Highlights

  • Mark Durcan, who spent more than three decades at Micron Technology, joined Xero's board in October 2026.
  • Xero lifted FY26 Operating Revenue 31% to NZ$2,753 million, helped by the Melio Acquisition in the US.
  • Management guided FY27 adjusted EBITDA of NZ$860 million to NZ$920 million, weighted towards the second half.
  • Xero plans to release half-year results for the six months to 30 September 2026 on 12 November.

Ten days before it reports half-year numbers, Xero (ASX:XRO) has strengthened its board with a semiconductor industry veteran, appointing former Micron Technology chief executive Mark Durcan as an independent non-executive director on 12 October 2026.

The cloud accounting company said Durcan's experience leading a global technology business, along with his engineering background, would be valuable as it scales internationally in what it calls the AI era.

A Semiconductor Veteran Joins the Board

Durcan spent more than 30 years at Micron, holding roles including chief executive, chief operating officer and chief technology officer. He currently sits on the supervisory board of ASML, where he chairs the technology committee, and chairs the board of US-based Cencora.

His appointment follows the retirement of Anjali Joshi, who left the board at the end of the August 2026 annual meeting. Durcan will stand for election at the next annual meeting, scheduled for August 2027. Chair David Thodey said the board needed the right mix of skills and global experience as the Business expands.

Melio Reshaped the FY26 Numbers

For FY26, the year to 31 March 2026, operating revenue climbed 31% to NZ$2,753.1 million, or 28% in constant currency. Adjusted EBITDA rose 18% to NZ$757.4 million and free Cash Flow increased 9% to NZ$554.0 million. Net profit after tax fell 27% to NZ$167.4 million, reflecting NZ$50.6 million of Transaction Costs linked to the US payments business Melio.

Customer numbers grew 11% to 4.92 million, while average revenue per customer rose 23% to NZ$55.44. Annualised monthly Recurring Revenue reached NZ$3,273.1 million, up 37%. International revenue grew 47%, with US core revenue up 240% including Melio and 30% on an organic basis.

At the August annual meeting, chief executive Sukhinder Singh Cassidy said its AI assistant JAX had been adopted by more than 500,000 customers, and that Melio remained on track for synergies and run-rate adjusted EBITDA breakeven by the end of H2 FY28.

Guidance and the 12 November Result

Xero's FY27 outlook calls for operating revenue of NZ$3,620 million to NZ$3,730 million and adjusted EBITDA of NZ$860 million to NZ$920 million. That range includes up to about NZ$55 million of incremental US Brand spending, and management expects a higher-than-usual share of adjusted EBITDA to fall in the second half.

The company has reaffirmed its aspiration to more than double FY25 revenue of NZ$2,103 million by FY28, excluding revenue synergies, alongside Rule of 40 outcomes at group level. Its pro-forma Rule of 40 was 36.0% in FY26, and management expects it to stay below 40% until FY28.

Half-year results for the period to 30 September 2026 are scheduled for 12 November, with full-year results planned for 20 May 2027.

Shares were priced at A$61.805 on 2 November 2026, down 0.48% on the day, giving a Market Capitalisation of A$10.55 billion and a 12-month decline of 57.38%.