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4 Reasons to Add BILL Holdings Stock to Your Portfolio Right Now
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Key Takeaways
BILL Holdings' fiscal 2026 revenues rose 14%, with payment volume and transactions each increasing 14%.
More than 175,000 businesses used BILL agents, while AI streamlined invoice coding and transactions.
BILL ended fiscal 2026 with $1.03 billion in cash and repurchased about 8.4 million shares.
BILL Holdings’ (BILL - Free Report) integrated financial operations platform is benefiting from sustained revenue and payment-volume growth. Its AI agents are automating invoice coding, Spend & Expense transactions and card payments, while AI-driven underwriting is supporting growth in invoice financing and lower expected loss rates.
Partnerships with accounting firms, financial institutions and software providers are expanding BILL’s reach among SMB customers. Strong cash generation and balance-sheet flexibility support continued investment while enabling sizable share repurchases. These factors support BILL’s long-term growth prospects.
Analysts seem bullish on this Zacks Rank #1 (Strong Buy) stock. The estimate revision trend for fiscal 2027 earnings per share (EPS) indicates a favorable outlook, with estimates moving north over the past month.
Over the past three months, shares of BILL Holdings have increased 27.9% compared with the industry’s 32.8% growth. Given its solid fundamentals and positive estimate revisions, the stock is likely to maintain its momentum in the quarters ahead.
Image Source: Zacks Investment Research
Factors That Make BILL Holdings Stock a Solid Pick
Sustained Revenue Growth: BILL Holdings’ revenues have expanded across several years, supported by higher payment activity and transaction monetization. Fourth-quarter fiscal 2026 revenues increased 14% to $436.2 million, while core revenues jumped 16% to $400.5 million. Total payment volume increased 14% to $98.2 billion, and transactions processed rose 14% to 37.4 million. For fiscal 2027, management expects total revenues of $1.81-$1.86 billion, representing 9-12% growth, and core revenues of $1.67-$1.72 billion, representing 11-14% growth.
Product-Led Automation With AI: BILL Holdings continues to prioritize AI-native financial workflows. Adoption broadened through fiscal 2026, with more than 175,000 businesses using BILL agents by the fourth quarter. The invoice coding agent reached more than 60,000 companies and eliminated about 90% of coding steps for multiline invoices, cutting processing time for AP customers by nearly half. The touchless transactions agent automated more than seven million transaction fields for 30,000 Spend & Expense customers, while the Pay For You agent completed more than 30,000 card transactions without human interaction in fourth-quarter fiscal 2026.
AI is also being applied to underwriting. In fiscal 2026, invoice financing volume and revenues each grew about 30% year over year, while the expected loss rate improved by more than 50%.
Partner Ecosystem Supports Distribution: BILL Holdings uses accounting firms, financial institutions and software providers to reach SMB customers through indirect channels. Per the company’s August 2026 investor presentation, more than 9,500 accounting firms were on the BILL platform, while the company’s network reached about 9.2 million members as of June 30, 2026. BILL processed $98.2 billion of total payment volume in fourth-quarter fiscal 2026, equivalent to a $393 billion annualized run rate.
Balance Sheet Flexibility and Buybacks: BILL Holdings ended fiscal 2026 with $1.03 billion in cash and cash equivalents and $906.5 million in short-term investments. Free cash flow increased to $354.7 million in fiscal 2026 from $312.5 million in fiscal 2025.
In the fourth quarter of fiscal 2026, the company repurchased about 8.4 million shares for roughly $300 million. Management said BILL had retired about 15 million shares, or nearly 14% of common stock outstanding, since its third-quarter fiscal 2026 earnings call. As of Aug. 19, 2026, $400 million remained under the $1 billion authorization.
The Zacks Consensus Estimate for PAYC’s 2026 EPS has been revised 46 cents over the past month and calls for a 30.8% increase year over year.
The consensus estimate for PCTY’s full-year fiscal 2027 EPS has been revised two cents upward in the past month to $8.81, which implies a 6% increase from the year-ago period.
