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Zip Co lifts FY26 earnings guidance after record third-quarter profit

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Zip Co lifts FY26 earnings guidance after record third-quarter profit

Meet Samuel – Your Personal Investing Prophet

Zip Co Ltd. ( (AU:ZIP) ) just unveiled an update.

Zip Co reported a strong third quarter for fiscal 2026, with record cash EBTDA of $65.1 million, a 41.5% year-on-year increase, and operating margin expanding to 19.4%. Total transaction volume rose 22.4% to $4.0 billion, total income climbed 20.2% to $335.2 million, and active customers, transactions and merchant numbers all grew, while net bad debts remained within management targets at 1.9% of TTV.

The U.S. business was the key growth engine, with TTV up 43.1% in USD, solid increases in customers and merchants, and credit losses holding steady, while ANZ delivered profitable growth and launched the new ZMobile offering to diversify revenue. On the back of this momentum, Zip upgraded its FY26 Group cash EBTDA guidance to at least $260 million, signalling improved profitability and a stronger competitive position in the BNPL and digital payments market.

The most recent analyst rating on (AU:ZIP) stock is a Buy with a A$2.60 price target. To see the full list of analyst forecasts on Zip Co Ltd. stock, see the AU:ZIP Stock Forecast page.

More about Zip Co Ltd.

Zip Co Ltd is an ASX-listed financial technology company operating in the buy now, pay later and digital payments sector. It provides instalment payment solutions and related consumer credit products to customers across the U.S. and Australia and New Zealand, serving millions of active users and tens of thousands of merchants in retail and e-commerce.

Average Trading Volume: 30,264,972

Technical Sentiment Signal: Sell

Current Market Cap: A$2.31B

For an in-depth examination of ZIP stock, go to TipRanks’ Overview page.

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