Evercore ISI reduced its price objective for Bill.com Holdings Inc. (NYSE: BILL) to $42.00 from $48.00 and left the stock with an "In Line" rating, according to the analyst note released on Friday. The new target represents a 12.5% decrease from the firm’s prior projection and reflects a more cautious view on the company’s near-term prospects.
At the time of the report, Bill.com shares were trading at $35.68, a hair above the company’s 52-week low of $35.46, and had plunged 17.35% over the previous week. Evercore ISI flagged uncertainty around several key growth drivers for the small and medium-sized business financial software provider even as it acknowledged the longer-term potential of the business.
The firm said it would "prefer to stay on the sidelines until there is clearer visibility into the pace of upmarket adoption, sustainability of take-rate expansion, and consistent/durable margin leverage." Those three factors form the core reasons the analyst tempered the near-term outlook while maintaining a neutral stance on the shares.
Despite Evercore’s caution, company-level financial metrics cited in the note showed favorable profitability and cash generation. InvestingPro data referenced by the analyst indicates Bill.com posts gross profit margins of 83.56% and a free cash flow yield of 11%, metrics that point to strong unit economics within the firm’s existing business.
Evercore also reiterated that Bill.com’s longer-term opportunity remains compelling. The analyst noted the company could capture the financial back-office suite for SMBs over time, with potential growth channels tied to payments, product expansion, and international markets.
In separate company disclosures, Bill.com reported fiscal second quarter 2026 results that exceeded analyst expectations. The firm recorded earnings per share of $0.64 versus the $0.56 estimate, a 14.29% positive surprise. Revenue came in at $414.7 million, topping the projected $399.98 million. Even with that upside, the stock fell in aftermarket trading.
The Evercore note and the company’s quarterly results together paint a mixed near-term picture: robust margin and cash-flow metrics alongside remaining questions about sustained expansion and margin leverage as Bill.com seeks to move further upmarket.
Key points
- Evercore ISI cut its price target on Bill.com to $42 from $48 and maintained an "In Line" rating.
- Bill.com reported fiscal Q2 2026 EPS of $0.64 on revenue of $414.7 million, both exceeding analyst estimates.
- Strong profitability metrics cited include an 83.56% gross margin and an 11% free cash flow yield.
Risks and uncertainties
- Unclear visibility into the pace of upmarket adoption could limit near-term revenue expansion.
- Uncertainty about the sustainability of take-rate expansion may pressure future monetization.
- Questions remain over the consistency and durability of margin leverage as the company scales.