Corpay, Inc. (CPAY) Earnings & Analysis

Latest quarter

Corpay reported Q2 FY2026 revenue of $1.3 billion, up 21.5% from $1.1 billion a year earlier. Against the consensus, the company reported $1.3 billion of revenue versus the $1.3 billion consensus estimate, exceeding it by 2.56%, and adjusted EPS of $7.00 versus the $6.60 consensus estimate, exceeding it by 6.06%.

The filing attributes the revenue increase primarily to 10.0% organic growth from higher spend and transaction volumes, new sales initiatives and business ramp-ups, alongside acquisitions. Corporate Payments revenue rose 41.7%, Vehicle Payments revenue rose 13.3%, Lodging Payments revenue rose 2.8%, and Other revenue rose 4.6%, according to the filing. Corpay’s operating margin was 35.3%, compared with 43.5% a year earlier, while diluted EPS was $3.70, compared with $3.98. The company reported free cash flow of $1.4 billion, up 30.2% from $1.1 billion.

Corpay reported revenue above its Q2 guidance of $1.3 billion, and the company reported revenue growth above its 9.00%–11.0% guidance range.

Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.

What management said on the call

Ron Clark said Q2 revenue was $1.34 billion and that favorable macro conditions contributed about $30 million more than Corpay had expected, while underlying performance accounted for about $15 million of the revenue outperformance. He said Corpay produced 10.0% organic revenue growth, led by 16% in Corporate Payments and 8% in Vehicle Payments, and that retention was 93% while new bookings grew 30%.

Peter Walker said Corporate Payments benefited from customer activity, with organic spend increasing 43% to $95 billion. He said lower interest rates created a 180-basis-point drag from float-revenue compression, while cross-border and payables both performed in line with company expectations. Corpay’s filing said Corporate Payments revenue per spend dollar declined from the prior year because of new payables and cross-border enterprise clients.

Walker said Vehicle Payments organic growth of 8% reflected continued strength in Brazil and Europe, while U.S. investment was being reallocated toward higher-return opportunities in Corporate Payments. He said Lodging organic revenue improved sequentially by 2% from Q1 FY2026 and that Corpay expected organic growth in that segment during the second half.

On costs and margins, Walker said operating costs increased 9%, excluding foreign exchange, acquisitions, stock compensation, amortization and the settlement charge, primarily because of sales investments and modestly higher credit losses. He said the $100.0 million settlement charge related to the FTC matter remained subject to final commission approval, and that Corpay expected back-half EBITDA margin to be slightly below the prior-year level while it invested to deliver its organic-growth targets.

In response to an analyst question about fuel prices and credit losses, Walker said Corpay had taken a provision for the higher risk but would not weaken underwriting standards. Clark said Corporate Payments sales investment had risen while some investment had shifted from Vehicle Payments, and he said the company had visibility into retention and the existing customer base. Clark also said the Avid investment’s sales were growing more than 30%, while its software revenue was growing at a low-single-digit rate.

Guidance

Corpay raised its FY2026 revenue guidance to $5.3 billion–$5.3 billion and its non-GAAP adjusted diluted EPS guidance to $27.15–$27.55. Peter Walker said the revised revenue outlook includes the Q2 outperformance and a further increase from macro conditions and business momentum, partly offset by the expected Epix sale. Corpay said the sale is expected to reduce FY2026 revenue by $40.0 million while having no effect on adjusted EPS because the company plans to use proceeds for share repurchases.