The Zip Co Ltd (ASX: ZIP) share price is racing higher today.
Shares in the S&P/ASX 200 Index (ASX: XJO) buy now, pay later (BNPL) stock closed yesterday trading for $2.33. In morning trade on Wednesday, shares surged to $2.76, up 18.5%. After some likely profit-taking, shares are currently changing hands for $2.70 apiece, up 15.9%.
For some context, the ASX 200 is up 0.5% at this same time.
Here's what's grabbing ASX investor interest today.
Zip share price leaps on guidance upgrade
Investors are bidding up the Zip share price following this morning's release of a trading update and guidance upgrade.
Turning to the May trading update first, the company said the month saw continued momentum in total transaction value (TTV) growth in both its United States and ANZ markets.
In the US, TTV growth (in US dollars) was more than 40% year on year.
Pleasingly, the ASX 200 BNPL stock also reported that there were no material changes to its credit loss performance since 3Q25 across both markets.
And management said that, consistent with Zip's capital management framework, the company has repurchased 12.3 million shares for total consideration of $22.6 million to date.
That's part of Zip's on-market share buyback program, which will see the company repurchase up to $50 million worth of shares. Zip announced the buyback program on 8 April.
As for the guidance update that looks to be boosting the Zip share price today, the company upgraded its earnings guidance for FY 2025. It noted the upgrade follows its continued strong performance, particularly in the US business.
Zip said it now expects to deliver cash earnings before tax and depreciation (EBTDA) of at least $160 million for the full year. That's up from prior guidance of at least $153 million.
The ASX 200 BNPL company said that, as previously announced on 25 February, it is also on track for its FY 2025 results to be within its two-year target ranges.
What did management say?
Commenting on the strong performance that's helping lift the Zip share price today, CEO and managing director, Cynthia Scott, said:
Zip's momentum has continued throughout May, particularly in the US where TTV has continued to grow above 40% year on year, reflecting the resilience of our business model and disciplined execution of our strategy.
Following our continued strong performance, we have upgraded our FY 2025 guidance to deliver cash EBTDA of at least $160 million.
Zip share price snapshot
The past 12 months have been a bit of a rollercoaster ride for investors in the ASX 200 BNPL stock.
Depending on when you bought shares, you may be sitting on some tidy gains or nursing some material losses.
Here's what I mean.
Over the past 12 months, the Zip share price is up 108%; in 2025, shares are down 9%; and since hitting recent lows on 7 April, shares have soared 127%.
Hold onto your hat!
