WU

Western Union has seen its share price fall meaningfully in recent years, which puts fresh attention on a simple question for you as an investor: Is the current US$6.16 price tag still in line with what the business is earning today? - Western Union shares have declined 51.7% over the past 5 years, so the valuation conversation now heavily revolves around what the earnings stream is really worth. - The company's mature money transfer model can still convert revenue into cash, which matters a lot for how much investors are willing to pay for each dollar of earnings. - There is a second opinion on Western Union worth weighing. See what analysts think Western Union's shares could be worth. The stock's next move may depend on whether Western Union's current earnings are strong enough to justify the price the market is assigning to them today. If you are weighing whether Western Union's earnings justify its current price, it can help to compare it with a broader set of companies screened for 35 high quality undervalued stocks. The P/E ratio is often used to evaluate Western Union because earnings are a central part of how investors assess a mature cash-generating business. On this measure, the stock trades at roughly 4.9x earnings, which is well below the diversified financial industry average of about 17.1x and also significantly under the peer group reference level of about 55.3x. The fair value framework, which combines Western Union's profitability, risk profile and size, points to a higher multiple than where the shares trade today. That gap suggests the current P/E may reflect a cautious view of the company's future earnings power, rather than an optimistic price for each dollar of profit. For you as an investor, the key question is whether Western Union can at least sustain the earnings implied by this discounted P/E or whether the low multiple is warranted by structural risks in the money transfer business. Explore the numbers behind Western Union's P/E valuation. Narratives pick up where Western Union's valuation puzzle leaves off and spell out which future paths for earnings, margins and growth would need to hold for the share price to sit meaningfully above or below where it trades today. Each one turns Western Union's fair value into a specific, trackable idea about how the business might perform, so you can see over time whether that thesis is playing out or breaking down on Simply Wall St's Community page. One of the top community narratives on Western Union: 10% undervalued "The ongoing digital transformation, including expanded digital wallet offerings, card-based retail transactions, and value-added services, remains in progress…" Discover why this Narrative puts Western Union at 10% undervalued. Western Union's current valuation tells you what the market is willing to pay today, but analyst projections for the business a few years from now offer a different lens on what that might mean for you. Explore where analysts expect Western Union to be in a few years. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include WU. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

- Pfizer paid $9.8B in dividends in 2025 while earning only $7.7B in net income, marking the third straight year its payout exceeded its profit. - Icahn Enterprises yields near 30% but lost money every year from 2021 to 2025 and has already slashed its quarterly payout from $2.00 to $0.50. - Dow halved its dividend yet still failed to cover it from operating cash in 2025, posting a $2.6B net loss the same year. - Building a portfolio and living off one are two completely different skills, and almost nobody teaches the second. This problem is what The Definitive Guide to Retirement Income helps, and it is free today. Read more here. (Sponsor) Pfizer (NYSE:PFE) paid $9.771 billion in dividends in 2025 and earned net income of $7.746 billion. That was the third straight year the payout ran ahead of profit. When this repeats year after year, it is company policy. A high yield lasts only as long as the cash behind it does. Open the cash flow statement and compare three lines: cash from operations, dividends paid, and net borrowing in the financing section. If dividends beat operating cash minus capital spending for several years while debt climbs, the company is borrowing to pay owners. For a REIT, use AFFO (adjusted funds from operations). For a partnership, use distributable cash and net asset value. Icahn Enterprises (NASDAQ:IEP) pays $0.50 per unit quarterly. At $6.67, that yields near 30%. Units have fallen 65.56% over five years. Net income was negative every year from 2021 through 2025, ranging from $604 million in 2021 to $293 million in 2025. In 2025, operating cash flow was -$313 million while distributions totaled $288 million. In Q2 2026, net asset value dropped $765 million to about $2.60 billion. Total liabilities stand at $10.74 billion against equity of $1.01 billion. The quarterly payout has been cut from $2.00 to $1.00 to $0.50. ------ Many successful investors eventually reach the same moment. The saving is done, the portfolio is built, and the question quietly changes from how much can I grow this to how much can I take out? Get that second question wrong and decades of good investing can come apart in a handful of years. That is exactly what The Definitive Guide to Retirement Income helps answer. It covers what your retirement could actually cost, which income sources are worth using, and the withdrawal math that decides whether the money lasts. It is free today from Fisher Investments. Read More Here › ------ For the payout to hold, the pending $700 million Pep Boys sale needs to close and the hedge book needs to stop losing money. Hedges cost $243 million in the second quarter. BCE (NYSE:BCE) declared a quarterly dividend of $0.315, yielding about 6.38% at $19.74. The stock is down 44.7% over five years. BCE failed the check three years running. Operating cash minus capital spending came to C$3.229 billion, C$3.182 billion and C$2.56 billion from 2022 through 2024. Dividends in those years were C$3.448 billion, C$3.668 billion and C$3.8 billion. Net income in 2024 was only C$344 million. Interest expense climbed to C$1.775 billion in 2025 from C$1.516 billion in 2023. In 2025 the payment dropped from 0.718 to 