Corpay posts record Q2 earnings, raises full-year guidance despite FTC charge

Corpay Inc. reported second-quarter 2026 revenue of $1.34 billion, marking a 21% year-on-year increase and surpassing analyst expectations by $45 million. Cash earnings per share reached $7.00, a 36% rise that established a new company record. The financial performance was underpinned by 10% organic revenue growth, with Corporate Payments leading at 16% and Vehicle Payments contributing 8%.

Management raised its full-year 2026 revenue guidance to $5.31 billion and lifted cash EPS guidance to $27.35, up from an initial target of $26. The company cited strong execution in its core segments, noting that retention held steady at 93% while new bookings grew 30% year over year. Same-store sales also turned positive at 1%, reflecting underlying demand despite broader economic headwinds.

The quarter’s results were bolstered by the Alpha acquisition and the Avid investment, which together contributed $0.39 to cash EPS, aligning with company targets. Alpha’s integration is now more than 80% complete, with corporate volume migrated to Corpay’s global platform. Meanwhile, Avid reported record EBITDA, having doubled its earnings and grown sales by more than 30%.

However, the report included significant one-off items and structural changes. Corpay recorded a $100 million settlement charge related to a Federal Trade Commission matter, which remains subject to final commission approval. Additionally, the company announced the planned divestment of its Epics vehicle payments asset, with a deal expected to close between September and October. This transaction is projected to reduce 2026 revenue by approximately $40 million.

Operating costs rose 9% excluding currency, stock compensation, and amortization, driven by increased sales investment and modestly higher credit losses. Corporate Payments organic growth also absorbed an 180 basis point drag from float revenue compression as interest rates declined. Executives acknowledged that roughly $30 million of the quarterly beat stemmed from favourable macro conditions, noting that not all upside is repeatable.

Despite the record performance, Corpay retains approximately $15 billion in available capital earmarked for share buybacks or further acquisitions. The company expects proceeds from the Epics sale to fund buybacks, aiming to keep the earnings impact neutral. As of August 14, Corpay traded at a forward price-to-earnings ratio of 16.13, with short interest sitting at 4.09% of the float.