ASX reporting season 2026: The sectors and stocks to watch

Reporting season kicks off next week, and investors across Australia will be glued to earnings, profit margins and company guidance.

But here's the catch: this could be one of the most misleading reporting seasons we've seen in years.

Over the past six months, we've seen almost every major market driver shift.

Oil prices surged on escalating tensions in the Middle East before pulling back.

After hitting record highs, gold and silver have since corrected sharply as investors rotated back into risk assets and expectations around interest rates changed.

Copper has remained resilient thanks to demand from AI infrastructure and electrification, while inflation, interest rates and government policy continue to shape the outlook for Australian businesses.

The obvious winners should be the Materials and Energy sectors.

Higher commodity prices are expected to boost earnings, particularly for miners and energy producers.

The key won't be the results themselves, but what management says about the road ahead.

Consumer staples such as Coles and Woolworths will also be worth watching.

Rising transport and operating costs have squeezed margins, but both companies have shown they can pass many of those costs onto consumers.

With both stocks remaining in long-term uptrends, investors clearly still view them as reliable defensive plays.

Healthcare, Technology and Real Estate could tell a different story.

Many companies in these sectors have already seen their share prices retreat over the past year.

If the market has already priced in weaker earnings, even average results could be enough to spark a rally.

That brings me to what I believe is the wildcard sector this reporting season: Financials.

Australia's banks have spent months battling concerns around slowing credit growth, softer consumer spending and pressure on lending margins.

But what if the bad news is already factored into their share prices?

If results come in even slightly better than expected, the sector could quietly surprise investors.

My wildcard stock is South32 (ASX: S32).

While everyone focuses on the big iron ore names, South32's exposure to copper and other base metals gives it a unique position if industrial demand continues to strengthen.

What are the best and worst-performing sectors this week?

The best-performing sectors include Energy, up more than 5%, followed by Materials, up more than 4%, and Consumer Staples, down less than 0.5%.

The worst-performing sectors include Healthcare, down more than 4%, followed by Consumer Discretionary, down more than 3%, and Communication Services, down more than 2%.

The best-performing stocks in the ASX top 100 include Paladin Energy, up more than 21%, followed by South32 Limited, up more than 19%, and Regis Resources Limited, up more than 12%.

The worst-performing stocks include Pro Medicus, down more than 13%, followed by WiseTech Global, down more than 9%, and Xero Limited, down more than 7%.

What's next for the Australian stock market?

The All Ordinaries Index ground higher this week, finishing 0.44% higher by Thursday's close.

While the move itself wasn't spectacular, it reinforces the theme we've been discussing over the past month: the market continues to tighten, with neither buyers nor sellers willing to give much ground.

The trading range is becoming increasingly compressed, and markets rarely stay like this for long.

The difference now is that we have a potential catalyst just around the corner.

Reporting season is about to begin, and this could be the event that finally breaks the deadlock.

If the Materials sector delivers the strong earnings many are expecting and the Financials can provide support once again, the market may finally have the momentum needed to push through resistance.

Seasonally, August is often a quieter month than July.

However, markets don't always follow the averages.

July is typically the strongest month of the year for Australian shares, yet this year it has delivered a relatively subdued return of just 0.4% so far.

That raises an interesting possibility: perhaps August becomes the release valve, allowing the market to make up for lost time.

It's also worth remembering how Australia's market has compared with the rest of the world.

While many major global indices have pushed to fresh highs, the ASX has spent much of the year moving sideways, ending the first half not far from where it began.

Yet beneath the surface, there is a subtle shift taking place.

Since the March 2026 low, the All Ordinaries has posted a higher monthly close every single month.

The gains haven't been dramatic, but the consistency is difficult to ignore.

Momentum often builds quietly before everyone notices it.

That's why the weeks ahead could prove so important.

Reporting season won't just determine which companies outperform, it may also decide whether the broader market finally breaks free from the range that has contained it for weeks.

The players are in position, the stage is set, and now it's over to corporate Australia to decide whether the next act is a breakout or another period of waiting.

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