BILL

BILL Holdings, Inc. (NYSE:BILL) is reorganizing its financial automation platform around AI while projecting slower sales growth for fiscal 2027. That is not necessarily contradictory: the company can generate higher earnings through lower operating costs and more payment activity even if total revenue growth moderates. The question is how sustainable that improvement will be. After a broad software-sector recovery from fears of AI disruption, investors are increasingly distinguishing products that generate incremental revenue from technology that mainly makes the existing organization more efficient. For BILL Holdings, Inc. (NYSE:BILL), both outcomes matter, but they produce different long-term earnings trajectories. BILL Holdings occupies sixth place in our ranking of the 10 best growth stocks under $50 to buy now, putting the financial software provider just outside the top five. But which company narrowly outranks BILL, and what entirely different growth opportunity managed to secure the top spot? BILL Holdings, Inc. (NYSE:BILL) reported fiscal fourth-quarter 2026 revenue of $436.2 million, up 14% YoY. Core revenue rose 16% to $400.5 million, led by transaction fees of $324.3 million, up 17%; subscription revenue rose 11% to $76.2 million. Customers processed approximately $98 billion of payments, also up 14%, showing that transaction activity remains central to monetization. Non-GAAP operating income jumped 80% to $101.6 million, yet the GAAP operating loss widened to $34.3 million from $22.3 million. That divergence matters because adjusted profit excludes expenses that still affect reported results. Management expects fiscal 2027 revenue to grow 9% to 12% to $1.807 billion–$1.857 billion, compared with approximately 13% growth in fiscal 2026. Faster projected earnings growth therefore needs an explanation beyond accelerating sales. The scale of the AI effort is already visible. An earlier look inside BILL's AI transformation describes the growing number of business users and raises the more important question of how automation might eventually change the company's economics. More than 175,000 businesses used BILL Holdings, Inc. (NYSE:BILL)'s AI agents by the latest earnings call. Its invoice-coding agent had been adopted by over 60,000 companies, and another tool had automated more than seven million transaction fields. Those figures demonstrate use of AI across an established network, but management has not separately disclosed enough revenue to calculate a stand-alone return on those tools. The nearer-term earnings benefit is easier to identify. Truist raised its target to $52 from $44 in September while retaining Hold, noting that its revenue forecast changed little but adjusted profit assumptions improved as workforce savings arrived sooner. BMO Capital increased its target to $55 from $46 (Market Perform), but wanted evidence that reorganized sales teams could improve execution. Management has acknowledged slower-than-expected adoption of certain supplier payment offerings, a reminder that efficiency and customer spending do not automatically rise together. BILL Holdings, Inc. (NYSE:BILL) expects fiscal 2027 non-GAAP EPS of $3.56–$3.79, supported by restructuring and buybacks. Seeking Alpha's October 13 estimates imply a P/E of 11.80 times fiscal 2027 earnings, falling to 10.13 in 2028, 8.41 in 2029, and 6.62 in 2030, based on current valuation estimates. Consensus EPS growth is projected at 34.59%, 16.41%, 20.46%, and 27.01% across those four fiscal years. Sustaining that trajectory beyond the initial savings will require stronger transaction monetization or renewed revenue acceleration. BILL's September partnership with Blackbaud may expand payments through software already used by nonprofit and education customers, but no revenue contribution was disclosed. The larger sector is also exploring entirely new workflows: PayPal's wager on AI-driven commerce illustrates why control of the payment process may matter as much as the software interface. Hedge fund ownership in BILL Holdings, Inc. (NYSE:BILL) declined from 61 to 54 funds in Q2, though Starboard Value remained a major shareholder and Arrowstreet increased its position. Short interest represented 17.14% of the reported float on September 30. BILL's restructuring and cost reductions are driving adjusted earnings growth faster than revenue, but the next test is whether AI capabilities, cross-selling, and payment partnerships can sustain those gains once the initial savings are realized. While we acknowledge the potential of BILL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: PayPal (PYPL): Is Its Low Earnings Multiple a Bargain or a Value Trap? and ServiceNow (NOW) Is Growing 24%, but Can Cash Flow Justify Its Valuation? Disclosure: None. Follow Insider Monkey on Google News.

Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering BILL Holdings (BILL), which belongs to the Zacks Internet - Software industry. When looking at the last two reports, this payment processing software company has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 22.69%, on average, in the last two quarters. For the most recent quarter, BILL Holdings was expected to post earnings of $0.69 per share, but it reported $0.84 per share instead, representing a surprise of 21.74%. For the previous quarter, the consensus estimate was $0.55 per share, while it actually produced $0.68 per share, a surprise of 23.64%. For BILL Holdings, estimates have been trending higher, thanks in part to this earnings surprise history. And when you look at the stock's positive Zacks Earnings ESP (Expected Surprise Prediction), it's a great indicator of a future earnings beat, especially when combined with its solid Zacks Rank. Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. BILL Holdings has an Earnings ESP of +0.15% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #1 (Strong Buy), it shows that another beat is possibly around the corner. When the Earnings ESP comes up negative, investors should note that this will reduce the predictive power of the metric. But, a negative value is not indicative of a stock's earnings miss. Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate. Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BILL Holdings, Inc. (BILL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

It has been about a month since the last earnings report for BILL Holdings (BILL). Shares have added about 0.4% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is BILL Holdings due for a pullback? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for BILL Holdings, Inc. before we dive into how investors and analysts have reacted as of late. BILL Holdings reported fourth-quarter fiscal 2026 non-GAAP net income of 84 cents per share, beating the Zacks Consensus Estimate of 69 cents. The figure rose 58.5% from a year ago. The profitability upside reflected earlier workforce reduction timing and lower fraud and credit losses. Revenues of $436.2 million increased 13.8% year over year and surpassed the Zacks Consensus Estimate by 1.5%. Total payment volume reached $98 billion, up 14% year over year. Core revenues, comprising subscription and transaction fees, increased 16% year over year to $400.5 million. Subscription fees rose 11% to $76.2 million, while transaction fees climbed 17% to $324.3 million. Float revenues were $35.7 million, down from $37.4 million in the prior-year quarter. BILL accounts payable/receivable, or AP/AR, core revenues increased 10% to $192.4 million. Spend and Expense revenues rose 22.6% to $184.6 million, while Embedded Solutions and Other core revenues advanced 15.2% to $23.5 million. The company served 479,300 businesses at quarter-end, down from 493,800 a year earlier. Embedded Solutions and Other customers fell to 249,500 from 283,200, while BILL AP/AR customers increased to 183,300 from 169,500. Despite the lower total business count, transactions processed increased 13.7% to 37.4 million, while network members grew 11% to 9.2 million. Spend and Expense spending businesses reached 46,500, up from 41,100 a year ago. Non-GAAP operating income increased to $101.6 million from $56.4 million. Non-GAAP operating margin reached 23%, expanding 860 basis points year over year. GAAP operating expenses rose to $390.4 million from $332 million and included a $76.6 million restructuring charge. Research and development expense declined to $63.1 million from $90.1 million, while the provision for expected credit losses decreased to $13.5 million from $15.8 million. More than 175,000 businesses were using BILL's AI agents. Organizations using the W-9 agent more than tripled sequentially above 40,000, while the invoice coding agent had been used by more than 60,000 companies. The touchless transactions agent automated more than seven million transaction fields for 30,000 customers. Customer spend on AI through BILL increased more than 50% year over year in the quarter, while total payment volume from AI-first customers nearly doubled sequentially. The number of joint customers using both accounts payable and Spend and Expense grew 35% year over year. Customers present in both the current and year-ago quarters posted net revenue retention of 111%. Net cash provided by operating activities was $111 million, up from $83.8 million a year earlier. Free cash flow increased to $96.5 million from $68.5 million. BILL ended fiscal 2026 with $1.03 billion in cash and cash equivalents and $906.5 million in short-term investments. BILL repurchased approximately 8.4 million shares during the fourth quarter for about $300 million. On the Aug. 19 earnings call, management said $400 million remained under the $1 billion share repurchase authorization. For the first quarter of fiscal 2027, management expects total revenues of $432.5-$442.5 million and core revenues of $398-$408 million, implying core growth of 11%-14%. Non-GAAP net income per share is projected at $0.96-$1.00. For fiscal 2027, BILL forecasts total revenues of $1.81-$1.86 billion, core revenues of $1.67-$1.72 billion and non-GAAP net income per share of $3.56-$3.79. The revenue guidance is stated on the historical presentation basis before rewards expense is deducted. Beginning with first-quarter fiscal 2027 reporting, rewards expense will be presented as a reduction of revenues rather than sales and marketing expense, with no impact on operating income or net income. It turns out, estimates revision have trended upward during the past month. The consensus estimate has shifted 104.59% due to these changes. At this time, BILL Holdings has a average Growth Score of C, however its Momentum Score is doing a lot better with an A. Charting a somewhat similar path, the stock has a grade of B on the value side, putting it in the top 40% for value investors. Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise BILL Holdings has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months. BILL Holdings belongs to the Zacks Internet - Software industry. Another stock from the same industry, JFrog Ltd. (FROG), has gained 4.8% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026. JFrog reported revenues of $163.77 million in the last reported quarter, representing a year-over-year change of +28.7%. EPS of $0.27 for the same period compares with $0.18 a year ago. JFrog is expected to post earnings of $0.23 per share for the current quarter, representing a year-over-year change of +4.6%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged. The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for JFrog. Also, the stock has a VGM Score of C. