BMO Capital Downgrades BILL Holdings to Market Perform, PT Lowered to $50.

BMO Capital Downgrades BILL Holdings to Market Perform, PT Lowered to $50.

BMO Capital Markets has downgraded BILL Holdings to "Market Perform" and reduced its price target to $50, according to a recent report [2]. The downgrade comes after BILL Holdings reported a $36.47 million loss for FY2025, despite generating $946.51 million in revenue [1]. The company's stock reacted positively to the earnings miss, with a 100% positive return over the following 30 days [1].

The downgrade reflects BMO Capital's concerns about BILL Holdings' operating expenses, which totaled $929.03 million, and the company's inability to offset these costs with its revenue. The firm's operating margin was notably negative, highlighting the need for cost optimization or a shift in growth strategy [1]. Despite the loss, BILL Holdings' stock has shown resilience, with a 100% win rate in returns over 3, 10, and 30 days after an earnings miss [1].

The broader Software Industry has shown muted sensitivity to earnings misses, with a maximum return of 5.62% over a 59-day period [1]. This highlights the industry's resilience and exposure to external factors that may overshadow quarterly earnings performance [1].

Investors should monitor BILL Holdings' guidance for FY2026, which will provide critical insight into its path to profitability and growth. The company's focus on R&D and high revenue growth may appeal to long-term investors, especially if the company signals clear paths to profitability and market expansion in upcoming guidance [1].

References:
[1] https://www.ainvest.com/news/bill-holdings-reports-earnings-loss-2025-market-reacts-surprising-resilience-2508/
[2] https://www.marketbeat.com/stocks/NYSE/BILL/forecast/