Sydney, June 26, 2026, 06:04 (AEST)
- Xero ended Thursday at A$67.85, losing 3.5%. That followed an 8.2% bounce the day before.
- At that price, the A$550 million buyback would let it purchase around 8.1 million shares, which is 4.75% of its outstanding stock.
- Citigroup (NYSE:C) is sticking with its Buy rating and A$113.60 price target after Xero bumped up most of its UK subscription prices.
Xero Limited’s A$550 million buyback can go further after the stock’s drop. At Thursday’s close of A$67.85, it could pick up around 8.1 million shares if bought at a single price with no costs. That’s 4.75% of the 170.6 million shares out.
If Xero was still at its 52-week high of A$186.38, the same funds would have picked up just 2.95 million shares, or 1.73% of issued stock. With shares down 63.6% from that level, the lower price has boosted the plan’s potential share haul by 2.75 times.
Xero is not calling this a 4.75% capital reduction. The company said it plans to buy shares to offset dilution tied to FY27 share-based pay and some older grants that may vest up to FY29. A group member can buy shares on market through brokers when it chooses. How much coverage is achieved will depend on execution prices and how much of the authority gets used.
The implied 8.1 million shares come out to 2.86 times the 2.833 million shares Xero lists for equity-based compensation in its FY26 diluted EPS calculation. That 2.833 million figure is a weighted-average accounting number, not a projection for FY27 issuance.
Xero dropped A$2.46 on Thursday, starting the session at A$70.49. Shares moved between A$67.28 and A$71.37. Volume came in at 1.31 million, well above the 1.15 million average. The slide took out 46% of Wednesday’s A$5.31 jump from A$65 to A$70.31.
The stock is still up 4.4% from its A$65 low on Tuesday, but it’s dropped 9% from last week’s A$74.58 close.
Citigroup’s Siraj Ahmed kept his Buy on the stock Wednesday, with a price target of A$113.60, per TipRanks. That’s 67% higher than where shares finished on Thursday.
Xero’s UK pricing page lists hikes of 5.4% to 12.5% across four subscription plans from September 1. The Simple plan sticks at 7 pounds a month.
Xero posted a 31% jump in FY26 revenue to roughly NZ$2.8 billion. Adjusted EBITDA was up 18% at NZ$757.4 million, and free cash flow reached NZ$554 million. “We have powerful momentum across our markets,” Chief Executive Sukhinder Singh Cassidy said. For FY27, Xero is guiding revenue at NZ$3.62 billion to NZ$3.73 billion and adjusted EBITDA between NZ$860 million and NZ$920 million. Brandfolder
Xero closed March with NZ$1.93 billion in cash and short-term deposits and net debt of NZ$383.4 million. The company says drawing the full A$550 million would bring net debt to 1.4 times adjusted EBITDA. That compares to around 0.5 times at the end of the year.
ASX cash market was still closed at the dateline. Pre-open is set for 07:00 Sydney time with regular trade expected to start around 10:00, according to the .