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BILL Holdings, Inc. (BILL) : Free Stock Analysis Report JFrog Ltd. (FROG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Wrapping up Q2 earnings, we look at the numbers and key takeaways for the finance and hr software stocks, including BILL (NYSE:BILL) and its peers. Organizations are constantly looking to improve organizational efficiencies, whether it is financial planning, tax management or payroll. Finance and HR software benefit from the SaaS-ification of businesses, large and small, who much prefer the flexibility of cloud-based, web-browser delivered software paid for on a subscription basis than the hassle and expense of purchasing and managing on-premise enterprise software. The 12 finance and hr software stocks we track reported a mixed Q2. As a group, revenues beat analysts’ consensus estimates by 1.9% while next quarter’s revenue guidance was 0.8% below. Luckily, finance and hr software stocks have performed well with share prices up 10.2% on average since the latest earnings results. Transforming the messy back-office financial operations that plague small business owners, BILL (NYSE:BILL) provides a cloud-based platform that automates accounts payable, accounts receivable, and expense management for small and midsize businesses. BILL reported revenues of $436.2 million, up 13.8% year on year. This print exceeded analysts’ expectations by 1.4%. Overall, it was a satisfactory quarter for the company with EPS guidance for next quarter exceeding analysts’ expectations but full-year revenue guidance slightly missing analysts’ expectations. Interestingly, the stock is up 2.7% since reporting and currently trades at $49.00. Is now the time to buy BILL? Access our full analysis of the earnings results here, it’s free. Pioneering the concept of employees doing their own payroll with its "Beti" technology, Paycom (NYSE:PAYC) provides cloud-based human capital management software that helps businesses manage the entire employment lifecycle from recruitment to retirement. Paycom reported revenues of $531.2 million, up 9.8% year on year, outperforming analysts’ expectations by 3.5%. The business had a very strong quarter with full-year EBITDA guidance exceeding analysts’ expectations and an impressive beat of analysts’ billings estimates. Paycom achieved the highest full-year guidance raise in the group. The market seems happy with the results as the stock is up 37% since reporting. It currently trades at $239.40. Is now the time to buy Paycom? Access our full analysis of the earnings results here, it’s free. Originally named after its founding product "Intuitive for the first-time user," Intuit (NASDAQ:INTU) provides financial management software and services including TurboTax, QuickBooks, Credit Karma, and Mailchimp to help consumers and small businesses manage their finances. Intuit reported revenues of $4.35 billion, up 13.7% year on year, exceeding analysts’ expectations by 2%. Still, it was a softer quarter as it posted full-year guidance of slowing revenue growth. Intuit delivered the weakest full-year guidance update of the whole group. The stock is flat since the results and currently trades at $359.26. Read our full analysis of Intuit’s results here. Nicknamed "the Excel killer" by some finance professionals for its ability to eliminate spreadsheet chaos, Workiva (NYSE:WK) provides a cloud-based platform that enables organizations to streamline financial reporting, ESG, and compliance processes with connected data and automation. Workiva reported revenues of $255.3 million, up 18.6% year on year. This print topped analysts’ expectations by 1.7%. It was a strong quarter as it also produced EPS guidance for next quarter exceeding analysts’ expectations and a solid beat of analysts’ adjusted operating income estimates. The stock is up 29.7% since reporting and currently trades at $79.41. Read our full, actionable report on Workiva here, it’s free. Operating in a field where companies traditionally juggled multiple disconnected systems, Paylocity (NASDAQ:PCTY) provides cloud-based human capital management and payroll software solutions that help businesses manage their workforce and HR processes. Paylocity reported revenues of $444.7 million, up 11% year on year. This number beat analysts’ expectations by 3.1%. Overall, it was a strong quarter as it also logged an impressive beat of analysts’ adjusted operating income estimates and EBITDA guidance for next quarter beating analysts’ expectations. The stock is up 12.3% since reporting and currently trades at $161.02. Read our full, actionable report on Paylocity here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

It is not surprising that before an earnings season, every investor looks for stocks that can beat market expectations. This is because investors always try to position themselves ahead of time and look to tap stocks that are high-quality in nature. In this regard, we ran a screener that yielded stocks The Allstate Corporation ALL, Wayfair W, BILL Holdings Inc. BILL, Twilio TWLO and Caribou Biosciences CRBU as the likely winners on the earnings beat potential. Historically, stocks of companies with solid quarterly earnings (on a nominal basis) tank if they miss or merely meet market expectations. After all, a 20% earnings rise (though apparently looks good) doesn’t tell you if earnings growth has been exhibiting a decelerating trend. Also, seasonal fluctuations sometimes come into play. If a company’s Q1 is seasonally weak and Q4 strong, then it is likely to report a sequential earnings decline. In such cases, growth rates are misleading while judging the true health of a company. On the other hand, after much brainstorming and analysis of companies’ financials and initiatives, Wall Street analysts project earnings of companies. They in fact club their insights and a company’s guidance when deriving an earnings estimate. Thus, outperforming that estimate is almost equivalent to beating the