Should I buy Xero shares in Australia in 2025?
Is it the right time to buy Xero?
ScoreXero Limited (ASX: XRO) remains a standout in the application software sector, specialising in cloud-based accounting solutions for small and medium-sized enterprises. As of early July 2025, Xero’s stock is trading near AUD 176.50, with an average daily trading volume of approximately 523,150 shares. The company commands a robust market capitalisation of around AUD 29.4 billion and has recently demonstrated exceptional financial performance, reporting a 23% annual revenue increase and a 30% rise in net profit for FY2025. A significant recent event is Xero’s announced acquisition of Melio Payments, aimed at rapidly expanding its presence in the critical US SME market. While the integration introduces some short-term volatility, the broader market sentiment is constructive, recognising Xero’s sector leadership and strong long-term growth drivers such as digital adoption and process automation. Xero does not pay a dividend and trades on a high PER (131.7), reflecting premium growth expectations. More than 11 national and international banks have set a consensus 12-month target price of AUD 229.45. In the context of ongoing industry digitalisation and company-specific momentum, this could be a compelling moment for investors to analyse Xero and its long-term prospects.
- ✅Annual revenue growth of 23% demonstrates strong market momentum.
- ✅Successful expansion into the US via Melio acquisition boosts global reach.
- ✅Dominant position in cloud accounting for SMEs across ANZ region.
- ✅Consistent innovation in AI and automation keeps Xero ahead of competitors.
- ✅High customer retention underpinning stable long-term recurring revenues.
- ❌High PER signals elevated future growth expectations already priced in.
- ❌Short-term risks associated with integrating major acquisitions like Melio.
Score- ✅Annual revenue growth of 23% demonstrates strong market momentum.
- ✅Successful expansion into the US via Melio acquisition boosts global reach.
- ✅Dominant position in cloud accounting for SMEs across ANZ region.
- ✅Consistent innovation in AI and automation keeps Xero ahead of competitors.
- ✅High customer retention underpinning stable long-term recurring revenues.
Is it the right time to buy Xero?
- ✅Annual revenue growth of 23% demonstrates strong market momentum.
- ✅Successful expansion into the US via Melio acquisition boosts global reach.
- ✅Dominant position in cloud accounting for SMEs across ANZ region.
- ✅Consistent innovation in AI and automation keeps Xero ahead of competitors.
- ✅High customer retention underpinning stable long-term recurring revenues.
- ❌High PER signals elevated future growth expectations already priced in.
- ❌Short-term risks associated with integrating major acquisitions like Melio.
Score- ✅Annual revenue growth of 23% demonstrates strong market momentum.
- ✅Successful expansion into the US via Melio acquisition boosts global reach.
- ✅Dominant position in cloud accounting for SMEs across ANZ region.
- ✅Consistent innovation in AI and automation keeps Xero ahead of competitors.
- ✅High customer retention underpinning stable long-term recurring revenues.
- What is Xero?
- How much is Xero stock?
- Our full analysis of Xero stock
- How to buy Xero stock in Australia?
- Our 7 tips for buying Xero stock
- The latest news about Xero
- FAQ
Why trust HelloSafe ?
At HelloSafe, our expert has been tracking the Xero share price for over three years. Every month, hundreds of thousands of users in Australia trust us to analyse market trends and identify the best investment opportunities. Our analyses are provided for informational purposes and do not constitute investment advice. In accordance with our ethical charter, we have never been, and will never be, compensated by Xero.
What is Xero?
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | New Zealand | Headquarters in Wellington, serving a global SME market with an ANZ focus. |
| 💼 Market | ASX | Listed on the Australian Securities Exchange, widely held in Australia. |
| 🏛️ ISIN code | NZXROE0001S2 | Recognised for cross-border trading and compliant with AU investment rules. |
| 👤 CEO | Sukhinder Singh Cassidy | Brings international experience, steering Xero through major expansion phases. |
| 🏢 Market cap | 29.35 billion AUD | Reflects strong investor interest and confidence in high growth prospects. |
| 📈 Revenue | 2.10 billion AUD | Up 23% YoY, showing ongoing robust demand for cloud accounting solutions. |
| 💹 EBITDA | 641 million AUD | Increased 22%, supporting Xero’s margin expansion and reinvestment strategy. |
| 📊 P/E Ratio (Price/Earnings) | 131.72 | Very high; the market prices in aggressive growth and future earnings potential. |
How much is Xero stock?
