Xero shares rise to two-month high on revenue upgrade, buyback. Published on 11/11/2026 at 07:18 pm EST By David Winning SYDNEY-Accounting-software provider Xero's bullish commentary about future revenue and up to 1 billion Australian dollars (US$690 million) share buyback sent its stock up 8.7% to a two-month high on Thursday. Xero said it now sees an opportunity to achieve revenue of more than 4.6 billion New Zealand dollars (US$3.15 billion) in the 2028 fiscal year, up from a prior goal of NZ$4.2 billion. That means it is now ahead of RBC Capital Markets' estimate of NZ$4.43 billion for that year, and also above consensus estimates of NZ$4.47 billion. RBC analyst Tom Beadle listed other positives from the result, including Xero's raised guidance for operating revenue of between NZ$3.77 billion and NZ$3.83 billion in the 12 months through March. Xero had originally signaled NZ$3.62 billion-NZ$3.73 billion of revenue. Xero attributed the upgraded guidance to a stronger performance from business-to-business payments platform Melio, which Xero acquired in 2025 in a bid to accelerate its U.S. expansion, and a weaker New Zealand dollar. It forecast revenue growth at 24%-27% when currency swings are stripped out. The company also narrowed its guidance range for annual adjusted earnings before interest, tax, depreciation and amortization-or Ebitda-to between NZ$880 million and NZ$920 million, from an earlier forecast of NZ$860 million-NZ$920 million. In early trading, Xero's share price rose to A$76.99, putting it on track for its best close since the first week of September. "With the stronger inferred 2H weighting than RBC/consensus, and increase to FY28's aspiration we continue to highlight that consensus is not factoring Xero's momentum into FY28, where our Ebitda estimate is currently 8% ahead of consensus," RBC said. Other analysts were less upbeat. Jefferies said the result was a bit mixed, noting adjusted Ebitda in Xero's first half was 2% below consensus estimates and while it beat net profit expectations by 3% that was partly due to a lower-than-expected tax rate. "Based on the mid-point of the new guidance, the implied FY27 net profit is 1% below consensus," analyst Roger Samuel said. "The outlook for FY28 is much better, with revenue at least 3% higher than consensus, but we note the CFO is leaving after than 2 years with Xero." Write to David Winning at [email protected] (END) Dow Jones Newswires 11-11-26 1917ET (C) Dow Jones - 2026

Xero has launched Xforce by Xero, a service that gives accounting firms a team of forward-deployed engineers and partner consultants to help them design AI-era workflows. The team will use XeroForce, Xero's APIs and Xero OS, and link with other software in a firm's technology stack to automate workflows end to end. Xforce is in beta. It is being developed with design partners in Australia, New Zealand and the UK, including Liston Newton Advisory, Nexia Christchurch, Shepherd Hensman, Azets and Sumer. Chief executive officer Sukhinder Singh Cassidy said accountants are being asked to do more with fewer people, and firms need hands-on support to scale AI. Each firm decides which clients and data the workflows touch. Xero says more than 5 million customers trust its platform.

Xero delivers strong half-year results, upgrades FY27 outlook, and announces A$1 billion share buy-back. Xero Limited (ASX: XRO) has announced robust financial results for the first half of fiscal year 2027 (H1 FY27), leading to an upgraded outlook for FY27 and the initiation of an on-market share buy-back program of up to A$1 billion. Xero is a global small business platform and a trusted financial operating system for the AI era, unifying core financial operations such as accounting, payroll, and payments for businesses and their advisors. The company reported sustained momentum across its strategic initiatives, delivering strong financial outcomes for the six months ended 30 September 2026. During H1 FY27, Xero's revenue surged 46% to $1.7 billion (41% in constant currency), while its operating expense to revenue ratio improved by 8.1 percentage points to 68.9%. Adjusted EBITDA increased by 3% to $362 million, or 23% on a pro-forma basis, which accounts for the integration of Melio. Free cash flow also saw significant growth, rising 32% pro-forma to $238 million. This performance was underpinned by strong customer acquisition, with 226,000 net new customers added, bringing the total subscriber base to 5.1 million, alongside a 25% expansion in average revenue per customer (ARPC) to $62.21. Following these strong results and a robust capital position, Xero's Board approved an on-market share buy-back program of up to A$1 billion, slated for completion over the next 12 months. This is in addition to a recently concluded A$550 million program. The Board believes the current market valuation does not fully reflect Xero's long-term value and growth potential, making the buy-back a value-accretive use of capital. Concurrently, Xero has upgraded its FY27 outlook, now expecting operating revenue between $3,770 million and $3,830 million and adjusted EBITDA between $880 million and $920 million. CEO Sukhinder Singh Cassidy highlighted the disciplined execution of Xero's 3x3 strategy, noting that rising customer numbers and ARPC expansion are powering growth, driven by continued small business digitisation and AI adoption. The company also anticipates achieving a pro-forma Rule of 40 outcome of approximately 40% for FY27, an improvement on previous expectations, and raised its FY28 aspiration, projecting revenue to exceed $4.6 billion, excluding synergies, and maintaining its ambition to deliver a greater than Rule of 40 outcome. Xero reiterated its guidance for Melio to reach adjusted EBITDA breakeven on a run-rate basis in the second half of FY28.