GET DAILY SIGNALSBILL Holdings (BILL) Delivers +13% Revenue Growth and Sharp Margin Expansion in Q1
Key Takeaways
- BILL Holdings reported first quarter fiscal 2027 (the three months ended September 30, 2026) total revenue of $353.8 million, up 13% year over year, with core revenue rising 14% to $316.4 million.
- Non-GAAP diluted EPS came in at $1.18, above the roughly $0.98 consensus estimate, while GAAP diluted EPS was $0.61.
- The company swung to GAAP profitability, posting net income of $60.3 million, and expanded non-GAAP operating margin by 1,700 basis points year over year.
- Total payment volume reached $102 billion (up 14%), and the company reported a "Rule of 40" score of 51, its highest since fiscal 2024.
- Reported revenue reflects a voluntary accounting change that now records card rewards as a reduction of revenue rather than a sales and marketing expense, making headline comparisons to prior quarters less direct.
Why This Quarter Matters
BILL Holdings runs an intelligent financial operations platform aimed at small and midsize businesses. It supports accounts payable, accounts receivable, and spend management workflows. The results give a window into SMB spending trends and the move toward automated payments. This period stood out as the first full quarter after restructuring, and management introduced a new way of presenting card rewards in the accounts. Investors wanted to see whether the company could keep core revenue growing in double digits while lifting profitability at the same time. From what I see, the quarter met that test through stronger margins and a meaningful shift to GAAP net income.
Breaking Down the Numbers
Total revenue for the first quarter of fiscal 2027 reached $353.8 million, a 13% rise from the year-ago period. Core revenue climbed 14% to $316.4 million. Subscription fees increased 9% to $77.3 million, while transaction fees rose 16% to $239.1 million. Float revenue stayed essentially flat at $37.4 million. I also checked this using Tickeron’s AI Screener to compare BILL’s performance with peers in the sector.
Profitability showed clear improvement. GAAP net income reached $60.3 million, producing GAAP diluted EPS of $0.61 versus a net loss in the prior year. Non-GAAP net income rose about 70% to $119.1 million, or $1.18 per diluted share, beating the consensus estimate of roughly $0.98. Non-GAAP operating income came in at $136.9 million, above the company’s own guidance range of $112.5 million to $117.5 million.
The headline revenue figure sits below some expectations because of the accounting change. Card rewards are now recorded as a reduction of revenue instead of a sales and marketing expense. Management noted that this affects only classification and does not change operating income, net income, or EPS.
How the Market Responded
Investors focused more on the profitability metrics than the top-line number. The strong non-GAAP EPS beat, the move to GAAP profitability, and the sizable non-GAAP operating margin expansion drew the most attention. The lower reported revenue was largely viewed as the result of the accounting shift rather than any underlying softness. Earlier sentiment had been positive after a run of EPS beats. Areas of note included flat float revenue, which ties results to interest-rate moves, and the implied slowdown in total revenue growth suggested by second-quarter guidance. Restructuring charges of $24.4 million, including a $25.8 million non-cash impairment, also affected reported expenses.
What to Watch Going Forward
Management’s full-year outlook and comments on the Rule of 40 metric will shape expectations. The company expects to stay above the Rule of 40 threshold through the end of fiscal 2027, with the first-quarter score already at 51. This measure blends revenue growth and non-GAAP operating margin and serves as a useful gauge of balanced progress.
Key items to monitor include whether core revenue growth near 14% can hold while margins continue to widen. Transaction fees remain the faster-growing line, so payment volume trends and monetization will stay central. Float revenue also warrants attention because it links to interest rates and introduces macro sensitivity. The company’s AI initiatives, such as new agents and embedded finance partnerships, represent longer-term opportunities. Adoption rates for these products, along with further GAAP profitability gains and any share repurchases, should influence sentiment ahead.
Using Data Tools in My Research
When reviewing earnings like these, I find it helpful to run quick scans for comparable companies and technical setups. One platform I turn to for that kind of work is Tickeron’s AI Screener. It lets me filter on fundamentals, patterns, and signals in a structured way, which saves time when I want to place a single quarter’s results in broader context. The tool has become a regular part of how I cross-check ideas before forming a view.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
BILL in upward trend: price rose above 50-day moving average on October 20, 2026
BILL moved above its 50-day moving average on October 20, 2026 date and that indicates a change from a downward trend to an upward trend. In 35 of 39 similar past instances, the stock price increased further within the following month. The odds of a continued upward trend are 90%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 08, 2026. You may want to consider a long position or call options on BILL as a result. In 67 of 84 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 80%.
The Moving Average Convergence Divergence (MACD) for BILL just turned positive on October 09, 2026. Looking at past instances where BILL's MACD turned positive, the stock continued to rise in 27 of 39 cases over the following month. The odds of a continued upward trend are 69%.
The 10-day moving average for BILL crossed bullishly above the 50-day moving average on October 23, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 13 of 17 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 76%.
Following a +4.32% 3-day Advance, the price is estimated to grow further. Considering data from situations where BILL advanced for three days, in 235 of 318 cases, the price rose further within the following month. The odds of a continued upward trend are 74%.
The Aroon Indicator entered an Uptrend today. In 164 of 223 cases where BILL Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 74%.
Bearish Trend Analysis
The RSI Oscillator demonstrated that the stock has entered the overbought zone. This may point to a price pull-back soon.
The Stochastic Oscillator entered the overbought zone. Expect a price pull-back in the foreseeable future.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where BILL declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 85%.
BILL broke above its upper Bollinger Band on October 20, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of 2 (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.253) is normal, around the industry mean (-2.611). BILL's P/E Ratio (-471.545) is considerably lower than the industry average of (15.348). Projected Growth (PEG Ratio) (0.405) is also within normal values, averaging (2.824). Dividend Yield (0.000) settles around the average of (0.067) among similar stocks. P/S Ratio (2.961) is also within normal values, averaging (70.854).
The Tickeron Price Growth Rating for this company is 41 (best 1 - 100 worst), indicating steady price growth. BILL’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron PE Growth Rating for this company is 61 (best 1 - 100 worst), pointing to average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is 91 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. BILL’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 94, placing this stock worse than average.
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General Information
a holding company, which engages in the provision of cloud-based software solutions and simplifies, digitizes, and automates complex back-office financial operations for SMBs.
Industry PackagedSoftware
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