BILL Surges After Q2 Beat as Revenue, Margins, and Guidance Rise

Momentum in platform adoption reshaped investor focus.

BILL (BILL) reported fiscal second-quarter 2026 results that exceeded expectations on revenue, profitability, and guidance, driving a sharp market reaction. Management highlighted broad-based product adoption, improving efficiency, and accelerating use of AI-driven automation across the platform.

Key Points

• Core revenue rose 17% year over year to $375 million, with an 18% non-GAAP operating margin.
• Multi-product usage, invoice financing, and card spend all accelerated across the platform.
• Full-year fiscal 2026 core revenue and earnings guidance were raised.

Revenue and Margins Beat Expectations

BILL generated $375 million in core revenue during the quarter, exceeding the top end of guidance and rising 17% from a year earlier. Non-GAAP operating margin reached 18%, expanding both sequentially and year over year as efficiency initiatives took hold.

Transaction activity supported the results. Accounts payable and receivable transaction revenue grew 14% year over year, while Spend & Expense revenue increased 24%, driven by higher card volume and improved take rates. Card payment volume rose 25% from the prior year, reflecting increased usage across advertising, retail, and healthcare services.

The company also repurchased $133 million of stock during the quarter.

How Is Product Adoption Changing?

Product usage trends were a central theme of the earnings call. BILL reported that customers using multiple products increased 28% year over year, a cohort that management said generates higher revenue per customer and shows stronger retention.

Invoice financing adoption accelerated, with users up nearly 50% year over year and origination volume rising more than 30%. Management described the offering as a way for small and midsize businesses to receive payments several weeks earlier, while emphasizing a measured rollout to refine risk and underwriting.

BILL also highlighted early traction from its newly launched Cash Account. More than 70% of early users increased their network spend, suggesting the product may pull additional off-platform payments into BILL’s ecosystem over time.

Why Did AI and Automation Matter This Quarter?

AI-driven automation played an increasing role in both customer workflows and internal efficiency. Management said “agentic” AI tools are now live across the platform, including automated W-9 collection, invoice coding, and customer support functions.

During the quarter, nearly 10,000 customers enabled the W-9 agent, with 40,000 documents collected. BILL expects these tools to automate roughly 3 million W-9s by year-end. On the risk side, systems blocked 5.3 million fraudulent attempts in the first half of the year and reduced manual fraud reviews by 40%.

Customer support automation also expanded. The BILL Assistant increased self-service interactions from 13% prior to launch to 40% among enabled customers, easing operational load as volumes grow.

What It Means for Investors

The market reaction reflected more than a single earnings beat. Investors responded to evidence that BILL’s integrated platform is driving higher engagement, transaction volume, and monetization per customer, even as the company continues to invest heavily in AI, safety, and infrastructure.

At the same time, management acknowledged near-term trade-offs. Net losses widened in the quarter as BILL leaned into reinvestment, and guidance reflects ongoing spending to support product expansion and automation. Visibility into longer-term growth drivers, including upmarket adoption and sustained take-rate expansion, remains an area investors continue to monitor.

Still, raised full-year guidance for revenue, earnings, and margins suggested improving operating leverage as adoption scales across payments, financing, and spend management tools.

Conclusion

BILL’s sharp move followed a quarter marked by accelerating platform adoption, expanding margins, and stronger-than-expected guidance. The results reinforced how automation, multi-product usage, and network effects are shaping the company’s near-term performance, even as questions around longer-term visibility remain part of the market conversation.

FAQs

Why did BILL stock jump after earnings?
It jumped because the company reported stronger-than-expected revenue, margins, and guidance, alongside accelerating product adoption.

What drove revenue growth this quarter?
Revenue growth was driven by higher transaction volumes, increased card spend, and faster adoption of multiple products across the platform.

How important was AI to the results?
AI was important as automation tools improved efficiency, reduced fraud, and increased self-service usage, supporting margin expansion.

Did profitability improve?
Profitability improved on a non-GAAP basis, with operating margin reaching 18%, though the company still reported a net loss due to reinvestment.

What did management change in guidance?
Management raised full-year fiscal 2026 guidance for core revenue, earnings per share, and operating margin.

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