Xero shares jumped to a two-month high on Thursday after the accounting software group raised its full-year revenue guidance and announced a share buyback worth up to A$1 billion.

The stock rose 8.7% in Sydney on 12 November 2026, according to Dow Jones Newswires, after Xero reported a strong first half and lifted its outlook for the year to March 2027. The shares had risen as much as 12% during the session, according to the Motley Fool Australia.

Xero, which is listed in Australia and based in New Zealand, provides cloud accounting software for small businesses and their advisers. The result was its first-half report for fiscal 2027, covering the six months to 30 September 2026.

Revenue up 46% in the first half

Revenue for the six months rose 46% to NZ$1.7 billion, or 41% once currency movements are stripped out. Adjusted earnings before interest, tax, depreciation and amortisation rose 3% to NZ$362 million, as growth was tempered by the inclusion of Melio, the US payments platform Xero acquired in 2025.

Xero said the result was driven by strong customer growth and higher average revenue per customer across all of its markets, along with continued growth in payments. The company did not pay a dividend for the half year.

Guidance raised across the board

For the full 2027 fiscal year, Xero now expects operating revenue of between NZ$3.77 billion and NZ$3.83 billion, up from its previous range of NZ$3.62 billion to NZ$3.73 billion. It forecast revenue growth of 24% to 27% on a constant-currency basis.

Adjusted EBITDA guidance was narrowed to between NZ$880 million and NZ$920 million, from an earlier range of NZ$860 million to NZ$920 million. Xero attributed the upgrade to a stronger performance from Melio and to a weaker New Zealand dollar.

The company also raised its ambition for the following year. It now sees an opportunity to achieve revenue of more than NZ$4.6 billion in fiscal 2028, up from a previous goal of NZ$4.2 billion. That is ahead of the consensus analyst estimate of about NZ$4.47 billion and RBC Capital Markets' estimate of NZ$4.43 billion, according to Dow Jones Newswires.

Xero reiterated that it expects Melio to reach adjusted EBITDA breakeven on a run-rate basis in the second half of fiscal 2028. It also expects to deliver a pro-forma Rule of 40 outcome of about 40% for fiscal 2027, a measure that combines revenue growth and profitability.

A$1 billion buyback

Alongside the results, Xero's board approved an on-market share buyback of up to A$1 billion, or about US$690 million, to be completed over the next 12 months. The programme follows a recently completed A$550 million buyback designed to offset dilution from staff share awards.

Chief executive Sukhinder Singh Cassidy said current market valuations did not fully reflect Xero's long-term value and growth potential, and that the company's strong financial position allowed it to run the buyback while continuing to fund its growth plans.

Analysts were broadly positive. RBC analyst Tom Beadle highlighted the raised guidance and the stronger weighting of growth towards the second half of the year, while noting that the implied full-year net profit at the midpoint of the new guidance was about 1% below consensus. He also noted that Xero's chief financial officer is leaving after about two years in the role.

Shares still well below last year's peak

Even after Thursday's rise, Xero shares remained well below their 52-week high of A$143.63, according to Finnhub market data, and the stock was down about 46% over the past year before the results. The shares closed at A$75.17 on 12 November, up 6.08% on the day, after trading as high as A$80.02.

Investors will now watch whether analysts lift their forecasts in the coming days, and whether the upgraded outlook and the buyback are enough to rebuild confidence in a stock that has fallen sharply from its highs even as its revenue has continued to grow.