Corporate profits in Australia declined by 1.3% quarter-on-quarter in the first quarter of 2026, reversing a strongly upwardly revised 5.9% gain in the previous quarter and falling short of market expectations for a 0.5% increase. The downturn was led by a steep fall in mining profits (-9.1% vs +8.0% in Q4).
Additional weakness was seen in accommodation and food services (-2.0% vs +5.7%) and in financial and insurance services (-9.6% vs +3.1%). Profit growth also slowed across several sectors, including wholesale trade (4.5% vs 6.4%), transport, postal and warehousing (0.9% vs 8.1%), and professional, scientific and technical services (3.1% vs 9.2%).
By contrast, profits continued to rise in manufacturing (3.5% vs 2.7%) and construction (7.9% vs 4.3%), and rebounded in retail trade (5.9% vs -0.2%). On an annual basis, corporate profits were up 3.2%, easing from a 4.2% increase in the previous period.
