We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Why Is Corpay (CPAY) Up 5.4% Since Last Earnings Report?
Read MoreHide Full Article
A month has gone by since the last earnings report for Corpay (CPAY - Free Report) . Shares have added about 5.4% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Corpay due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for Corpay, Inc. before we dive into how investors and analysts have reacted as of late.
Corpay Q2 Earnings and Revenues Beat Estimates
Corpay reported second-quarter 2026 results, with earnings and revenues beating the Zacks Consensus Estimate.
CPAY reported adjusted earnings per share of $7, rising 36% year over year and surpassing the Zacks Consensus Estimate of $6.60 by 6.1%. Revenues increased 21% to $1.34 billion, beating the consensus mark by 2.6%.
Results benefited from 10% organic revenue growth, led by Corporate Payments. Organic spend climbed 43% to $94.64 billion, while new sales rose 30% and customer retention held at 93%.
CPAY’s Corporate Payments Momentum Continues
Corporate Payments revenues jumped 42% year over year to $548.7 million and accounted for 41% of consolidated revenues. On a pro-forma and macro-adjusted basis, segment revenues advanced 16% to $538.1 million.
Spend volume surged 70% on a reported basis to $94.64 billion. Pro-forma and macro-adjusted spend increased 43%, reflecting strong customer activity across cross-border and payables. Revenues per spend dollar declined to 0.58% from 0.70%, partly reflecting the addition of larger enterprise clients carrying lower yields.
Corpay’s Vehicle Business Posts Solid Growth
Vehicle Payments revenues increased 13% year over year to $580.2 million, making it Corpay’s largest segment. Pro-forma and macro-adjusted revenues rose 8% to $523.5 million, supported by continued strength in Brazil and Europe.
Reported transactions declined 29% to 147.6 million because the prior-year period included activity from the PayByPhone business, which Corpay sold in March 2026. On an adjusted basis, transactions increased 8%, while revenues per transaction were unchanged at $3.56.
CPAY Sees Gradual Improvement in Lodging
Lodging Payments revenues rose 3% year over year to $123.2 million. Organic growth was 2%, improving sequentially as the company moved past difficult comparisons created by episodic events in the prior year.
Room nights declined 13% to 7.5 million. However, revenues per room night increased 18% to $16.34, helping the segment deliver revenue growth despite lower volume. Management expects Lodging organic growth to accelerate to the mid-single-digit range during the second half.
Corpay Expands Margins Despite Higher Costs
Adjusted EBITDA increased 24% year over year to $767.2 million. The adjusted EBITDA margin expanded 100 basis points to 57.3%, benefiting from operating leverage and favorable macroeconomic conditions.
Operating costs rose 9% after excluding foreign exchange movements, acquisitions, stock-based compensation, amortization and a settlement charge. The increase primarily reflected sales investments and modestly higher credit losses. Corpay also recorded a $100 million charge related to a preliminary settlement with the Federal Trade Commission’s Bureau of Consumer Protection.
CPAY Strengthens Its Financial Position
Corpay generated $1.41 billion in net cash from operating activities during the first six months of 2026, up from $1.07 billion in the prior-year period. The company ended June with $3.16 billion in cash and cash equivalents, and $7.00 billion in restricted cash.
The leverage ratio stood at 2.55X, while available capacity under the revolving credit facility was $1.6 billion. CPAY repurchased about 1 million shares for $321 million during the quarter and had $1.4 billion remaining under its authorization.
Corpay also refinanced its revolving credit facility and Term Loan A. The transaction increased the revolver by about $1 billion to $3.7 billion and included a $1-billion repayment of Term Loan B, extending maturities and improving financial flexibility.
Corpay’s Q3 & FY26 Guidance
For the third quarter, revenues are projected at $1.36 billion at the midpoint, suggesting 16% year-over-year growth. Adjusted earnings are expected to be $7.15 at the midpoint, hinting at 26% year-over-year growth.
For 2026, Corpay updated its revenue guidance to $5.29-$5.33 billion from the prior quarter’s $5.25-$5.33 billion. The outlook incorporates the second-quarter outperformance, improved business momentum and favorable macro conditions, partly offset by the planned sale of the Epyx maintenance business. The adjusted earnings guidance is raised to $27.15-$27.55 per share from the prior quarter’s view of $26.3-$27.1.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a upward trend in fresh estimates.
VGM Scores
At this time, Corpay has a average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. However, the stock has a score of B on the value side, putting it in the second quintile for value investors.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Corpay has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Corpay belongs to the Zacks Financial Transaction Services industry. Another stock from the same industry, MasterCard (MA - Free Report) , has gained 1.7% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.
MasterCard reported revenues of $9.28 billion in the last reported quarter, representing a year-over-year change of +14.1%. EPS of $5.04 for the same period compares with $4.15 a year ago.
MasterCard is expected to post earnings of $5.12 per share for the current quarter, representing a year-over-year change of +16.9%. Over the last 30 days, the Zacks Consensus Estimate has changed +0%.
MasterCard has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.
