BILL Holdings Q1 2027: What the Revenue Miss Actually Means
As seen on the 24/7 Wall St. homepage on November 5, 2026.
That revenue shortfall reflects an accounting change: card rewards now net against revenue, so the quarter still landed above management's own restated $340 million to $350 million guidance with core revenue up 14%. EPS topped estimates, full-year non-GAAP guidance moved up to $3.99 to $4.15, and about $305 million of stock was repurchased in the quarter.
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The headline revenue number looks alarming at first glance. Reported revenue of $353.8 million came in missing expectations of $438.75 million, but that gap is almost entirely a product of an accounting change that took effect July 1, 2026: BILL began netting card rewards against revenue rather than recording them as a sales and marketing expense. That shift makes the reported figure incompatible with both prior-period results and analyst estimates that were built on the old presentation.
Measured against management's own restated guidance of $340 million to $350 million, the quarter actually came in ahead. Core revenue grew 14% year over year, transaction fees climbed 16%, and total payment volume reached roughly $102 billion, also up 14%. Non-GAAP operating income of $136.9 million more than doubled the prior-year figure and cleared the company's own $112.5 million to $117.5 million outlook.
On the earnings side, non-GAAP EPS of $1.18 beat the consensus estimate of $0.9774. BILL has beaten the Street's earnings estimate every quarter shown, though the magnitude of the Q1 2027 beat stands out as the largest in that run. The quarter also included roughly $305 million in share repurchases, covering about 7 million shares.
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Looking ahead, management lifted the full-year non-GAAP EPS guidance range to $3.99 to $4.15 and set full-year revenue guidance of $1.43 billion to $1.46 billion. For the second quarter, the company guided to revenue of $353 million to $363 million and non-GAAP EPS of $0.97 to $1.01. All guidance is now presented on the same revenue-net-of-rewards basis, so comparisons from here should be cleaner.
One genuine soft spot in the report is the total business count. The number of businesses using BILL's solutions fell to 475,300 from 498,500 a year earlier, a decline the company attributed to Embedded Solutions and Other rather than its core Integrated Platform, which grew to 233,400. Restructuring charges of $24.4 million, which included a non-cash impairment of operating lease assets, also weighed on the GAAP results, where diluted EPS came in at $0.61.
Mentioned: BILL