Xero (ASX:XRO) Pre-Tax Income: A$283 Mil (TTM As of Mar. 2026)

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ASX:XRO Xero Ltd ASX:XRO
72 GF Score
Price A$81.48
GF Value A$202.86
Valuation Possible Value Trap
! 6 Warning Signs
View Full Analysis

What is Xero Pre-Tax Income?

Xero ASX:XRO +5.54% 72 Pre-Tax Income is A$283 Mil as of Mar. 2026. GuruFocus rates ASX:XRO with a GF Score™ of 72/100 and a GF Value™ of A$202.86 (Possible Value Trap). The stock has 6 warning signs investors should review.

Pretax income is the income that a company earns before paying income taxes. Xero's pretax income for the six months ended in Mar. 2026 was A$81 Mil. Its pretax income for the trailing twelve months (TTM) ended in Mar. 2026 was A$283 Mil. Xero's pretax margin was 6.46%.

During the past 13 years, Xero's highest Pretax Margin was 17.25%. The lowest was -22.71%. And the median was -1.99%.


Xero  (ASX:XRO) Pre-Tax Income Explanation

Xero's Pretax Margin for the quarter that ended in Mar. 2026 is calculated as

Pretax Margin=Pretax Income/Revenue
=80.697/1249.145
=6.46%

During the past 13 years, Xero's highest Pretax Margin was 17.25%. The lowest was -22.71%. And the median was -1.99%.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Xero Pre-Tax Income Related Terms


Xero Pre-Tax Income Historical Data

* Premium members only.

The historical data trend for Xero's Pre-Tax Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Xero Pre-Tax Income Chart

Xero Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Pre-Tax Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.20 -70.84 240.26 329.58 283.30

Xero Semi-Annual Data
Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24 Mar25 Sep25 Mar26
Pre-Tax Income Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 159.55 142.10 187.48 202.61 80.70

ASX:XRO vs QH, SHOP, UBER: Pre-Tax Income Comparison

For the Software - Application subindustry, Xero's Pre-Tax Income, along with its competitors' market caps and Pre-Tax Income data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Xero Pre-Tax Income vs Software Industry

For the Software industry and Technology sector, Xero's Pre-Tax Income distribution charts can be found below:

* The bar in red indicates where Xero's Pre-Tax Income falls into.


ASX:XRO
72GF Score
Xero Ltd ASX:XRO
Pre-Tax Income is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Xero Pre-Tax Income Calculation

This is the income that a company earns before paying income taxes.

Xero's Pretax Income for the fiscal year that ended in Mar. 2026 is calculated as

Pretax Income=Operating Income+Non Operating Income+Interest Expense+Interest Income+Other
=-15.386+35.462+-138.525+89.16+312.591
=283

Xero's Pretax Income for the quarter that ended in Mar. 2026 is calculated as

Pretax Income=Operating Income+Non Operating Income+Interest Expense+Interest Income+Other
=-36.461+12.375+-92.191+24.804+172.17
=81

Pre-Tax Income for the trailing twelve months (TTM) ended in Mar. 2026 adds up the semi-annually data reported by the company within the most recent 12 months, which was A$283 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Pre-Tax Income →
What does a Pre-Tax Income of A$283 Mil mean?
Xero (ASX:XRO) has a Pre-Tax Income of A$283 Mil as of Mar. 2026. Pre-Tax Income is the total earnings before taxes but after all operating and interest expenses. View historical data on Xero and its competitors.
Is Xero's Pre-Tax Income too high?
Xero's current Pre-Tax Income is A$283 Mil. Overall, Xero has a GF Score™ of 72/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Xero's Pre-Tax Income compare to QH and SHOP?
Xero's Pre-Tax Income of A$283 Mil can be compared against companies in the Software industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Pre-Tax Income for a Software company?
A good Pre-Tax Income depends on the Software industry context. However, Pre-Tax Income should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Pre-Tax Income mean?
A high Pre-Tax Income can signal that a stock is expensive relative to its fundamentals. Pre-Tax Income is the total earnings before taxes but after all operating and interest expenses. View historical data on Xero and its competitors. Xero's current Pre-Tax Income is A$283 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Xero stock overvalued right now?
Based on GuruFocus' analysis, Xero (ASX:XRO) is currently considered Possible Value Trap. The stock's GF Value™ is A$202.86, compared to a current price of A$81.48 — trading 59.8% below its estimated fair value. The current Pre-Tax Income is A$283 Mil. Xero's overall GF Score™ is 72/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pre-Tax Income calculated?
Pre-Tax Income is calculated from a company's financial statements. For Xero (ASX:XRO), the current Pre-Tax Income is A$283 Mil as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Xero (ASX:XRO) Overvalued in 2026?

Based on GuruFocus' analysis, Xero stock appears to be undervalued. The current stock price of A$81.48 is trading 59.8% below its estimated GF Value™ of A$202.86. GuruFocus considers Xero to be Possible Value Trap.

Key valuation signals for ASX:XRO:

  • Pre-Tax Income: A$283 Mil
  • GF Value™: A$202.86 vs. price of A$81.48 (59.8% below fair value)
  • GF Score™: 72/100 with 6 warning signs

No single metric tells the full story. See the ASX:XRO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Xero Business Description

Other Exchanges XROLF:USA0XE:Germany
Address 19-23 Taranaki Street, Te Aro, Wellington, NTL, NZL, 6011
Xero is a technology company originating from New Zealand, providing cloud-based accounting software, primarily for small and midsized enterprises, or SMEs, and accounting practices. As a first mover in the space for cloud-based accounting software, Xero has grown quickly to achieve dominant market share in New Zealand and Australia, displacing legacy providers. Xero has also expanded beyond its home region toward other English-speaking countries, primarily the UK and the US.
72GF Score

Get the complete analysis for ASX:XRO

Pre-Tax Income is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

A$81.48
Price
A$202.86
GF Value