
Direct markets such as China, Korea, Mexico, and the Middle East collectively grew over 50% in the half. While these markets are still relatively small, they represent meaningful long-term optionality.
Management is also leaning into an enterprise-wide AI transformation, embedding artificial intelligence across operations rather than treating it as a one-off pilot. That kind of structural investment could improve efficiency and sharpen decision-making over time.
Why this ASX 200 share could beat Westpac
Westpac is a solid business, but its earnings growth profile is likely to be incremental rather than explosive. With the share price at record highs and trading on a premium, expectations are elevated.
Breville, by contrast, is delivering double-digit revenue growth, expanding globally, investing in innovation, and riding a powerful coffee tailwind. It also remains conservatively leveraged, with net debt improving during the half.
For investors seeking growth rather than yield, I believe Breville has a chance of outperforming Westpac shares in 2026.