0.319. After that reset, 2025 operating cash of C$6.993 billion covered capital spending of C$3.7 billion and dividends of C$2.177 billion. Risk comes from new spending: BCE plans $1.7 billion in extra capital for an AI data centre, funded with debt and cash, on top of $42.38 billion in liabilities against $17.37 billion of equity. Dow (NYSE:DOW) pays $0.35 quarterly, about 4.92% at $28.43. The company halved the payout from $0.70. In 2024, operating cash minus capital spending came to -$151 million before Dow paid $1.966 billion in dividends. In 2025, operating cash of $1.032 billion did not cover $1.49 billion in dividends, and the company lost $2.623 billion. Net interest expense grew to $713 million from $611 million. Q2 2026 brought relief. Free cash flow was $692 million and adjusted EPS of $1.44 beat the $1.28 estimate, driven by a 30% rise in polyethylene prices. To keep the payout safe, those prices must hold and Dow must deliver more than $1.30 billion in savings from its Transform to Outperform cost program. Pfizer yields 6.25%. Its quarterly dividend rose from $0.39 in 2021 to $0.43, a steady record that attracts income investors. In 2023, operating cash of $8.7 billion was not enough to cover $9.247 billion in dividends. In 2025, operating cash minus capital spending was $9.076 billion, still short of the payout. In Q2 2026, operating cash of $835 million covered only part of the $2.451 billion paid out, and the quarter ended with a $238 million net loss. Net debt stands at 3.26 times EBITDA and return on invested capital is -1.29%. Pfizer reaffirmed adjusted EPS guidance of $2.80 to $3.00 and the Vyndamax settlement extends U.S. exclusivity into 2031. Generic and biosimilar competition is expected to cut about $1.5 billion from revenue. Western Union (NYSE:WU) pays $0.235 quarterly, about 15.38% at $6.11. Shares have slid 54.53% over five years. Operating cash fell below the dividend in Q2 2024 (-$33.8 million against $81.8 million) and again a year later (-$0.3 million against $76.8 million). In both quarters of 2026, operating cash minus capital spending ($62.2 million and $63.5 million) was not enough to cover dividends of $79.4 million and $73.4 million. Liabilities total $7.05 billion against equity of $914.7 million. Adjusted EPS of $0.31 missed the $0.42 estimate. Management guided to full-year adjusted EPS of $1.25 to $1.35, assuming the Intermex deal closes on schedule. CEO Devin McGranahan said the company must "accelerate cost reductions more forcefully." Omega Healthcare Investors (NYSE:OHI) raised its quarterly dividend to $0.68, about 6% at $45.36. Shares are up 126.98% over five years. Operating cash was not enough to cover dividends in 2022 ($625.7 million against $632.9 million) and 2023 ($626.5 million against $643.9 million). For a REIT, AFFO is the right yardstick. The dividend uses about 84% of AFFO guidance midpoint of $3.22 to $3.26. That margin is thin. Genesis Healthcare, still in Chapter 11, owes Omega $148.5 million and some portfolios cover rent only 0.87x. Operating cash of $878.6 million in 2025 covered dividends of $780.4 million. A dividend cut usually drags shares down, so income investors lose both the payout and principal. Before trusting any yield, run the three-line check across several years of statements. If borrowing keeps the payout going, the business is falling short of earning it. (We cataloged seven warning signs that a big yield is about to be cut in a free report here, and most of the names above triggered more than one of them.) (Sponsor) Most people spend their entire working lives focusing on one thing: growing a pile of money. Then they retire and discover the skill they actually need is close to the opposite. Turning that pile into steady income, year after year, through good markets and bad, without ever running out. It may be the least discussed and most consequential transition in personal finance, and plenty of otherwise careful investors walk into it with no real plan. That is exactly what The Definitive Guide to Retirement Income helps answer. It is a free guide from Fisher Investments covering what your retirement will really cost, where the cash flow should come from, and how much you can safely withdraw each year. Learn more here. Learn More Here › Contact [email protected] for any questions or corrections.

Western Union's stock price has taken a beating over the past six months, shedding 30% of its value and falling to $5.92 per share. This was partly due to its softer quarterly results and may have investors wondering how to approach the situation. Is there a buying opportunity in Western Union, or does it present a risk to your portfolio? Get the full stock story straight from our expert analysts, it's free. Despite the more favorable entry price, we're sitting this one out for now. Here are two reasons why there are better opportunities than WU, plus one stock we'd rather own. Reviewing a company's long-term sales performance reveals insights into its quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Western Union's demand was weak over the last five years as its revenue fell at a 4.3% annual rate. This wasn't a great result and signals it's a low quality business. We track the long-term change in earnings per share (EPS) because it highlights whether a company's growth is profitable. Sadly for Western Union, its EPS and revenue declined by 5.3% and 4.3% annually over the last five years. We tend to steer our readers away from companies with falling revenue and EPS, where diminishing earnings could imply changing secular trends and preferences. If the tide turns unexpectedly, Western Union's low margin of safety could leave its stock price susceptible to large downswings. Western Union doesn't pass our quality test. After the recent drawdown, the stock trades at 4.1× forward P/E (or $5.92 per share). While this valuation is optically cheap, the potential downside is huge given its shaky fundamentals. There are better investments elsewhere. We'd suggest looking at the Amazon and PayPal of Latin America. WHILE YOU'RE HERE: Top 9 Market-Beating Stocks. The best stocks don't just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses. But our AI platform says the party isn't over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.

