XERO LIMITED (XRO)
Share Price Analysis and Chart

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XRO

XRO - XERO LIMITED

FNArena Sector : Accountancy
Year End: March
GICS Industry Group : Software & Services
Debt/EBITDA: 2.64
Index: ASX50 | ASX100 | ASX200 | ASX300 | ALL-ORDS | ALL-TECH

Xero is a New Zealand-founded cloud accounting software company serving small businesses and advisers globally, with major markets including Australia, New Zealand, the UK and the US. Avoid a fixed subscriber count unless maintained.

LAST PRICE CHANGE +/- CHANGE % VOLUME

$59.02

24 Sep
2026

0.820

OPEN

$58.20

1.41%

HIGH

$59.17

1,041,067

LOW

$57.85

TARGET
$133.567 126.3% upside
Franking for last dividend paid out: 0%
OTHER COMPANIES IN THE SAME SECTOR
RKN .
FNARENA'S MARKET CONSENSUS FORECASTS
XRO: 1
Title FY27
Forecast		 FY28
Forecast
EPS (cps) 115.5 xxx
DPS (cps) 0.0 xxx
EPS Growth N/A xxx
DPS Growth N/A xxx
PE Ratio 49.7 xxx
Dividend Yield 0.0% xxx
Div Pay Ratio(%) N/A xxx
This company reports in NZD.
All estimates have been converted into AUD by FNArena at present FX values.

Dividend yield today if purchased 3 years ago: 0.00%

DIVIDEND YIELD CALCULATOR

Dividend Yield Today On Last Actual Payout :

 0.00

Estimated Dividend Growth
(Average Of Past Three Years)

  %

Amount Invested

 $ 

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Past performance is no guarantee for the future. Investors should take into account that heavy swings in share price or exceptional circumstances (a la 2009) can have a significant impact on short term calculations and averages
HISTORICAL DATA ARE ALL IN AUD
Copyright © 2026 FactSet UK Limited. All rights reserved
Title 202120222023202420252026
EPS Basic xxxxxxxxxxxxxxx90.4
DPS All xxxxxxxxxxxxxxx0.0
Sales/Revenue xxxxxxxxxxxxxxx2,446.4 M
Book Value Per Share xxxxxxxxxxxxxxx2,638.6
Net Operating Cash Flow xxxxxxxxxxxxxxx829.2 M
Net Profit Margin xxxxxxxxxxxxxxx6.08 %

EPS Basic

DPS All

Sales/Revenue

Book Value Per Share

Net Operating Cash Flow

Net Profit Margin

Title 202120222023202420252026
Return on Capital Employed xxxxxxxxxxxxxxx4.58 %
Return on Invested Capital xxxxxxxxxxxxxxx4.09 %
Return on Assets xxxxxxxxxxxxxxx2.56 %
Return on Equity xxxxxxxxxxxxxxx4.58 %
Return on Total Capital xxxxxxxxxxxxxxx6.87 %
Free Cash Flow ex dividends xxxxxxxxxxxxxxx820.8 M

Return on Capital Employed

Return on Invested Capital

Return on Assets

Return on Equity

Return on Total Capital

Free Cash Flow ex dividends

Title 202120222023202420252026
Short-Term Debt xxxxxxxxxxxxxxx1,077 M
Long Term Debt xxxxxxxxxxxxxxx693 M
Total Debt xxxxxxxxxxxxxxx1,770 M
Goodwill - Gross xxxxxxxxxxxxxxx3,809 M
Cash & Equivalents - Generic xxxxxxxxxxxxxxx1,611 M
Price To Book Value xxxxxxxxxxxxxxx2.85

Short-Term Debt

Long Term Debt

Total Debt

Goodwill - Gross

Cash & Equivalents - Generic

Price To Book Value

Title 202120222023202420252026
Capex xxxxxxxxxxxxxxx383.4 M
Capex % of Sales xxxxxxxxxxxxxxx15.67 %
Cost of Goods Sold xxxxxxxxxxxxxxx727 M
Selling, General & Admin. Exp & Other xxxxxxxxxxxxxxx1,394 M
Research & Development xxxxxxxxxxxxxxx407 M
Investments - Total xxxxxxxxxxxxxxx118 M

