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CPAY's Q3 adjusted EPS rose 32% y/y to $7.54, beating estimates by 4.9%, while revenues grew 18% to $1.38B.
Corporate Payments revenues grew 41% y/y, fueled by cross-border activity and spend management sales.
Corpay raised its 2026 adjusted EPS guidance to $27.90-$28.10 and revenue outlook to $5.34-$5.36B.
Corpay (CPAY - Free Report) reported strong third-quarter 2026 results, with earnings and revenues surpassing the Zacks Consensus Estimate.
CPAY registered adjusted earnings per share of $7.54, rising 32% year over year and beating the Zacks Consensus Estimate of $7.19 by 4.9%. Revenues increased 18% to $1.38 billion, surpassing the consensus mark of $1.36 billion by 1.7%.
Results benefited from 11% organic revenue growth, driven by Corporate Payments strength. New sales increased 24%, same-store sales grew 2% and customer retention stood at 92.2%.
Corporate Payments revenues soared 41% year over year to $571.3 million, accounting for 41% of consolidated revenues. On a pro-forma and macro-adjusted basis, segment revenues increased 18% to $567.5 million, accelerating from 16% growth in the preceding quarter.
Reported spend volume jumped 45% year over year to $95.30 billion, while organic spend advanced 24%. Revenues per spend dollar declined to 0.60% from 0.62% on a reported basis. Growth benefited from strong cross-border activity, spend management sales and improved monetization through debit cards and enhanced ACH payment solutions.
Corpay's Vehicle Payments Business Maintains Growth
Vehicle Payments revenues increased 8% year over year to $579.8 million, remaining Corpay's largest segment. On a pro-forma and macro-adjusted basis, revenues grew 8% to $522.7 million, supported by continued execution across international markets.
Reported transactions declined 26% to 152.4 million, reflecting the divestiture of PayByPhone. However, adjusted transactions increased 9% to 148.2 million. Reported revenues per transaction climbed 47% to $3.80, while the adjusted figure declined 1% to $3.53. Management continues prioritizing investments in Brazil and Europe to sustain high-single-digit growth.
CPAY Sees Continued Recovery in Lodging Payments
Lodging Payments revenues increased 3% year over year to $131.1 million, with organic growth improving sequentially for the third consecutive quarter. The segment's performance reflected stronger activity in its workforce lodging business.
Room nights declined 14% to 7.7 million, while revenues per room night increased 20% to $17.06. Management attributed the pricing improvement primarily to changes in customer mix, including fluctuations in lower-priced emergency lodging volumes. The workforce business registered double-digit growth, although insurance and airline-related operations remained relatively weaker.
Adjusted EBITDA increased 17% year over year to $793.8 million, while the adjusted EBITDA margin stood at 57.4%. Strong revenue flow-through and operating discipline supported profitability.
Operating costs rose 9%, excluding foreign exchange movements, acquisitions, stock-based compensation, amortization and a prior-year operating loss. Higher expenses reflected growth investments and increased transaction volumes. Meanwhile, GAAP net income attributable to Corpay jumped 36% to $378.4 million, while GAAP earnings increased 45% to $5.66 per share.
CPAY's Cash Generation Supports Share Repurchases
Corpay generated approximately $501 million in free cash flow during the quarter. Cash and cash equivalents stood at $3.07 billion as of Sept. 30, 2026, compared with $2.41 billion at the end of 2025.
The leverage ratio stood at 2.72X, with $1.8 billion in liquidity at quarter-end. CPAY repurchased 1.9 million shares for $747 million during the quarter. The board also approved a $1-billion increase in its repurchase authorization, bringing remaining capacity to $1.6 billion.
The company completed the sale of its vehicle maintenance business on Nov. 2, 2026, for estimated proceeds of approximately $800 million. Following the transaction and application of proceeds, pro-forma leverage declined to 2.47X.
Corpay Raises Q4 & 2026 Guidance
For the fourth quarter of 2026, revenues are projected between $1.36 billion and $1.38 billion, with a midpoint of $1.37 billion, indicating 10% year-over-year growth. Adjusted earnings are expected between $7.55 and $7.75 per share, with a mid-point of $7.65, suggesting 27% growth.
For 2026, Corpay raised its revenue guidance to $5.34-$5.36 billion from the previous quarter’s view of $5.29-$5.33 billion. The Zacks Consensus Estimate is pinned at $5.32 billion.
Adjusted earnings guidance increased to $27.90-$28.10 per share from the previous $27.15-$27.55. The Zacks Consensus Estimate is pinned at $27.45. The improved outlook reflects third-quarter outperformance, favorable macroeconomic conditions and underlying business strength.
Management expects 9-11% organic revenue growth in 2027, supported by continued Corporate Payments expansion and additional investments in spend management.
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Corpay Q3 Earnings Beat Estimates, Revenues Increase 18% Y/Y
Key Takeaways
Corpay (CPAY - Free Report) reported strong third-quarter 2026 results, with earnings and revenues surpassing the Zacks Consensus Estimate.
