WEX

It has been about a month since the last earnings report for Paypal (PYPL). Shares have added about 5.9% in that time frame, outperforming the S&P 500. But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Paypal due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers. PayPal Holdings reported second-quarter 2026 non-GAAP earnings per share (EPS) of $1.38, which beat the Zacks Consensus Estimate of $1.28 by 7.81%. The metric declined 1% year over year. Revenues of $8.68 billion surpassed the consensus mark of $8.51 billion by 2.02% and increased 5% year over year. The quarter benefited from solid growth in TPV, along with continued momentum in Venmo and Braintree. TPV increased 10% to $486.45 billion, or 9% on a currency-neutral basis. Transaction revenues increased 5% year over year to $7.83 billion, supported by Braintree, Venmo and favorable foreign exchange. Revenues from other value-added services were flat at $850 million, as higher credit revenues were offset by lower interest earned on customer balances. U.S. revenues rose 7% to $5.05 billion, while international revenues increased 2% to $3.63 billion. On a currency-neutral basis, international revenues declined 3%, indicating that domestic growth remained the stronger contributor. The company processed 6.75 billion payment transactions in the second quarter, up 8% year over year. Excluding payment service provider (PSP) transactions, payment transactions increased 7%, reflecting growth across the portfolio. Transactions per active account rose 3% to 60.0 on a trailing 12-month basis. Excluding PSP, the metric increased 7% to 37.9, marking a second straight quarter of acceleration and highlighting stronger Venmo engagement. Venmo TPV advanced 14% year over year to $93.81 billion and represented 19% of overall TPV. Management noted that Venmo delivered a second consecutive quarter of mid-teens growth. Branded checkout volume grew 2% on a currency-neutral basis, remaining stable with the first quarter. PSP volume increased 13% on a currency-neutral basis, with Braintree growing in the mid-teens, while peer-to-peer and other consumer volume rose 10%. TM$ increased 1% year over year to $3.90 billion. Excluding interest on customer balances, TM$ rose 3% to $3.62 billion, supported by Venmo, credit and Braintree, along with favorable foreign exchange and lower losses. Non-transaction-related expenses increased 9% to $2.39 billion. Non-GAAP operating income declined 8% to $1.51 billion, while non-GAAP operating margin contracted 248 basis points to 17.4%, reflecting continued investment in growth and platform initiatives. Active accounts were 439 million at quarter-end, up 0.3% year over year. MAA increased 1% to 228 million, with Venmo driving much of the growth. Management also highlighted stronger adoption across newer financial services products. Buy now, pay later TPV increased 26%, while MAA for the offering rose more than 20%. Venmo Debit Card MAA grew more than 50%, and Pay with Venmo MAA increased approximately 30%. Net cash provided by operating activities surged 121% year over year to $1.98 billion. Free cash flow soared 157% to $1.78 billion, while adjusted free cash flow climbed 179% to $1.83 billion. PayPal repurchased approximately 33 million shares for $1.5 billion during the reported quarter. The company also paid $122 million in dividends and declared a cash dividend of 14 cents per share, payable Sept. 25, 2026. For 2026, PayPal now expects non-GAAP EPS of about $5.38, up from $5.31 in 2025. The company also raised its TM$ outlook to approximately $15.6 billion and expects TM$, excluding interest on customer balances, of about $14.5 billion. Management reiterated adjusted free cash flow of more than $6 billion and share repurchases of roughly $6 billion. For the third quarter, PayPal expects non-GAAP EPS to decline at a low-single-digit rate from the year-ago levels of $1.34. It turns out, estimates revision have trended downward during the past month. Currently, Paypal has a average Growth Score of C, a score with the same score on the momentum front. However, the stock has a grade of A on the value side, putting it in the top quintile for value investors. Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Paypal has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Paypal belongs to the Zacks Financial Transaction Services industry. Another stock from the same industry, Wex (WEX), has gained 5.4% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026. Wex reported revenues of $753.5 million in the last reported quarter, representing a year-over-year change of +14.2%. EPS of $5.35 for the same period compares with $3.95 a year ago. For the current quarter, Wex is expected to post earnings of $5.60 per share, indicating a change of +22% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.9% over the last 30 days. The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Wex. Also, the stock has a VGM Score of D. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report WEX Inc. (WEX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

It has been about a month since the last earnings report for Wex (WEX). Shares have added about 15.4% in that time frame, outperforming the S&P 500. But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Wex due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important drivers. WEX reported impressive second-quarter 2026 results, with earnings and revenues beating the respective Zacks Consensus Estimates. WEX’s adjusted earnings (excluding $2.24 from non-recurring items) were $5.35 per share, which surpassed the Zacks Consensus Estimate by 5.3% and increased 35.4% year over year. Revenues were $753.5 million, topping the Consensus Estimate by 1.8% and rising 14.2% year over year. Higher fuel prices, solid execution across the business and broad-based segment growth drove these positive results. Total volume across all segments increased 15.7% year over year to $68.9 billion, highlighting continued customer activity. The Mobility segment remained WEX's largest contributor, generating $422.4 million in revenues, up 22.0% from the prior-year quarter. Management attributed much of the outperformance to higher U.S. fuel prices, while payment processing transactions edged up 0.1% to 139.3 million. The Benefits segment generated $206.0 million in revenues, increasing 5.6% year over year. Average Software-as-a-Service accounts rose 2.2% to 21.7 million, while average HSA custodial cash assets climbed 11.1% to $5.2 billion. Corporate Payments revenues increased 5.8% to $125.1 million. Purchase volume declined 3.6% to $19.8 billion, although total volume processed increased 4.5% to $38.6 billion. GAAP net income increased to $3.11 per diluted share, up 57.1% year over year. Adjusted operating income margin expanded to 39.6% from 36.8% in the year-ago quarter, while GAAP operating margin improved to 27.0% from 23.8%. Management noted that higher fuel prices contributed meaningfully to revenues and earnings outperformance. Excluding the impacts of fuel prices and foreign exchange, revenue grew 4.2%, while adjusted earnings per share increased 10.1%, reflecting solid underlying execution. The company highlighted progress across its strategic initiatives, including AI-driven productivity improvements, pricing actions within Mobility and continued momentum in Corporate Payments and Benefits. WEX ended the quarter with a leverage ratio of 2.9X, improving from 3.1X at the end of the first quarter. Net cash used in operating activities totaled $77.6 million, compared with $264.6 million in operating cash provided in the prior-year quarter, primarily reflecting higher receivable balances associated with elevated domestic fuel prices. Adjusted free cash flow improved to $219.0 million from $194.3 million a year earlier. The company repurchased approximately $60 million of shares during the second quarter, with