company’s own expectation as well as the market perception. And if the margin of earnings surprise is big, it typically drives the stock higher right after the release. Thus, more than anything else, an earnings surprise can push a stock higher. Now, finding stocks that have the potential to beat on the bottom line may be investors’ dream but not an easy job. One way to do this is to look at the earnings surprise history of the company. An impressive track record in this regard generally acts as a catalyst in sending a stock higher. It indicates the company’s ability to surpass estimates. And investors generally believe that the company will apply the same secret sauce to execute yet another earnings beat in its next release. In order to shortlist stocks that are likely to come up with an earnings surprise, we chose the following as our primary screening parameters. Last EPS Surprise greater than or equal to 10%: Stocks delivering positive surprise in the last quarter tend to surprise again. Average EPS Surprise in the last four quarters greater than 20%: We lifted the bar for outperformance slightly higher by setting the average earnings surprise for the last four quarters at 20%. Average EPS Surprise in the last two quarters greater than 20%: This points to a more consistent surprise history and makes the case for another surprise even stronger. In addition, we place a few other criteria that push up the chance of a positive surprise. Zacks Rank less than or equal to 2: Only companies with a Zacks Rank #1 (Strong Buy) or 2 (Buy) rating can get through. Earnings ESP greater than zero: A stock needs to have both a positive Earnings ESP and a Zacks Rank of #1, 2 or 3 for an earnings beat to happen, as per our proven model. In order to zero in on those that have long-term growth potential and high trading liquidity, we have added the following parameters too: Next 3–5 Years Estimated EPS Growth (Per Year) greater than 10%: Solid expected earnings growth exhibits the stock’s long-term growth prospects. Average 20-day Volume greater than 100,000: High trading volume implies that the stocks have adequate liquidity. A handful of criteria has narrowed down the universe from over 7,700 stocks to only 11. Here are five out of 11 stocks: Allstate: The Zacks Rank #1 company is the third-largest property-casualty (P&C) insurer and the largest publicly held personal lines carrier in the United States. You can see the complete list of today’s Zacks #1 Rank stocks here. The average earnings surprise of ALL for the past four quarters is 45.34%. Wayfair: The Zacks Rank #1 company is an online seller of home goods products, consisting of furniture and home decor. The average earnings surprise of W for the past four quarters is 21.51%. BILL Holdings: The Zacks Rank #1 company primarily serves small and midsize businesses through its AI-powered financial operations platform that connects customers with their suppliers and clients. The average earnings surprise of BILL for the past four quarters is 19.82%. Twilio: Twilio provides a cloud-based customer engagement platform that enables developers and businesses to build, scale and operate real-time communications within software applications. The company currently has a Zacks Rank #1. The average earnings surprise of TWLO for the past four quarters is 13.95%. Caribou Biosciences: This is a clinical-stage CRISPR genome-editing biopharmaceutical company. It has a Zacks Rank #2. The average earnings surprise of CRBU for the past four quarters is 20.08%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

BILL Holdings (BILL) could be a solid choice for investors given the company's remarkably improving earnings outlook. While the stock has been a strong performer lately, this trend might continue since analysts are still raising their earnings estimates for the company. The upward trend in estimate revisions for this payment processing software company reflects growing optimism of analysts on its earnings prospects, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. This insight is at the core of our stock rating tool -- the Zacks Rank. The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008. Consensus earnings estimates for the next quarter and full year have moved considerably higher for BILL Holdings, as there has been strong agreement among the covering analysts in raising estimates. The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate: The earnings estimate of $0.92 per share for the current quarter represents a change of +50.8% from the number reported a year ago. Over the last 30 days, the Zacks Consensus Estimate for BILL Holdings has increased 102.38% because four estimates have moved higher compared to no negative revisions. For the full year, the company is expected to earn $3.67 per share, representing a year-over-year change of +32.5%. In terms of estimate revisions, the trend for the current year also appears quite encouraging for BILL Holdings. Over the past month, six estimates have moved higher compared to no negative revisions, helping the consensus estimate increase 46.46%. The promising estimate revisions have helped BILL Holdings earn a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision.You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500. Investors have been betting on BILL Holdings because of its solid estimate revisions, as evident from the stock's 7.7% gain over the past four weeks. As its earnings growth prospects might push the stock higher, you may consider adding it to your portfolio right away. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BILL Holdings, Inc. (BILL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

