Strong Performance of Macquarie Group Shares
The Macquarie Group Ltd (ASX: MQG) share price has shown impressive growth since the onset of the COVID-19 pandemic, significantly outperforming the S&P/ASX 200 Index (ASX: XJO). As illustrated in the chart, at the time of writing, the ASX 200 has risen by 23% over the last five years, while Macquarie shares have increased by 54%. This means that Macquarie's capital growth has more than doubled that of the ASX 200.
This level of performance is rare among ASX blue-chip shares. Let’s explore what this difference means for an investor with $10,000.
$10,000 Investment Difference
Five years ago, as the world was still navigating the challenges of the pandemic, the Macquarie share price was in the $150s. With $10,000, an investor could have purchased 63 Macquarie shares. Today, with the same amount of money, an investor can only buy 40 Macquarie shares. This shift highlights the significant growth of the company’s share price over the past five years.
Why Has the Macquarie Share Price Performed So Well?
Several factors contribute to the strong performance of Macquarie's shares. The ASX financial share has rebounded after initial weakness linked to the Middle East conflict. Energy price volatility may have also benefited the commodities and global markets (CGM) segment, leading to stronger profits.
The latest update from the business, which currently has the most influence on the Macquarie share price, was the FY26 result. The FY26 net profit grew by 30% to $4.85 billion, with the second-half net profit increasing by 93% year over year.
Operating Performance of Key Segments
Looking at the operating performance of its individual segments:
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CGM saw a 49% increase in FY26 net profit to $4.2 billion. This was driven by higher asset finance contributions following the gain on the sale of the OnStream meters platform, along with increased risk management income from client hedging activities across global gas and power and global oil businesses.
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Macquarie Asset Management (MAM) experienced a 27% rise in net profit to $2.6 billion, primarily due to higher performance fees.
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Banking and Financial Services (BFS) reported a 17% increase in net profit to $1.6 billion, fueled by growth in both the loan portfolio and BFS deposits.
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Macquarie Capital, the investment banking division, achieved 43% profit growth to $1.49 billion, thanks to higher income from equity investments, merger and acquisition fees, brokerage, and the private credit portfolio.
Future Outlook
While it remains to be seen how the business will perform moving forward, the current profit generation is highly promising.
Considerations Before Investing
Before investing in Macquarie Group shares, it's important to consider expert opinions. Motley Fool investing expert Scott Phillips recently highlighted what he believes are the 5 best stocks for investors to buy right now, and Macquarie Group was not among them.
The online investing service he has managed for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have delivered substantial returns. Currently, Scott believes there are 5 stocks that may offer better opportunities.
For further reading:
- Buy, hold, sell: COG Financial Services, Macquarie, CBA shares
- Here are the top 10 ASX 200 shares today
- Buy, hold, sell: CBA, Life360, and Macquarie shares
- Buy, hold, sell: Bega Cheese, Kogan, Macquarie shares
- Buy, hold, sell: CSL, Macquarie, and REA Group shares
Tristan Harrison, a Motley Fool contributor, has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company, Motley Fool Holdings Inc., has positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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