A month has gone by since the last earnings report for Global Payments (GPN). Shares have added about 4.7% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Global Payments 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 most recent earnings report in order to get a better handle on the important catalysts. Global Payments Q2 Earnings Beat Estimates on Genius Platform Momentum Global Payments reported second-quarter 2026 adjusted earnings per share (EPS) of $3.46, which beat the Zacks Consensus Estimate of $3.45. The bottom line rose 12% year over year. Adjusted net revenues improved 33.8% year over year to $3.2 billion. The top line missed the consensus mark by 0.4%. The quarterly earnings benefited from continued adoption of the Genius platform and the company's strategic transformation into a focused commerce solutions provider. However, higher operating expenses partly offset these gains. Adjusted operating income of $1.3 billion increased 25.9% year over year in the second quarter. Adjusted operating margin expanded 70 basis points (bps) year over year on a normalized basis to 42%. Total operating expenses of $3 billion increased 89.3% year over year in the second quarter. The increase was due to higher selling, general and administrative expenses, and cost of service. Interest and other expenses rose 81.9% year over year to $277.5 million. Global Payments exited the second quarter with cash and cash equivalents of $5.4 billion, which decreased from $8.3 billion at 2025-end. Total assets of $63.6 billion rose from $53.3 billion at 2025-end. Long-term debt amounted to $21.5 billion compared with $19.5 billion at 2025-end. The current portion of long-term debt totaled $925 million at the second-quarter end. Total equity of $23.8 billion rose from $23.6 billion at 2025-end. Operating activities used $373.8 million of cash in the first six months of 2026 compared with $1.4 billion provided by operating activities in the prior-year period. GPN repurchased shares worth $1.1 billion in the first half of 2026. The company declared a quarterly dividend of 25 cents per share, which will be paid out on Sept. 25, 2026, to its shareholders of record as of Sept. 11, 2026. Constant-currency adjusted net revenue growth, excluding dispositions, is expected to be 4-5% in 2026. Constant-currency adjusted EPS growth is expected to be 11-13% in 2026. GPN expects to convert approximately 90% of adjusted net income into adjusted free cash flow. Annual adjusted operating margin is expected to expand by approximately 150 basis points in 2026. Since the earnings release, investors have witnessed a downward trend in estimates review. At this time, Global Payments has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for value investors. 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 broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Global Payments has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Global Payments is part of the Zacks Financial Transaction Services industry. Over the past month, Western Union (WU), a stock from the same industry, has gained 1.3%. The company reported its results for the quarter ended June 2026 more than a month ago. Western Union reported revenues of $1.01 billion in the last reported quarter, representing a year-over-year change of -1.3%. EPS of $0.31 for the same period compares with $0.42 a year ago. Western Union is expected to post earnings of $0.35 per share for the current quarter, representing a year-over-year change of -25.5%. Over the last 30 days, the Zacks Consensus Estimate has changed -8.2%. The overall direction and magnitude of estimate revisions translate into a Zacks Rank #5 (Strong Sell) for Western Union. Also, the stock has a VGM Score of B. 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 Global Payments Inc. (GPN) : Free Stock Analysis Report The Western Union Company (WU) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Remitly Global, Inc.? Here are five stocks we like better. Strong second-quarter performance: Revenue rose 20% year over year to $495 million, while adjusted EBITDA reached a record $115 million with a 23% margin. Quarterly active customers surpassed 10 million, and send volume increased 27% to $23.5 billion. Expansion beyond core remittances: Remitly expanded its network to 179 receive geographies and reported traction in high-value transfers, Remitly Business and receiver products. It also launched the Global Card and expanded stablecoin offerings, though monetization of newer products remains early. Raised full-year outlook: The company increased its 2025 revenue forecast to $1.978 billion–$1.988 billion and expects adjusted EBITDA of $410 million–$415 million, supported by operating leverage, AI-driven efficiency and strong free cash flow. Old Money, New Tech: Western Union's Crypto Reboot Remitly Global (NASDAQ:RELY) reported second-quarter results above its guidance range, with revenue rising 20% year over year to $495 million and adjusted EBITDA reaching a record $115 million, or a 23% margin. Chief Executive Officer Sebastian Gunningham said the company also surpassed 10 million quarterly active users for the first time, supported by record new-customer additions. Quarterly active customers increased 20% from a year earlier to 10.2 million, while send volume rose 27% to $23.5 billion. Send volume per active customer reached a record $2,300, up 6% year over year. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control 3 Stocks Well Below 52-Week Highs With Strong Growth Projections “Record revenue, record adjusted EBITDA, both above the high end of guidance again,” Gunningham said. He attributed the results to the company’s remittance strategy, network scale and what he described as structural cost discipline. Remitly added five receive countries during the quarter—New Zealand, Niger, Mali, Angola and Botswana—bringing its network to 179 receive geographies. Thirty-two countries are now enabled for both sending and receiving, according to the company. → 3 Drone Stocks That Should Soar After the Summer Slump The company said new real-time pay-in rails, including FedNow and real-time payments in the U.S., helped improve funding speeds. Nearly 70% of globally funded transfers were delivered in less than 20 seconds during the quarter, an all-time high, Gunningham said. The company also cited record pay-in acceptance rates and record-low defect rates. In