CPAY registered adjusted earnings per share of $7.54, rising 32% year over year and beating the Zacks Consensus Estimate of $7.19 by 4.9%. Revenues increased 18% to $1.38 billion, surpassing the consensus mark of $1.36 billion by 1.7%.
Results benefited from 11% organic revenue growth, driven by Corporate Payments strength. New sales increased 24%, same-store sales grew 2% and customer retention stood at 92.2%.
Corpay, Inc. Price, Consensus and EPS Surprise
Corpay, Inc. price-consensus-eps-surprise-chart | Corpay, Inc. Quote
CPAY's Corporate Payments Growth Accelerates
Corporate Payments revenues soared 41% year over year to $571.3 million, accounting for 41% of consolidated revenues. On a pro-forma and macro-adjusted basis, segment revenues increased 18% to $567.5 million, accelerating from 16% growth in the preceding quarter.
Reported spend volume jumped 45% year over year to $95.30 billion, while organic spend advanced 24%. Revenues per spend dollar declined to 0.60% from 0.62% on a reported basis. Growth benefited from strong cross-border activity, spend management sales and improved monetization through debit cards and enhanced ACH payment solutions.
Corpay's Vehicle Payments Business Maintains Growth
Vehicle Payments revenues increased 8% year over year to $579.8 million, remaining Corpay's largest segment. On a pro-forma and macro-adjusted basis, revenues grew 8% to $522.7 million, supported by continued execution across international markets.
Reported transactions declined 26% to 152.4 million, reflecting the divestiture of PayByPhone. However, adjusted transactions increased 9% to 148.2 million. Reported revenues per transaction climbed 47% to $3.80, while the adjusted figure declined 1% to $3.53. Management continues prioritizing investments in Brazil and Europe to sustain high-single-digit growth.
CPAY Sees Continued Recovery in Lodging Payments
Lodging Payments revenues increased 3% year over year to $131.1 million, with organic growth improving sequentially for the third consecutive quarter. The segment's performance reflected stronger activity in its workforce lodging business.
Room nights declined 14% to 7.7 million, while revenues per room night increased 20% to $17.06. Management attributed the pricing improvement primarily to changes in customer mix, including fluctuations in lower-priced emergency lodging volumes. The workforce business registered double-digit growth, although insurance and airline-related operations remained relatively weaker.
Corpay Delivers Strong Profitability Despite Cost Growth
Adjusted EBITDA increased 17% year over year to $793.8 million, while the adjusted EBITDA margin stood at 57.4%. Strong revenue flow-through and operating discipline supported profitability.
Operating costs rose 9%, excluding foreign exchange movements, acquisitions, stock-based compensation, amortization and a prior-year operating loss. Higher expenses reflected growth investments and increased transaction volumes. Meanwhile, GAAP net income attributable to Corpay jumped 36% to $378.4 million, while GAAP earnings increased 45% to $5.66 per share.
CPAY's Cash Generation Supports Share Repurchases
Corpay generated approximately $501 million in free cash flow during the quarter. Cash and cash equivalents stood at $3.07 billion as of Sept. 30, 2026, compared with $2.41 billion at the end of 2025.
The leverage ratio stood at 2.72X, with $1.8 billion in liquidity at quarter-end. CPAY repurchased 1.9 million shares for $747 million during the quarter. The board also approved a $1-billion increase in its repurchase authorization, bringing remaining capacity to $1.6 billion.
The company completed the sale of its vehicle maintenance business on Nov. 2, 2026, for estimated proceeds of approximately $800 million. Following the transaction and application of proceeds, pro-forma leverage declined to 2.47X.
Corpay Raises Q4 & 2026 Guidance
For the fourth quarter of 2026, revenues are projected between $1.36 billion and $1.38 billion, with a midpoint of $1.37 billion, indicating 10% year-over-year growth. Adjusted earnings are expected between $7.55 and $7.75 per share, with a mid-point of $7.65, suggesting 27% growth.
For 2026, Corpay raised its revenue guidance to $5.34-$5.36 billion from the previous quarter’s view of $5.29-$5.33 billion. The Zacks Consensus Estimate is pinned at $5.32 billion.
Adjusted earnings guidance increased to $27.90-$28.10 per share from the previous $27.15-$27.55. The Zacks Consensus Estimate is pinned at $27.45. The improved outlook reflects third-quarter outperformance, favorable macroeconomic conditions and underlying business strength.
Management expects 9-11% organic revenue growth in 2027, supported by continued Corporate Payments expansion and additional investments in spend management.
Corpay currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Snapshot
Clean Harbors (CLH - Free Report) reported strong third-quarter 2026 results.
Earnings of $3.93 per share beat the consensus mark of $3.18 by 23.6%. Earnings surged 77.8% year over year.
Revenues increased 20.7% year over year to $1.87 billion, beating the consensus estimate of $1.72 billion by 8.4%, as reported in the earnings data.
Fiserv (FISV - Free Report) posted better-than-expected third-quarter 2026 results.
Adjusted earnings of $1.75 per share beat the consensus estimate of $1.72 by 1.7% but declined 14% year over year.
Adjusted revenues of $4.85 billion surpassed the consensus mark of $4.84 billion by 0.2% but decreased 1% from the year-ago quarter.