WEX Q3 revenue, adjusted profit beat estimates; raises FY2026 outlook

Overview

• Payments solutions provider's Q3 revenue rose 12.8%, beating analyst expectations

• Adjusted EPS for Q3 increased 33.6%, beating analyst expectations

• Company repurchased about $200 mln in shares during Q3

Outlook

• WEX raises 2026 revenue outlook to $2.97 bln-$2.99 bln from $2.86 bln-$2.90 bln

• Company lifts 2026 adj net income forecast to $736 mln-$743 mln, or $21.28-$21.48/shr

• WEX sees Q4 revenue of $760 mln-$780 mln

Result Drivers

• PRICING AND NEW BUSINESS - Co said Q3 results reflected progress in pricing, new business wins and innovation across segments

• FUEL PRICES - Higher fuel prices had a $57.3 mln favorable impact on Q3 revenue

• ADJUSTED FREE CASH FLOW - Co said adjusted free cash flow of $234.3 mln supported share repurchases and lower leverage

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 11 "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 $195.00, about 4.6% above its October 27 closing price of $186.38

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 7 three months ago

Reuters Recommended Reads

• Oct 27 - PayPal tops Q3 adjusted EPS estimates, raises FY forecast

• Oct 27 - Visa beats Q4 profit estimates on higher transactions, payment volumes

• Oct 27 - SoFi Technologies Q3 adjusted revenue beats on member, product growth

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)