Corporate profits in Australia increased by 1.8% quarter-on-quarter in the second quarter of 2026, rebounding from a revised 1.5% decline in the first quarter but falling short of market expectations for a 2% rise. The recovery was led by a 6.8% surge in mining profits, which more than offset a 9.4% fall in the previous quarter. Profits in professional, scientific and technical services also strengthened, rising 4.6% after a 4.2% increase.
By contrast, profit growth moderated in several sectors: manufacturing (1.3% vs 3.3% in Q1), construction (1.7% vs 7.8%), and rental, hiring and real estate services (0.3% vs 1.8%). Profits fell in wholesale trade (-2.9% vs +4.3%), transport, postal and warehousing (-2.4% vs +1.2%), and retail trade (-5.2% vs -7.4%).
On an annual basis, corporate profits rose 7.4%, the fastest pace since the fourth quarter of 2022, accelerating from a 3.2% gain in the previous quarter.