BILL’s second quarter results received a positive response from the market, driven by strong adoption of its AI-driven features and a shift in customer acquisition strategy. Management highlighted ongoing traction for its integrated financial automation platform, with CEO René Lacerte noting that over 175,000 businesses now use BILL’s AI agents to streamline financial tasks. The quarter was also marked by a significant organizational restructuring that included leadership changes and a new go-to-market approach, focused on higher-value, multi-product customers. CFO Rohini Jain emphasized that these efforts led to improved profitability, with operational efficiencies and a reduction in fraud losses boosting margins. Is now the time to buy BILL? Find out in our full research report (it’s free). Revenue: $436.2 million vs analyst estimates of $430.3 million (13.8% year-on-year growth, 1.4% beat) Adjusted EPS: $0.84 vs analyst estimates of $0.71 (18.5% beat) Adjusted Operating Income: $101.6 million vs analyst estimates of $84.7 million (23.3% margin, 20% beat) Revenue Guidance for Q3 CY2026 is $437.5 million at the midpoint, below analyst estimates of $443.6 million Adjusted EPS guidance for the upcoming financial year 2027 is $3.68 at the midpoint, beating analyst estimates by 8.6% Operating Margin: -7.9%, down from -5.8% in the same quarter last year Customers: 479,300, down from 493,800 in the previous quarter Billings: $434.2 million at quarter end, up 13.1% year on year Market Capitalization: $4.07 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Tien-Tsin Huang (JPMorgan): Asked about the timeline and realized savings from the restructuring. CFO Rohini Jain confirmed net benefits aligned with expectations, contributing $80 million to cost savings. Scott Berg (Needham & Company): Probed on the monetization strategy for AI agents. CEO René Lacerte outlined a future move toward platform and consumption-based pricing, with a focus on driving early customer retention and usage. Christopher Quintero (Morgan Stanley): Inquired about the drivers of strong payment volume growth. Jain attributed this to increased ACH product usage and growth in mid-market customers with higher average transaction value. Will Nance (Goldman Sachs): Asked about the sustainability of take rates and long-term monetization. Jain indicated that while ACH volumes may compress take rates, overall growth will be supported by volume expansion and diversified monetization strategies. Andrew Schmidt (KeyBanc Capital Markets): Questioned the near-term revenue growth outlook amid organizational changes. Jain explained that revenue headwinds from partner transitions and sales ramp-up are expected to be transitory, with future growth returning to low double digits to mid-teens. In upcoming quarters, the StockStory team will be monitoring (1) the pace of AI feature adoption and how quickly new products contribute to retention and monetization; (2) the stabilization of customer acquisition trends as the restructured sales team gains traction; and (3) the execution of the Embed 2.0 partner strategy, particularly how efficiently BILL transitions existing bank relationships and scales its embedded finance platform. Progress on these fronts will be crucial indicators for the sustainability of BILL’s growth and margin targets. BILL currently trades at $47.62, in line with $47.71 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free for active Edge members). ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time. Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Transitioned from a hybrid general manager structure to a functional model to drive speed of execution and accountability as an AI-native organization. Achieved significant momentum in AI adoption with over 175,000 businesses using agents for W-9 collection, invoice coding, and touchless transactions. Leveraged proprietary data and network signals to improve invoice financing underwriting, resulting in a 30% volume increase and a 50% reduction in expected loss rates. Consolidated the go-to-market organization under a single Chief Revenue Officer to sell Bill as a unified platform rather than individual product components. Prioritized higher ROI customers by focusing on the 'Ideal Customer Profile' (ICP), specifically mid-market firms with higher transaction volumes and ARPU. Rationalized the bank channel by shifting toward a standardized 'Embed 2.0' platform, acknowledging that not all legacy custom bank relationships will continue. Addressed early challenges in Supplier Payments Plus (SPP) by refining the enterprise sales motion and achieving $800 million in committed TPV. Strategic pivot to an 'agentic platform' that automates financial operations by default for nearly 0.5 million customers using deeply embedded AI. Targeting Rule of 40 status, defined as revenue growth net of rewards plus non-GAAP operating margin, with expectations to exceed this threshold by year-end. Focusing on achieving meaningful GAAP profitability in FY 2027, supported by a reduction in stock-based compensation from 14% to 10% of revenue. Guidance assumes a 3-point headwind to revenue growth: 2 points from Spend & Expense card acceptance dynamics and 1 point from bank channel consolidation. Anticipating Q2 FY 2027 to be the trough of the growth trajectory due to difficult prior-year comparisons before accelerating toward the end of the year. Voluntary accounting change to present revenue net of rewards expense starting in Q1 FY 2027 to better reflect unit economics and peer comparability. Completed a $600 million share repurchase, retiring approximately 14% of common stock, with $400 million remaining on the current authorization. Organizational restructuring resulted in a net benefit of approximately $80 million after reinvesting $30 million back into the business. Monitoring card acceptance dynamics among a small number of high-volume merchants that may impact Spend & Expense volume growth. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management plans to shift from per-seat pricing to platform fees and usage-based consumption models as AI agents deliver more value. AI is expected to drive monetization by improving customer retention in the first 90 days and enabling higher-tier subscription groupings for agentic features. TPV outperformance was driven by strong ACH adoption among newly acquired larger mid-market customers. The shift toward larger ticket sizes in construction and manufacturing verticals naturally compresses the take rate due to the high mix of ACH versus card. Management is moving away from custom '1.0' solutions that were resource-intensive and difficult to scale across the full product suite. The focus is now exclusively on the 'Embed 2.0' platform, which allows partners to deploy Bill's entire integrated experience more efficiently. Q4 net adds were impacted by the deliberate exit of salespeople during the restructuring to reset quotas and pipelines. Early Q1 indicators show recovery, with management expecting net adds to return to the 2,500 to 3,000 range as the new sales motion stabilizes.

