Zip Co Ltd's stock surged 7.86% during intraday trading on Friday, marking a significant upward movement for the buy-now-pay-later provider.
The sharp rise appears to be driven by the company's announcement of a substantial A$50 million on-market share buyback program. The buyback, which will run through to March 2027, covers up to 92,161,082 shares, representing approximately 7.25% of Zip Co's issued capital.
Additionally, investors responded positively to the company's upgraded margin guidance for 2026, suggesting improved profitability expectations. The combination of a significant capital return to shareholders through the buyback and enhanced future earnings outlook provided strong catalysts for the stock's intraday performance.