BILL (NYSE:BILL) Releases Earnings Results, Beats Expectations By $0.13 EPS

Key Points

• BILL beat expectations in Q3, reporting EPS of $0.68 versus the $0.55 consensus and revenue of $406.6 million versus $403.8 million expected. Revenue rose 13.5% year over year.
• Management raised guidance for FY2026 and Q4, signaling continued momentum and margin improvement. The company now expects FY2026 EPS of 2.610–2.640 and core revenue of $1.496B–$1.506B.
• AI and cost-cutting are central to the strategy, with over 100,000 customers using its AI agents and a planned workforce reduction of up to 30% aimed at generating about $110 million in annualized savings. The board also authorized a $1 billion share repurchase program.

BILL (NYSE:BILL - Get Free Report) issued its quarterly earnings results on Thursday. The company reported $0.68 earnings per share for the quarter, beating analysts' consensus estimates of $0.55 by $0.13, FiscalAI reports. The business had revenue of $406.56 million during the quarter, compared to analyst estimates of $403.76 million. BILL had a net margin of 0.01% and a return on equity of 2.39%. BILL's revenue for the quarter was up 13.5% compared to the same quarter last year. During the same quarter last year, the business posted $0.50 earnings per share. BILL updated its FY 2026 guidance to 2.610-2.640 EPS and its Q4 2026 guidance to 0.690-0.720 EPS.

Here are the key takeaways from BILL's conference call:

• BILL reported strong Q3 results with $371M in core revenue (+16% YoY), ~20% non‑GAAP operating margin, and achieved GAAP profitability, highlighting improved profitability and operating leverage.
• Management made AI its top priority and says over 100,000 customers use its AI agents (including ~1.2M invoices automated and tens of thousands of autonomous card transactions), which it expects to drive automation, lower transaction costs, and internal productivity gains.
• BILL will reduce its workforce by up to 30% by end of Q4 to align to an AI‑native structure; the company expects ~$110M gross annualized savings but this creates execution and people‑risk during the transition.
• The board authorized up to a $1 billion share repurchase program, signaling confidence in cash flow generation and a commitment to return capital to shareholders.
• Management raised full‑year FY26 guidance and expects core revenue of $1.496B–$1.506B (15%–16% YoY) with a ~19% non‑GAAP operating margin, and Q4 core revenue guided to $392M–$402M, indicating stronger than expected momentum and margin expansion.

BILL Trading Up 10.3%

BILL traded up $3.89 during trading on Friday, reaching $41.55. 7,322,482 shares of the company's stock were exchanged, compared to its average volume of 1,722,425. The company's fifty day moving average price is $39.55 and its 200-day moving average price is $46.11. The company has a debt-to-equity ratio of 0.48, a quick ratio of 1.65 and a current ratio of 1.65. BILL has a fifty-two week low of $34.44 and a fifty-two week high of $57.21. The firm has a market capitalization of $4.11 billion, a PE ratio of -4,150.95, a P/E/G ratio of 3.39 and a beta of 1.22.

Trending Headlines about BILL

Here are the key news stories impacting BILL this week:

• Positive Sentiment: BILL beat fiscal Q3 earnings and revenue estimates, with EPS of $0.68 versus $0.55 expected and revenue of $406.6 million versus $403.8 million expected, helped by 13.5% year-over-year revenue growth. Article Title
• Positive Sentiment: Management issued upbeat Q4 and full-year FY2026 guidance, with EPS and revenue forecasts both ahead of Wall Street expectations, reinforcing confidence in continued double-digit growth.
• Positive Sentiment: The company said core revenue rose 16%, driven by stronger subscription and transaction fees, signaling healthy demand in its payments and AP/AR software platform. Article Title
• Positive Sentiment: Analysts turned more constructive, including a Zacks Rank upgrade to Strong Buy and BMO raising its price target to $46 from $43, which may support the stock in the near term. Article Title
• Positive Sentiment: Investors also reacted favorably to BILL’s plan to cut about 30% of its workforce to improve profitability and focus more on AI, a move that may lift margins if execution is successful. Article Title

Analyst Ratings Changes

A number of research firms have commented on BILL. Citigroup lowered their target price on shares of BILL from $71.00 to $62.00 and set a "buy" rating for the company in a report on Thursday, January 22nd. Needham & Company LLC reaffirmed a "buy" rating and set a $75.00 target price on shares of BILL in a report on Friday, February 6th. Canaccord Genuity Group lifted their target price on shares of BILL from $75.00 to $77.00 and gave the stock a "buy" rating in a report on Tuesday, February 10th. The Goldman Sachs Group lowered their target price on shares of BILL from $52.00 to $44.00 and set a "buy" rating for the company in a report on Monday, April 13th. Finally, BMO Capital Markets lifted their target price on shares of BILL from $43.00 to $46.00 and gave the stock a "market perform" rating in a report on Friday. One investment analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, nine have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, BILL has a consensus rating of "Moderate Buy" and a consensus target price of $56.35.

Hedge Funds Weigh In On BILL

Hedge funds and other institutional investors have recently made changes to their positions in the company. Aster Capital Management DIFC Ltd bought a new position in shares of BILL during the fourth quarter worth $28,000. Caitong International Asset Management Co. Ltd boosted its position in shares of BILL by 972.0% during the third quarter. Caitong International Asset Management Co. Ltd now owns 536 shares of the company's stock worth $28,000 after purchasing an additional 486 shares in the last quarter. UMB Bank n.a. boosted its position in shares of BILL by 21.8% during the fourth quarter. UMB Bank n.a. now owns 1,336 shares of the company's stock worth $73,000 after purchasing an additional 239 shares in the last quarter. Tower Research Capital LLC TRC boosted its position in shares of BILL by 43.5% during the second quarter. Tower Research Capital LLC TRC now owns 3,469 shares of the company's stock worth $160,000 after purchasing an additional 1,052 shares in the last quarter. Finally, Quarry LP bought a new position in shares of BILL during the third quarter worth $199,000. 97.99% of the stock is owned by institutional investors.

BILL Company Profile

BILL Holdings, Inc provides financial automation software for small and midsize businesses worldwide. The company provides software-as-a-service, cloud-based payments, and spend management products, which allow users to automate accounts payable and accounts receivable transactions, as well as enable users to connect with their suppliers and/or customers to do business, eliminate expense reports, manage cash flows, and improve office efficiency. It also offers onboarding implementation support, and ongoing support and training services.

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