This article first appeared on GuruFocus. Core Revenue: $400.5 million in Q4 FY26, up 16% year-over-year. Non-GAAP Operating Margin: 23% in Q4, expanding 370 basis points sequentially and 860 basis points year-over-year. Non-GAAP Net Income: $94 million in Q4, up 22% sequentially and 53% year-over-year. AP/AR Core Revenue: Grew 10% year-over-year, with subscription ARPU increasing 1.4%. AP/AR Transaction Revenue: $131 million, up 10% year-over-year. Spend and Expense Revenue: $185 million in Q4, up 23% year-over-year. Card Payment Volume: Grew 20% year-over-year in Q4. Net New Customers: Approximately 1,800 added in Q4, below recent trends due to deliberate prioritization and restructuring. Same-Store Sales TPV Growth: 6% year-over-year, a sequential acceleration of 2 points and the highest since Q1 FY23. AP/AR Take Rate: 16.0% in Q4, contracting by 0.5 basis points. Spend and Expense Take Rate: 261 basis points in Q4, reflecting a favorable mix of high interchange verticals. Reward Rate: 133 basis points in Q4, up 3 basis points sequentially. Share Repurchases: Approximately $300 million in Q4 at an average price of $35.31 per share; about 15 million shares retired since Q3 earnings call. Q1 FY27 Core Revenue Guidance: $398 million to $408 million, reflecting 11% to 14% year-over-year growth. Q1 FY27 Non-GAAP Operating Income Guidance: $112.5 million to $117.5 million. Q1 FY27 Non-GAAP EPS Guidance: $0.96 to $1.00. FY27 Core Revenue Guidance: $1.669 billion to $1.719 billion, reflecting 11% to 14% year-over-year growth. FY27 Non-GAAP Operating Income Guidance: $421 million to $451 million, representing a 23% to 24% non-GAAP operating margin. FY27 Non-GAAP EPS Guidance: $3.56 to $3.79, representing 33% year-over-year growth. FY27 GAAP Profitability: Expected to generate well over $125 million in GAAP profits. Warning! GuruFocus has detected 3 Warning Sign with BILL. Is BILL fairly valued? Test your thesis with our free DCF calculator. Release Date: August 19, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Core revenue grew 16% year-over-year with non-GAAP operating margin exceeding 23%, showing strong financial performance. AI adoption is robust, with over 175,000 businesses using AI agents, and significant growth in W9, invoice coding, and touchless transaction agents. AI underwriting model improved invoice financing, with volume and revenue up ~30% year-over-year and expected loss rate improved by over 50%. Multiproduct adoption grew 35% year-over-year, and customers using both AP and spend/expense solutions showed a net revenue retention of 111%. Supplier Payments Plus (SPP) is gaining traction, with committed TPV from early adopters reaching almost $800 million and a case study showing significant operational efficiency gains. The company is positioned to exceed Rule of 40 exiting FY27, with a focus on GAAP profitability and expanding margins. Net new customer additions in Q4 were below recent trends at approximately 1,800, impacted by organizational restructuring and a deliberate focus on higher-quality customers. AP/AR take rate contracted by 0.5 basis points due to strong ACH TPV from larger customers, which may pressure monetization. Supplier Payments Plus (SPP) early progress did not meet initial expectations, requiring a new enterprise sales motion that took time to build. The company is facing headwinds in spend and expense (S&E) from card acceptance issues with a small number of merchants and proactive commercial actions on higher reward tiers. Guidance for FY27 includes a 3-point growth headwind from S&E dynamics and bank channel changes, with Q2 expected to be the trough of growth. The company is moving away from custom bank channel solutions, which may result in losing some existing bank relationships. Q: Can you unpack the drivers behind the strong TPV upside in AP/AR, and how should we think about the impact of AI-related spending and larger mid-market customers?A: Rohini Jain (CFO) attributed the Q4 TPV overperformance to the strength of the ACH product and increased usage, particularly from verticals tied to the AI flywheel like construction and manufacturing. She highlighted that mid-market customers, who have ARPU 3 times and TPV 4 times higher than the average customer, are contributing to this growth. While these larger customers have lower take rates, the increased TPV flow also provided a benefit of nearly $2 million in float income, showcasing the multiple monetization avenues of the platform. Q: What is the company's long-term financial framework, and how does it plan to achieve Rule of 40 status and GAAP profitability?A: Rohini Jain (CFO) outlined a three-pillar framework: 1) delivering low double-digit to mid-teens core revenue growth with expanding margins, 2) achieving Rule of 40 status (defined as total revenue growth less rewards plus non-GAAP operating margin), which the company expects to exceed exiting FY27, and 3) achieving meaningful GAAP profitability in FY27. She noted that the company exited Q4 FY26 as a Rule of 40 company and expects to generate well over $125 million in GAAP profits for the full year, with stock-based compensation declining to 10% of revenue. Q: How does BILL plan to monetize its AI capabilities, and what is the strategic pricing direction?A: Rene Lacerte (CEO) stated that the first priority is using AI to drive customer retention and adoption, particularly in the first 90 days of the customer lifecycle. On pricing, he indicated a strategic shift from per-seat pricing to a platform fee model and usage-based consumption fees. Agents will be grouped into different subscription tiers based on the value they create, with some consumption-based pricing as they roll out. This move aims to transition customers from a do-it-yourself to a do-it-for-me approach. Q: What are the drivers of the 2-point headwind in