Capex

Capex % of Sales

Cost of Goods Sold

Selling, General & Admin. Exp & Other

Research & Development

Investments - Total

EXPERT VIEWS
Display All Commentary

Sentiment Indicator

0.9

No. Of Recommendations

6
BROKER DATE RATING RECOMMENDATION TARGET PRICE % TO REACH TARGET COMMENTARY

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Macquarie

15/05/2026

1

Outperform

$235.80

299.53%

Macquarie emphasises Xero achieved accelerating US growth, with organic subscriber net additions rising to around 43k over the last six months versus 30k in the prior corresponding period for FY26 results.

Ex-Melio US revenue grew around 30% y/y and Melio also reported pro-forma growth of 58%, supported by higher payment volumes and take-rate expansion.

The analyst sees significant operating leverage potential as revenue scales across a largely fixed cost base.

Xero's proprietary customer data and ecosystem integration is viewed as more strategically valuable than the underlying AI models themselves, positioning the company favourably for AI-led distribution and monetisation opportunities.

Management's FY27 guidance was viewed as conservative, with a clear pathway towards achieving the Rule of 40 by FY28 supported by US investment, Melio scaling and operating leverage.

EPS forecasts lift by 3% for FY27, 8% for FY28, 11% for FY29 and 12% for FY30, while the target price rises to $235.80 from $223.60.

FORECAST
Macquarie forecasts a full year FY27 dividend of 0.00 cents and EPS of 112.88 cents.
Macquarie forecasts a full year FY28 EPS of 224.24 cents.

Morgan Stanley

xx/xx/xxxx

1

xxxxxxxxxx

$xx.xx

xx.xx%

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Ord Minnett

xx/xx/xxxx

1

xxx

$xx.xx

xx.xx%

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Access Stockbroker Research History >
EXTRA COVERAGE
Display All Commentary

No. Of Recommendations

1

Please note: unlike Broker Call Report, BC Extra is not updated daily. The info you see might not be the latest. FNArena does its best to update ASAP.

BROKER DATE RATING RECOMMENDATION TARGET PRICE % TO REACH TARGET COMMENTARY

Jarden

18/05/2026

1

Buy

$117.00

98.24%

Jarden maintains a Buy rating for Xero with a reduced $117.00 target price following a "solid" FY26 result overshadowed by yet another AI product launch by Anthropic

The broker notes underlying earnings before interest and tax reached NZ$374.6m, while group net subscriber additions of 506k significantly exceeded consensus estimates.

The report states earnings per share forecasts for FY27 have been downgraded by -20% to account for higher finance costs and tax rates.

New product announcements including the top-tier 'Ultra' plan and the 'XeroForce' AI agent builder offer potential revenue growth not currently priced into the stock, the broker highlights.

Jarden observes the Melio acquisition remains dilutive to margins, while guidance for FY27 infers a step-down in the EBITDA margin to a range of 24% to 25%.

FORECAST
Jarden forecasts a full year FY27 dividend of 0.00 cents and EPS of 102.27 cents.
Jarden forecasts a full year FY28 dividend of 0.00 cents and EPS of 105.64 cents.
Access Extra Coverage Research History >

XRO STOCK CHART

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Latest Accountancy News

1
AI Anxiety Continues Post Xero’s Strong Result

May 20 2026 - Australia
2
Is AI Nemesis Or Opportunity For Xero?

Feb 05 2026 - Australia
3
Sceptics Want Xero To Prove Melio’s Added Value

Nov 18 2025 - Australia
4
Xero’s Bold US Play

Jun 27 2025 - Australia
5
Xero: Maximising Long-Term Value Creation

May 20 2025 - Australia
6
Xero: The Pause That Refreshes

Jan 23 2025 - Technicals
7
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May 28 2024 - Australia
8
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May 16 2024 - Treasure Chest
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Feb 15 2024 - Small Caps
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