an additional $33 million repurchased through July 20. Management indicated that most of the adjusted free cash flow will be directed toward share repurchases in the near term. For the third quarter of 2026, WEX expects revenues to be in the range of $733 million to $753 million. Adjusted earnings are expected to be $5.45-$5.65 per diluted share. The company raised its full-year 2026 guidance to $2.86 billion-$2.90 billion, up from the previous outlook of $2.82 billion-$2.88 billion. Adjusted earnings are projected to be in the range of $19.68-$20.08 per diluted share, compared with the earlier forecast of $18.95-$19.55. The updated guidance assumes average U.S. retail fuel prices of $3.91 per gallon for full-year 2026 and does not include any potential future impacts from European fuel spreads. Management said strong fuel prices, resilient demand across all three operating segments and disciplined capital allocation supported the improved outlook. In the past month, investors have witnessed a upward trend in fresh estimates. At this time, Wex has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. However, the stock has a score of B on the value side, putting it in the second quintile for this investment strategy. Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Wex has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report WEX Inc. (WEX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how WEX (NYSE:WEX) and the rest of the diversified financial services stocks fared in Q2. Diversified financial services encompass specialized offerings outside traditional categories. These firms benefit from identifying niche market opportunities, developing tailored financial products, and often facing less direct competition. Challenges include scale limitations, regulatory classification uncertainties, and the need to continuously innovate to maintain market differentiation against larger competitors expanding their offerings. The 10 diversified financial services stocks we track reported a mixed Q2. As a group, revenues beat analysts’ consensus estimates by 1.3% while next quarter’s revenue guidance was in line. Thankfully, share prices of the companies have been resilient as they are up 5.2% on average since the latest earnings results. Originally founded in 1983 as Wright Express to serve the fleet card market, WEX (NYSE:WEX) provides payment processing and business solutions across fleet management, employee benefits, and corporate payments sectors. WEX reported revenues of $753.5 million, up 14.2% year on year. This print exceeded analysts’ expectations by 1.8%. Overall, it was a strong quarter for the company with full-year EPS guidance beating analysts’ expectations and a solid beat of analysts’ EBITDA estimates. WEX scored the highest full-year guidance raise in the group. Unsurprisingly, the stock is up 23.2% since reporting and currently trades at $191.72. Is now the time to buy WEX? Access our full analysis of the earnings results here, it’s free. Founded in 2004 to simplify the complex world of bill payments, Paymentus (NYSE:PAY) provides a cloud-based platform that helps utilities, municipalities, and service providers automate billing and payment processes. Paymentus reported revenues of $360.7 million, up 28.8% year on year, outperforming analysts’ expectations by 4.3%. The business had an exceptional quarter with a beat of analysts’ EPS and EBITDA estimates. Paymentus achieved the highest guidance raise and fastest revenue growth of the whole group. The market seems happy with the results as the stock is up 21.6% since reporting. It currently trades at $41.98. Is now the time to buy Paymentus? Access our full analysis of the earnings results here, it’s free. With a history dating back to 1851 when it began as a telegraph company, Western Union (NYSE:WU) is a global money transfer service that enables consumers and businesses to send funds across borders and currencies, typically within minutes. Western Union reported revenues of $1.01 billion, down 1.3% year on year, falling short of analysts’ expectations by 1.4%. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA estimates and full-year EPS guidance missing analysts’ expectations. Western Union delivered the slowest revenue growth among its peers. As expected, the stock is down 3.5% since the results and currently trades at $7.42. Read our full analysis of Western Union’s results here. Formerly known as FLEETCOR until its 2024 rebrand, Corpay (NYSE:CPAY) provides specialized payment solutions for businesses to manage vehicle expenses, corporate payments, and lodging costs with enhanced control and reporting capabilities. Corpay reported revenues of $1.34 billion, up 21.5% year on year. This print topped analysts’ expectations by 2.8%. It was a strong quarter as it also logged full-year EPS guidance topping analysts’ expectations and a beat of analysts’ EPS estimates. Corpay had the weakest full-year guidance update in the group. The stock is up 5.9% since reporting and currently trades at $417.70. Read our full, actionable report on Corpay here, it’s free. Born from the need to navigate increasingly complex financial regulations in the digital age, Donnelley Financial Solutions (NYSE:DFIN) provides software and technology-enabled services that help companies comply with SEC regulations and manage financial transactions and reporting requirements. Donnelley Financial Solutions reported revenues of $224.2 million, up 2.8% year on year. This result surpassed analysts’ expectations by 1.3%. Overall, it was a strong quarter as it also produced a beat of analysts’ EPS estimates. The stock is down 4.7% since reporting and currently trades at $48.96. Read our full, actionable report on Donnelley Financial Solutions here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

TransUnion TRU reported impressive second-quarter 2026 results, with both earnings and revenues beating the Zacks Consensus Estimate. TRU’s adjusted earnings of $1.23 per share topped the Zacks Consensus Estimate by 7.9% and increased 13.9% from the year-ago quarter’s level. The performance extended the company’s strong start to 2026. Revenues of $1.31 billion surpassed the consensus estimate by 1.7% and rose 14.9% year over year. Organic constant-currency revenues grew 10% from the year-ago quarter, led by U.S. Financial Services and Emerging Verticals. The better-than-expected results impressed investors, as the stock has gained 8.4% since the company released results on July 28. TransUnion price-consensus-eps-surprise-chart | TransUnion Quote TRU’s shares have plunged 12% over the past year compared with the industry’s 11.4% decrease. The Zacks S&P 500 Composite has risen 19.6% over the same time frame. U.S. Markets revenues increased 11% to $992.7 million. Financial Services revenues climbed 18% to $496.3 million, reflecting strength across credit and non-credit offerings, pricing actions and new client wins. Excluding FICO mortgage royalties, Financial Services growth was 10%. Credit Card and Banking revenues increased 6%, while Consumer Lending and Auto each grew 8%. Mortgage revenues advanced 37%, or 15% excluding the royalty benefit, despite a 7% decline in inquiries. Emerging Verticals revenues rose 9% to $353.9 million. Insurance delivered its eighth consecutive quarter of double-digit growth, while technology, retail and e-commerce produced high-single-digit growth. Consumer Interactive revenues declined 3% to $142.5 million. Growth through indirect channels was offset by continued weakness in the direct-to-consumer business. International revenues increased 27% to $320.8 million, including the contribution from Trans Union de Mexico. On an organic constant-currency basis, growth accelerated to 6% from flat performance in the first quarter. Canada revenues rose 10% to $46.4 million, supported by financial services, fintech and insurance demand. The United