Macquarie Group Ltd (ASX: MQG) shares are falling on Friday after the release of the investment bank's FY26 results.
But I do not think this is a reflection on its results. The broader share market is having a poor end to the week, with the S&P/ASX 200 Index (ASX: XJO) down around 1.7% this afternoon.
Macquarie shares also hit a 52-week high earlier this week, so some weakness after the result does not surprise me.
The bigger question is what the result says about the business. Here are my three key takeaways.
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Profit growth was strong
The first takeaway is that Macquarie delivered a strong FY26 result.
The company reported net profit of $4.85 billion, up 30% on FY25. Earnings per share also rose 30% to $12.77. The second half was particularly strong, with Macquarie reporting a record half-year profit of $3.19 billion, up 93% on the first half.
That is a good reminder of why I rate Macquarie so highly.
This is not a normal bank. Its earnings can move around from year to year because it is exposed to asset management, commodities, markets, investment banking, private credit, and banking.
But over time, that diversity has helped Macquarie find growth in different environments.
Return on equity also improved to 14% in FY26, compared with 11.2% in FY25.
For me, that supports the view that Macquarie remains a high-quality financial business, even if the share price is not cheap after its recent run.
The operating businesses are performing
The second takeaway is that the growth was spread across the business.
Macquarie Asset Management delivered a net profit contribution of $2.6 billion, up 27%, with the result helped by higher performance fees. Banking and Financial Services lifted its contribution 17% to $1.61 billion, supported by growth in the loan portfolio and deposits.
Commodities and Global Markets was the standout, with net profit contribution up 49% to $4.22 billion. Macquarie Capital also performed well, with its contribution rising 43% to $1.49 billion.
That breadth is important.
If Macquarie were relying on just one engine, I would be more cautious. But this result shows multiple parts of the group contributing.
I also like the long-term themes across the business. Macquarie has exposure to infrastructure, private markets, commodities, energy transition, digital banking, private credit, and global markets.
These are not all smooth growth areas. But I think they give Macquarie plenty of ways to keep finding opportunities.
The balance sheet remains strong
The third takeaway is Macquarie's financial position.
The company ended FY26 with a Bank Group CET1 ratio of 12.8%, a liquidity coverage ratio of 173%, and a net stable funding ratio of 116%.
It also reported that total deposits increased 25% to $221.5 billion.
Confidence, funding, and risk management are crucial in the markets where Macquarie operates.
A strong balance sheet gives the group flexibility. It can support clients, invest in growth, and take advantage of opportunities when markets are unsettled.
Are Macquarie shares a buy?
Macquarie shares are not cheap.
After reaching a 52-week high this week, the market clearly already recognises a lot of the quality in the business.
But I think this strong result demonstrates why it deserves a premium valuation.
I would be happy to buy Macquarie shares for the long term, even if the valuation is not especially cheap today.
