BILL Holdings BILL is still building a stronger case for investors who want exposure to small-business financial software. The company is not just selling basic payment tools. It is creating a broader financial operations platform that helps small and midsize businesses manage invoices, approvals, payments, expenses and cash flow in one place. While risks remain, especially because SMB demand can weaken in a slow economy, BILL’s latest numbers and strategy point to several reasons for optimism.
Earlier this month, BILL Holdings posted third-quarter fiscal 2026 non-GAAP net income of 68 cents per share, beating the Zacks Consensus Estimate of 55 cents by 23.6%. The figure increased 36% from the year-ago quarter.
Quarterly revenues of $406.6 million topped the consensus mark of $403.1 million by 0.9% and rose 13.5% year over year. The quarter reflected continued expansion across BILL’s financial operations platform, highlighted by total payment volume of $89 billion, up 12% from the prior-year period.
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BILL shares have declined 13.1% over the past three months against the industry’s growth of 4.2%. However, its EPS estimate revisions call for a bullish outlook and suggests adding the stock now. BILL currently sports a Zacks Rank #1 (Strong Buy).
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Factors That Make BILL Holdings Stock a Solid Pick
Revenue Growth Remains Healthy: BILL continues to grow at a steady pace. In third-quarter fiscal 2026, total revenues rose 13% year over year to $406.6 million, while core revenues increased 16% to $371.1 million. The company also processed $89 billion in total payment volume, up 12%, and handled 34 million transactions, up 14%. Management’s fiscal 2026 outlook calls for total revenues of $1.642-$1.652 billion, suggesting the growth story is still intact.
Product Portfolio Keeps Getting Bigger: The company has used acquisitions to expand beyond accounts payable and receivable. Divvy added spend and expense management, Finmark brought financial planning and analysis tools, and Invoice2go strengthened receivables capabilities. This wider product set gives BILL more ways to serve the same customer, which can support higher retention and more cross-selling over time.
AI Could Make the Platform More Valuable: BILL is leaning heavily on AI-led automation. Its agents help with invoice coding, supplier management and payment execution, and more than 100,000 customers have used these tools. The company has also launched BILL Travel, which it says can sharply reduce time spent on travel workflows. For busy SMBs, saving time is a real selling point.
Partners Help Expand Its Reach: BILL works with more than 9,500 accounting firms and has relationships with major financial institutions. These partnerships help the company reach more businesses without relying only on direct sales. Its network of roughly 8.3 million suppliers and clients also makes the platform more useful as adoption grows.
Balance Sheet Adds Flexibility: BILL ended March 31, 2026, with nearly $1 billion in cash and cash equivalents, plus $1.18 billion in short-term investments. It also generated $84.7 million in free cash flow during the quarter. The new $1 billion share repurchase authorization gives management another way to create shareholder value while still investing in growth.
Other Stocks to Consider
Some other top-ranked stocks from the sector are Paycom Software, Inc. PAYC and Flywire Corporation FLYW. While Paycom Software sports a Zacks Rank #1, Flywire has a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Paycom Software’s 2026 EPS has been revised 2.5% over the past month and calls for a 15% increase year over year.
The consensus estimate for Flywire’s full-year 2026 EPS has been revised two cents upward in the past 7 days to 42 cents, which implies a significant increase from the year-ago period.
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This article originally published on Zacks Investment Research (zacks.com).