the U.S., revenue grew 24% year over year, while revenue from the rest of the world rose 18%, Chief Financial Officer Vikas Mehta said. Revenue from receive regions outside India, the Philippines and Mexico grew faster than overall company revenue and accounted for more than half of the revenue mix. → The Bitcoin Comeback May Already Be Underway—2 ETFs for Exposure Mehta said regulatory changes in the U.S. continued to support a shift toward digital remittances, contributing to record customer acquisition. He also said volume over Mother’s Day weekend exceeded the company’s expectations. Remitly continued expanding products beyond its core consumer remittance service, which it calls “growth accelerators.” These include high-value senders, Remitly Business, receiver products, and offerings to spend, save and borrow. The company expects these categories to represent about 5% of total revenue in 2026 and more than 10% by 2028. High-value sender volume, defined as transfers of $5,000 or more, increased 37% year over year and gained 70 basis points of mix. The company completed its first $300,000 transfer and had a customer send more than $1 million in a single quarter. Remitly added bank wires as a funding method, with customers using wires sending nearly three times more per transaction, Mehta said. Gunningham said high-value send volume more than doubled in the U.S.-Mexico corridor after the company reduced customer friction, raised send limits and added Wise as a funding option. Mehta noted, however, that high-value volume growth softened in June because of Indian rupee fluctuations and foreign-currency mobilization measures announced by the Reserve Bank of India. He said the company expects those trends affecting Indian corridors to normalize during the year. Remitly Business ended the quarter with more than 25,000 users, with sequential growth in both revenue and volume accelerating from the prior quarter. More than 80% of customers added to the business platform were new to Remitly, and the average business customer sent money 10 times per quarter, Gunningham said. The company expanded its receiver product from six countries to 130 countries. The offering generated revenue for the first time in the second quarter. Management said the product could provide direct access to more than 30 million receivers on its platform, although Gunningham said monetization remains in its early stages. Remitly launched the Remitly Global Card last week, offering customers a single account for sending, spending, saving and receiving money. The product includes no-fee everyday spending, direct deposit, global ATM access, multicurrency and USDC capabilities, instant transfers between cardholders, and no foreign transaction fees, according to Gunningham. The company also offers a $9.99 monthly membership plan that includes an open-end line of credit, which customers can use to remit money before payday and repay over time. Mehta said the associated lines of credit are funded by a third-party bank partner and that the newer card plan format has shown response and conversion rates above prior benchmarks. Separately, Remitly launched a global stablecoin wallet with a debit card in Latin America, allowing receivers to receive, hold and spend USDC. The company also joined the OpenUSD stablecoin consortium as a founding member. Gunningham said the stablecoin could potentially reduce pay and settlement times by up to one day. Mehta said stablecoins are already producing early treasury-settlement benefits, though the absolute impact remains modest. Management emphasized artificial intelligence as a contributor to productivity and operating leverage. Technology and development expense increased in the mid-single digits, while declining 175 basis points as a percentage of revenue to 11.2%. General and administrative expense fell 11% year over year to $41 million, its first annual decline as a public company, Mehta said. The company said AI-driven fraud prevention and detection helped keep provisions for transaction losses below expectations. Transaction margin, formerly called revenue less transaction expense, increased 25% to $334 million, with margin improving 235 basis points to 67%. Net income was $206 million, including a $140.6 million release of a tax valuation allowance. Free cash flow nearly tripled from a year earlier to more than $130 million, aided by operating leverage, favorable working capital and lower property and equipment spending. Remitly repurchased $21 million of stock, or more than 1.1 million shares, during the quarter. Year to date, it has repurchased nearly 4 million shares. For the third quarter, the company forecast revenue of $505 million to $507 million, representing 20% to 21% growth, and adjusted EBITDA of $92 million to $94 million, implying an 18% to 19% margin. For the full year, Remitly raised its revenue outlook to $1.978 billion to $1.988 billion, or 21% to 22% growth, and projected adjusted EBITDA of $410 million to $415 million, for an approximately 21% margin. Gunningham said the company intends to pursue market-share gains aggressively through sharper pricing, faster money movement and improved service, while continuing to invest selectively in its newer products. Remitly Global, Inc operates as a digital financial services company specializing in cross-border money transfers. Through its proprietary online platform and mobile applications, the company enables immigrants, expatriates and international workers to send remittances swiftly and securely to their families abroad. By focusing on fast deliverability and transparent pricing, Remitly seeks to streamline a process traditionally dominated by cash-based methods and legacy money transfer operators. Founded in 2011 by Matt Oppenheimer and headquartered in Seattle, Washington, Remitly has grown from a startup into a publicly traded corporation listed on NASDAQ under the ticker RELY. 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 "Remitly Global Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

