WEX Q2 revenue rises, lifts 2026 outlook

WEX Inc.

WEX Inc.

WEX

0.00


Overview

  • US payments solutions firm's Q2 revenue rose 14.2% yr/yr to $753.5 mln

  • Adjusted net income per diluted share grew 35.4% yr/yr to $5.35

  • Company repurchased about $60 mln in shares during Q2 and raised full-year guidance


Outlook

  • WEX raises 2026 revenue guidance to $2.86 bln-$2.90 bln from $2.82 bln-$2.88 bln

  • Company lifts 2026 adj net income forecast to $689 mln-$703 mln, or $19.68-$20.08 per share

  • WEX expects Q3 revenue of $733 mln-$753 mln and adj net income of $189 mln-$196 mln


Result Drivers

  • FUEL PRICES - Higher fuel prices contributed $63.8 mln in net favorable impact to Q2 revenue, driving outperformance, per CFO Jagtar Narula

  • MOBILITY SEGMENT GROWTH - Mobility segment revenue rose 22.0% yr/yr, outpacing other segments

  • FOREIGN EXCHANGE - Favorable foreign exchange rates added $2.1 mln to Q2 revenue


Company press release: ID:nBw4NkPpka


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 Net Income

$108.50 mln

Q2 Operating Income

$203.20 mln

Q2 Pretax Profit

$150.50 mln

Q2 Provision for Credit Losses

$33 mln


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 10 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the business support services peer group is "buy."

  • Wall Street's median 12-month price target for WEX Inc is $170.00, about 5.6% above its July 21 closing price of $160.96

  • The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 8 three months ago


Reuters Recommended Reads

  • July 20 - How PayPal went from Wall Street favorite to unwilling merger target

  • July 22 - Zelle must face New York attorney general lawsuit over 'rampant' fraud, judge rules

  • July 21 - Brazil and US clash over future of payments as popular Pix system stirs global interest


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