The price of Xero stock is down this week. Currently, Xero trades at A$176.50 per share, reflecting a 0.98% decrease over the last 24 hours and a 4.08% drop for the week. The company has a market capitalisation of A$29.35 billion and a three-month average daily volume of 523,150 shares. Xero’s P/E Ratio stands at 131.72, with a 0% dividend yield and a beta of 1.00. While recent performance has been volatile, Xero remains a major player with strong long-term growth prospects in the cloud accounting sector.
Our full analysis of Xero stock
After a thorough review of Xero's latest financial results and an analysis of its stock performance over the past three years, we have drawn on a broad set of data: key financial indicators, technical market signals, peer and sector benchmarks, and AI-driven algorithmic insights. This comprehensive approach allows us to assess not only absolute valuation or isolated numbers, but also the dynamic context that shapes Xero’s market evolution. So, why might Xero stock once again become a strategic entry point into the cloud software and technology sector in 2025?
Recent performance and market context
Xero has demonstrated impressive resilience in a swiftly changing tech environment. The stock is currently trading at A$176.50 per share with a market cap of A$29.35 billion, placing it amongst Australia’s technology heavyweights. While the past week saw a minor 4.08% correction, Xero shares remain up nearly 30% over twelve months, easily outperforming the wider ASX tech sector. This momentum follows standout FY2025 results: annual revenue surged 23% to A$2.10 billion, underpinned by robust customer growth and rapid expansion into new markets, most notably the strategic entry into the US. Recent volatility, linked primarily to the sizeable Melio acquisition and its temporary funding dilution, is quickly being digested by institutional investors. Sector-wide, cloud application demand continues to accelerate in post-pandemic business environments, creating a favourable backdrop for technology leaders like Xero.
Technical analysis
Current technical indicators present an intriguing entry scenario. The 14-day RSI hovers just above 36, signalling an oversold condition and increasing the probability of a near-term bullish reversal. The MACD remains in modest negative territory, but is stabilising, while all short- to medium-term moving averages (20, 50, 100, and 200-day) also trade below the latest closing price, suggesting that downside risk is well contained. Significant support is clustered around A$176—the stock’s recent daily low and a long-established pivot level. Notably, technical selling appears to be abating, and an increase in buyers at this level may catalyse a robust rebound. These signals, when combined, reinforce the thesis that Xero may be forming a technical base that sets the stage for renewed upside.
Fundamental analysis
Xero’s fundamentals are compelling, justifying renewed interest at current levels. Revenue rose sharply by 23% in FY2025, reaching A$2.10 billion, while adjusted EBITDA climbed to A$641 million (up 22% year-on-year). Net profit soared by an even greater 30%, highlighting both operational efficiency and effective cost control. The business carries no dividend but consistently reinvests for growth, with positive free cash flow supporting further innovation. Xero’s valuation, at a 131.7x P/E, is undoubtedly punchy, but this reflects the company’s status as a high-growth disruptor in a sector where leading US peers also command premium multiples. Importantly, Xero’s dominant position across Australia and New Zealand, substantial global addressable market, strong brand loyalty, and world-class ecosystem set it apart from both domestic and international competitors. These structural strengths underpin the company’s sustained market share gains and recurring revenue growth profile.
Volume and liquidity
Xero enjoys robust liquidity, averaging 523,150 shares traded daily over the last quarter. This not only signals substantive market engagement but also facilitates dynamic, fair price discovery. With a substantial free float and strong institutional ownership, Xero shares offer both flexibility for active traders and stability for long-term holders. This liquidity is an essential asset in periods of heightened market activity, supporting rapid reaction to company news and sector developments. The healthy trading volume thus supports valuation resilience and positions Xero as a credible, investable tech blue-chip.