Kingdom revenues increased 9% to $73.5 million, benefiting from market-share gains and new business across banking and fintech. India revenues returned to growth, rising 8% on a constant-currency basis, as credit volumes improved and new client wins strengthened. Latin America grew 5% organically, while Africa advanced 5%. Asia Pacific declined 7%, although management expects the region to return to growth in the second half. Trans Union de Mexico continued to perform ahead of the company’s acquisition assumptions. Management plans to expand its data coverage, introduce TruIQ analytics and eventually migrate the business to the OneTru platform. Adjusted EBITDA increased 12% to $456.1 million. The adjusted EBITDA margin contracted 90 basis points to 34.8%, with management attributing the decline entirely to FICO mortgage royalties. U.S. Markets adjusted EBITDA rose 7% to $361 million, while its margin declined to 36.4% from 37.9%. International adjusted EBITDA increased 27% to $136.8 million, while its margin held steady at 42.7%. GAAP net income attributable to TransUnion increased to $143.4 million from $109.6 million. Diluted GAAP earnings were 74 cents per share, up from 56 cents in the prior-year quarter. TransUnion ended June with $839.1 million in cash and cash equivalents and $5.59 billion in total debt. Its leverage ratio declined to 2.6X, supported by adjusted EBITDA growth. Cash provided by operating activities totaled $459.1 million in the first six months of 2026, up from $343.8 million a year earlier. Capital expenditures decreased to $134.4 million from $145.4 million. The company repurchased roughly $150 million of shares through July, including 2.1 million shares at an average price of about $71. Management expects second-half repurchases to be at least comparable to the first-half pace while continuing to target leverage below 2.5X. For the third quarter, TransUnion expects revenues to be between $1.292 billion and $1.310 billion, representing reported growth of 11-12%. The Zacks Consensus Estimate for the same is pegged at $1.31 billion. Organic constant-currency growth is projected at 6-8%. TRU guided its third-quarter 2026 adjusted earnings to be between $1.18 and $1.21 per share, with the midpoint of $1.195 per share being lower than the Zacks Consensus Estimate of $1.23 per share. Adjusted EBITDA is anticipated to be between $455 million and $463 million, with a margin of 35.2-35.4%. For 2026, the company raised its revenue outlook to $5.127-$5.162 billion, implying growth of 12-13%. The midpoint of the guided range ($5.145 billion) is marginally higher than the Zacks Consensus Estimate of $5.14 billion. Organic constant-currency growth remains projected at 8-9%. Adjusted EBITDA is expected between $1.807 billion and $1.827 billion. Adjusted earnings guidance increased to $4.75-$4.83 per share from the earlier range of $4.68-$4.75, reflecting stronger first-half execution and improved contributions from Mexico. The Zacks Consensus Estimate for the same is pegged at $4.75 per share. TransUnion currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. WEX Inc. WEX reported better-than-expected second-quarter 2026 results. WEX’s adjusted earnings of $5.35 per share outpaced the Zacks Consensus Estimate by 5.3% and increased 35.4% from the year-ago quarter. WEX’s revenues of $753.5 million topped the consensus estimate by 1.8% and improved 14.2% year over year. Waste Connections, Inc. WCN posted impressive second-quarter 2026 results. WCN’s adjusted earnings of $1.50 per share outpaced the consensus mark by 11.1% and rose 16.3% from the year-ago quarter. WCN’s total revenues of $2.56 billion surpassed the consensus mark by 1.1% and increased 6.4% year over year. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report TransUnion (TRU) : Free Stock Analysis Report Waste Connections, Inc. (WCN) : Free Stock Analysis Report WEX Inc. (WEX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Trane Technologies plc TT reported impressive second-quarter 2026 results, with both earnings and revenues beating the Zacks Consensus Estimate. TT’s adjusted earnings of $4.31 per share topped the Zacks Consensus Estimate by 0.9% and increased 11.1% from the year-ago quarter’s level. Revenues of $6.35 billion surpassed the consensus estimate by 2.9% and rose 10.6% year over year. Trane Technologies plc price-consensus-eps-surprise-chart | Trane Technologies plc Quote The results benefited from strong commercial HVAC demand and solid execution. Organic bookings increased 37%, while backlog reached a record $12.1 billion, up roughly 70% year over year and providing substantial visibility into future growth. TT’s shares have risen 2% over the past year against the industry’s 6% decline. The Zacks S&P 500 composite has risen 17.9% over the same time frame. Reported bookings climbed 39% to $7.82 billion, while the enterprise book-to-bill ratio was 123%. Each operating segment posted a ratio above 100%, indicating that new orders exceeded revenues during the quarter. Americas Commercial HVAC was the primary growth engine. Bookings advanced 50%, including a 130% increase in applied equipment orders. Demand remained broad-based across data centers, schools, offices, warehouses and high-tech industrial projects. The business exited the quarter with backlog up about 90%. Global applied bookings nearly doubled, while services continued to account for roughly one-third of total revenues. Services revenues have achieved a low-teens compound annual growth rate since 2020, strengthening the company’s recurring and higher-value revenue base. Organic revenues rose 9%, reflecting high-single-digit equipment growth and continued strength in services. Volume gains and positive pricing supported the top line, although inflation and elevated reinvestment limited profit conversion. Americas revenues increased 12% to $5.27 billion and advanced 11% organically. Commercial HVAC revenues grew in the low teens, led by applied solutions, which increased more than 40%. Residential HVAC revenues also rose in the low teens, while transport revenues declined by low double digits as expected. The company raised its 2026 residential revenue outlook to mid-single-digit growth following strong first-half performance and healthy channel inventories. Transport demand is expected to recover later in 2026, with healthier growth anticipated in the fourth quarter. Adjusted operating income increased 7% to $1.25 billion. However, the adjusted operating margin contracted 60 basis points to 19.7%, as inflation and increased investments more than offset volume growth and pricing. Adjusted EBITDA rose 7% to $1.34 billion, while the related margin declined 70 basis points to 21.1%. The company continued investing in production capacity, product innovation, factory automation and operational excellence to support its expanding backlog. GAAP operating income increased 5% to $1.22 billion, but the GAAP operating margin fell 100 basis points to 19.3%. GAAP continuing earnings were $4.20 per share, up 9% from the prior-year quarter. Americas adjusted operating income increased 11% to $1.17 billion. The adjusted operating margin declined 30 basis points to 22.1%, primarily reflecting accelerated business investments intended to support future growth. EMEA revenues fell 1% to $697.6 million and declined 4% organically. Adjusted operating income decreased 26% to $91.4 million, while the margin contracted 420 basis points to 13.1%. Conflict in the Middle East reduced operating income by approximately $30 million, prompting cost actions late in the quarter. Asia Pacific revenues increased 11% to $384.6 million and rose 10% organically. Organic bookings jumped 31%, supported by strong demand outside China. Adjusted operating income increased 8% to $80.8 million, though channel investments contributed to a 60-basis-point margin decline. Cash from continuing operating