How did Xero (ASX:XRO) perform financially in the 2026 fiscal year?

Xero delivered a strong FY26 result, headlined by a 31% increase in operating revenue to $2.8 billion. Profitability also trended upward, with adjusted EBITDA rising 18% to $757.4 million.

What drove Xero’s (ASX:XRO) significant revenue growth in FY26?

The primary driver was an aggressive and successful strategic push into the United States market. Under its "3x3 strategy," Xero added 110,000 new customers in the US, contributing to a 50% increase in pro-forma revenue for that region.

What is the impact of the Melio integration on Xero’s business model?

The integration of Melio allows Xero to transition from a simple accounting software provider to a unified financial operating system.

How is Xero (ASX:XRO) positioning itself within the artificial intelligence (AI) sector?

CEO Sukhinder Singh Cassidy aims for Xero to be a "long-term AI winner" by evolving the platform into a "system of action". The strategy involves using proprietary data to automate tasks and transform how small businesses and advisors operate.

Why is Xero (ASX:XRO) launching a $550 million share buyback?

The board authorized the purchase of up to A$550 million in shares during FY27 to offset dilution caused by share-based compensation for staff.

Tech

Xero’s FY26 revenue climbs 31% to $2.8B

Written by Heidi Cuthbert Published May. 13 2026Last Updated May. 13 2026

Cloud-accounting giant Xero (ASX:XRO) posted its financial performance for the 2026 fiscal year.

The company reported a 31% rise in operating revenue, reaching $2.8 billion, a result underpinned by a major strategic push into the United States market.

The growth was complemented by a solid 18% increase in adjusted EBITDA, which climbed to $757.4 million, demonstrating the firm’s ability to scale efficiently while managing substantial operational expenses.

A key highlight of the report is the success of Xero's "3x3 strategy", which saw the addition of 110,000 new customers in the US.

The expansion was bolstered by the integration of Melio, a move that has allowed Xero to unify accounting and payment services on a single platform.

CEO Sukhinder Singh Cassidy noted that the company is evolving into a "system of action", leveraging proprietary data to position itself as a long-term leader in the artificial intelligence sector.

Xero remains in a robust position, generating $554.0 million in free cash flow. In a move to reward shareholders and manage its capital structure, the board has authorised a share buyback of up to $550 million during FY27 to offset dilution from share-based compensation.