BILL Stock Forecast & Price Target

BILL Holdings is supported by strong operating momentum, as 1Q total revenue of $353.8M and core revenue of $316M beat the high end of guidance, while EBIT of about $137M far exceeded expectations and reflected meaningful operating leverage after reorganization. Growth remains healthy and broadening, with TPV up about 14%, same-store sales accelerating to +7%, net adds improving to 3K, and cross-sold AP/S&E customers growing 30% y/y, underscoring product bundling and monetization across a lightly penetrated SMB market. Management also raised the lower end of revenue growth guidance to 10-12% and lifted the EBIT midpoint by $40M, reinforcing confidence that AI-enabled workflows, pricing discipline, and efficiency gains can sustain durable expansion.

BILL Holdings is facing a weaker fundamental setup because FY27 core revenue guidance of 11%-14% trails the Street’s 14.0% estimate and slows from 15.7% in FY26, while 300 bps of growth headwinds reflect 200 bps from S&E dynamics and 100 bps from bank channel changes. The company also warned that F2Q S&E TPV growth will decelerate to 10%, and management’s planned sales org incentive changes in F3Q add execution risk just as AP/AR customer growth already came in below tempered expectations. Although non-GAAP EBIT guidance of $421 million-$451 million exceeded consensus, that outperformance was helped by slower planned spending and is unlikely to represent a new baseline, leaving concerns about churn, competition, operating leverage, and rate-sensitive revenue intact.