SYDNEY, June 15, 2026, 07:02 (AEST) — Shares in Zip Co jumped 9% with the buyback plan in focus ahead of FY26 results.
- Zip Co Ltd (ASX: ZIP) closed at A$2.66, up 9.47% on June 12. The stock has gained recently but remains under its 200-day moving average.
- Zip said in its latest ASX filing it bought back 677,066 shares on June 11 for around A$1.64 million. The company has been adding to the shares bought through its on-market program.
- Zip’s FY26 results drop August 20, next up for investors looking at management’s higher earnings guidance and new credit-loss targets.
Zip Co jumped back onto the radar for investors after the stock gained 9.47% to finish at A$2.66, up A$0.23 from the previous A$2.43 close. The buy-now-pay-later company’s shares rose above the 50-day moving average at A$2.28, but the shares stayed under the 200-day moving average of A$2.96. The longer trend is still lagging.
ASX stocks traded higher, with the S&P/ASX 200 up 1.93% around 2:15 p.m. AEST on June 12, Market Index said. The index was pacing for a weekly gain of about 2.0%. Zip’s move came along with the risk-on tone, not just because of company-specific buyback action.
Zip said in a June 12 notice it had already bought back 18.82 million shares as of the prior day, then picked up another 677,066 shares on June 11. That latest batch set the company back about A$1.64 million, paying between A$2.35 and A$2.47 each, both below the last quoted price of A$2.66. Buybacks can help shore up a company’s share price by cutting the number of shares on issue, which can lift earnings per share if profits stay steady.
June 11 filings showed 568,472 ordinary shares cancelled from the on-market buyback, with 1.254 billion quoted ordinary shares left on issue according to the ASX notice. Investors watch this because the buyback isn’t just talk. Shares are actually removed, so the capital-management play is clearer.
Bulls say Zip has moved past the old BNPL phase where growth came at any price. The firm now collects money from transactions, fees, and lending tied to buy now, pay later. In April, Zip posted third-quarter FY26 total transaction volume of A$4.0 billion, up 22.4% from a year ago, and cash EBTDA of A$65.1 million, up 41.5%. Cash EBTDA, a cash-before-tax, depreciation and amortisation figure, is Zip’s focus for profitability. CEO Cynthia Scott said, “Zip’s resilient business model continues to drive increased profitability at scale.” Zip lifted its FY26 group cash EBTDA forecast to at least A$260 million.
Zip’s next big test comes with its FY26 results due out August 20, 2026. Investors want to see continued U.S. transaction growth, solid cash EBTDA beating the new target, and credit losses held in check. In April, Zip kept its FY26 goals, including more than 40% U.S. TTV growth in U.S. dollars, a group cash net transaction margin in the 3.8% to 4.2% range, and a group operating margin above 18%.
Zip is still seen as a high-volatility financial stock that needs to keep delivering. The Bull’s market data showed Zip traded at a price-to-earnings ratio of 32.25, so investors were paying about 32 times trailing earnings. The stock had a beta of 3.28, pointing to much bigger swings than the wider market. Credit risk isn’t out of the picture: group net bad debts for the third quarter hit 1.93% of TTV, up from 1.64% last year, even as U.S. losses stayed steady, according to .
Zip’s sensitivity has already played out this year. Reuters said in February that Zip shares dropped 34.4% after first-half cash operating earnings missed estimates. UBS analysts flagged weaker U.S. customer growth and rising credit defaults. The stock has bounced back lately, but the main worries about credit quality, funding, and investor hopes for fast consumer-finance growth are still in place.
Zip stock still looks more risky than cheap here, though it could suit investors who can handle high swings. Google Finance’s analyst survey lists five fresh buy calls and a 12-month average price target of A$3.38, higher than where the shares sit, but with a low target of A$2.60 just under current trading. The story is mixed: the buyback, stronger FY26 outlook and U.S. growth help the bullish view. But worries around value, rising bad debts, and February’s big jump in volatility keep risk priced in.