View the Zacks #1 Rank List
Image: Bigstock
4 Reasons to Add BILL Holdings Stock to Your Portfolio Right Now
Key Takeaways
BILL Holdings’ (BILL - Free Report) integrated financial operations platform is benefiting from sustained revenue and payment-volume growth. Its AI agents are automating invoice coding, Spend & Expense transactions and card payments, while AI-driven underwriting is supporting growth in invoice financing and lower expected loss rates.
Partnerships with accounting firms, financial institutions and software providers are expanding BILL’s reach among SMB customers. Strong cash generation and balance-sheet flexibility support continued investment while enabling sizable share repurchases. These factors support BILL’s long-term growth prospects.
Analysts seem bullish on this Zacks Rank #1 (Strong Buy) stock. The estimate revision trend for fiscal 2027 earnings per share (EPS) indicates a favorable outlook, with estimates moving north over the past month.
Over the past three months, shares of BILL Holdings have increased 27.9% compared with the industry’s 32.8% growth. Given its solid fundamentals and positive estimate revisions, the stock is likely to maintain its momentum in the quarters ahead.
Image Source: Zacks Investment Research
Factors That Make BILL Holdings Stock a Solid Pick
Sustained Revenue Growth: BILL Holdings’ revenues have expanded across several years, supported by higher payment activity and transaction monetization. Fourth-quarter fiscal 2026 revenues increased 14% to $436.2 million, while core revenues jumped 16% to $400.5 million. Total payment volume increased 14% to $98.2 billion, and transactions processed rose 14% to 37.4 million. For fiscal 2027, management expects total revenues of $1.81-$1.86 billion, representing 9-12% growth, and core revenues of $1.67-$1.72 billion, representing 11-14% growth.
Product-Led Automation With AI: BILL Holdings continues to prioritize AI-native financial workflows. Adoption broadened through fiscal 2026, with more than 175,000 businesses using BILL agents by the fourth quarter. The invoice coding agent reached more than 60,000 companies and eliminated about 90% of coding steps for multiline invoices, cutting processing time for AP customers by nearly half. The touchless transactions agent automated more than seven million transaction fields for 30,000 Spend & Expense customers, while the Pay For You agent completed more than 30,000 card transactions without human interaction in fourth-quarter fiscal 2026.
AI is also being applied to underwriting. In fiscal 2026, invoice financing volume and revenues each grew about 30% year over year, while the expected loss rate improved by more than 50%.
Partner Ecosystem Supports Distribution: BILL Holdings uses accounting firms, financial institutions and software providers to reach SMB customers through indirect channels. Per the company’s August 2026 investor presentation, more than 9,500 accounting firms were on the BILL platform, while the company’s network reached about 9.2 million members as of June 30, 2026. BILL processed $98.2 billion of total payment volume in fourth-quarter fiscal 2026, equivalent to a $393 billion annualized run rate.
Balance Sheet Flexibility and Buybacks: BILL Holdings ended fiscal 2026 with $1.03 billion in cash and cash equivalents and $906.5 million in short-term investments. Free cash flow increased to $354.7 million in fiscal 2026 from $312.5 million in fiscal 2025.
In the fourth quarter of fiscal 2026, the company repurchased about 8.4 million shares for roughly $300 million. Management said BILL had retired about 15 million shares, or nearly 14% of common stock outstanding, since its third-quarter fiscal 2026 earnings call. As of Aug. 19, 2026, $400 million remained under the $1 billion authorization.
Other Stocks to Consider
Some other top-ranked stocks from the sector are Paycom Software, Inc. (PAYC - Free Report) and Paylocity Holding (PCTY - Free Report) . While Paycom Software sports a Zacks Rank #1, Paylocity has a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for PAYC’s 2026 EPS has been revised 46 cents over the past month and calls for a 30.8% increase year over year.
The consensus estimate for PCTY’s full-year fiscal 2027 EPS has been revised two cents upward in the past month to $8.81, which implies a 6% increase from the year-ago period.