What's going on with Xero's share price?
The cloud accounting software company's share price has steadily declined since from its peak in June 2025.
Xero's share price has been on a steady decline since it reached its peak of A$196.52 in late June 2025, as investors grow concerned about the viability of software companies in the age of increasingly sophisticated AI agents. Despite continuing to grow its customer base and reporting strong underlying profit growth, Xero's stock has fallen over a third this year, trading at around A$70 as of early February 2026.
The company's full-year net profit fell 27% to NZ$167.4 million for the period ending March, but underlying profit increased 18% to $757.4 million, with revenue growing 31% to $2.75 billion.
Morningstar equities analyst Roy Van Keulen attributes the decline to fears of the "SaaS-apocalypse," a concern that software has become so inexpensive to develop that its value relative to human-written software is depreciating rapidly. Xero's CEO Sukhinder Singh Cassidy has sold over 100,000 shares since early July, reducing her stake by roughly 62% compared to the previous year's peak price, which may have raised concerns among investors.
The company also recently parted ways with senior executives, including chief people officer Jeff Ryan and chief technology officer Rick Carragher, citing personal reasons. Additionally, Xero's two-tiered remuneration package, which ties bonuses to share price performance, could be a factor in the share price's downward trajectory.
Written by urgent.news from RNZ Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