S&E growth, and is this a temporary or permanent dynamic?A: Rohini Jain (CFO) clarified that the headwind is primarily from card acceptance issues with large ad providers like Meta and Google, which is concentrated among a small number of high-volume customers. She noted that on a net revenue basis, the impact will be much smaller because these are also higher-reward customers. The company is also taking proactive commercial actions on certain higher reward tiers and contracts, which contributes to the near-term slowdown but is expected to be transitionary. Q: Can you provide more detail on the decision to move away from certain bank channel partners and the success of the Embed 2.0 strategy?A: Rene Lacerte (CEO) explained that the decision was driven by a need for focus and discipline. The previous bank channel approach was more custom than desired, resulting in multiple platforms that made it challenging to offer all of BILL's capabilities. The company is now consolidating on the Embed 2.0 platform, which enables the entire platform for partners. While not all existing bank relationships will carry forward, the company is seeing strong traction, with one Embed partner's TPV and units more than tripling sequentially from Q3 to Q4. Q: What were the results of the restructuring, and where will incremental operating leverage come from in the future?A: Rohini Jain (CFO) confirmed the restructuring went as planned, with gross savings of approximately $110 million and reinvestments of about $30 million, resulting in a net benefit of around $80 million. Looking forward, she identified AI-led productivity across risk, customer service, and engineering teams as a key source of additional operating leverage. She also emphasized that driving revenue growth through a focused approach on durable and profitable revenue will be the easiest way to expand margins. Q: What is the outlook for net new customer adds, and how is the new go-to-market strategy impacting this?A: Rohini Jain (CFO) acknowledged that Q4 net new adds of approximately 1,800 were below recent trends due to the deliberate decision to prioritize signing the right customers and the organizational restructuring. She noted that the company exited salespeople earlier than planned to familiarize the remaining team with new pipelines. However, early indicators in Q1 are trending in the right direction, and she expects to land in the range of 2,500 to 3,000 net new adds for the quarter, with a recovery towards higher numbers over the rest of the year. Q: Can you elaborate on the progress of Supplier Payments Plus (SPP) and the roadblocks encountered?A: Rene Lacerte (CEO) acknowledged that early progress did not meet initial expectations, primarily because the enterprise sales motion was new to BILL. He emphasized that getting the customer experience right is paramount, and the company has invested in building out the go-to-market motion. Committed TPV from early adopting suppliers has reached almost $800 million. He highlighted a case study where a customer consolidated 168 accounts into one centralized account in 10 weeks, recovering over 400 hours of manual labor per month, demonstrating the product's value. Q: How should we think about the take rate dynamics for AP/AR and S&E going forward?A: Rohini Jain (CFO) explained that the AP/AR take rate compression is due to the outsized ACH TPV growth from larger customers, which have lower take rates. She expects the take rate to remain flat to slightly up from Q4 levels. For S&E, despite the acceptance challenges, the take rate is expected to remain at the higher end of the 250-260 basis point range. She emphasized that growth will be driven by monetizing a larger TPV base through multiple avenues rather than relying solely on take rate expansion. Q: What is the rationale behind the accounting change to present revenue net of rewards, and how will it be reported?A: Rohini Jain (CFO) stated that the voluntary change to present revenue net of rewards expense better reflects the unit economics of the spend and expense business, sharpens focus on the right customer segments, and improves comparability with peers. The change has no impact on operating income or net income. Going forward, the company will guide on a revenue net of rewards basis only, while providing periodic color on rewards performance as an incentive tool to drive the right customers onto the platform. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

BILL Holdings, Inc. BILL used its fiscal fourth-quarter 2026 earnings call to frame fiscal 2027 around an AI-native product shift, a unified platform sales motion and tighter focus on profitable growth. Management also set a longer-term margin framework while acknowledging near-term disruption from sales changes, Spend and Expense dynamics and a narrower bank-partner strategy. Founder, CEO and chairperson René Lacerte said more than 175,000 businesses have used BILL’s AI agents across accounts payable and Spend and Expense. Lacerte said the company is moving toward an agentic platform that automates financial operations by default. He highlighted W-9 collection, invoice coding and touchless transaction agents as evidence of adoption. In Q&A, a Needham analyst asked about monetization. Lacerte said BILL plans to pursue better early-life-cycle conversion and retention while moving toward platform fees, tiered agent subscriptions and consumption-based pricing. Q4 non-GAAP EPS of $0.84 beat the Zacks Consensus Estimate of $0.69 by 21.70%, while revenues of $436.20 million topped the consensus mark of $429.70 million by 1.50%. BILL Holdings, Inc. price-consensus-eps-surprise-chart | BILL Holdings, Inc. Quote CFO Rohini Jain said BILL is positioned for low-double-digit to mid-teens core revenue growth with expanding margins over time and aims to exceed its Rule of 40 