Bill Holdings (NYSE: BILL) shares surged Friday after reports emerged that the business payments company is exploring a potential sale.
The stock jumped as much as 39% in a single session, extending gains that had already been building following stronger-than-expected quarterly earnings. Even before the acquisition-related report surfaced, Bill Holdings shares were up roughly 21%.
Private Equity Interest Emerges
According to Bloomberg, Hellman & Friedman, a private equity firm, has held discussions with Bill Holdings and its advisers in recent weeks regarding a possible acquisition. The talks are said to be part of a structured sale process, although no agreement has been reached.
The report added that several other private equity firms have also expressed interest, underscoring broad financial sponsor interest in the payments and financial automation provider.
The exploration of strategic alternatives comes amid heightened scrutiny from activist investors, including Starboard Value LP, Barington Capital Group, and Elliott Investment Management. Their involvement has increased pressure on management to unlock shareholder value, potentially accelerating consideration of a sale or other strategic actions.
Strong Quarterly Results Fuel Momentum
Takeover speculation follows a robust second quarter for fiscal 2026, during which Bill Holdings exceeded Wall Street expectations across key metrics.
Specifically, the company reported adjusted earnings of $0.64 per share, which beat analyst estimates of $0.56. Additionally, revenue rose 14% year over year to $414.7 million, surpassing the consensus forecast of $399.98 million.
Core revenue, comprising subscription and transaction fees, grew 17% to $375.1 million. In particular, transaction fees led the gains, climbing 20% to $303.1 million, while subscription revenue increased 6% to $72.1 million.
Operational metrics also reflected continued growth. Bill Holdings processed $95 billion in total payment volume during the quarter, up 13% from a year earlier. During the same period, it handled 35 million transactions, representing 16% annual growth.
The company’s platform now serves approximately 498,500 businesses, reflecting steady adoption of its financial operations software.
Upgraded Outlook for Fiscal 2026
Buoyed by its quarterly performance, Bill Holdings raised its outlook for both the third quarter and the full fiscal year 2026.
For the third quarter, the company expects earnings per share between $0.53 and $0.57, above the market consensus of $0.51. Revenue is projected in the range of $397.5 million to $407.5 million, also exceeding analyst expectations.
For the full fiscal year, Bill Holdings now projects earnings per share of $2.33 to $2.41. In addition, the company anticipates revenue between $1.631 billion and $1.651 billion, with both figures surpassing current Wall Street estimates.
Stock Performance Snapshot
As of the last check, Bill Holdings (NYSE: BILL) shares were trading around $48.87, up 12.23% over the past week. Despite the recent rally, the stock remains down approximately 11.17% year to date. The company currently has a market capitalization of about $4.91 billion.
Stay informed on the Top Tech Stocks with our Tech Stocks updates.
