News

The Western Union Company WU reported second-quarter 2026 adjusted earnings per share (EPS) of 31 cents, which missed the Zacks Consensus Estimate by 27.9%. The bottom line declined 26.2% year over year.

Total revenues were $1.01 billion, which declined 1.3% from the prior-year period's level. However, the top line beat the Zacks Consensus Estimate by 0.6%.

Lower revenues and higher expenses in the Consumer Money Transfer (“CMT”) retail business, lower margins in the Consumer Services business, and increased operating expenses weighed on second-quarter earnings. These headwinds were partly offset by growth in the Consumer Services and Branded Digital businesses, driven by higher bill payment revenues and growth in the Travel Money business.

The Western Union Company Price, Consensus and EPS Surprise

Q2 Performance of WU

Adjusted operating margin fell 400 bps to 15%, caused by lower revenues and higher expenses in the CMT retail business, lower margins in the Consumer Services business, and higher operating expenses.

Total expenses rose 5.7% year over year to $881.1 million. The year-over-year increase resulted from higher cost of services and SG&A expenses.

Operating income of $132.1 million declined 31% year over year and lagged our estimate of $175.3 million.

Segment Analysis of WU

The Consumer Money Transfer segment recorded revenues of $866.1 million, which slipped 2% year over year. The figure exceeded both the Zacks Consensus Estimate of $852.2 million and our model estimates of $844.1 million. Operating income declined 25% year over year to $125.7 million. The metric missed the consensus mark of $145.5 million and our estimate of $146.8 million. The operating income margin declined 400 bps year over year to 15%.

Transactions in the CMT segment grew 3% year over year. Excluding Iraq, adjusted revenues declined 4% year over year. Branded Digital transactions increased 25% year over year. Branded Digital revenues, which accounted for 32% of CMT's second-quarter revenues, rose 7% on a reported basis and 6% on an adjusted basis.

The Consumer Services segment’s revenues rose 4% year over year on a reported basis and 12% on an adjusted basis, reaching $147.1 million in the quarter. This growth was driven by the expansion of the Travel Money business and increased revenues from the bill payment segment. The metric missed the Zacks Consensus Estimate of $154.7 million.

Operating income totaled $23.3 million, which decreased 26% year over year. The metric missed the consensus mark as well as our estimate. The operating income margin declined 600 bps year over year to 16%.

WU’s Q2 Financial Position

Western Union exited the second quarter with cash and cash equivalents of $919.8 million, which decreased from the 2025-end level of $1.2 billion. Total assets of $8 billion declined from $8.3 billion as of 2025-end.

Borrowings totaled $2.7 billion, down from $2.9 billion as of 2025-end.

Total stockholders’ equity declined to $914.7 million from $957.8 million at the end of 2025.

WU generated net cash from operations of $213.9 million in the first six months of 2026, up from $147.9 million in the year-ago period.

Western Union’s Capital Deployment

Western Union returned $73.3 million to shareholders through dividends in the second quarter of 2026. During the first six months of 2026, the company repurchased $53.7 million of its common stock. As of June 30, 2026, $721.6 million remained available under its share repurchase authorization.

WU’s 2026 View

The company now expects adjusted revenue growth of 4-6%, down from the previous guidance of 6-9%.

Adjusted EPS guidance was lowered to $1.25-$1.35 from the earlier projection of $1.75-$1.85. The midpoint of the revised guidance implies a 25.7% decline from the 2025 adjusted EPS of $1.75.

The company also expects an adjusted effective tax rate of 13-15% and a GAAP effective tax rate of 20-22%.

In the second quarter, Western Union did not provide GAAP EPS guidance, citing the inability to reliably estimate certain reconciling items. Previously, the company had projected GAAP EPS in the range of $1.50-$1.60, the midpoint of which implied approximately 2% growth from the 2025 GAAP EPS of $1.52.

WU’s Zacks Rank

WU currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

How Did WU’s Peers Perform?

Several companies in the business services space, including Marsh & McLennan Companies, Inc. MRSH, Visa Inc.V and Mastercard Incorporated MA, have reported their financial results for the June quarter of 2026. Here’s how they have performed:

MRSH reported second-quarter 2026 adjusted earnings per share of $2.96, which surpassed the Zacks Consensus Estimate by 2.8%. The bottom line advanced 8.8% year over year. Consolidated revenues of $7.4 billion improved 6.2% year over year. The figure rose 5% on an underlying basis. The top line beat the consensus mark by 2%. Marsh’s quarterly results benefited from solid growth in the Risk and Insurance Services and Consulting units. However, the upside was partially offset by elevated operating expenses, primarily due to increased compensation and benefits.

Visa delivered third-quarter fiscal 2026 adjusted earnings of $3.32 per share, which rose 11% year over year and beat the Zacks Consensus Estimate by 2.8%. Net revenues were $11.63 billion, rising 14% year over year. Visa’s quarterly results reflected resilient spending trends, higher cross-border volumes and solid network activity, including a 10% year-over-year increase in payments volume on a constant-dollar basis. However, the upside was partly offset by increased operating expenses.

Mastercard reported second-quarter 2026 adjusted earnings of $5.04 per share, which topped the Zacks Consensus Estimate by 5.7%. The bottom line improved 21.4% year over year. Net revenues advanced 14.1% year over year to $9.3 billion. The top line beat the consensus mark by 2.4%. Mastercard’s quarterly results benefited from strong cross-border volume growth, increased switched transactions and robust demand for value-added services. However, the upside was partly offset by higher payment network rebates from renewed deals and an escalating operating expense level.

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