Catalysts and positive outlook
Xero is uniquely placed to capture accelerating digital transformation trends among global SMEs. The recent acquisition of Melio Payments provides a strategic bridgehead into the high-growth US B2B payments market, expected to double Xero’s global revenue potential. The company continues to roll out innovations in AI-powered automation, analytics, and embedded finance, keeping it at the forefront of accounting technology. ESG credentials remain strong, with initiatives to reduce client paper usage and drive sustainable cloud infrastructure. Macro trends—including a rebounding small business sector, increasing global SaaS adoption, and more transparent tax regimes—further support a constructive medium-term landscape. The consensus price target sits 30% above today’s level, reflecting analyst confidence in Xero’s ability to translate these catalysts into accelerated earnings expansion.
Investment strategies
Whether you are a short-term trader or a long-term investor, Xero seems to represent an excellent opportunity at present market levels. In the short term, the confluence of technical support and oversold momentum indicators suggests an ideal window for tactical entry, especially as volatility subsides. For medium- and long-term investors, the fundamentals justify renewed interest: leading market position, consistent top-line growth, margin expansion, and a strong innovation pipeline. Importantly, purchasing near a technically defined low increases the risk/reward attractiveness and offers potential for substantial upside as new catalysts—among them, full Melio integration and further penetration into North America—are realised.
Is it the right time to buy Xero?
Taken together, Xero’s strong fundamentals, compelling sector tailwinds, world-class innovation, and clear medium-term catalysts support a favourable outlook. The present environment—oversold technical conditions, robust trading liquidity, and imminent growth drivers—may be offering an excellent opportunity for investors who wish to participate in the next bullish phase of one of Australasia’s premier technology leaders. With macro trends and company-specific initiatives aligned for future outperformance, Xero stock may be entering a new period of sustainable value creation in 2025. Investors seeking growth and exposure to high-potential cloud technology should be encouraged by Xero’s outlook at these levels.
How to buy Xero stock in Australia?
Buying Xero stock online is straightforward, secure, and well-regulated when you use an Australian licensed broker. Investors can choose between two main methods: spot buying (owning real shares) or trading via CFDs (speculating on price movements without owning the stock). Most platforms offer intuitive interfaces and strict security standards. It's never been easier to get started, and with just a few clicks, you can invest in Xero from your home or mobile. For detailed broker options and a comparison to help you choose, see further down the page.
Spot buying
A cash purchase means you buy Xero shares directly on the ASX in your own name, making you an official shareholder with potential voting rights and access to dividends. Brokers typically charge a fixed commission per order, often between $5 and $15 in Australia.
Gain scenario
If the Xero share price is $176.50 AUD, you can buy around 5 shares with a $1,000 stake, including a brokerage fee of around $5.
If the share price rises by 10%, your shares are now worth $1,100.
Result: +$100 gross gain, i.e. +10% on your investment.
Trading via CFD
CFD (Contract for Difference) trading on Xero lets you speculate on the price without owning the actual shares. You can use leverage (often 2x to 10x), meaning a small deposit can give you a larger market exposure. Fees usually consist of a bid-ask spread and nightly financing costs for leveraged positions.
CFD Gain Scenario with Leverage
You open a CFD position on Xero shares, with 5x leverage. This gives you a market exposure of $5,000.
✔️ Gain scenario: If the stock rises by 8%, your position gains 8% × 5 = 40%. Result: +$400 gain, on a bet of $1,000 (excluding fees).
Final advice
Before investing, take the time to compare brokers’ fees and service conditions—these can impact your returns. Whether you want to own Xero shares outright or trade short-term price movements, the right method depends on your goals and risk tolerance. Our broker comparison table further down the page will help you decide with confidence.
Check out the best brokers in Australia!Compare brokersOur 7 tips for buying Xero stock
| 📊 Step | 📝 Specific tip for Xero |
|---|---|
| Analyze the market | Review Xero’s performance in the ASX technology sector and benchmark against other leading Australian tech stocks. |
| Choose the right trading platform | Select an ASX-regulated broker with competitive fees and a simple interface for investing in Xero. |
| Define your investment budget | Allocate a clear budget for Xero, mindful of the stock’s relatively high price and global tech volatility. |
| Choose a strategy (short or long term) | Focus on a long-term approach, leveraging Xero’s recurring revenue and international growth strategy. |
| Monitor news and financial results | Track quarterly reports, Melio acquisition updates, and any new expansion announcements from Xero’s leadership. |
| Use risk management tools | Utilise stop-loss orders or alerts to manage exposure to Xero’s price movements. |
| Sell at the right time | Evaluate selling after strong rallies or when financial results exceed market expectations for Xero. |
The latest news about Xero
Xero finalises Melio Payments acquisition, strengthening growth strategy in the U.S. and Australia. In early July, Xero completed the acquisition of Melio Payments, a B2B payments company, unlocking greater potential for cross-market expansion between the U.S. and Australia. This move is expected to generate new revenue streams and reinforces Xero’s leadership in digital accounting solutions for small businesses.
