Quick Overview
- Wise shares climbed 8% following FY26 results showing profit margins exceeding company projections
- Pre-tax income reached $660.4 million with a 26.4% margin — surpassing the 20–25% target corridor
- Net revenue increased 19% year-over-year to $2.50 billion
- The company announced a $500 million share buyback initiative for FY27
- Active user base expanded 21% to 19 million; cross-border transaction volume surged 31% to $243.5 billion
Shares of Wise (WSE) surged approximately 8% on Friday following the fintech firm’s release of full-year financial results that exceeded profit margin forecasts, complemented by the announcement of a $500 million share repurchase initiative.
Wise Group plc Class A Ordinary Shares, WSE
The stock reached approximately 894p during Friday’s trading session on the London Stock Exchange, representing a gain of 64 points.
Wise disclosed net revenue of $2.50 billion for its fiscal year ending March 31, 2026, marking a 19% year-over-year increase. Pre-tax income totaled $660.4 million, translating to a margin of 26.4%.
This profitability metric exceeded the company’s medium-term guidance corridor of 20–25%, capturing investor attention.
BofA analysts, maintaining a buy rating with a $16.40 price objective, noted that pre-tax profit exceeded their forecast by 6.6% and consensus estimates by 1.3%.
The analysts highlighted a $70 million non-recurring U.S. GAAP adjustment related to foreign exchange impacts on certain government bonds as the primary factor affecting operating income, which totaled $590.7 million.
The active customer count expanded 21% to reach 19 million users. Cross-border transaction volume increased 31% to $243.5 billion, while the cross-border take rate remained at 0.52%, representing a six basis point decline year-over-year.
Card spending volume grew 37% to $43.6 billion. Customer deposits increased 40% to $39.0 billion — indicating growing user confidence in maintaining balances on the platform for daily transactions beyond simple transfers.
Transaction revenue totaled $1.89 billion. Net interest income added $609.2 million to overall net revenue after distributing $196.9 million in interest payments to customers.
CEO Kristo Käärmann emphasized that 75% of transactions during Q4 were processed in under 20 seconds worldwide — a performance metric the company prominently features in its competitive positioning.
Share Repurchase and Shareholder Returns
Wise announced plans to deploy over $500 million toward share repurchases throughout FY27. Approximately 40% of this allocation will fund its ongoing Employee Share Trust program designed to neutralize dilution from equity-based compensation.
The payment company separately disclosed it allocated $470 million to repurchase 35.9 million shares during FY26.
BofA increased its FY27 diluted earnings per share projection by 5.7% to 54.34 cents, attributing the revision to improved gross profit margins and the buyback program’s impact.
Forward Guidance for FY27
Looking ahead, Wise projected net revenue growth near the midpoint of its 15–20% medium-term target corridor, calculated on a constant currency basis.
This forecast assumes no significant changes in interest distributions to customers and no substantial movements in central bank interest rates.
Pre-tax income margin is anticipated to land near the upper boundary of the 20–25% range for FY27.
Wise finalized its transition to a Nasdaq primary listing on May 8, while maintaining a secondary listing on the London Stock Exchange.
The company reported establishing new direct payment infrastructure connections in Brazil and Japan during FY26 and secured additional licensing approvals in South Africa, the UAE, and Thailand.
New Wise Platform collaborations initiated during the fiscal year include partnerships with UniCredit, Raiffeisen Bank, and MBSB Bank, with Capitec being added in April 2026.
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