Analyst Ratings February 6, 2026

BMO Cuts Bill.com Price Target, Cites AI-Related Sentiment Headwinds

Analyst keeps Market Perform rating as the company posts solid fiscal Q2 results and mixed analyst reactions persist

By Leila Farooq BILL
BMO Cuts Bill.com Price Target, Cites AI-Related Sentiment Headwinds
BILL

BMO Capital reduced its price target for Bill.com to $46 from $50 while retaining a Market Perform rating, citing lingering macro worries tied to artificial intelligence that are weighing on near-term sentiment. The payments-software company reported stronger-than-expected fiscal second-quarter results and maintains high gross profit margins, but several growth initiatives remain at an early stage. Other analysts offered divergent views after the quarter, underscoring differing assessments of growth visibility.

Key Points

  • BMO Capital cut Bill.com's price target to $46 from $50 but retained a Market Perform rating; the stock trades at $41.52 and is down nearly 63% over the past year.
  • Bill.com beat fiscal Q2 2026 expectations with EPS of $0.64 versus $0.56 forecast and revenue of $414.7 million versus $399.98 million; core revenue grew 17% year-over-year.
  • Analyst views diverge post-quarter: Wolfe Research lowered its target to $60 (Outperform), Evercore ISI trimmed its target to $42 (In Line) citing growth visibility concerns, while Needham reiterated Buy with a $75 target.

BMO Capital has trimmed its 12-month price target for Bill.com Holdings Inc. (NYSE:BILL) to $46.00 from $50.00 while keeping a Market Perform rating. The stock is trading at $41.52 and, according to InvestingPro data cited in recent commentary, has declined nearly 63% over the last 12 months.

In its note, BMO highlighted that Bill.com recently reported results that beat expectations and pointed to stronger volume trends as a driver of upside. The firm said it expects the shares to recover some of the pronounced weakness experienced so far this year - InvestingPro data show the stock is down more than 34% since January.

BMO drew attention to operational positives, noting progress on initiatives designed to lift take-rate. The analyst also listed a number of potential revenue and margin levers that remain in relatively early stages of development: improving card profitability, expanding relationships with new embedded partners, and rolling out Agentic functionality on the platform. The company’s reported gross profit margin of 83.56% was cited as evidence of strong operational efficiency.

Despite those constructive elements, BMO flagged that the company is not insulated from macro concerns related to artificial intelligence - a factor the firm believes is still influencing near-term investor sentiment for the stock.

The analyst house also pointed to a possible near-term event that could act as a catalyst - an analyst day expected in the first half of 2026 that might offer more detail on strategy and execution plans.


Other analyst reactions to Bill.com’s fiscal second-quarter 2026 results were mixed. The company posted earnings per share of $0.64, beating the consensus forecast of $0.56, and reported revenue of $414.7 million versus an anticipated $399.98 million. Bill.com also disclosed 17% year-over-year core revenue growth, which the company characterized as an acceleration from the prior quarter.

Following the release, Wolfe Research lowered its price target for Bill.com to $60 while maintaining an Outperform rating. Evercore ISI reduced its price target to $42 and kept an "In Line" rating, explicitly citing concerns around growth visibility. By contrast, Needham reiterated a Buy rating and kept a $75 price target, pointing to the company’s strong performance and increased transaction processing volume.

These divergent analyst actions underscore the varying interpretations of Bill.com’s recent financial results and the outlook for scaling take-rate and other monetization initiatives. While the company’s margin profile and quarterly beat provide supportive data points, the early-stage nature of some catalyst opportunities and the persistent macro-related sentiment issues are factors that market participants are weighing differently.

Investors looking at Bill.com are therefore navigating a mix of solid near-term financials, operational strength in gross margins, nascent growth initiatives, and external sentiment pressures tied to broader technology-related macro concerns. The potential analyst day in the first half of 2026 stands out as an event that could provide additional clarity on the company’s path forward.

Risks

  • Near-term investor sentiment remains vulnerable to macro worries related to artificial intelligence, which BMO says is affecting the stock.
  • Key revenue and profitability initiatives - card profitability, embedded partner expansion, and Agentic functionality - are still in early stages and may delay material upside.
  • Growth visibility concerns cited by Evercore ISI suggest uncertainty about the sustainability and predictability of revenue expansion, which can impact fintech and software sector valuations.

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