activities reached $1.73 billion in the first six months of 2026, up from $1.04 billion a year earlier. Free cash flow nearly doubled to $1.60 billion from $841.4 million, aided by improved working capital management. Trane Technologies ended June with $1.32 billion in cash and $4.62 billion in debt. Through July, it deployed or committed approximately $1.9 billion, including $690 million for dividends, $340 million for acquisitions and investments, and $840 million for share repurchases. The company remains on track to deploy $2.8-$3.3 billion of capital in 2026. Capital expenditures are expected to equal 2-3% of revenues as management expands capacity and supports innovation initiatives. Management now expects full-year reported revenue growth of approximately 11.5%, up from the prior projection of 9.5%. Organic revenue growth is forecast at roughly 9% compared with the earlier expectation of about 7%. Adjusted continuing earnings guidance increased to $15.20-$15.30 per share from $14.75-$14.95. The Zacks Consensus Estimate for the same is pegged at $14.89 per share. The company expects third-quarter organic revenue growth of approximately 10% and adjusted earnings of about $4.70 per share. The raised outlook reflects record backlog, accelerating Commercial HVAC revenues and improving residential and transport trends. Management expects second-half organic revenue growth of approximately 11.5%, with adjusted earnings growth of about 23.5% at the guidance midpoint. Trane Technologies currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Recent Earnings Snapshots WEX Inc. WEX reported better-than-expected second-quarter 2026 results. WEX’s adjusted earnings of $5.35 per share outpaced the Zacks Consensus Estimate by 5.3% and increased 35.4% from the year-ago quarter. WEX’s revenues of $753.5 million topped the consensus estimate by 1.8% and improved 14.2% year over year. Waste Connections, Inc. WCN posted impressive second-quarter 2026 results. WCN’s adjusted earnings of $1.50 per share outpaced the consensus mark by 11.1% and rose 16.3% from the year-ago quarter. WCN’s total revenues of $2.56 billion surpassed the consensus mark by 1.1% and increased 6.4% year over year. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Trane Technologies plc (TT) : Free Stock Analysis Report Waste Connections, Inc. (WCN) : Free Stock Analysis Report WEX Inc. (WEX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Omnicom OMC reported impressive second-quarter 2026 results, with both earnings and revenues beating the Zacks Consensus Estimate. OMC’s adjusted earnings of $2.65 per share topped the Zacks Consensus Estimate by 0.4% and increased 29.3% from the year-ago quarter. Revenues of $6.56 billion surpassed the consensus estimate by 0.8% and rose 63.3% year over year. Omnicom Group Inc. price-consensus-eps-surprise-chart | Omnicom Group Inc. Quote The sharp rise in revenues reflects the contribution from the Interpublic Group acquisition. Core Operations delivered 6.1% organic growth, led by Integrated Media and Experiential businesses. OMC’s shares have gained 16% over the past year compared with the industry’s 29.4% growth. The Zacks S&P 500 composite has risen 18.6% over the same time frame. Core Operations revenues increased 7.2% year over year to $6 billion. Organic growth contributed $339 million, while favorable foreign-currency translation added $61.7 million. Core Operations exclude businesses already divested or classified as held for sale. Management attributed the performance to expanding services for existing clients and winning new business. Omnicom added work in sports, media, production, commerce, social and influencer marketing for clients including American Express, General Mills and Uber. New integrated media wins included Adidas, IBM and Subway. Integrated Media generated $3.15 billion, representing 52.5% of Core Operations revenues. The discipline recorded organic growth of slightly more than 10%, supported by demand for media, commerce, data, customer relationship management and consulting services. Advertising revenues were $942.6 million, or 15.7% of the total and declined by high single digits organically. Management linked the weakness partly to internal restructuring, brand realignment and the disposal of smaller, slower-growing operations. Public Relations contributed $679.1 million, accounting for 11.3% of Core Operations revenues, with mid-single-digit organic growth. Experiential & Other produced $669.2 million, or 11.2%, and grew more than 10% organically, aided by activity related to the FIFA World Cup. Health revenues were $555.9 million, representing 9.3% of the total and remaining flat organically. The varied performance highlights Omnicom's reliance on Integrated Media and Experiential operations to offset softness in Advertising. The United States generated $3.54 billion, or 59% of Core Operations revenues, and recorded high-single-digit organic growth. Latin America contributed $227.9 million and expanded more than 10%, making it a notable regional growth driver. Euro Markets and Other Europe produced $826.4 million, while the United Kingdom generated $554.8 million. Asia-Pacific revenues were $537.6 million, down slightly. Middle East and Africa revenues fell at a double-digit rate amid ongoing regional conflict. Adjusted EBITA from Core Operations increased 20.4% to $1.07 billion. The related margin expanded 190 basis points to 17.8%, primarily reflecting cost-reduction synergies tied to the Interpublic combination. On a consolidated basis, adjusted EBITA rose 83.7% to $1.13 billion, while the adjusted EBITA margin improved to 17.2% from 15.3%. Reported operating income increased to $922.5 million, supported by revenue growth and the acquisition. Operating expenses climbed to $5.64 billion, largely because of the Interpublic acquisition. The quarter included $40.1 million of integration and transaction costs and $47 million of severance and repositioning expenses. Net interest expense increased to $93.3 million from $40.7 million, mainly due to debt assumed in the acquisition and refinancing activities. The adjusted effective tax rate declined to 26% from 26.5% a year earlier. Following the first-half performance, management raised its 2026 organic revenue growth outlook for ongoing operations to 4.5-5% from 4%. The company also expects adjusted earnings growth of more than 15% for the year. Omnicom remains on track to achieve $900 million of cost-reduction synergies in 2026 and $1.5 billion by mid-2028. Management said slightly more than half of the 2026 target had been delivered through the first half. Free cash flow totaled $1.50 billion during the first six months of 2026. Cash and cash equivalents were $3.34 billion at quarter-end, while gross long-term debt was $10.18 billion. The company repurchased roughly $3 billion of shares in the first half. Omnicom expects another $500 million of repurchases during 2026 and plans to complete its $5 billion authorization by the end of the first quarter of 2027. Omnicom currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. WEX Inc. WEX reported better-than-expected second-quarter 2026 results. WEX’s adjusted earnings of $5.35 per share outpaced the Zacks Consensus Estimate by 5.3% and increased 35.4% from the year-ago quarter. WEX’s revenues of $753.5 million surpassed the consensus estimate by 1.8% and improved 14.2% year over year. Waste Connections, Inc. WCN posted impressive second-quarter 2026 results. WCN’s adjusted earnings of $1.50 per share outpaced the consensus mark by 11.1% and rose 16.3% from the year-ago quarter. WCN’s total revenues of $2.56 billion surpassed the consensus mark by 1.1% and increased 6.4% year over year. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Omnicom Group Inc. (OMC) : Free Stock Analysis Report Waste Connections, Inc. (WCN) : Free Stock Analysis Report WEX Inc. (WEX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Veralto VLTO reported impressive second-quarter 2026 results, with both earnings and revenues beating the Zacks Consensus Estimate. VLTO’s adjusted earnings of $1.11 per share topped the Zacks Consensus Estimate by 11% and increased 19.4% from the year-ago quarter, aided by core sales growth, operating execution and tariff refunds. Veralto Corporation price-consensus-eps-surprise-chart | Veralto Corporation Quote Sales of $1.47 billion surpassed the consensus estimate by 2.5% and rose 7.6% year over year. Core sales grew 4.2%, led by Water Quality growth of 5.7%, while acquisitions and currency movements also supported the top line. VLTO’s shares have dipped 6.9% over the past year compared with the industry’s 9.3% decline. The Zacks S&P 500 composite has risen 18.7% over the same time frame. Core sales growth reflected a 3% contribution from pricing and a 1.2% increase in volume. Acquisitions added 2.4% to reported growth, driven mainly by In-Situ in Water Quality and GlobalVision in Product Quality and Innovation. Foreign-currency movements provided a 1 percentage point benefit. Recurring revenues grew at a high-single-digit rate and represented 62% of total sales, while non-recurring revenues advanced at a mid-single-digit pace. Water Quality sales increased 10.1% year over year to $908 million. Core sales rose 5.7%, acquisitions contributed 3.2% and favorable currency translation added 1.2%. Price and volume contributed 2.9% and 2.8%, respectively. Chemical water treatment solutions delivered 10.7% core growth, supported by broad-based industrial demand. The segment recorded double-digit growth across data centers, chemical processing, oil and gas and food and beverage markets. Adjusted operating profit increased 12.6% to $241 million, while the margin expanded 60 basis points to 26.5%. Product Quality and Innovation sales rose 3.8% to $566 million. Core sales increased 2%, acquisitions added 1.2% and currency provided a 0.6 percentage point benefit. Pricing contributed 3%, partly offset by a 1% volume decline. Marking and coding core sales grew 3.5%, with gains across equipment, consumables and services. However, lower sales of color-testing and packaging-inspection equipment weighed on packaging and color operations. Adjusted operating profit advanced 8.6% to $152 million and the adjusted margin increased 130 basis points to 26.9%. Adjusted operating profit increased 11.7% to $363 million. The adjusted operating margin expanded 90 basis points to 24.6%, while the adjusted gross margin improved 160 basis points to 61.6%. Refunds tied to tariffs previously collected under the International Emergency Economic Powers Act contributed 5 cents per share to adjusted earnings. They accounted for 110 basis points of gross-margin expansion, while price and volume leverage added another 50 basis points. Excluding the refunds, the underlying business generated 14% adjusted earnings growth. Reported operating profit was $315 million, up from $313 million in the year-ago quarter. The reported operating margin contracted to 21.4% from 22.8%, reflecting restructuring charges and other adjustments. Second-quarter costs included $29 million related to Veralto's 2026 Cost Optimization Program, $17 million of acquisition-related intangible amortization and $2 million associated with strategic initiatives. Reported net earnings increased to $241 million from $222 million, while diluted earnings rose to 98 cents from 89 cents. Operating cash flow totaled $340 million, compared with $339 million a year earlier. Capital expenditures were $12 million, resulting in free cash flow of $328 million and a conversion rate of 136% of net earnings. Veralto ended the quarter with $2.12 billion in cash, gross debt of $3.38 billion and net debt of $1.26 billion. During the quarter, it spent about $195 million to acquire GlobalVision, allocated $134 million to share repurchases and paid $32 million in dividends. For the third quarter of 2026, Veralto expects core sales growth of 4-5% and adjusted operating margin expansion of approximately 25 basis points. Adjusted earnings are projected between $1.06 and $1.09 per share. The Zacks Consensus Estimate for the same is pegged at $1.00 per share. For 2026, management raised its core sales growth forecast to 4-4.5% from 3-4.5%. Adjusted earnings guidance increased to $4.35-$4.43 from $4.20-$4.28, implying growth of 12% to 14%. The Zacks Consensus Estimate for the same is pegged at $4.24 per share. The company expects adjusted operating margin expansion of 25-50 basis points and free cash flow conversion above 100% of GAAP net earnings. Veralto currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. WEX Inc. WEX reported better-than-expected second-quarter 2026 results. WEX’s adjusted earnings of $5.35 per share outpaced the Zacks Consensus Estimate by 5.3% and increased 35.4% from the year-ago quarter. WEX’s revenues of $753.5 million topped the consensus estimate by 1.8% and improved 14.2% year over year. Waste Connections, Inc. WCN posted impressive second-quarter 2026 results. WCN’s adjusted earnings of $1.50 per share outpaced the consensus mark by 11.1% and rose 16.3% from the year-ago quarter. WCN’s total revenues of $2.56 billion surpassed the consensus mark by 1.1% and increased 6.4% year over year. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Veralto Corporation (VLTO) : Free Stock Analysis Report Waste Connections, Inc. (WCN) : Free Stock Analysis Report WEX Inc. (WEX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Xylem Inc.’s XYL second-quarter 2026 adjusted earnings of $1.46 per share beat the Zacks Consensus Estimate of $1.34. The bottom line increased 15.9% year over year.XYL’s revenues of $2.34 billion beat the consensus estimate of $2.33 billion. The top line increased 1.5% year over year, driven by strength in Transport, Energy Metering, Building Solutions and capital projects in heavy industries. Organic revenues increased 1% in the quarter.Also, orders of $3.09 billion increased 42% year over year on a reported basis and 41% on an organic basis. Revenues in the Water Infrastructure segment totaled $683 million, up 5% year over year. Organic sales increased 3%, driven by strength in Transport, which more than offset weakness in Treatment and China. The Zacks Consensus Estimate was pegged at $664 million.The Applied Water segment generated revenues of $501 million, up 4% year over year. Organic sales increased 3% in the quarter, driven by strength in the commercial end market. The Zacks Consensus Estimate was pegged at $492 million.Quarterly revenues of the Measurement & Control Solutions segment totaled $508 million, down 6% year over year. Organic sales declined 1%, as strength in Energy Metering and VUE demand partly offset lower revenues. The Zacks Consensus Estimate was pegged at $538 million.Quarterly revenues at the Water Solutions and Services segment totaled $644 million, up 3% year over year. Organic sales increased 1%, driven by strength in capital projects and Dewatering. The Zacks Consensus Estimate was pegged at $636 million. Xylem Inc. price-eps-surprise | Xylem Inc. Quote Xylem’s adjusted EBITDA was $544 million, up 8.4% from the year-ago quarter’s level. The margin improved to 23.3% from 21.8% in the prior-year quarter.Adjusted operating income was $447 million, up 11.2% year over year. Adjusted operating margin increased to 19.1% from 17.5% in the year-earlier quarter. Exiting the second quarter, Xylem had cash and cash equivalents of $1.28 billion compared with $1.48 billion at the end of December 2025. Long-term debt was $2.40 billion at the end of the quarter compared with $1.41 billion at the end of December 2025.In the first six months of 2026, XYL generated net cash of $398 million from operating activities compared with $338 million in the year-ago period. Capital expenditure was $179 million, up 