Wex Stock Earnings Reports

WEX reported a strong start to 2026, beating the high end of guidance for both revenue and adjusted net income per diluted share. Q1 revenue was $673.8M (up 5.8% YoY; +5.4% ex-fuel & FX) and adjusted EPS was $4.15 (up 18.2% YoY; +19.4% ex-fuel & FX). Growth was broad-based: Mobility (~50% of revenue) grew 3.2% with improving pricing, sales productivity and new products (including the 10-4 app) and a completed BP conversion; Benefits (~30% of revenue) grew 8.5% driven by a strong open enrollment, HSA account growth (9.4M, +8% YoY) and better custodial yields via WEX Bank; Corporate Payments (~20% of revenue) grew 9.3%, helped by travel renewals and expansion outside travel (direct AP grew in-line with Q4). Management highlighted AI-driven product innovation and operational automation as key drivers of sustained productivity and said they plan $50M of cost-savings in 2026 (automation/modernization), with part reinvested and the rest flowing to margins. Q2 revenue guide: $727M–$747M and adjusted EPS $4.93–$5.13. Full-year guidance: revenue $2.82B–$2.88B and adjusted EPS $18.95–$19.55 (up vs prior midpoints; increases largely reflect updated fuel-price assumptions). Margin outlook: management expects ~75 bps of operating margin expansion on a macro-neutral basis (130 bps reported in Q1 before normalizing for credit/fuel FX noise). Balance sheet: trailing 12-month adjusted free cash flow was $671M (+14% YoY). Leverage was 3.1x at quarter end; priority is reducing leverage to below 3.0x before resuming more aggressive external capital deployment. Key risks/near-term noise: fuel price volatility and fuel-price spreads (European spreads vs. U.S.), short-term softness in Middle East travel corridor (low-single-digit million $ impact per quarter reflected in Q2 guide), and elevated but manageable credit-loss timing effects. Management also noted an active proxy contest and plans an investor webcast with the lead independent director designee.