Wolfe Research has lowered its 12-month price target for Bill.com Holdings Inc (NYSE:BILL) to $60.00 from $70.00, while preserving an Outperform rating on the shares. The revised target still implies considerable upside relative to the stock's prevailing market price of $35.68, with data referenced in the reporting indicating the company is trading close to its 52-week low and has declined 17.35% over the last week.
The analyst revision arrives despite Bill.com posting solid fiscal second-quarter 2026 results and raising its full-year guidance. Core revenue grew 17% year-over-year in the quarter, a rate the firm noted represented a 370 basis point acceleration versus the prior quarter. Longer-term revenue performance also remains notable in the data cited, which shows a five-year compound annual growth rate of 56% for Bill.com.
Operational margins improved materially in the period. Adjusted operating margin expanded to 18%, surpassing market expectations, while the company reported an impressive gross profit margin of 83.56% for the trailing twelve months. Management also delivered modest per-customer gains in both accounts payable and accounts receivable total payment volume.
Segment-level trends included a 4% year-over-year rise in same-store sales and a 25% increase in Spend & Expense payment volume compared with the year-ago quarter. These results came amid market-level concerns about rising competitive pressures and potential implications from recent AI-related announcements.
Other sell-side responses to the quarter have been mixed. Needham reiterated a Buy rating after Bill.com exceeded expectations on both the top and bottom lines for the quarter. The company reported earnings per share of $0.64 versus analysts' consensus of $0.56 and revenue of $414.7 million versus a forecast of $399.98 million. Needham highlighted that revenue and operating income outperformed its estimates by 4.2% and 14%, respectively, and noted higher transaction-processing volume per customer along with modest Spend & Expense segment growth.
Conversely, Evercore ISI trimmed its price target to $42.00 from $48.00 while maintaining an In Line rating, citing limited visibility around several important growth levers even as it acknowledged Bill.com's long-term potential. Wolfe Research itself noted potential upside tied to the scaling of emerging products and Embed 2.0, but also flagged outstanding questions related to the company's ongoing strategic review and the possibility of takeout interest.
The juxtaposition of strong near-term operating results and differing analyst perspectives highlights a divergence in how market participants are weighing Bill.com's growth trajectory, margin improvement and strategic options versus external competitive and technology-related uncertainties. For investors, the debate centers on how sustainably recent operational gains can translate into expanded market share and longer-term profit flow.