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Highlights
- Netwealth shares jumped 16.6% after quarterly update.
- Funds under administration up 29% in Q3.
- Extended net flow guidance to FY26 boosts sentiment.
Shares in investment platform Netwealth (ASX:NWL) soared on Thursday following the release of its March quarter results, drawing a more positive stance from analysts. The company reported a significant 29% year-on-year increase in its funds under administration (FUA), a key performance indicator closely tracked by investors.
The strong momentum in the March quarter pushed Netwealth’s share price up 16.6% to close at $26.36. This notable rise followed the announcement that the platform’s FUA had reached new highs, reflecting continued client engagement and market activity.
In response to this performance, analysts have adjusted their outlook on the company. While the updated view moved Netwealth to a more neutral position, the target price was slightly reduced from $24.95 to $24.30. Despite the minor target revision, the overall sentiment improved, underscoring growing confidence in the platform's forward-looking metrics.
A key takeaway from the quarter was Netwealth’s decision to extend its net flows guidance through to fiscal 2026. This marks the first time the company has offered such long-term visibility, signaling confidence in its pipeline and positioning within the market. Analysts noted that while the FUA figure came in marginally below expectations, the extended guidance and outlook on client flows were more encouraging indicators.
Additionally, Netwealth is benefiting from improved revenue margins, driven by higher levels of trading activity across its platform. This has provided a positive tailwind to its bottom line, supporting continued business growth even as market volatility remains a factor.
Investors responded positively to the update, reflecting optimism around Netwealth’s ongoing expansion and strategic clarity. The upbeat sentiment was further supported by broader strength in platform providers during the same period.
Overall, the quarterly update highlights Netwealth’s resilience and its proactive approach to guiding market expectations. The strong rise in FUA, extended guidance window, and higher trading margins offer a clearer picture of the company’s direction heading into the next financial year.
As the financial services sector continues to evolve, Netwealth’s position and performance remain closely watched by the market. The latest developments suggest a solid foundation for future growth, with increased visibility now in place through to FY26.
