BILL Holdings Inc (NYSE:BILL) Tops Profit Estimates in Q1 FY26

BILL Holdings Inc (NYSE:BILL) has reported financial results for the first quarter of fiscal year 2026, delivering a performance that notably surpassed Wall Street's profit expectations. The company's focus on profitability and strategic execution was evident in the quarterly figures, which have been met with a positive initial reaction in after-hours trading.

Quarterly Performance Versus Expectations

The financial automation platform reported revenue of $395.7 million for the quarter ended September 30, 2025, representing a 10% increase compared to the same period last year. While this growth is solid, the top-line figure came in slightly below the analyst consensus estimate of approximately $398.9 million.

The standout performance, however, was on the bottom line. BILL reported non-GAAP earnings per share of $0.61, which was significantly ahead of the $0.52 per share that analysts had projected. This represents a 20.5% beat on profit expectations. The company's ability to exceed profitability forecasts appears to be the primary driver behind the positive market response.

Key financial metrics from the quarter include:

• Total Revenue: $395.7 million (up 10% year-over-year)
• Core Revenue (Subscription & Transactions): $358.0 million (up 14% year-over-year)
• Non-GAAP Net Income: $70.2 million
• Non-GAAP EPS: $0.61

Business Highlights and Strategic Initiatives

Beyond the financial figures, the company highlighted several operational achievements and strategic moves. BILL served 498,100 businesses by the end of the quarter and processed $89 billion in total payment volume, a 12% annual increase. The number of transactions processed grew 16% to 33 million.

CEO René Lacerte emphasized the company's momentum, citing new partnerships with NetSuite, Paychex, and Acumatica as key initiatives to embed BILL's services deeper into the software ecosystems used by small and midsize businesses. The development and deployment of "BILL AI Agents" for touchless B2B transactions was noted as a significant breakthrough aimed at driving efficiency.

The company also strengthened its governance with the addition of Peter Feld of Starboard Value and Lee Kirkpatrick, former CFO of Twilio, to its board of directors.

Forward Guidance and Market Reaction

Looking ahead, BILL provided an outlook for both the second fiscal quarter and the full 2026 fiscal year. The guidance for the next quarter appears to be a focal point for investors.

For Q2 FY26, the company expects:

• Total Revenue: $394.5 million to $404.5 million
• Non-GAAP EPS: $0.54 to $0.57

The midpoint of the revenue guidance range, approximately $399.5 million, aligns closely with the analyst consensus estimate of roughly $406.8 million. More notably, the EPS guidance range comfortably brackets the existing analyst estimate for the next quarter, suggesting management's confidence in maintaining profitability.

The market's reaction has been decisively positive. The stock experienced a significant uptick in after-hours trading, a clear indicator that investors are rewarding the company for its earnings beat and reassuring forward-looking statements, particularly on profitability.

Conclusion

BILL Holdings Inc has entered its new fiscal year with a strong emphasis on profitable growth. While revenue growth met the company's own expectations but slightly lagged analyst forecasts, a substantial beat on bottom-line EPS and confident guidance have resonated well with the market. The company's strategic partnerships and focus on AI-driven efficiency underscore its long-term plan to solidify its position in the financial automation software market.

For a detailed look at historical earnings and future analyst estimates for BILL, you can review the data here.

Disclaimer: This article is for informational purposes only and does not constitute investment advice, financial advice, or a recommendation to buy or sell any security. The performance data and forward-looking statements are subject to risks and uncertainties.