SYDNEY, 19 February 2026 – The Zip Co Limited (ASX: ZIP) share price has experienced a day of extreme volatility, crashing by more than 30% during Thursday’s trading session. Despite the company reporting record-breaking financial results for the first half of the 2026 financial year (1H FY26), investors appear to have engaged in a massive “sell the news” event, wiping out months of gains in a single morning.
Market Performance Today
As of late morning trade on Thursday, 19 February 2026, Zip shares were trading at approximately $1.90, representing a staggering 33% decline from the previous day’s close. This “obliteration,” as described by market analysts, follows a three-day winning streak where the stock had climbed to $2.82 on Wednesday evening.
The sharp decline comes despite Zip reporting a record cash EBTDA of $124.3 million, an 85.6% increase compared to the prior corresponding period. While the company also upgraded its future guidance, the market reaction suggests that high expectations were already priced into the stock, leading to a rapid exit by traders once the official figures were released.
Zip Co Limited (ASX: ZIP) Key Statistics
The following table reflects the company’s standing based on the most recent verified data and today’s market movements.
| Metric | Details |
|---|---|
| ASX Ticker | ZIP |
| Current Price (approx.) | A$1.90 (as of 19 Feb 2026) |
| Daily Change | -33% to -35% |
| 1H FY26 Cash EBTDA | $124.3 Million |
| Market Capitalisation | ~$2.4B – $3.1B (Fluctuating) |
| Headquarters | Sydney, Australia |
| Founded | 2009 |
Recent Developments and Results
The primary driver for today’s price action is the 1H FY26 results announcement. Key highlights from the report include:
- Earnings Growth: A record cash EBTDA of $124.3 million, showcasing significant operational scaling.
- Guidance Upgrade: Management expressed confidence in the remainder of the financial year, raising their performance outlook.
- Brand Strategy: The company recently launched its “In You We Trust” brand platform, aimed at deepening customer loyalty and expanding its footprint in the Australian and US markets.
Despite these positive metrics, the stock’s “crash” highlights the disconnect between corporate performance and investor sentiment during the 2026 reporting season. Analysts note that Zip had gained over 8% just yesterday, suggesting that the market may have overextended itself in anticipation of these results.
Frequently Asked Questions
Why did Zip shares fall today despite good results?
This is often referred to as “selling the fact.” Investors may have bought into Zip over the last several weeks in anticipation of record earnings. Once the news was confirmed, many chose to take profits simultaneously, leading to a rapid decline in the share price.
What was Zip’s share price before today?
Zip shares closed at $2.82 on Wednesday, 18 February 2026, after three consecutive days of gains. The stock had been trading as high as $3.37 in late 2025.
Is Zip Co still profitable?
Yes, according to the 1H FY26 report released today, Zip is generating record cash earnings (EBTDA), indicating that the underlying business remains operationally strong despite the current share price volatility.
What is the analyst price target for ZIP?
Recent analyst consensus had placed a midpoint price target of approximately $5.05. Following today’s crash to $1.90, the stock is now trading significantly below those long-term projections.