It has been about a month since the last earnings report for BILL Holdings (BILL Quick QuoteBILL - Free Report) . Shares have added about 0.4% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is BILL Holdings due for a pullback? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for BILL Holdings, Inc. before we dive into how investors and analysts have reacted as of late.

BILL Q4 Earnings Beat Estimates on Workforce Cuts, Lower Credit Losses

BILL Holdings reported fourth-quarter fiscal 2026 non-GAAP net income of 84 cents per share, beating the Zacks Consensus Estimate of 69 cents. The figure rose 58.5% from a year ago. The profitability upside reflected earlier workforce reduction timing and lower fraud and credit losses.

Revenues of $436.2 million increased 13.8% year over year and surpassed the Zacks Consensus Estimate by 1.5%. Total payment volume reached $98 billion, up 14% year over year.

BILL’s Core Revenues Advance on Transactions

Core revenues, comprising subscription and transaction fees, increased 16% year over year to $400.5 million. Subscription fees rose 11% to $76.2 million, while transaction fees climbed 17% to $324.3 million. Float revenues were $35.7 million, down from $37.4 million in the prior-year quarter.

BILL accounts payable/receivable, or AP/AR, core revenues increased 10% to $192.4 million. Spend and Expense revenues rose 22.6% to $184.6 million, while Embedded Solutions and Other core revenues advanced 15.2% to $23.5 million.

BILL Holdings Expands Platform Activity

The company served 479,300 businesses at quarter-end, down from 493,800 a year earlier. Embedded Solutions and Other customers fell to 249,500 from 283,200, while BILL AP/AR customers increased to 183,300 from 169,500.

Despite the lower total business count, transactions processed increased 13.7% to 37.4 million, while network members grew 11% to 9.2 million. Spend and Expense spending businesses reached 46,500, up from 41,100 a year ago.

BILL’s Margin Expansion Shows Operating Leverage

Non-GAAP operating income increased to $101.6 million from $56.4 million. Non-GAAP operating margin reached 23%, expanding 860 basis points year over year.

GAAP operating expenses rose to $390.4 million from $332 million and included a $76.6 million restructuring charge. Research and development expense declined to $63.1 million from $90.1 million, while the provision for expected credit losses decreased to $13.5 million from $15.8 million.

BILL Holdings Sees AI and Multiproduct Adoption Grow

More than 175,000 businesses were using BILL's AI agents. Organizations using the W-9 agent more than tripled sequentially above 40,000, while the invoice coding agent had been used by more than 60,000 companies. The touchless transactions agent automated more than seven million transaction fields for 30,000 customers.

Customer spend on AI through BILL increased more than 50% year over year in the quarter, while total payment volume from AI-first customers nearly doubled sequentially. The number of joint customers using both accounts payable and Spend and Expense grew 35% year over year. Customers present in both the current and year-ago quarters posted net revenue retention of 111%.

BILL’s Cash Generation Funds Share Repurchases

Net cash provided by operating activities was $111 million, up from $83.8 million a year earlier. Free cash flow increased to $96.5 million from $68.5 million. BILL ended fiscal 2026 with $1.03 billion in cash and cash equivalents and $906.5 million in short-term investments.

BILL repurchased approximately 8.4 million shares during the fourth quarter for about $300 million. On the Aug. 19 earnings call, management said $400 million remained under the $1 billion share repurchase authorization.

BILL Holdings Guides for Double-Digit Core Growth

For the first quarter of fiscal 2027, management expects total revenues of $432.5-$442.5 million and core revenues of $398-$408 million, implying core growth of 11%-14%. Non-GAAP net income per share is projected at $0.96-$1.00.

For fiscal 2027, BILL forecasts total revenues of $1.81-$1.86 billion, core revenues of $1.67-$1.72 billion and non-GAAP net income per share of $3.56-$3.79.

The revenue guidance is stated on the historical presentation basis before rewards expense is deducted. Beginning with first-quarter fiscal 2027 reporting, rewards expense will be presented as a reduction of revenues rather than sales and marketing expense, with no impact on operating income or net income.

How Have Estimates Been Moving Since Then?

It turns out, estimates revision have trended upward during the past month.

The consensus estimate has shifted 104.59% due to these changes.

VGM Scores

At this time, BILL Holdings has a average Growth Score of C, however its Momentum Score is doing a lot better with an A. Charting a somewhat similar path, the stock has a grade of B on the value side, putting it in the top 40% for value investors.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise BILL Holdings has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.

Performance of an Industry Player

BILL Holdings belongs to the Zacks Internet - Software industry. Another stock from the same industry, JFrog Ltd. (FROG Quick QuoteFROG - Free Report) , has gained 4.8% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.

JFrog reported revenues of $163.77 million in the last reported quarter, representing a year-over-year change of +28.7%. EPS of $0.27 for the same period compares with $0.18 a year ago.

JFrog is expected to post earnings of $0.23 per share for the current quarter, representing a year-over-year change of +4.6%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for JFrog. Also, the stock has a VGM Score of C.