Xero stock gets FY27 upgrade and A$1 billion buy-back

Xero reported its half-year results for the six months ended September 30, 2026, on Thursday, November 12. In its market release, the cloud accounting company said operating revenue increased 46 percent to NZ$1.745 billion for the first half of fiscal 2027.

Xero stock traded at 47.20 euros on Lang & Schwarz at 20:34 CET on Friday, November 13. The quote came after the results announcement and before the next regular trading session.

Revenue growth meets stronger outlook

The first half was the first period to include six months of Melio, the payments platform acquired by Xero. On a pro-forma basis, which includes Melio in the prior-year comparison, revenue increased 27 percent and adjusted EBITDA rose 23 percent to NZ$361.6 million.

Reported adjusted EBITDA increased 3 percent. Net profit after tax fell 86 percent to NZ$18.5 million, while adjusted net profit after tax and acquired amortisation was NZ$81.1 million. Melio remains loss-making, with adjusted EBITDA break-even on a run-rate basis expected in the second half of fiscal 2028.

Guidance and capital allocation

Xero now expects FY27 operating revenue of NZ$3.77 billion to NZ$3.83 billion, compared with its previous range of NZ$3.62 billion to NZ$3.73 billion. Adjusted EBITDA guidance is NZ$880 million to NZ$920 million, up from NZ$860 million to NZ$920 million. Management attributed the revenue upgrade mainly to stronger Melio payments performance and a foreign-exchange benefit from a weaker New Zealand dollar.

The board also approved an on-market buy-back of up to A$1 billion over the next 12 months. The program is expected to begin on or after November 13, subject to market conditions and the company's discretion.

Xero added 226,000 net customers during the half, taking the total to 5.146 million. Average revenue per customer rose 25 percent to NZ$62.21 a month, while annualised monthly recurring revenue increased 41 percent to NZ$3.84 billion.

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