The WOW ASX shares price surged 13% on Feb 25, 2026. Discover how Woolworths beat earnings expectations and lifted its dividend despite a $710M pay dispute.

Yesterday, Wednesday, February 25, 2026, the Woolworths Group (WOW ASX Share) share price staged a breathtaking recovery, surging 13% to close at $35.63. This explosive move helped propel the ASX 200 to its own record-breaking high of 9,128.3.

For today.soojz.com, we are exploring how the “Fresh Food People” managed to turn a massive court-ordered back-pay bill into a victory lap for shareholders.

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🎯 The 1H26 Beat: Why Woolworths is Back in Favor

The WOW ASX shares are enjoying their strongest momentum in years. After a prolonged period of lagging behind its rival Coles, Woolworths delivered a first-half result that beat analyst estimates on every key metric. Specifically, while statutory profits were slashed by 49.4% due to a massive provision for underpaid staff, the underlying NPAT surged 16.4% to $859 million.

Consequently, the market has overlooked the headline “profit halving” to focus on the operational recovery. Previously, investors were concerned about market share loss. Now, with Australian Food H2 sales tracking up 5.8% in the first seven weeks, the turnaround narrative is firmly established. By the end of this guide, you will see why management’s confidence led to a significant dividend upgrade.

Read Why WTC Soared 11% in the Powerful ASX Record Rally

🔍 3 Savage Reasons WOW ASX Shares Soared

1. The “Dividend Surprise” & Guidance Upgrade

Despite setting aside $710 million for team member remediation following a Federal Court ruling, Woolworths lifted its interim dividend by 15.4% to 45 cents per share. Therefore, the board has signaled that the company’s cash flow is robust enough to handle historical legal liabilities while still rewarding loyal shareholders.

2. Narrowing the “Coles Gap”

For much of 2025, Woolworths struggled with supply chain disruptions and industrial action. However, the 1H26 results show that sales momentum is returning. Indeed, eCommerce sales were a standout performer, growing 14.6% to $5.3 billion. As a result, WiseTech wasn’t the only tech-driven success on the ASX yesterday; Woolworths’ digital infrastructure is now a primary growth engine.

3. The AI Transformation: “Olive” Gets an Upgrade

In a move that mirrors the broader market’s obsession with efficiency, Woolworths announced a partnership with Google to transform its AI chatbot, Olive. Specifically, Olive will become a “market-leading conversational shopping companion” in H2. Importantly, this shift toward AI-driven customer service is designed to lower the cost of doing business (CODB) and improve margins.

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📋 The 2026 Strategy: Managing the “Basket Shock”

Step #1: Check the Dividend Calendar

The WOW ASX shares go ex-dividend very soon.

• Ex-Date: Wednesday, March 4, 2026.
• Payment Date: Thursday, April 2, 2026.
• Action: You must own the shares before the ex-date to receive the 45c fully franked payment. Check the Woolworths Dividend History for previous payouts.

Step #2: Somatic Reset for Dividend Chasing

Buying a stock after a 13% jump (the “fear of missing out”) can trigger a state of high physiological arousal.

• The Technique: Use the Cyclic Sigh (two short inhales, one long exhale). Consequently, you can determine if you are buying for the long-term yield or simply reacting to the green screen.

Step #3: Monitor the “Inflation/Rate” Intersection

As the Australian inflation rate remains at 3.8%, the RBA’s next move is critical for consumer staples. Indeed, while Woolworths is “defensive,” a 80% probability of a May rate hike could further squeeze household budgets.

• Action: Watch the ASX RBA Rate Tracker for shifting expectations.

Read Why WTC Soared 11% in the Powerful ASX Record Rally

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Conclusion: A New Chapter for the Fresh Food People

In summary, the performance of WOW ASX shares this week marks a definitive “Reset” for the company. While the legacy of pay disputes remains a $710 million shadow on the balance sheet, the operational engine is humming once more. The surge toward a 17-month high shows that the market has regained confidence in CEO Amanda Bardwell’s strategy. Ultimately, the shift from market underperformer to record-rally leader shows that even the most established blue-chips can reinvent themselves through digital investment and operational discipline. By staying grounded in somatic regulation and focusing on these underlying metrics, you can navigate the “Retail Wars” of 2026 with confidence. For the full technical breakdown, you can view the official Woolworths 1H26 ASX Announcement.

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