Jefferies: 38% of Australian companies beat estimates this season

Jefferies says Australia’s August reporting season is producing a softer-than-average earnings backdrop. With 57% of scheduled companies already reported, 38% beat estimates and 19% missed, below the 50% beat rate seen in February 2026. Beats averaged 4% above forecasts, while misses were 5.2% below. Analyst revisions are skewed negative: 44% of FY27 EPS estimates were cut versus 25% raised, and downgrades are outpacing upgrades across sectors. Healthcare has been a relative bright spot, with 7 of 9 companies beating estimates, while consumer discretionary saw broad estimate cuts. Jefferies also flagged heightened volatility in August, with style leadership shifting temporarily from value to growth before growth weakened again. The report suggests Australian equities may face near-term pressure from weaker earnings momentum and downward revisions, even as pockets like healthcare remain resilient.