Xero Raises Revenue Outlook and Plans A$1 Billion Share Buyback

what happened

Accounting software provider Xero signaled more upbeat revenue expectations and announced a share buyback of up to 1 billion Australian dollars (US$690 million). On Thursday its stock climbed 8.7% to a two-month high, according to Dow Jones Newswires.

Xero now sees revenue of more than 4.6 billion New Zealand dollars for fiscal 2028, up from its earlier goal of NZ$4.2 billion. Revenue guidance for the 12 months through March was lifted to NZ$3.77–3.83 billion, and the adjusted EBITDA range was narrowed to NZ$880–920 million. The company linked the upgrade to a stronger performance from Melio, the payments platform it acquired in 2025, and to a weaker New Zealand dollar.

why it matters

Analysts are divided. RBC argues the market is not factoring Xero's momentum into its fiscal 2028 estimates, while Jefferies notes first-half adjusted EBITDA came in 2% below consensus and that the CFO is leaving in under two years. For investors the picture is mixed: the higher outlook and buyback support the shares, but questions about the results remain.

market impact

Xero shares: raised guidance and buyback support the stock

• ▲Xero shares pressure up — higher revenue outlook and a buyback of up to A$1 billion support demand

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