BILL Holdings (NYSE:BILL) reported on Wednesday a strong fiscal fourth quarter with revenue and EPS beats, driven by customer growth, cross-sell momentum and product innovation.
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Analysts highlighted AI agents, Supplier Payments Plus and Embed 2.0 as key growth drivers, with BILL guiding steady revenue and margin gains.
Wall Street analysts rerated BILL after the company reported fourth-quarter results.
Also Read: BILL Holdings Reports Better-Than-Expected Q4 Results: Details
Canaccord Genuity analyst Joseph Vafi maintained BILL with a Buy and a $75 price target.
Needham analyst Scott Berg reiterated BILL with a Buy and a $75 price target.
Canaccord: Vafi said BILL delivered a strong fiscal fourth quarter with 15% growth in core revenue and over 20% in adjusted net income, while total payment volume (TPV) rose 13% year-over-year.
He acknowledged macroeconomic headwinds continue to pressure metrics such as TPV growth and subscription ARPU. Still, he emphasized BILL is advancing its value proposition with new product rollouts, including an agentic AI solution launching early next year to streamline invoicing, vendor onboarding and other finance tasks. Vafi expects most BILL customers to use at least one AI agent by the end of 2026, which could boost subscription revenue over time.
He also highlighted Supplier Payments Plus, aimed at simplifying incoming supplier payments and Embed 2.0, a strategy to embed BILL's functionality into third-party software platforms to expand upmarket and reach new SMB segments.
Vafi noted BILL's strong position in SMB payments and intentional move toward the mid-market, with accounting channel efforts driving nearly 25% growth in new customers.
For fiscal first-quarter 2026, management guided for 7%–10% total revenue growth, adjusted net income of $56.5–$60.5 million, and EPS of 49 cents–52 cents. For fiscal 2026, BILL expects revenue growth of 9%–11%, adjusted net income of $236–$260 million, and EPS of $2–$2.20, reflecting optimism despite macro pressures.
Needham: Berg said BILL delivered a strong fiscal fourth-quarter, with revenue of $383.3 million and EPS of 53 cents, beating his estimates of $374 million and 39 cents. He highlighted sequential improvements across key metrics, including a 0.3 bps increase in Accounts Payable or Accounts Receivable take rate to 16.5 bps, stronger-than-expected operating margins of 14.7%, and healthy customer growth, with AP/AR adding 4,700 new clients and Spend & Expense adding 1,600. Berg credited cross-sell momentum, improved retention and integration between AP/AR and Spend & Expense for driving performance despite macro pressures.
He pointed to upcoming AI financial agents, launching in fiscal second quarter, as a significant growth catalyst, predicting strong adoption across BILL's SMB base. Supplier Payments Plus, introduced in June, offers significant take-rate potential, while Embed 2.0 positions Bill to expand into new verticals via software integrations.
Berg noted that fiscal 2026 guidance was conservative. Berg also sees Bill's innovation strategy and cross-sell execution as setting up for long-term growth, with AI monetization likely to accelerate over time.
BILL Price Action: BILL Holdings is up 16.33% at $48.44 at publication on Thursday.
Photo: BILL Holdings
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