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-eps-surprise-chart | The Western Union Company Quote 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. 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%. 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 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. 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 currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. 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. 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 The Western Union Company (WU) : Free Stock Analysis Report Mastercard Incorporated (MA) : Free Stock Analysis Report Visa Inc. (V) : Free Stock Analysis Report Marsh (MRSH) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in The Western Union Company? Here are five stocks we like better. Second-quarter results fell short of expectations: Revenue declined 1% year over year to $1 billion, while adjusted EPS dropped to $0.31 from $0.42. Weakness in Americas retail transfers, lower-margin digital payouts, higher agent commissions and Middle East profitability pressures weighed on results. Consumer Money Transfer transactions grew 3%, but the shift from higher-margin cash payouts to digital account and wallet payouts continued to pressure margins. Branded Digital transactions rose 25% and Consumer Services revenue increased 12%, although profitability declined in both areas due to unfavorable mix and higher costs. Western Union launched its Beyond Efficiency program, targeting $50 million in annualized cost savings by the end of 2026 and $200 million by the end of 2027, while expanding its Beyond Digital platform and stablecoin initiatives. The company maintained its 2026 outlook for 4%–6% adjusted revenue growth and $1.25–$1.35 in adjusted EPS, including the planned Intermex acquisition. Old Money, New Tech: Western Union's Crypto Reboot Western Union (NYSE:WU) reported second-quarter 2026 revenue of $1 billion, with adjusted revenue declining 1% from a year earlier, as continued weakness in Americas retail money transfers and a shift toward lower-profit digital payout transactions weighed on results. Adjusted earnings per share were $0.31, down from $0.42 in the prior-year quarter and below the company’s expectations. Chief Executive Officer Devin McGranahan said the result reflected lower profitability in the Americas retail business, lower profitability in the Middle East, higher agent commissions and continued migration from cash payouts to digital account and wallet payouts. → Microsoft Just Flipped the AI Spending Narrative Overnight 5 best fintech stocks to buy now “Our financial results in this quarter came in below our expectations for the second quarter in a row,” McGranahan said. “This is not acceptable, we are not satisfied with the current operating performance and will be implementing significant changes as a result.” Consumer Money Transfer transactions increased 3% year over year, marking the company’s highest transaction growth rate since the second quarter of 2024. McGranahan said the result was a 300-basis-point improvement from the first quarter and a 600-basis-point improvement from the prior year. → 2 Unique Space ETFs That Could Upend the Industry However, the growth came disproportionately from lower-contribution-profit channels. The company said cash payouts generally generate higher revenue per transaction and contribution profit per transaction than digital payout transactions. Western Union has also seen rapid growth in digital payout-to-account and payout-to-wallet activity, which management said has created margin headwinds. Account payout transactions grew 50% during the quarter, while CEO McGranahan said payout-to-account and payout-to-wallet transactions have increased 25% over the past 12 months. He cited Colombia as an example of the changing mix, where remittance volumes have shifted from cash payouts toward bank accounts, the Nequi wallet and the country’s Bre-B real-time payments system. → MarketBeat Week in Review – 07/27- 07/31 Chief Financial Officer Matt Cagwin said retail money transfers in the U.S. remained under pressure because immigration policy has reduced new migration, which management described as a key source of new retail customers. U.S. retail transactions remained down in the mid-teens during the quarter, though U.S.-to-Mexico transaction declines improved to slightly more than 3%. Management said policy-related impacts have stabilized in some corridors and improved from the lows of 2025, but have not eased as much as the company expected at the beginning of the year. Western Union’s Branded Digital business recorded 25% transaction growth and 6% adjusted revenue growth in the second quarter. The company said much of that growth was driven by partnerships in the Middle East, where transaction volumes have expanded but revenue per transaction and profitability are lower than in its traditional licensed operations. McGranahan said the company has started to pull back on certain promotional offers in the U.S. and Europe after determining that aggressive customer incentives were not delivering acceptable longer-term returns. He said new-customer growth has recently improved at higher revenue per transaction levels. The company is also accelerating deployment of its Beyond Digital platform, with planned launches in Australia, Europe and the U.S. before year-end. Western Union expects the platform to improve onboarding and customer acquisition returns, and continues to target deployment across major markets by the end of 2027. Consumer Services adjusted revenue rose 12%, supported by Bill Pay, Travel Money and check-cashing contributions. Consumer Services represented 15% of total revenue during the quarter, compared with 6% in 2022, according to Cagwin. Segment profitability declined, however, due to lower Travel Money operating profit, lower float income in Retail Money Order and delayed overhead reductions tied to a check-cashing acquisition. Western Union launched a cost-reduction initiative called Beyond Efficiency, targeting $50 million in run-rate operating cost reductions by the end of 2026 and $200 million by the end of 2027. The program includes reducing redundant work, cutting discretionary operations and technology capacity by 20%, expanding automation and artificial intelligence use, localizing certain operating functions and reducing the costs of moving money. Among the actions, the company plans to close its existing digital wallets in Europe, which management said should save $6 million to $8 million on a run-rate basis. Western Union expects to replace those wallets with its Beyond Digital platform by the end of the year. Management also said it is pursuing lower digital payout costs. McGranahan said the company