Sydney, June 25, 2026, 06:05 AEST
- Xero bounced 8.2% to finish Wednesday at A$70.31, snapping a two-day losing streak.
- Citi has stuck with its Buy on the stock and a price target of A$113.60.
- The ASX cash market is set to open as usual at 10 a.m. Sydney time on Thursday.
Xero traded up A$5.31 at A$70.31 on Wednesday, leading a rebound in Australian tech stocks. The tech sector advanced 5.2%. WiseTech Global jumped 14.3%.
Xero bounced back, recouping much of the 9.6% slide from the past two sessions. Shares dropped from A$71.88 on Friday to A$65 by Tuesday.
Citi’s Siraj Ahmed said the new UK price increases show Xero is “confident in its market position.” Ahmed expects the changes will raise UK average revenue per user by around 5%, which matches his forecast for 4% growth in fiscal 2027. Futunn News
Xero is set to hike prices on four of its UK plans starting September 1. The firm says monthly rates will go up by £2 to £5. Its Simple plan, the lowest tier, remains at £7.
Xero’s pricing call turns attention to keeping customers. In Britain, the company faces off with Intuit’s QuickBooks and Sage.
Xero reported in its May full-year update that revenue for fiscal 2026 was up 31% at NZ$2.753 billion. Adjusted EBITDA climbed 18% to NZ$757.4 million. Net profit dropped 27% to NZ$167.4 million. Chief Executive Sukhinder Singh Cassidy said, “AI is powering customer value and operational excellence today.”
Xero has guided to fiscal 2027 revenue between NZ$3.62 billion and NZ$3.73 billion, and adjusted EBITDA in a range of NZ$860 million to NZ$920 million. That outlook factors in up to NZ$55 million in added US brand spending. Xero is betting its US growth on Melio, the payments platform it bought for US$2.5 billion.
Xero has still dropped around 63% in the last year, even after the bounce. There’s risk that lifting prices again could mean more customers leave, or that cheaper rivals could make it hard for Xero to keep growing revenue in the UK.