5.9% from the year-earlier period. In the first six months of 2026, Xylem paid dividends of $207 million, up 5.6% year over year. The company also bought back shares worth $1.24 billion in the same period compared with $13 million in the year-ago period. Xylem has updated its 2026 outlook. The company now expects revenues of approximately $9.2 billion compared with the previous projection of $9.2-$9.3 billion. This indicates growth of approximately 2% from the prior-year level on a reported basis and 2-3% on an organic basis.Adjusted EBITDA margin is estimated to be approximately 23.1-23.5%, indicating an expansion of 90-130 basis points from the year-earlier actual.XYL forecasts adjusted earnings in the range of $5.55-$5.70 per share, up from the previous guidance of $5.35-$5.60. The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Pentair plc PNR came out with quarterly earnings of $1.14 per share in the second quarter of 2026, beating the Zacks Consensus Estimate of $1.12 per share. This compares with earnings of $1.39 per share a year ago.PNR posted revenues of $932.6 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 7.84%. This compares with year-ago revenues of $1.12 billion. WEX Inc.’s WEX adjusted earnings (excluding $2.24 from non-recurring items) in second-quarter 2026 were $5.35 per share, which surpassed the Zacks Consensus Estimate by 5.3% and increased 35.4% year over year. Revenues were $753.5 million, topping the consensus estimate by 1.8% and rising 14.2% year over year.Comstock Inc. LODE came out with a quarterly loss of $0.13 per share compared with the Zacks Consensus Estimate of a loss of $0.12 in the second quarter of 2026. This compares with a loss of $0.27 per share a year ago.LODE posted revenues of $0.27 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 80.16%. This compares with year-ago revenues of $0.34 million. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Xylem Inc. (XYL) : Free Stock Analysis Report Pentair plc (PNR) : Free Stock Analysis Report WEX Inc. (WEX) : Free Stock Analysis Report Comstock Inc. (LODE) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

WEX WEX reported impressive second-quarter 2026 results, with earnings and revenues beating the respective Zacks Consensus Estimate. WEX’s adjusted earnings (excluding $2.24 from non-recurring items) were $5.35 per share, which surpassed the Zacks Consensus Estimate by 5.3% and increased 35.4% year over year. Revenues were $753.5 million, topping the Consensus Estimate by 1.8% and rising 14.2% year over year. WEX Inc. price-consensus-eps-surprise-chart | WEX Inc. Quote Higher fuel prices, solid execution across the business and broad-based segment growth drove these positive results. Total volume across all segments increased 15.7% year over year to $68.9 billion, highlighting continued customer activity. The Mobility segment remained WEX's largest contributor, generating $422.4 million in revenues, up 22.0% from the prior-year quarter. Management attributed much of the outperformance to higher U.S. fuel prices, while payment processing transactions edged up 0.1% to 139.3 million. The Benefits segment generated $206.0 million in revenues, increasing 5.6% year over year. Average Software-as-a-Service accounts rose 2.2% to 21.7 million, while average HSA custodial cash assets climbed 11.1% to $5.2 billion. Corporate Payments revenues increased 5.8% to $125.1 million. Purchase volume declined 3.6% to $19.8 billion, although total volume processed increased 4.5% to $38.6 billion. GAAP net income increased to $3.11 per share, up 57.1% year over year. Adjusted operating income margin expanded to 39.6% from 36.8% in the year-ago quarter, while GAAP operating margin improved to 27.0% from 23.8%. Management noted that higher fuel prices contributed meaningfully to revenues and earnings outperformance. Excluding the impacts of fuel prices and foreign exchange, revenue grew 4.2%, while adjusted earnings per share increased 10.1%, reflecting solid underlying execution. The company highlighted progress across its strategic initiatives, including AI-driven productivity improvements, pricing actions within Mobility and continued momentum in Corporate Payments and Benefits. WEX ended the quarter with a leverage ratio of 2.9X, improving from 3.1X at the end of the first quarter. Net cash used in operating activities totaled $77.6 million, compared with $264.6 million in operating cash provided in the prior-year quarter, primarily reflecting higher receivable balances associated with elevated domestic fuel prices. Adjusted free cash flow improved to $219.0 million from $194.3 million a year earlier. The company repurchased approximately $60 million of shares during the second quarter, with an additional $33 million repurchased through July 20. Management indicated that most of the adjusted free cash flow will be directed toward share repurchases in the near term. For the third quarter of 2026, WEX expects revenues to be in the range of $733 million to $753 million. The Zacks Consensus Estimate for the same is pegged at $733.3 million. Adjusted earnings are expected to be $5.45-$5.65 per share. The consensus estimate for the same is pegged at $5.41. The company raised its full-year 2026 guidance to $2.86 billion-$2.90 billion, up from the previous outlook of $2.82 billion-$2.88 billion. The Zacks Consensus Estimate for the same is pegged at $2.85 billion. Adjusted earnings are projected to be in the range of $19.68-$20.08 per share compared with the earlier forecast of $18.95-$19.55. The consensus mark for the same is pegged at $19.29. The updated guidance assumes average U.S. retail fuel prices of $3.91 per gallon for full-year 2026 and does not include any potential future impacts from European fuel spreads. Management said strong fuel prices, resilient demand across all three operating segments and disciplined capital allocation supported the improved outlook. WEX currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Waste Connections, Inc. WCN reported impressive second-quarter 2026 results. WCN’s adjusted earnings of $1.50 per share outpaced the consensus mark by 11.1% and rose 16.3% from the year-ago quarter. WCN’s total revenues of $2.56 billion surpassed the consensus mark by 1.1% and increased 6.4% year over year. Rollins, Inc. ROL posted unimpressive second-quarter 2026 results. ROL’s adjusted earnings of 32 cents per share missed the Zacks Consensus Estimate by 5.9% but rose 6.7% year over year. Total revenues of $1.08 billion fell short of the consensus estimate by 1.7% but increased 7.9% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report WEX Inc. (WEX) : Free Stock Analysis Report Waste Connections, Inc. (WCN) : Free Stock Analysis Report Rollins, Inc. (ROL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in WEX Inc.? Here are five stocks we like better. WEX beat Q2 guidance with revenue of $753.5 million and adjusted EPS of $5.35, helped by fuel-price and foreign-exchange tailwinds as well as solid execution across the business. Excluding those macro benefits, results were still in line to above expectations. Mobility and Corporate Payments showed improving momentum, with Mobility revenue rising 22% and Direct AP growth re-accelerating to 20%. Management also highlighted pricing actions in Mobility and healthy non-travel embedded payments pipelines. WEX raised full-year guidance and is prioritizing buybacks, projecting 2025 revenue of $2.86 billion to $2.90 billion and adjusted EPS of $19.68 to $20.08. The company said most free cash flow will go toward share repurchases after organic investments. WEX (NYSE:WEX) reported second-quarter results above its own guidance ranges, with management citing fuel-price and foreign-exchange tailwinds, stabilizing Mobility transaction trends, and continued momentum in Corporate Payments and Benefits. President and CEO Melissa Smith said the quarter “built