recently reduced the payout cost for transactions to Colombia’s Nequi wallet from more than $2 to less than $0.50. Western Union said it launched its USDPT U.S. dollar stablecoin in May and has made it available through four exchanges. The company is testing USDPT with counterparties for settlement of cross-border money transfers and has introduced a Treasury Bridge solution intended to improve liquidity movement and settlement speed. The company also launched its Digital Asset Network, designed to connect exchanges and digital-asset partners to Western Union’s payout infrastructure. McGranahan said the first partner is live, with several additional launches expected in coming weeks. Western Union also launched its USDPT Stablecard. For 2026, Western Union now expects adjusted revenue growth of 4% to 6%, including the planned Intermex acquisition and assuming a Sept. 1 close. The company expects adjusted EPS of $1.25 to $1.35 for the year, with second-half earnings anticipated to exceed first-half earnings due to new agent wins, seasonality, improved revenue mix and efficiency actions. Western Union generated $214 million in year-to-date operating cash flow, up 45% from the prior year, and ended the quarter with $920 million of cash and cash equivalents and $2.7 billion of debt. The company returned more than $80 million to shareholders through dividends and repurchases during the quarter, but said it has paused buybacks to maintain targeted leverage levels while awaiting the Intermex transaction. Western Union Company (NYSE: WU) is a global leader in cross-border, cross-currency money movement and payments. The company enables individuals and businesses to send and receive money through a variety of channels, including its vast agent network, online platforms, and mobile applications. Core services include person-to-person money transfers, business-to-business cross-border payments, bill payment services and prepaid card programs. Through its digital offerings, Western Union provides customers with the ability to initiate transfers via its website and mobile app, as well as track transactions in real time. 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 "Western Union Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Western Union recently reported second-quarter 2026 results showing sales of US$1,013.2 million and net income of US$76.7 million, alongside updated 2026 GAAP revenue guidance to 3% to 5% growth. The quarter underscored a tension between expanding digital initiatives like its stablecoin-linked Digital Asset Network and pressure on profitability, with diluted EPS from continuing operations dropping to US$0.24 from US$0.37 a year earlier. Now we’ll explore how weaker earnings guidance, despite ongoing digital expansion, reshapes Western Union’s existing investment narrative and risk outlook. Explore 26 top quantum computing companies leading the revolution in next-gen technology and shaping the future with breakthroughs in quantum algorithms, superconducting qubits, and cutting-edge research. To own Western Union, you have to believe its shift from cash remittances to higher-margin digital and stablecoin-enabled services can offset pressure on its legacy retail network and fees. The latest quarter, with weaker EPS and trimmed earnings expectations despite reaffirmed GAAP revenue growth of 3% to 5%, puts near term focus on whether the digital pivot and cost cuts can stabilize margins. The biggest current risk is that both retail and digital growth slow while competition pushes fees lower. The most relevant recent announcement here is Western Union’s updated 2026 guidance, which reaffirmed low single digit GAAP revenue growth while earnings guidance softened. That combination highlights the tension between investing in initiatives like the Digital Asset Network and maintaining profitability. It also raises questions about how quickly programs such as Beyond, aimed at reducing operating costs by 2027, can offset margin headwinds from agent incentives and slower retail volumes. Yet investors should also be aware that if fee compression from digital first and stablecoin competitors accelerates faster than Western Union’s cost savings and digital growth... Read the full narrative on Western Union (it's free!) Western Union's narrative projects $4.7 billion revenue and $560.6 million earnings by 2029. This requires 4.8% yearly revenue growth and about a $119.8 million earnings increase from $440.8 million today. Uncover how Western Union's forecasts yield a $8.64 fair value, a 12% upside to its current price. Some of the most optimistic analysts were expecting revenue of about US$5.1 billion and earnings of roughly US$691 million by 2029, but after a quarter where EPS missed forecasts and stablecoin initiatives did not prevent margin pressure, you can see how views on whether early stablecoin adoption really boosts cash flow could now diverge even more. Explore 7 other fair value estimates on Western Union - why the stock might be worth just $8.43! Don't just follow the ticker - dig into the data and build a conviction that's truly your own. A great starting point for your Western Union research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision. Our free Western Union research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Western Union's overall financial health at a glance. Every day counts. These free picks are already gaining attention. See them before the crowd does: Uncover the next big thing with 21 elite penny stocks that balance risk and reward. Invest in the nuclear renaissance through our list of 89 elite nuclear energy infrastructure plays powering the global AI revolution. The latest GPUs need a type of rare earth metal called Dysprosium and there are only 29 companies in the world exploring or producing it. Find the list for free. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include WU. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Track your investments for FREE with Simply Wall St, the portfolio command center trusted by over 7 million individual investors worldwide. Western Union (WU) is in focus after a mixed quarterly earnings release and a cut to full year adjusted EPS guidance, with management pointing to margin pressure and slower than expected acquisition synergies. See our latest analysis for Western Union. Western Union’s 1 day share price return of down 4.94% and 90 day share price return of down 16.50% suggest pressure has been building for some time, even though the 1 year total shareholder return of 6.66% has remained positive. If this earnings move has you reassessing your watchlist, it could be a useful moment to broaden your search and check out 19 top founder-led companies Western Union still runs a large global money transfer and consumer services business, yet the share price reaction and trimmed earnings guidance raise a different question: Is this a strong franchise that the market now prices on the cheap or not cheap enough? Western Union’s most followed valuation narrative points to a fair value of $8.64 against a last close of $7.69, which implies meaningful upside in that framework and puts the recent earnings disappointment in a different light. Read the complete narrative. The narrative hangs on a simple question: Can Western Union convert a mature cash business into a leaner digital engine with higher margins and steady revenue growth? The fair value hinges on that digital mix shift, the earnings path that comes with it, and the valuation multiple investors apply if that story plays out. Result: Fair Value of $8.64 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, Western Union still faces clear threats from faster growing digital and fintech competitors, as well as from potential regulatory or tax changes that could squeeze margins and remittance volumes. Find out about the key risks to this Western Union narrative. With Western Union pulled between credible risks and attractive rewards, it makes sense to move quickly and review the details yourself. To see the full breakdown of both sides, including the key concerns and potential upsides investors are focused on, check out the 4 key rewards and 2 important warning signs. If Western Union’s latest move has you rethinking your portfolio, this is a good moment to scan other opportunities that might suit your goals and risk comfort. Target resilient businesses that prioritise financial strength by checking the solid balance sheet and fundamentals stocks screener (46 results). Spot potential mispricings where quality and valuation meet through the 56 high quality undervalued stocks. Hunt for opportunities the crowd may be overlooking using the screener containing 20 high quality undiscovered gems. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include WU. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

This article first appeared on GuruFocus. Revenue: GAAP revenue was $1 billion, down 1% year-over-year on an adjusted basis. Adjusted EPS: $0.31 in the quarter, compared to $0.42 in the prior year quarter. Adjusted Operating Margin: 15% in the quarter, impacted by lower retail revenue, mix, higher agent signing bonuses, and higher operating expenses. Consumer Money Transfer (CMT) Transactions: Grew 3% year-over-year. CMT Adjusted Revenue: Declined 3% year-over-year, a 300 basis point improvement from Q1. Branded Digital Revenue: Adjusted revenue grew 6% year-over-year. Branded Digital Transactions: Increased 25% year-over-year. Account Payout Transactions: Grew 50% in the quarter. Consumer Services Adjusted Revenue: Increased 12% year-over-year. Operating Cash Flow: $214 million year-to-date, up 45% versus last year. Capital Expenditures: $88 million year-to-date, 65% higher than the prior year. Adjusted Effective Tax Rate: 14% in the quarter, compared to 16% in the prior year. Cash and Cash Equivalents: $920 million at the end of the quarter. Debt: $2.7 billion at the end of the quarter. 2026 Adjusted Revenue Guidance: 4% to 6% growth, inclusive of the Intermex acquisition. 2026 Adjusted EPS Guidance: Between $1.25 and $1.35. Warning! GuruFocus has detected 5 Warning Signs with WU. Is WU fairly valued? Test your thesis with our free DCF calculator. Release Date: July 30, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. The Western Union Co (NYSE:WU) reported adjusted revenue of $1 billion, a decline of only 1% year-over-year, a meaningful improvement from the 5% decline in the prior year. Consumer money transfer transactions grew 3% in the quarter, a 300 basis point improvement from Q1 and the highest transaction growth rate since Q2 2024. The branded digital business continued to perform well, with transactions increasing 25% and adjusted revenue growing 6% in the quarter. Consumer Services adjusted revenue was up 12% in the quarter, driven by growth in the bill pay and Travel Money businesses. The company launched its Beyond efficiency program, targeting a run rate operating cost reduction of $50 million by the end of the year and $200 million by the end of 2027. The Western Union Co (NYSE:WU) successfully launched its USDPT stablecoin and Digital Asset Network, with the first four exchanges live and trading, and introduced a USDPT stable card. Year-to-date operating cash flow was $214 million, up 45% versus last year, driven by lower cash taxes. Adjusted EPS came in at $0.31 in the quarter, down from $0.42 a year ago, below expectations due to lower profitability in the Americas retail and Middle East businesses. The ongoing slowdown in the retail business in the Americas, particularly in the US, continued to be a significant headwind, with US retail transactions down mid-teens. The accelerated shift from cash payout transactions to lower-revenue digital payout-to-account transactions continues to weigh on profitability and margins. Higher agent commissions and signing bonuses associated with new partner wins and renewals are increasing costs and pressuring margins. The company has paused its share buyback program to maintain its debt-to-EBITDA ratio between 2.5 times and 3 times. New customer acquisition economics remain challenged, impacting the overall revenue growth and profitability of the digital business. The company lowered its 2026 adjusted EPS guidance to a range of $1.25 to $1.35, reflecting the ongoing margin pressures and weaker-than-expected performance. Q: Can you provide more detail on the cost side and the drivers behind the margin pressure?A: CFO Matt Cagwin explained that the margin pressure stems from two major drivers. First, the pace of cost reduction has slowed compared to last year, when the company was able to rightsize departments and exit programs. Second, and more significantly, there has been a shift in revenue mix toward lower contribution profit per transaction (CPPT). This is driven by the acceleration