Wise posted second-quarter web income of $739 million for its fiscal second quarter of 2027, progress of 21% year-on-year in fixed foreign money and 2% forward of analyst consensus, in accordance with a analysis be aware printed on 16 October 2026 by Jefferies, which carries a Buy score and a value goal of 1,239p on the London-listed shares.
The outperformance was pushed primarily by web curiosity earnings, which beat expectations on each gross yield and buyer stability metrics, compensating for a modest shortfall in quantity per buyer. Total cost quantity grew 22% year-on-year to $72 billion, although it got here in 2% beneath consensus owing to that VPC miss.
The operational element
Active clients reached 12.5 million on the finish of the quarter, up 20% year-on-year and 5% sequentially, with Personal clients rising to 11.9 million and Business clients reaching 633,000. The Business section is the quicker grower on a share foundation, up 31% year-on-year in TPV phrases to $22 billion.
Card and different income was the standout line, rising 34% year-on-year to $206 million, 3% forward of consensus. Card spend TPV grew 30%, and the cardboard e-book now accounts for 27% of web income, up from a decrease base within the prior 12 months. That structural shift issues: card income carries totally different margin and aggressive dynamics than the core cross-border switch enterprise, and its growing weight offers a partial hedge in opposition to the gradual compression in cross-border take charges, which fell 1 foundation level sequentially to 50 foundation factors.
Total buyer holdings reached $44 billion, with Wise account balances of $32 billion rising 4% sequentially. The gross yield implied on these balances was 2.3%, down from 3.0% within the prior quarter, reflecting the interest-rate surroundings.
Wise has additionally continued its share buyback, finishing 39% of a deliberate $550 million programme that started in July 2026 and runs to March 2027. Approximately 17 million shares have been repurchased at a mean of $12.10 per share, representing round 2% of the diluted share rely.
Guidance and market context
Full-year steerage was lifted to the higher finish of the 15-20% medium-term progress vary, implying 17.5-20% web income progress in fixed foreign money. Income earlier than tax margin steerage was held at across the prime of the 20-25% medium-term ambition, a determine that sits beneath present consensus of round 26%, suggesting Wise is managing expectations conservatively. Jefferies estimates FY27 web income of $1.55 billion and IBT of $778 million.
Jefferies famous the beat is unlikely to set off important share value motion given restricted room for earnings upgrades. Two pending overhangs stay unaddressed: an investigation by Belgian authorities and questions round Wise’s OCC engagement within the United States. Until these are resolved or disclosed additional, the be aware suggests the shares are prone to stay range-bound forward of full first-half outcomes due on 12 November 2026.
The outcomes illustrate the bifurcated progress story now embedded in Wise’s mannequin. The legacy cross-border switch enterprise continues to face structural take-rate compression as competitors intensifies from banks upgrading their worldwide cost rails and from different money-transfer operators. The card and Business segments, in the meantime, are rising quicker and diversifying income. For traders, the query is whether or not that diversification can maintain 20%-plus group progress as the buyer cross-border market matures.
AI stage 1 of 5: written by Darlyn Ho; AI helped with tone, construction or wording; edited and signed off by Mark Walker, Editorial Director. What the degrees imply
