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 Ltd is a New Zealand software company providing cloud-based accounting software platforms to small and medium sized businesses. Xero has over two million subscribers. Founded in 2006 the company listed in 2012 and has since expanded into Australia, the UK and the US.

LAST PRICE CHANGE +/- CHANGE % VOLUME

$79.67

15 May
2026

5.990

OPEN

$77.00

8.13%

HIGH

$81.79

1,459,188

LOW

$76.75

TARGET
$137.90

+0.16 change from previous day

 73.1% 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) 119.3 xxx
DPS (cps) 0.0 xxx
EPS Growth N/A xxx
DPS Growth N/A xxx
PE Ratio 65.4 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: N/A

DIVIDEND YIELD CALCULATOR

Dividend Yield Today On Last Actual Payout :

 N/A

Estimated Dividend Growth
(Average Of Past Three Years)

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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

1.0

No. Of Recommendations

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

Citi

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xx/xx/xxxx

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Morgan Stanley

15/05/2026

1

Overweight

$130.00

63.17%

Morgan Stanley believes Xero's strong FY26 result and upgraded FY27 guidance highlight a business that is operationally performing well, with revenue and earnings exceeding expectations.

Despite this, shares fell on AI disruption concerns, which continue to dominate sentiment, the analysts explain.

Morgan Stanley argues the importance of accountants as a distribution channel is underappreciated, supporting subscriber growth, pricing power and customer lifetime value.

While further progress on AI monetisation is needed, Morgan Stanley retains an Overweight rating and $130 target. Industry View: Attractive.

FORECAST
Morgan Stanley forecasts a full year FY27 dividend of 0.00 cents and EPS of 119.60 cents.
Morgan Stanley forecasts a full year FY28 dividend of 0.00 cents and EPS of 162.44 cents.

Ord Minnett

xx/xx/xxxx

1

xxx

$xx.xx

xx.xx%

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UBS

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

46.86%

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 106.22 cents.
Jarden forecasts a full year FY28 dividend of 0.00 cents and EPS of 109.72 cents.
Access Extra Coverage Research History >

XRO STOCK CHART

FNArena News on XRO

1
Australian Broker Call *Extra* Edition – May 18, 2026

10:30 AM - Daily Market Reports
2
FNArena Corporate Results Monitor – 15-05-2026

May 15 2026 - Australia
3
Next Week At A Glance – 18-22 May 2026

May 15 2026 - Weekly Reports
4
Rudi’s View: AI Is Making A Come-Back

May 13 2026 - Rudi's View
5
Rudi’s View: AI, The Great Market Divider

May 06 2026 - Rudi's View

Latest Accountancy News

1
Is AI Nemesis Or Opportunity For Xero?

Feb 05 2026 - Australia
2
Sceptics Want Xero To Prove Melio’s Added Value

Nov 18 2025 - Australia
3
Xero’s Bold US Play

Jun 27 2025 - Australia
4
Xero: Maximising Long-Term Value Creation

May 20 2025 - Australia
5
Xero: The Pause That Refreshes

Jan 23 2025 - Technicals
6
Xero’s Growing Cash Balance In Focus

May 28 2024 - Australia
7
Treasure Chest: Xero

May 16 2024 - Treasure Chest
8
Reckon’s New Lease Of Life

Feb 15 2024 - Small Caps
9
Xero Sees The Value Of Profit

Mar 14 2023 - Australia
10
Xero In Focus

Feb 28 2023 - Technicals