on the momentum” established earlier in the year, with revenue and adjusted net income per diluted share both exceeding the high end of the company’s guidance. She said that excluding the beneficial impact of fuel prices and foreign exchange, WEX delivered results in line with expectations and saw “strong execution across the organization.” → Could Truth API Become Trump Media’s First Meaningful Revenue Driver? For the quarter, WEX reported revenue of $753.5 million, up 14.2% from a year earlier. Excluding fuel prices and foreign exchange, revenue increased 4.2%, which Smith said was at the midpoint of the company’s guidance. Adjusted net income per diluted share was $5.35, up 35.4%. Excluding fuel prices and foreign exchange, adjusted EPS rose 10.1%, which Smith said was at the high end of the guidance range. CFO Jagtar Narula said foreign exchange rates and fuel prices contributed 10 percentage points to revenue growth and 25.4 percentage points to adjusted EPS growth. He also noted that WEX restarted share repurchases during the quarter, buying back about $60 million of shares in Q2, which added approximately $0.01 to earnings per share. Repurchases continued in July, with another roughly $33 million bought back through July 20. → 3 Photonics Companies Making Quantum Tech Possible WEX’s Mobility segment posted revenue growth of 22%, or 3.1% excluding foreign exchange and fuel-price impacts. Narula said the BP portfolio was fully online during the quarter following a successful migration. Payment processing transactions were flat year over year and increased 6.8% sequentially, which management described as an encouraging indicator of improving activity. The company also reported that credit losses increased from 13.5 basis points to 16 basis points, which Narula said was better than the range WEX had guided to previously. He said credit performance benefited from improving trends in the trucking sector, including a supply-side recovery that has lifted spot rates and helped truckers manage higher fuel prices. → AeroVironment’s Stock Is Down, But Drone Demand Is Taking Off However, management said demand-side conditions remain constrained by broader economic factors. In response to a question from KBW analyst Sanjay Sakhrani, Smith said WEX is not assuming a rebound in miles driven in its guidance. “To the extent we do, then that’s upside to us,” she said. Smith also said WEX is pursuing pricing opportunities in Mobility, including actions expected to generate $15 million of additional revenue in 2026. During the question-and-answer session, she said the company had already notified customers of certain pricing actions that would bring $15 million in the second half of the year. Benefits revenue rose 5.6% to $206 million, reflecting what management described as a strong open enrollment season. SaaS account growth was 2.2%, which Narula said was in line with expectations and reflected a difficult comparison from the addition of the large UAW portfolio in the prior-year quarter, as well as previously disclosed account closures in the first quarter. Narula said average HSA custodial cash assets grew 11.1%, custodial investment revenue rose 11.4%, and HSA accounts increased 7%. He said WEX Bank helps the company deliver higher yields on HSA assets through its investment portfolio. Smith highlighted two Benefits product enhancements tied to customer feedback. WEX introduced an HRA for GLP-1 medications, designed as an employer-funded benefit outside the core health plan. The company also partnered with DoorDash to allow FSA and HSA participants to add WEX benefits cards to DoorDash wallets for eligible health essentials with same-day delivery. Corporate Payments revenue increased 5.8% to $125.1 million, at the high end of WEX’s expectations. Narula said the segment’s net interchange rate expanded by 5 basis points, while total travel volume increased 6.4%. Segment purchase volume declined 3.6%, primarily because of quarter-to-quarter timing of travel volumes from a large online travel agency customer. Management said WEX continues to see healthy pipelines in non-travel embedded payments and direct accounts payable. Direct AP volume growth re-accelerated to 20% in the quarter and is expected to grow in the mid-teens for the rest of the year. Narula said Direct AP contributes about 20% of Corporate Payments revenue. In response to an analyst question, Narula said roughly one-third of Direct AP growth came from over-the-road customers, while two-thirds came from new business. Smith said WEX has also been using an AI-based lead-generation tool in Corporate Payments and has begun rolling it out to other parts of the company. Smith said WEX’s strategic priorities remain focused on amplifying its core business, expanding its reach, and accelerating innovation. She said AI is “deeply integrated” into the company’s operations and highlighted a Mobility product called AI Insights, currently in beta with customers. The offering uses WEX’s proprietary transaction, fleet and payment data to help customers identify possible misuse, savings opportunities, spending trends and driver behavior issues. Smith also said AI-powered credit tools helped WEX make faster credit decisions in Mobility as higher fuel prices increased customer credit demand. The company is also using AI in claims processing, development and coding, and operational efficiency initiatives. WEX said it remains committed to delivering more than 100 basis points of macro-neutral margin expansion in the second half of the year, as part of a plan to deliver 75 basis points for the full year. Narula said second-quarter adjusted operating margin increased about 280 basis points, primarily due to higher fuel prices. WEX ended the quarter with a leverage ratio of 2.9 times, within its target range of 2.5 to 3 times. The company generated $696 million of adjusted free cash flow on a trailing 12-month basis, up 22%. Narula said WEX typically generates about $600 million to $650 million of annual free cash flow, generally tracking adjusted net income. Management said the company expects to direct the vast majority of adjusted free cash flow to share repurchases in the near term, while using a modest amount to deleverage. Smith said the company views its shares as trading at attractive levels and believes buybacks are currently the best use of free cash flow after organic investments. For the third quarter, WEX expects revenue of $733 million to $753 million and adjusted net income per diluted share of $5.45 to $5.65. For the full year, the company now expects revenue of $2.86 billion to $2.90 billion and adjusted EPS of $19.68 to $20.08. Narula said the updated outlook reflects Q2 outperformance, share repurchases during the quarter and higher fuel-price assumptions. The guidance does not factor in share repurchases beyond Q2. Smith said WEX expects to exit the year within its long-term organic revenue growth range of 5% to 10%, excluding macro factors, supported by pricing actions, improved Mobility trends, continued Corporate Payments growth and a healthy Benefits pipeline for 2027. WEX Inc is a global financial technology company specializing in business payment solutions for fleet, travel, and corporate payments. The company delivers software-driven platforms and card-based services that help businesses automate payment processes, manage expenses and improve operational efficiency across a range of industries, including transportation, healthcare and government. Founded in 1983 as Wright Express in Portland, Maine, the company began by offering fuel card services to trucking fleets. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "WEX Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

