Xero Limited (AU:XRO)
ASX:XRO
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XRO Stock Chart & Stats
AU$81.98
-AU$0.57(-0.33%)
At close: 4:00 PM EST
AU$81.98
-AU$0.57(-0.33%)
Day’s Range― - ―
52-Week RangeAU$65.00 - AU$196.52
Previous CloseN/A
Volume197.70K
Average Volume (3M)753.32K
Market Cap
AU$11.70B
Enterprise ValueAU$16.68B
Total Cash (Recent Filing)AU$1.95B
Total Debt (Recent Filing)AU$2.14B
Price to Earnings (P/E)78.2
Beta1.00
Next Earnings
Nov 12, 2026EPS Estimate
0.46Next Dividend Ex-DateN/A
Dividend YieldN/A
Share Statistics
EPS (TTM)1.06
Shares Outstanding170,602,360
10 Day Avg. Volume611,423
30 Day Avg. Volume753,320
Financial Highlights & Ratios
PEG Ratio-2.84
Price to Book (P/B)2.73
Price to Sales (P/S)5.01
P/FCF Ratio14.94
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$126.58Price Target Upside54.40% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
EPS Forecast (FY)1.36
Revenue Forecast (FY)AU$3.67B
Bulls Say, Bears Say
Bulls Say
Strong Free Cash Flow GenerationXero's sustained, large positive free cash flow (~993M in 2026) and operating cash flow expansion provide durable financial flexibility to fund product development, payments expansion, and U.S. brand investment without heavy reliance on external financing, supporting long-term reinvestment and resilience.
Recurring Subscription Model & Customer GrowthXero's large installed base (4.90M customers) and continued net additions indicate strong product-market fit and retention. Rising ARPC (+23%) shows effective monetization and expansion within the base, supporting predictable recurring revenue and durable unit economics across cycles.
Payments Ecosystem Scale Driving MonetizationRapidly growing payments volume and revenue (TPV $62B; payments $535M) create a high-frequency monetization layer and stronger network effects with advisors and third-party apps. Payments-led ARPC uplift and cross-sell durability support long-term margin and revenue diversification.
Bears Say
Step-up In Debt And Higher LeverageA material rise in gross debt to ~2.14B increases interest and refinancing risk, reducing financial flexibility. Higher leverage can constrain capital allocation, limit optionality for M&A or buybacks, and amplify earnings volatility if cash generation normalizes or rates rise.
Melio Acquisition Losses And Integration DragMelio adds strategic payments capability but is currently loss-making and will depress near-term margins and adjusted metrics. Management's H2 FY28 breakeven target implies multi-quarter integration risk, SBC timing, and profit dilution that could delay full benefit realization.
Headline Gross Margin Compression From Payments MixAs lower-margin payments and media revenues scale, headline gross margins compress despite stable organic margins. A structurally larger payments share could keep reported margins below historic software levels, pressuring headline profitability and complicating margin comparisons over time.
Xero Limited News
XRO FAQ
What was Xero Limited’s price range in the past 12 months?
Xero Limited lowest share price was AU$65.00 and its highest was AU$196.52 in the past 12 months.
What is Xero Limited’s market cap?
Xero Limited’s market cap is AU$11.70B.
When is Xero Limited’s upcoming earnings report date?
Xero Limited’s upcoming earnings report date is Nov 12, 2026 which is in 141 days.
How were Xero Limited’s earnings last quarter?
Xero Limited released its earnings results on May 13, 2026. The company reported AU$0.1 earnings per share for the quarter, missing the consensus estimate of AU$0.486 by -AU$0.386.
Is Xero Limited overvalued?
According to Wall Street analysts Xero Limited’s price is currently Undervalued.
Does Xero Limited pay dividends?
Xero Limited does not currently pay dividends.
What is Xero Limited’s EPS estimate?
Xero Limited’s EPS estimate is 0.46.
How many shares outstanding does Xero Limited have?
Xero Limited has 170,602,360 shares outstanding.
What happened to Xero Limited’s price movement after its last earnings report?
Xero Limited reported an EPS of AU$0.1 in its last earnings report, missing expectations of AU$0.486. Following the earnings report the stock price went down -9.037%.
Which hedge fund is a major shareholder of Xero Limited?
Currently, no hedge funds are holding shares in AU:XRO
What is the TipRanks Smart Score and how is it calculated?
Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology
Xero Limited Stock Smart Score
Neutral
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Analyst Consensus
Strong Buy
Average Price Target:
AU$126.58 (54.40% Upside)
AU$126.58 (54.40% Upside)
Blogger Sentiment
Bullish
AU:XRO Sentiment 91%
Sector Average ―
Sector Average ―
Insider Transactions
Sold Shares
Worth AU$5.4M over
the Last 3 Months
the Last 3 Months
News Sentiment
Very Bullish
Bullish news 83%
Bearish news 17%
Bearish news 17%
Technicals
SMA
Negative
20 days / 200 days
Momentum
-25.92%
12-Months-Change
Fundamentals
Return on Equity
3.68%
Trailing 12-Months
Asset Growth
105.29%
Trailing 12-Months
Company Description
Xero Limited
Xero Limited, along with its associated entities, operates as a cloud-based software provider, extending its services across New Zealand, Australia, the United Kingdom, and various international markets. The company's flagship offering, Xero, serves as an open platform designed to connect small businesses with diverse solutions for streamlined financial administration. Additionally, Xero furnishes a dedicated mobile application and a suite of specialized utilities for accounting and bookkeeping professionals, which includes Xero HQ, Xero Practice Manager, Xero Workpapers, and Xero Cashbook or Xero Ledger. This enterprise was established in 2006 and maintains its principal office in Wellington, New Zealand.
XRO Company Deck
XRO Earnings Call
Q4 2026
0:00 / 0:00
Earnings Call Sentiment|Positive
The call presented a strong set of operating and financial results: double-digit revenue growth, expanding ARPC driven by payments (Melio), accelerating U.S. momentum, robust adjusted EBITDA and free cash flow generation, and rapid AI adoption and product launches. Near-term headwinds include the pro forma dilution of Rule of 40 from the Melio acquisition, Melio-related losses and SBC timing, headline gross margin compression from payments/media mix, and planned multiyear U.S. brand investment that will weight FY'27 results toward H2. Management provided clear guidance for FY'27 and a pathway to Melio breakeven and Rule of 40 recovery by FY'28, indicating confidence in execution and capital discipline.View all AU:XRO earnings summariesXRO Stock 12 Month Forecast
Average Price Target
AU$126.58
▲(54.40% Upside)
Technical Analysis
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Options Prices
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