threshold exiting fiscal 2027. For fiscal Q1, BILL expects core revenues of $398 million to $408 million and non-GAAP  EPS of $0.96 to $1.00. For fiscal 2027, BILL guided core revenues of $1.669 billion to $1.719 billion and a non-GAAP operating margin of 23% to 24%. It also expects well over $125 million of GAAP profit. Lacerte said the entire sales team is now trained to sell BILL as a single platform rather than separate products, with multiproduct adoption a central priority. Joint AP and Spend and Expense customers grew 35% year over year in Q4, while customers present in both periods posted net revenue retention of 111%. Jain said the company added about 1,800 net new customers, below recent trends, partly because of restructuring. A KeyBanc analyst pressed on customer additions. Jain said July showed recovery and projected 2,500 to 3,000 net additions in the first quarter, with the range expected to move higher over the remainder of the year. A Morgan Stanley analyst asked what drove stronger AP/AR payment volume. Jain pointed mainly to ACH usage from larger newly acquired customers and stronger activity in manufacturing and construction. Jain said mid-market customers generate roughly three times the ARPU and four times the TPV of the average BILL customer, but their heavier ACH mix carries lower take rates. She added that core ARPU rose 3% sequentially. The trade-off reinforces management’s focus on customer quality and broader monetization rather than customer counts alone. Jain said fiscal 2027 guidance includes three percentage points of growth headwind, with two points tied to Spend and Expense dynamics and one point to the bank channel. She expects fiscal Q2 to mark the growth trough. BILL will begin presenting revenue net of rewards expense in the first quarter. Jain said the change does not affect operating or net income and should sharpen the focus on unit economics. Lacerte said BILL is consolidating embedded finance around standardized Embed 2.0, even if some existing bank relationships do not continue. He also acknowledged Supplier Payments Plus progressed more slowly than initially expected, though committed TPV has reached almost $800 million. Lacerte characterized fiscal 2026 as a year of restructuring, capital returns and platform development, with fiscal 2027 centered on executing through a smaller, more aligned organization. Jain’s outlook paired margin expansion and GAAP profitability goals with a selective approach to revenue quality, leaving sales execution, S&E normalization and AI monetization as key operating priorities. BILL currently carries a Zacks Rank #4 (Sell), with a Value Score of C, Growth Score of B, Momentum Score of B and VGM Score of B. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Under the Zacks framework, the Rank takes precedence over favorable Style Scores because it reflects the direction of earnings estimate revisions. The B scores indicate relatively favorable growth, momentum and combined VGM characteristics, while the C Value Score is less favorable. The Zacks Rank can change as analysts revise estimates following the just-reported results. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BILL Holdings, Inc. (BILL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

BILL Holdings (BILL) reported $436.19 million in revenue for the quarter ended June 2026, representing a year-over-year increase of 13.8%. EPS of $0.84 for the same period compares to $0.53 a year ago. The reported revenue represents a surprise of +1.51% over the Zacks Consensus Estimate of $429.71 million. With the consensus EPS estimate being $0.69, the EPS surprise was +21.74%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how BILL Holdings performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Businesses Using Solutions - BILL AP/AR Customers: 183,300 versus the three-analyst average estimate of 185,163. Businesses Using Solutions - BILL Spend & Expense Spending Businesses: 46,500 versus the three-analyst average estimate of 47,208. Businesses Using Solutions - Embedded Solutions & Other Customers: 249,500 compared to the 265,033 average estimate based on three analysts. Businesses Using Solutions - Total: 479,300 versus 497,405 estimated by three analysts on average. Revenue- Subscription and transaction fees: $400.48 million compared to the $396.01 million average estimate based on five analysts. The reported number represents a change of +15.8% year over year. Revenue- Interest on funds held for customers: $35.7 million versus the five-analyst average estimate of $34.36 million. The reported number represents a year-over-year change of -4.5%. Revenue- Subscription and transaction fees- Subscription fees: $76.2 million versus $76.11 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +10.7% change. Revenue- Subscription and transaction fees- Transaction fees: $324.3 million compared to the $319.41 million average estimate based on four analysts. The reported number represents a change of +17% year over year. Revenue- Subscription fees- BILL AP/AR: $61.4 million versus the three-analyst average estimate of $62.06 million. Revenue- Subscription fees- Embedded and Other Solutions: $14.8 million compared to the $13.63 million average estimate based on three analysts. Revenue- Transaction fees- BILL AP/AR: $131.1 million compared to the $132.9 million average estimate based on three analysts. Revenue- Subscription and transaction fees- Embedded and Other Solutions: $23.5 million versus the three-analyst average estimate of $21.13 million. View all Key Company Metrics for BILL Holdings here>>> Shares of BILL Holdings have returned +11.1% over the past month versus the Zacks S&P 500 composite's +3.3% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BILL Holdings, Inc. (BILL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research