Challenger Limited (CGF) - Q1 FY26 Operational Update
Alpha Insights Equity Research | 17 October 2025
Current Price: $9.16 | Updated Fair Value: $10.77 (previously $12.23)
What Happened
Challenger delivered Q1 FY26 operational results demonstrating execution excellence across strategic priorities. Management reaffirmed FY26 guidance for 8-10% Life book growth despite challenging macro conditions, whilst strategic initiatives progressed with LiFTS Notes launch and Fulcrum Asset Management platform addition.
| Metric | Q1 FY26 | Performance | Industry Context |
|---|---|---|---|
| Life Sales Growth | +4% QoQ | Accelerating | Market-leading |
| Annuity Sales | $1.1bn | +21% (Inst: +17%) | 60% market share |
| Book Value Growth | +2.5% | On track (8-10% FY26) | Above peers |
| Retention Rates | 96%+ | Stable | Top quartile |
| EBITDA Margin | 67.7% | Maintained | +1,270bps vs median |
| FUM | $8.6bn | -3% | Selective outflows |