Rollins, Inc. ROL reported unimpressive second-quarter 2026 results, with both earnings and revenues missing the Zacks Consensus Estimate. ROL’s adjusted earnings of 32 cents per share missed the Zacks Consensus Estimate by 5.9% but rose 6.7% year over year. Total revenues of $1.08 billion fell short of the consensus estimate by 1.7% but increased 7.9% from the year-ago quarter. Rollins, Inc. price-consensus-eps-surprise-chart | Rollins, Inc. Quote The quarter was affected by slower growth in parts of the residential pest control business, although commercial and termite operations continued to post healthy gains. ROL’s shares have declined 25.1% over the past year compared with a 24.4% decline in the industry. The Zacks S&P 500 composite has risen 20.8% over the same time frame. Residential revenues increased 6.6% year over year to $485.8 million. Commercial revenues climbed 8.6% to $347.9 million, while termite and ancillary revenues rose 10.5% to $234.2 million. Franchise and other revenues declined 7.4% to $10.7 million. Management attributed the softer residential performance to weaker consumer-initiated demand across search, digital media and inbound calls, which reduced lead volumes during the quarter. However, relationship-based channels, including home builders and door-to-door sales, delivered solid organic growth. Operating income increased 1.5% year over year to $201.4 million. However, the operating margin contracted 110 basis points to 18.7% as costs remained aligned for a stronger demand environment entering the peak season. Adjusted operating income rose 2% to $209.9 million, while the adjusted operating margin declined 110 basis points to 19.5%. Adjusted EBITDA increased 2.2% to $236.3 million, with the adjusted EBITDA margin contracting 120 basis points to 21.9%. Management noted that demand trends softened during the quarter while the company's cost structure remained positioned for stronger growth, weighing on profitability. To address these challenges, Rollins has implemented organizational and operational changes aimed at improving local execution, strengthening accountability and better aligning resources with current demand conditions. Management also indicated that lead volumes improved toward the end of June and continued into the first few weeks of July. The company generated operating cash flow of $172.5 million during the quarter, down 1.5% from the prior-year period. Free cash flow totaled $166.1 million, declining 1.2% year over year. During the quarter, Rollins invested $117 million in acquisitions, spent $6.4 million on capital expenditures and paid dividends totaling $88.1 million, reflecting its continued focus on growth investments and shareholder returns. Rollins exited the quarter with cash and cash equivalents of $109.1 million compared with $100 million at year-end 2025. Long-term debt totaled $487.1 million, essentially unchanged from year-end 2025. The company reiterated that its balance sheet remains strong and provides ample financial flexibility to pursue acquisitions, invest in long-term growth initiatives and maintain its balanced capital allocation strategy. Rollins currently carries a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. WEX Inc. WEX reported better-than-expected second-quarter 2026 results. WEX’s adjusted earnings per share of $5.35 outpaced the Zacks Consensus Estimate by 5.3% and increased 35.4% from the year-ago quarter. WEX’s revenues of $753.5 million surpassed the consensus estimate by 1.8% and improved 14.2% year over year. Waste Connections, Inc. WCN posted impressive second-quarter 2026 results. WCN’s adjusted earnings of $1.50 per share outpaced the consensus mark by 11.1% and rose 16.3% from the year-ago quarter. WCN’s total revenues of $2.56 billion surpassed the consensus mark by 1.1% and increased 6.4% year over year. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Rollins, Inc. (ROL) : Free Stock Analysis Report Waste Connections, Inc. (WCN) : Free Stock Analysis Report WEX Inc. (WEX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Revenue: $753.5 million, an increase of 14.2% year-over-year. Adjusted Net Income per Diluted Share: $5.35, up 35.4% year-over-year. Adjusted Free Cash Flow: $696 million on a trailing 12-month basis. Leverage Ratio: Reduced to 2.9x. Mobility Revenue Growth: 22% increase, or 3.1% excluding FX and PPG. Benefits Revenue: $206 million, up 5.6% year-over-year. Corporate Payments Revenue: $125.1 million, up 5.8% year-over-year. HSA Custodial Cash Assets Growth: 11.1% increase. HSA Accounts Growth: 7% increase. Q3 Revenue Guidance: $733 million to $753 million. Full Year Revenue Guidance: $2.86 billion to $2.9 billion. Full Year Adjusted EPS Guidance: $19.68 to $20.08 per diluted share. Warning! GuruFocus has detected 3 Warning Signs with WEX. Is WEX fairly valued? Test your thesis with our free DCF calculator. Release Date: July 23, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. WEX Inc (NYSE:WEX) exceeded the high end of its guidance range for both revenue and adjusted net income per diluted share. The company reported a strong balance sheet with leverage back below 3x, allowing for share repurchases. Revenue for the quarter increased by 14.2%, with adjusted net income per diluted share up 35.4%. WEX Inc (NYSE:WEX) is leveraging AI to improve efficiency and customer offerings, such as AI Insights in mobility. The company is prioritizing returning capital to shareholders through share repurchases, reflecting confidence in its business plan. Late fee instances reduced growth slightly, impacting revenue in the mobility segment. The demand side in the trucking sector remains constrained by broader economic conditions, affecting volume. There is ongoing uncertainty associated with higher fuel prices and geopolitical conflicts impacting travel volumes. The company faces competitive pressures, particularly in the middle market segment. Some macroeconomic factors, such as foreign exchange rates and fuel prices, continue to influence financial performance. Q: Melissa, could you discuss the green shoots in the trucking indices like the Cass Freight Index and how they factor into your expectations for the year? A: Melissa Smith, CEO: We've seen a recovery on the supply side, benefiting larger customers as they pick up volume from those exiting the market. However, we're not seeing more miles driven. Our guidance assumes the current macro state will continue through the year, with any rebound providing upside. Q: Can you provide insight into free cash flow conversion and how it relates to buybacks and deleveraging? A: Jagtar Narula, CFO: We typically generate $600 million to $650 million in free cash flow annually, closely tracking adjusted net income. The majority will go to share buybacks, with a modest amount for deleveraging, especially as fuel prices decline. Q: In the corporate payments business, volume was down but yield was up. Can you explain the dynamics and future expectations? A: Melissa Smith, CEO: Volume was impacted by timing shifts with a large OTA customer and a contract with minimum payments. We expect volumes to increase in the second half, with a slight dip in rates due to mix changes as more travel volume comes in. Q: How do you plan to achieve the 5% to 10% organic growth target by year-end? A: Melissa Smith, CEO: We're implementing pricing actions in mobility, stabilizing volume trends, and seeing strong growth in corporate payments, particularly in embedded payments and AP Direct. Benefits also show a healthy pipeline for 2027, supporting our confidence in achieving the growth target. Q: Can you elaborate on the impact of AI on your margin profile and future expectations? A: Melissa Smith, CEO: AI has helped us reduce headcount while growing revenue, and we continue to see opportunities for margin expansion through AI-driven efficiencies, particularly in operations. We expect these benefits to continue contributing to margin improvements in the future. For the complete transcript of the earnings call, please refer to the full earnings call transcript.