Xero posts 23% annual revenue growth and outperforms analyst expectations for FY2025. Updated financial results highlight that Xero’s annual revenue reached $2.10 billion AUD, up 23%, propelled by strong product demand and robust adoption among Australian SMEs. Both net profit and EBITDA increased sharply, reflecting Xero’s operational efficiency and growing client base in the local market.
Xero’s stock remains attractive despite recent short-term volatility and a high P/E ratio. While Xero’s share price saw a short-term dip last week, the stock has climbed nearly 30% over the past 12 months. The high P/E ratio of 131.72 underscores strong market confidence in Xero’s future earnings, supported by expansion plans and product innovation highly relevant to Australian clients.
Xero’s successful $1.85 billion AUD institutional placement secures funding for future growth initiatives. Xero completed a major capital raise through an institutional placement, ensuring sufficient liquidity to pursue strategic investments and acquisitions. For Australian investors, this action underlines management’s commitment to sustainable expansion while maintaining a strong financial position.
Market positioning in Australia remains robust, supported by cloud adoption and SME digital transformation. Recent data show increasing uptake of cloud accounting among Australian SMEs and steady market share gains for Xero. The company’s local-first features and regulatory compliance continue to resonate with businesses transitioning to digital solutions, reinforcing growth opportunities in the domestic market.
FAQ
<i>What is the latest dividend for Xero stock?</i>
Xero currently does not pay any dividend. This is in line with its policy of reinvesting profits to fuel growth and expansion, particularly in new international markets. Investors in Xero should focus on its long-term capital gains potential rather than dividend income.
<i>What is the forecast for Xero stock in 2025, 2026, and 2027?</i>
Projected prices are $229.45 at the end of 2025, $264.75 for 2026, and $353.00 by the end of 2027. These forecasts are supported by Xero’s double-digit revenue growth, major strategic acquisitions, and ongoing digital transformation in the small business sector.
<i>Should I sell my Xero shares?</i>
Holding Xero shares may be appropriate given its leadership in cloud accounting, robust strategic direction, and history of strong financial growth. The company’s focus on innovation and global expansion supports long-term prospects. Valuation is high, yet this reflects powerful momentum and sector optimism for tech leaders like Xero.
<i>How are Xero shares taxed for Australian residents?</i>
Australian investors pay tax on any realised capital gains from selling Xero shares, and income tax applies to eligible dividends. As Xero currently pays no dividends, focus is on potential capital growth, with no withholding tax on sales. Consider personal thresholds and the CGT discount available for shares held over 12 months.
<i>What is the latest dividend for Xero stock?</i>
Xero currently does not pay any dividend. This is in line with its policy of reinvesting profits to fuel growth and expansion, particularly in new international markets. Investors in Xero should focus on its long-term capital gains potential rather than dividend income.
<i>What is the forecast for Xero stock in 2025, 2026, and 2027?</i>
Projected prices are $229.45 at the end of 2025, $264.75 for 2026, and $353.00 by the end of 2027. These forecasts are supported by Xero’s double-digit revenue growth, major strategic acquisitions, and ongoing digital transformation in the small business sector.
<i>Should I sell my Xero shares?</i>
Holding Xero shares may be appropriate given its leadership in cloud accounting, robust strategic direction, and history of strong financial growth. The company’s focus on innovation and global expansion supports long-term prospects. Valuation is high, yet this reflects powerful momentum and sector optimism for tech leaders like Xero.
<i>How are Xero shares taxed for Australian residents?</i>
Australian investors pay tax on any realised capital gains from selling Xero shares, and income tax applies to eligible dividends. As Xero currently pays no dividends, focus is on potential capital growth, with no withholding tax on sales. Consider personal thresholds and the CGT discount available for shares held over 12 months.
