Naspers Earnings Spark Reversal Hopes for JSE: NPN after 84% Profit Growth in FY26 Results
Naspers shares rebounded after reporting strong FY26 earnings, raising hopes that accelerating profit growth could mark a turning point for a stock that has remained in a prolonged downtrend.
Quick overview
- Naspers shares rebounded by around 5% after reporting strong FY26 earnings, raising hopes for a potential trend reversal.
- The company achieved an 84% increase in adjusted EBITDA and a record free cash flow of $1.5 billion, reflecting strong operational execution.
- Takealot reached a significant milestone by generating over $1 billion in annual revenue, highlighting its growth as South Africa's leading e-commerce platform.
- Naspers' disciplined capital allocation and share buyback program have improved investor sentiment, positioning the company for a more sustained recovery.
Naspers shares rebounded after reporting strong FY26 earnings, raising hopes that accelerating profit growth could mark a turning point for a stock that has remained in a prolonged downtrend.
Earnings Trigger Strong Rebound
Naspers Limited shares staged a strong recovery after the company released better-than-expected FY26 results, with the NPN share price climbing around 5% to R838. The rally has sparked optimism that the stock could be beginning a trend reversal after remaining in a sustained downtrend since October 2025.
Although the broader technical picture remains cautious, the rebound suggests investors are reassessing the company’s outlook following another year of robust earnings growth. The share price appears to have established a support zone around R800, which has so far attracted buyers after months of lower highs and persistent selling pressure.
A sustained move above nearby resistance levels would strengthen the case that the long-running bearish trend is beginning to fade.
Profit Growth Highlights Strong Execution
Naspers delivered one of its strongest financial performances in recent years, reporting an 84% increase in adjusted EBITDA to US$1.3 billion. Ecosystem revenue climbed 53% to US$9.7 billion, while free cash flow reached a record US$1.5 billion, extending a three-year improvement of approximately US$2 billion.
Core headline earnings per share also increased by 24%, reflecting improving operational efficiency and disciplined capital allocation across the group’s businesses.
Management described FY26 as a year of strong execution, with all regional ecosystems across its delivery, fintech, and experiences businesses achieving profitability. The company also highlighted growing connectivity between its platforms, helping drive higher customer engagement, stronger cross-selling opportunities, and expanding network effects.
Takealot Passes Major Milestone
One of the standout performers during the year was Takealot, which generated more than US$1 billion in annual revenue for the first time. The milestone underscores the continued growth of South Africa’s leading e-commerce platform and reinforces its importance within the broader Naspers ecosystem.
The company also continues embedding artificial intelligence throughout its operations. Its ToqanClaw agentic AI platform is now available to more than five million restaurant partners, supporting automation and operational efficiency while strengthening its long-term digital commerce strategy.
Capital Allocation Strengthens Investor Confidence
Alongside improving operating performance, Naspers continued returning value to shareholders through disciplined capital management. During FY26, the group completed approximately US$2 billion in non-core asset disposals while extending its long-running share buyback programme.
Management noted that the buyback initiative has now returned roughly US$46 billion to shareholders and contributed around 16 percentage points of net asset value accretion.
While the stock remains below its 2025 highs, the combination of accelerating profitability, record free cash flow, strong execution across key businesses, and disciplined capital allocation has improved investor sentiment. If earnings momentum continues and technical resistance levels are overcome, Naspers could be positioned for a more sustained recovery after months of weakness.
Moving Averages Continue to Support the Trend in Long Run
From a technical perspective, Naspers remains positioned within a well-established uptrend. During the retracement, the share price slipped below the 50-week simple moving average (yellow) and then it slipped below the 100 SMA (green). However the decline has stalled and we saw an attempt at climbing higher in March, popping above R1,000 shortly but couldn’t hold the gains and reversed lower.
NPNJ Chart Weekly – Naspers Found Support at the 200 SMA
The larger trend remains bullish, but the sentiment is bearish mid-term, so there might be further pullbacks. The major support zone comes at around R800 where the 200 weekly SMA (purple) also stands which held today and we saw a rebound. So, that is a luring place to go long on Naspers if the share price retreats down there.
NPNJ Chart Monthly – The 50 SMA Is Holding
On the daily chart we have seen may rebounds, but moving averages continue to act as resistance, rejecting the price. The 100 SMA in green was the last one to reject the price on Tuesday.
NPNJ Chart Daily – The 100 SMA Rejected the Price
Financial Highlights (FY26)
- Total Revenue: $10.8 billion across the total portfolio.
- Ecosystem Revenue: $9.7 billion (up 53%).
- Adjusted EBITDA: $1.3 billion for the e-commerce portfolio (up 84%).
- Core Headline Earnings: $3.6 billion, a 14% increase.
- Dividend: Increased by 40% to 28 euro cents per N share
Highlights
- 53% growth in Ecosystem2 revenue, to $9.7bn
- 84% increase in Ecosystem aebitda to $1.3bn
- Record free cash flow generation of $1.5bn
- 24% growth in core headline earnings per share
- $46bn returned through buybacks, driving 16pp NAV accretion
- $2bn of non-core asset sales
- ToqanClaw, Prosus agentic platform, available to 5-million-plus partners globally
Takealot Group
The Takealot Group continued to grow its position as South Africa’s leading ecommerce ecosystem, now serving more than 6.2-million active customers who placed over 60-million orders across its platforms in FY26.
- Strong performance as the group hit $1bn in revenue, up 18%, defending its market leadership
- GMV up 14% to $2bn, driving a 60% increase in aebitda to $78m, and full-year aebit profitability for the first time of $11m
- Takealot.com delivered strong topline growth with GMV up 15%, orders up 18% and revenue up 19% to $906m
- Mr D grew GMV 13% and revenue 11% to $138m, delivering a stable aebit of $4m
- Takealot Fulfilment Solutions (TFS), positioned as the group’s newest infrastructure business to monetise logistics for external customers, recorded 93.5% year-on-year revenue growth
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