Western Union Q4 EPS Beats, Revenue Falls 5%, Margin Rises to 20%
Western Union reported Q4 adjusted EPS of $0.45, beating the $0.43 consensus, while revenue of $1.008 billion declined 5% year-over-year and missed the $1.045 billion estimate. Adjusted operating margin rose to 20% from 17%, and full-year 2026 guidance forecasts adjusted EPS of $1.75–$1.85 on revenue of $4.237–$4.357 billion.
1. Q4 Financial Results
Western Union reported adjusted EPS of $0.45 in Q4, surpassing the $0.43 consensus, while quarterly revenue totaled $1.008 billion, down 5% year-over-year and below the $1.045 billion forecast. Shares declined about 3.4% following the mixed results.
2. Segment Performance and Margin Expansion
The Consumer Services segment grew revenue 15% reported (26% adjusted) and Travel Money expansion drove gains, while Branded Digital revenue rose 7% reported (6% adjusted). The CMT segment saw a 7% reported decline, and overall adjusted operating margin improved to 20% from 17% due to cost efficiencies.
3. 2026 Guidance Outlook
For fiscal 2026, Western Union projects GAAP EPS of $1.50–$1.60 versus a $1.75 estimate, and adjusted EPS of $1.75–$1.85 versus $1.78 consensus. Revenue guidance of $4.237–$4.357 billion tops the $4.120 billion forecast, reflecting a cautious but optimistic growth outlook.
4. Acquisition, Cash Position and Dividend
The company expects to close its International Money Express acquisition in Q2 2026 and ended Q4 with $1.234 billion in cash and equivalents. Western Union also approved a Q1 dividend of $0.235 per share, payable on March 31 to holders of record on March 17.