Wise posted second-quarter net revenue of $739 million for its fiscal second quarter of 2027, growth of 21% year-on-year in constant currency and 2% ahead of analyst consensus, according to a research note published on 16 October 2026 by Jefferies, which carries a Buy rating and a price target of 1,239p on the London-listed shares.

The outperformance was driven primarily by net interest income, which beat expectations on both gross yield and customer balance metrics, compensating for a modest shortfall in volume per customer. Total payment volume grew 22% year-on-year to $72 billion, though it came in 2% below consensus owing to that VPC miss.

The operational detail

Active customers reached 12.5 million at the end of the quarter, up 20% year-on-year and 5% sequentially, with Personal customers growing to 11.9 million and Business customers reaching 633,000. The Business segment is the faster grower on a percentage basis, up 31% year-on-year in TPV terms to $22 billion.

Card and other revenue was the standout line, rising 34% year-on-year to $206 million, 3% ahead of consensus. Card spend TPV grew 30%, and the card book now accounts for 27% of net revenue, up from a lower base in the prior year. That structural shift matters: card revenue carries different margin and competitive dynamics than the core cross-border transfer business, and its increasing weight provides a partial hedge against the gradual compression in cross-border take rates, which fell 1 basis point sequentially to 50 basis points.

Total customer holdings reached $44 billion, with Wise account balances of $32 billion growing 4% sequentially. The gross yield implied on those balances was 2.3%, down from 3.0% in the prior quarter, reflecting the interest-rate environment.

Wise has also continued its share buyback, completing 39% of a planned $550 million programme that began in July 2026 and runs to March 2027. Approximately 17 million shares have been repurchased at an average of $12.10 per share, representing around 2% of the diluted share count.

Guidance and market context

Full-year guidance was lifted to the upper end of the 15-20% medium-term growth range, implying 17.5-20% net revenue growth in constant currency. Income before tax margin guidance was held at around the top of the 20-25% medium-term ambition, a figure that sits below current consensus of around 26%, suggesting Wise is managing expectations conservatively. Jefferies estimates FY27 net revenue of $1.55 billion and IBT of $778 million.

Jefferies noted the beat is unlikely to trigger significant share price movement given limited room for earnings upgrades. Two pending overhangs remain unaddressed: an investigation by Belgian authorities and questions around Wise’s OCC engagement in the United States. Until those are resolved or disclosed further, the note suggests the shares are likely to remain range-bound ahead of full first-half results due on 12 November 2026.

The results illustrate the bifurcated growth story now embedded in Wise’s model. The legacy cross-border transfer business continues to face structural take-rate compression as competition intensifies from banks upgrading their international payment rails and from other money-transfer operators. The card and Business segments, meanwhile, are growing faster and diversifying revenue. For investors, the question is whether that diversification can sustain 20%-plus group growth as the consumer cross-border market matures.

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