of cash payout to digital in both the US and the Middle East, where digital transactions yield lower profit dollars per transaction than cash payouts. The company is addressing this through its "Beyond efficiency" program, targeting $50 million in run rate cost savings by year-end and $200 million by the end of 2027. Q: Can you decompose the extent to which payout-to-account transactions are less profitable than retail, and how much of that gap can be closed?A: CEO Devin McGranahan noted that while digital transactions are roughly margin-similar to retail on a percentage basis, the contribution profit per transaction is significantly different. The company has two levers to address this: growing higher revenue and higher contribution per transaction in the digital business, and aggressively lowering digital payout costs. He provided a concrete example in Colombia, where the team recently lowered the payout cost from over $2 to less than $0.50 for Nequi wallet transactions, dramatically improving contribution profit. CFO Matt Cagwin added that the pressure is also driven by Middle East partners, which have very low revenue per transaction and thus very low profit. Q: Given the current profitability pressures and broader business headwinds, how are you thinking about the sustainability of the current dividend over the medium term?A: CEO Devin McGranahan affirmed that the Board of Directors believes the dividend is a strong return to shareholders and that the company has sufficient financial capacity to maintain it. CFO Matt Cagwin added that the company has over $900 million in cash on its books and expects to free up additional capital through its USDPT treasury bridge solution, which could ramp over $1 billion of float in the first quarter of next year. This provides line of sight to improved cash flow, supporting the Board's commitment to the dividend. Q: After one month into the third quarter, what do you see in terms of US immigration policy? Have things gotten worse or started to ease?A: CEO Devin McGranahan described the situation as a continuation of the policies and effects seen over the past year, but noted that the effects have stabilized at a certain level. While the negative effects continue, they are no longer worsening and in some cases are abating, though slower than anticipated at the beginning of the year. He noted that the company expected to see more stability by this time due to lapping the effects that peaked in Q3 2025. The impact varies by corridor, with more stability in US-to-Mexico but continued pressure in other corridors like those affected by events in Venezuela. Q: Can you revisit the opportunities to expand ARPU beyond just customer growth, and where are you with the Beyond digital platform?A: CEO Devin McGranahan explained that the company has begun pulling back on new customer incentives, as competitive intensity has driven up customer acquisition costs with offers like free transactions for a month. The focus is now on optimizing CAC to LTV, targeting the most valuable customers with higher send frequency and principal amounts. The Beyond digital platform, which is being rolled out in Australia, Europe, and the US before year-end, is expected to improve new customer onboarding success rates and reduce the magnitude of needed new offer incentives, thereby improving returns on acquisition investments. Q: On the higher agent bonuses, is that same dynamic playing out in other regions, and what drove lower profitability in Travel Money?A: CFO Matt Cagwin addressed Travel Money first, noting that travel is down in Europe, with Heathrow travel patterns negative for the first time since COVID, putting pressure on profitability. On agent bonuses, he explained that it's a heavy agent renewal cycle this year, with wins like Deutsche Post and Canada Post being competitive takeaways at the higher end of typical strategic partner economics. CEO Devin McGranahan added that the company successfully renewed contracts with major US retailers like Kroger, Walmart, and Albertsons in the face of increased competition, securing these relationships at economics not too different from previous terms. Q: On remittance taxes, what are your thoughts on the Tennessee proposal and any other state or local taxes on the horizon?A: CEO Devin McGranahan noted that the federal remittance tax drove up card acceptance to over 20% in the retail network, as customers moved to bank products to avoid the tax. Several states, most notably Tennessee, have passed or proposed state-specific taxes. While Tennessee is an important state, it's not comparable to Florida, Texas, or California in magnitude. He noted that customers can simply cross state borders to send money if the tax equation becomes significant, and the company doesn't expect significant impact from these proposals. Q: Can you disaggregate how much of the change in EPS guidance is coming from each of the various factors outlined?A: CFO Matt Cagwin explained that the first half of the year saw EPS down $0.15 in Q1 and $0.11 in Q2 year-over-year, with the full-year guide effectively down $0.50. He noted that Q1 had pressure from FX losses and delayed money from a partner, while roughly 50-60% of the pressure in both quarters came from the mix shift items discussed, including lower profitability in Americas retail and Middle East business. The remainder was driven by other factors like higher operating expenses and agent signing bonuses. Q: Can you provide more color on the mix shift dynamics, particularly the acceleration in some corridors versus deceleration in others?A: CFO Matt Cagwin explained that retail is very profitable, particularly cash payout, but the company has faced double-digit declines in US retail for about six quarters. While there have been improvements in US-to-Mexico and US-to-Canada corridors, there's been deterioration in US to the rest of the world, which has higher yields. CEO Devin McGranahan highlighted Colombia as a surprising example, where the shift from cash payout to digital wallets like Nequi and real-time payment systems like Bre-B has been remarkably fast, significantly impacting economics as digital payout economics differ greatly from cash payout in the same corridor. Q: On the cost side, what are the real levers within the product-specific P&L for retail For the complete transcript of the earnings call, please refer to the full earnings call transcript.