ASX Lifts FY27 Capex Guidance to $180M–$200M Amid Tech Modernisation Push
ASX sets out FY27 financial guidance as technology modernisation investment accelerates
ASX Limited (ASX: ASX) has released its FY27 financial guidance ahead of fiscal year-end, fulfilling a previously committed timeline. The headline numbers reflect a significant uplift in investment intensity: total expense growth of 18%–21% in FY27, alongside revised capex guidance of $180M–$200M, up from the prior range of $160M–$180M.
The guidance reflects ASX’s position as steward of critical national market infrastructure, with investment driven by technology modernisation, regulatory response to the ASIC Inquiry, and customer-driven growth initiatives. FY26 guidance remains unchanged, while year-to-date operating revenue of $1.03 billion (up 12.5% on the prior corresponding period) signals continued underlying business momentum heading into the new financial year.
When big ASX news breaks, our subscribers know first
Unpacking the numbers — what the guidance actually tells investors
Expense growth: what’s driving the 18%–21% range
The headline total expense growth guidance of 18%–21% warrants some unpacking. Operating expense growth excluding depreciation and amortisation (D&A) is a narrower 13%–16% compared to FY26 total expenses. This distinction matters for investors assessing the underlying cost trajectory, as D&A inflation from recently completed capital projects accounts for a meaningful share of the headline figure.
Four primary cost drivers are shaping FY27 expense growth, listed in order of significance:
- Technology modernisation: The most significant factor, encompassing technology cost inflation consistent with industry trends, and support and maintenance expenses for new platforms now in operation, including CHESS Release 1 and enterprise cloud, data and integration platforms. This includes a transitional period where ASX is simultaneously supporting both legacy and new systems.
- Accelerate Program and ASIC Inquiry remediation: Elevated investment in remediation and transformation to support ASX’s stewardship role and operational resilience. ASX is working towards agreeing a reset of the Accelerate Program with ASIC and the Reserve Bank of Australia (RBA) by the end of June 2026.
- Customer-driven growth initiatives: Including new data and technology offerings, expanded derivatives products, refined listing policies, uplifted issuer experience, and initial investments in tokenisation opportunities such as collateral mobilisation and tokenised trading and settlement models.
- Organisational efficiency investment: Covering improved data management, AI and process automation, and the upgrade of internal systems.
D&A is expected to increase by circa 5% of FY26 total expenses in FY27, following the go-live of technology enterprise platforms including CHESS Release 1, the move to ASX’s new Sydney headquarters, and the increased FY27 capex guidance. A similar growth rate in D&A is expected in FY28 before it begins to moderate.
Capex guidance — FY27 and FY28 side by side
FY27 capex guidance has been revised upward from $160M–$180M to $180M–$200M, driven by technology cost inflation and investment in expanding existing product and service offerings in response to customer demand. FY28 capex guidance of $170M–$190M reflects continued investment in ASX’s technology modernisation program.
Investors should note the guidance caveat disclosed by ASX: inherent delivery risks in the technology modernisation program may impact guidance. This is a material qualifier, not a formality, given the complexity of the systems being replaced.
| Metric | FY26 (current guidance) | FY27 (new guidance) | FY28 (new guidance) | Key Driver |
|---|---|---|---|---|
| Total Expense Growth | 20%–23% | 18%–21% | Not guided | Technology modernisation, Accelerate Program, customer-driven growth |
| Capex | $170M–$180M | $180M–$200M | $170M–$190M | Technology cost inflation, new product/service investment |
| D&A Trajectory | Base year | +circa 5% of FY26 total expenses | Similar growth rate, then moderating | CHESS Release 1 go-live, new HQ, increased capex |
What this means for dividends, returns, and the Sympli exit
Dividend policy: unchanged range, lower near-term payout
ASX’s dividend payout ratio policy remains unchanged at 75%–85% of underlying NPAT. However, the near-term signal is clear: ASX expects to pay at the bottom end of that range (75%) for at least the next two dividends.
The driver is regulatory, not operational. ASX is required to accumulate an additional $150 million above its net tangible asset (NTA) value (as at 31 December 2025) by 30 June 2027 as part of its ASIC Inquiry commitments. This capital accumulation will be funded through lower dividend payouts. A discounted Dividend Reinvestment Plan (DRP) will operate across these dividends.
For investors, the message is that the payout policy range remains intact. Near-term cash returns are constrained by regulatory capital obligations rather than any deterioration in the underlying business.
Sympli exit removes an earnings drag
ASX has entered into an agreement to sell its 49% interest in Sympli to joint venture partner ATI Group for a nominal amount. The disposal follows the Australian Registrars National Electronic Conveyancing Council’s (ARNECC) 31 March 2026 decision not to proceed with the e-conveyancing interoperability program without Commonwealth Government support.
The financial impact is an after-tax loss of approximately $12 million, to be recognised as a significant item in the FY26 results. On completion, ASX will no longer recognise its share of Sympli’s operating losses, which were $4.4 million after tax in 1H26 (equivalent to 1.7% of underlying NPAT for 1H26).
The exit simplifies ASX’s portfolio and removes a recurring earnings drag. Separately, ASX has adjusted its medium-term target range for underlying return on equity (ROE) to 12.0%–14.0%, compared to a previous target of 12.5%–14.0%.
The next major ASX story will hit our subscribers first
The bigger picture — investing in infrastructure the market trusts
As Australia’s primary market infrastructure operator, ASX runs the exchange, clearing, and settlement systems that underpin every listed security transaction in the country. When ASX increases its operating cost base, it is investing in the reliability and resilience of systems that the entire financial market depends on. That context is important for reading the FY27 guidance in perspective.
The Final ASIC Inquiry Panel Report identified historical underinvestment in ASX’s technology relative to global peers. ASX has committed to address this with “faster pace and greater ambition.” The current investment cycle is, in part, the fulfilment of that commitment.
Key developments and dates for investors to monitor include:
- CHESS Release 1 now live, with further technology modernisation ongoing
- Tokenisation initiatives underway, including collateral mobilisation and exploration of tokenised trading and settlement models, representing emerging growth optionality
- ASIC legal proceedings scheduled to proceed to trial on 15 June 2026
- FY26 full year results due Thursday, 13 August 2026
Year-to-date operating revenue of $1.03 billion (up 12.5%), with growth recorded across all four divisions, ties directly to the investment thesis. ASX is funding a substantial infrastructure reset while simultaneously growing its top line. For investors, this points to an investment cycle in motion rather than a structural cost problem taking hold.
Stay Ahead on ASX and Financial Sector News
Big News Blast delivers FREE breaking ASX announcements straight to your inbox within minutes of release, complete with in-depth analysis already done. Join 20,000+ subscribers who stay ahead of the market the moment news breaks. Click the “Free Alerts” button at Big News Blast to start receiving alerts today.