Corpay (CPAY) traded higher as investors reacted to the company’s announcement that it has completed the sale of PayByPhone, its mobile parking payments business, to Lightyear Capital. Management framed the move as portfolio simplification and a continued rotation toward corporate payments.

Corpay said the transaction is expected to reduce the rest-of-year 2026 revenue outlook by about $75 million versus its February guidance. Despite the revenue reduction, the company said the divestiture should be neutral to its 2026 Cash EPS outlook because it intends to use the cash proceeds for share repurchases, and it reiterated expectations for 10% organic revenue growth in 2026 inclusive of the deal’s impact.

For a payments platform, capital allocation and mix shift often matter as much as headline revenue. The combination of an asset sale, an explicit plan to redirect proceeds into buybacks, and reaffirmed organic growth expectations can be read as a signal that management views the core business as strong enough to absorb a divestiture while still supporting shareholder returns.