View the Zacks #1 Rank List
Image: Bigstock
Why Is Corpay (CPAY) Up 5.4% Since Last Earnings Report?
A month has gone by since the last earnings report for Corpay (CPAY - Free Report) . Shares have added about 5.4% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Corpay due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for Corpay, Inc. before we dive into how investors and analysts have reacted as of late.
Corpay Q2 Earnings and Revenues Beat Estimates
Corpay reported second-quarter 2026 results, with earnings and revenues beating the Zacks Consensus Estimate.
CPAY reported adjusted earnings per share of $7, rising 36% year over year and surpassing the Zacks Consensus Estimate of $6.60 by 6.1%. Revenues increased 21% to $1.34 billion, beating the consensus mark by 2.6%.
Results benefited from 10% organic revenue growth, led by Corporate Payments. Organic spend climbed 43% to $94.64 billion, while new sales rose 30% and customer retention held at 93%.
CPAY’s Corporate Payments Momentum Continues
Corporate Payments revenues jumped 42% year over year to $548.7 million and accounted for 41% of consolidated revenues. On a pro-forma and macro-adjusted basis, segment revenues advanced 16% to $538.1 million.
Spend volume surged 70% on a reported basis to $94.64 billion. Pro-forma and macro-adjusted spend increased 43%, reflecting strong customer activity across cross-border and payables. Revenues per spend dollar declined to 0.58% from 0.70%, partly reflecting the addition of larger enterprise clients carrying lower yields.
Corpay’s Vehicle Business Posts Solid Growth
Vehicle Payments revenues increased 13% year over year to $580.2 million, making it Corpay’s largest segment. Pro-forma and macro-adjusted revenues rose 8% to $523.5 million, supported by continued strength in Brazil and Europe.
Reported transactions declined 29% to 147.6 million because the prior-year period included activity from the PayByPhone business, which Corpay sold in March 2026. On an adjusted basis, transactions increased 8%, while revenues per transaction were unchanged at $3.56.
CPAY Sees Gradual Improvement in Lodging
Lodging Payments revenues rose 3% year over year to $123.2 million. Organic growth was 2%, improving sequentially as the company moved past difficult comparisons created by episodic events in the prior year.
Room nights declined 13% to 7.5 million. However, revenues per room night increased 18% to $16.34, helping the segment deliver revenue growth despite lower volume. Management expects Lodging organic growth to accelerate to the mid-single-digit range during the second half.
Corpay Expands Margins Despite Higher Costs
Adjusted EBITDA increased 24% year over year to $767.2 million. The adjusted EBITDA margin expanded 100 basis points to 57.3%, benefiting from operating leverage and favorable macroeconomic conditions.
Operating costs rose 9% after excluding foreign exchange movements, acquisitions, stock-based compensation, amortization and a settlement charge. The increase primarily reflected sales investments and modestly higher credit losses. Corpay also recorded a $100 million charge related to a preliminary settlement with the Federal Trade Commission’s Bureau of Consumer Protection.
CPAY Strengthens Its Financial Position
Corpay generated $1.41 billion in net cash from operating activities during the first six months of 2026, up from $1.07 billion in the prior-year period. The company ended June with $3.16 billion in cash and cash equivalents, and $7.00 billion in restricted cash.
The leverage ratio stood at 2.55X, while available capacity under the revolving credit facility was $1.6 billion. CPAY repurchased about 1 million shares for $321 million during the quarter and had $1.4 billion remaining under its authorization.
Corpay also refinanced its revolving credit facility and Term Loan A. The transaction increased the revolver by about $1 billion to $3.7 billion and included a $1-billion repayment of Term Loan B, extending maturities and improving financial flexibility.
Corpay’s Q3 & FY26 Guidance
For the third quarter, revenues are projected at $1.36 billion at the midpoint, suggesting 16% year-over-year growth. Adjusted earnings are expected to be $7.15 at the midpoint, hinting at 26% year-over-year growth.
For 2026, Corpay updated its revenue guidance to $5.29-$5.33 billion from the prior quarter’s $5.25-$5.33 billion. The outlook incorporates the second-quarter outperformance, improved business momentum and favorable macro conditions, partly offset by the planned sale of the Epyx maintenance business. The adjusted earnings guidance is raised to $27.15-$27.55 per share from the prior quarter’s view of $26.3-$27.1.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a upward trend in fresh estimates.
VGM Scores
At this time, Corpay has a average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. However, the stock has a score of B on the value side, putting it in the second quintile for value investors.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Corpay has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Corpay belongs to the Zacks Financial Transaction Services industry. Another stock from the same industry, MasterCard (MA - Free Report) , has gained 1.7% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.
MasterCard reported revenues of $9.28 billion in the last reported quarter, representing a year-over-year change of +14.1%. EPS of $5.04 for the same period compares with $4.15 a year ago.
MasterCard is expected to post earnings of $5.12 per share for the current quarter, representing a year-over-year change of +16.9%. Over the last 30 days, the Zacks Consensus Estimate has changed +0%.
MasterCard has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.