Xero Lifts Annual Earnings 18%, Flags More Growth Ahead

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By Stuart Condie

SYDNEY–Accounting-software provider Xero raised its annual earnings by 18%, beating analysts’ expectations and flagging more growth across its current fiscal year.

The New Zealand-based company on Thursday reported adjusted earnings before interest, tax, depreciation and amortization for the 12 months through March of almost 757.4 million New Zealand dollars, equivalent to US$449.7 million.

Revenue rose 31% to NZ$2.75 billion as Xero added 506,000 net new customers across the period. In the U.S., where Xero competes with the likes of Intuit’s QuickBooks, revenue rose by 30%, once the impact of Xero’s recently acquired Melio unit was stripped out.

The average analyst forecast had been for adjusted Ebitda of NZ$744.7 million from revenue of NZ$2.74 billion, according to data compiled by Visible Alpha.

Operating expenses of NZ$1.99 billion were equivalent to 70.5% of operating revenue once acquisition costs were removed, in line with company guidance.

Xero, which reported a 71.8% expense ratio a year ago, had initially guided for a 71.5% ratio in fiscal 2026 but improved its outlook in November.

The company said it expects fiscal 2027 adjusted Ebitda of between NZ$860 million and NZ$920 million. The guidance includes plans to spend an additional NZ$55 million in U.S. advertising.

Write to Stuart Condie at stuart.condie@wsj.com

(END) Dow Jones Newswires

May 13, 2026 18:54 ET (22:54 GMT)

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