Bill.com Holdings reported first‑quarter 2026 results that surpassed both revenue and earnings expectations. Total revenue reached $395.7 million, a $4.95 million (1.3%) lift over the consensus estimate of $390.75 million, while non‑GAAP earnings per share climbed to $0.61, beating the $0.52 forecast by $0.09 (17%). The upside in earnings was driven by disciplined cost management and a higher mix of transaction‑fee revenue, which grew 16% year‑over‑year to $287.2 million.
Core revenue, which excludes certain pass‑through costs, expanded 14% to $358.0 million, and total payment volume processed during the quarter reached $89 billion, up 12% from the prior year. The growth in transaction fees and payment volume reflects the continued adoption of Bill.com’s AI‑powered “BILL AI Agents” and the rollout of new integrations with NetSuite, Paychex, and Acumatica, all of which broaden the platform’s reach within the SMB accounting ecosystem.
Operating efficiency improved markedly: non‑GAAP operating margin rose to 15% from 12% in the previous quarter, a 3‑percentage‑point gain that underscores the company’s shift toward a more profitable operating model. The margin expansion is attributable to the higher transaction‑fee mix and ongoing cost‑discipline initiatives, even as the company invests in AI capabilities and ecosystem partnerships.
Looking ahead, Bill.com guided for revenue of $394.5 million to $404.5 million in Q2 FY26, with core revenue growth projected at 12%–15% year‑over‑year and non‑GAAP EPS expected to range from $0.54 to $0.57. The guidance signals a cautious but steady outlook, reflecting management’s confidence in sustaining profitability while maintaining a moderate growth trajectory amid broader market uncertainty.
CEO René Lacerte emphasized that the quarter’s performance “demonstrates the strength of our AI‑driven platform and the disciplined execution that is driving profitability.” CFO Rohini Jain added that the company’s focus on cost discipline and strategic investments in high‑return verticals has positioned Bill.com to unlock additional efficiencies and shareholder value, noting the launch of a $300 million share‑repurchase program as evidence of confidence in the business model.
The market reaction was positive, driven primarily by the significant EPS beat and the company’s clear focus on profitability. Investors responded favorably to the evidence that Bill.com is successfully balancing growth with margin expansion, reinforcing confidence in the company’s long‑term trajectory.
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