Overview
Needham has reaffirmed a Buy rating on Bill.com Holdings Inc. and left its price target at $75 following the company’s fiscal second-quarter release. That target equates to an approximate 110% upside from the stock’s then-current trading price of $35.68, and the shares were trading very close to their 52-week low of $35.46.
Quarterly performance versus expectations
According to Needham’s analysis, Bill.com posted quarterly revenue and operating income that outpaced the firm’s projections by 4.2% and 14% respectively. The company also reported higher transaction processing volume per customer and a modest expansion in take rates within its Spend & Expense segment.
Market consensus on the quarter reflected similar beats. Bill.com reported earnings per share of $0.64, ahead of the $0.56 forecast, representing a 14.29% positive surprise. Revenue came in at $414.7 million versus the anticipated $399.98 million.
Guidance and management commentary
Management raised fiscal year 2026 guidance above the actual beat, a move Needham noted positively while also characterizing the guidance as containing conservative assumptions about future spending levels. Needham observed that the company’s take rate progression remains on management’s expected trajectory, with incremental growth of 0.4 basis points in both accounts payable and accounts receivable.
Product initiatives and new lines of business
Needham singled out Bill.com’s newly introduced artificial intelligence agents as a notable development. The firm reported strong initial traction for those agents and highlighted their potential to reduce customer support costs over time. In addition, early metrics for Bill.com’s ad-valorem business include $400 million in committed supplier payment processing transaction volume, which Needham views as a potential source of additional upside in fiscal year 2027.
Other analyst activity
Not all analysts moved in the same direction. Evercore ISI trimmed its price target on Bill.com to $42 from $48, while keeping an In Line rating. Evercore cited limited visibility into several key growth factors as the rationale for its more cautious target.
What this means
Needham’s continued Buy rating reflects confidence in Bill.com’s recent operating beat, early product momentum and nascent ad-valorem commitments, while the Evercore action underscores remaining uncertainty among market observers about the company’s growth trajectory and the clarity of future drivers.