BILL (NYSE:BILL) Releases Earnings Results, Beats Expectations By $0.20 EPS

Key Points

• BILL reported adjusted EPS of $1.18, beating the $0.98 consensus and rising from $0.61 a year earlier.
• Revenue was $353.77 million, below analysts’ $438.62 million estimate and down 10.6% year over year. The article also reports that revenue guidance fell short of analyst expectations.
• BILL’s FY2027 EPS outlook is $3.99–$4.15, above the cited analyst estimate of $3.44; management also highlighted AI adoption and improving operating margins.

BILL (NYSE:BILL - Get Free Report) posted its quarterly earnings data on Thursday. The company reported $1.18 earnings per share for the quarter, topping the consensus estimate of $0.98 by $0.20, FiscalAI reports. BILL had a negative net margin of 0.68% and a positive return on equity of 3.74%. The company had revenue of $353.77 million during the quarter, compared to analysts' expectations of $438.62 million. During the same period in the prior year, the company posted $0.61 earnings per share. BILL's revenue for the quarter was down 10.6% compared to the same quarter last year. BILL updated its FY 2027 guidance to 3.990-4.150 EPS and its Q2 2027 guidance to 0.970-1.010 EPS.

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

• BILL reported 14% year-over-year core revenue growth and a 39% non-GAAP operating margin in Q1. GAAP net income was $60 million, and the company raised its FY 2027 outlook to more than $180 million of GAAP profit.
• AI product development and adoption are gaining momentum: more than 200,000 businesses have used BILL’s agents, and its new Risk Intelligence agent flagged over $100 million in unusual or mistaken payments for customer review in its first six weeks. Management sees opportunities to improve customer onboarding, retention, and productivity, though it said measurable business outcomes are still developing.
• Payment activity and monetization trends strengthened: same-store TPV grew 7%, ad valorem volume growth accelerated sequentially, and core ARPU growth reached 4.1%. The company also reported 30% year-over-year growth in customers using both AP and Spend & Expense.
• Management expects Q2 core revenue growth to slow to 10%–13%, citing a tough comparison, seasonal pressure on take rates, and continued adjustments to its sales organization and incentives. It also flagged rising operating expenses later in the year, a planned shift away from some legacy embed partnerships, and ongoing uncertainty around card acceptance in Spend & Expense.
• For FY 2027, BILL expects 11%–14% core revenue growth, approximately 33% non-GAAP operating margin, and 47% growth in non-GAAP EPS at the midpoint. The company also repurchased about $300 million of stock in Q1 and expects to use the remaining buyback authorization.

BILL Stock Up 3.3%

Shares of NYSE BILL traded up $1.70 during mid-day trading on Friday, reaching $52.59. 2,211,065 shares of the company's stock traded hands, compared to its average volume of 1,332,021. The stock has a market cap of $4.52 billion, a P/E ratio of 103.11, a PEG ratio of 0.72 and a beta of 1.08. The business has a 50-day simple moving average of $47.26 and a 200 day simple moving average of $42.70. BILL has a 1-year low of $31.41 and a 1-year high of $57.21. The company has a debt-to-equity ratio of 0.49, a current ratio of 1.51 and a quick ratio of 1.51.

Insider Activity

In other news, CEO Rene A. Lacerte sold 42,248 shares of the stock in a transaction that occurred on Thursday, September 3rd. The stock was sold at an average price of $50.17, for a total value of $2,119,582.16. Following the completion of the sale, the chief executive officer directly owned 163,125 shares of the company's stock, valued at $8,183,981.25. This represents a 20.57% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Michael Cieri sold 10,754 shares of the firm's stock in a transaction that occurred on Monday, August 31st. The shares were sold at an average price of $49.13, for a total value of $528,344.02. Following the completion of the transaction, the insider owned 997 shares in the company, valued at $48,982.61. This represents a 91.52% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last three months, insiders have sold 267,997 shares of company stock valued at $13,057,984. 13.20% of the stock is currently owned by insiders.

Trending Headlines about BILL

Here are the key news stories impacting BILL this week:

• Positive Sentiment: BILL reported first-quarter fiscal 2027 adjusted earnings of $1.18 per share, beating the $0.98 consensus and rising from $0.61 a year earlier. Its FY2027 EPS forecast of $3.99–$4.15 also topped the $3.44 analyst estimate. BILL first-quarter results
• Positive Sentiment: Oppenheimer raised its price target to $60 from $55 and maintained an outperform rating. Keefe, Bruyette & Woods lifted its target to $58 from $52, while keeping a market-perform rating. Oppenheimer recommendations Keefe, Bruyette & Woods recommendations
• Positive Sentiment: Management highlighted margin gains, increased AI adoption and improving payment monetization, including five product launches and a Visa pilot. These developments may support growth and profitability as BILL works through sales restructuring. Earnings call highlights
• Negative Sentiment: Revenue was $353.77 million, below the $438.62 million consensus and down 10.6% year over year. Revenue guidance also lagged expectations: BILL forecast $1.4–$1.5 billion for FY2027 versus $1.8 billion consensus, and $353–$363 million for Q2 versus $453.1 million. This gap may temper enthusiasm despite the EPS beat.

Analysts Set New Price Targets

A number of equities research analysts have commented on the stock. BTIG Research restated a "buy" rating and issued a $60.00 price target on shares of BILL in a report on Thursday, August 20th. Weiss Ratings lowered shares of BILL from a "sell (d+)" rating to a "sell (d)" rating in a report on Monday, August 31st. Oppenheimer increased their price objective on shares of BILL from $55.00 to $60.00 and gave the stock an "outperform" rating in a research report on Friday. Jefferies Financial Group downgraded BILL from a "strong-buy" rating to a "hold" rating in a research note on Monday, September 28th. Finally, Zacks Research lowered BILL from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, October 27th. Ten research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $57.59.

BILL Company Profile

BILL Holdings, Inc provides financial operations software for small and midsize businesses, accountants and financial institutions. Its cloud-based platform is designed to automate and simplify back-office processes, including accounts payable, accounts receivable, expense management, budgeting and payments.

The company's offerings enable businesses to receive and pay bills, send invoices, manage expenses, establish spending controls and connect financial workflows with accounting systems.

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