WEX raises FY26 sales and EPS guidance after strong Q2
WEX reported Q2 2026 revenue of $753.5 million, up 14.2% YoY, with adjusted EPS of $5.35. All segments grew, led by Mobility. The company raised full-year 2026 guidance, projecting revenue of $2.86-$2.90 billion and adjusted EPS of $19.68-$20.08.
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WEX reported financial results for the second quarter of 2026, demonstrating significant growth across key metrics and prompting an upward revision of its full-year guidance. Total revenue for the quarter reached $753.5 million, a 14.2% increase compared to the prior year period. This performance led the company to raise its full-year 2026 outlook for both revenue and adjusted net income.
Second Quarter 2026 Financial Highlights
The company achieved substantial growth in profitability and volume during the quarter. The following table summarizes the key financial metrics for Q2 2026 compared to Q2 2025:
| Metric: | Q2 2026 | Q2 2025 | Change |
|---|---|---|---|
| Total Revenue: | $753.5 million | $659.6 million | +14.2% |
| GAAP Net Income: | $108.5 million | $68.1 million | — |
| GAAP EPS (Diluted): | $3.11 | $1.98 | +57.1% |
| Adjusted Net Income: | $186.5 million | $136.2 million | — |
| Adjusted EPS (Diluted): | $5.35 | $3.95 | +35.4% |
| GAAP Operating Income Margin: | 27.0% | 23.8% | — |
| Adjusted Operating Income Margin: | 39.6% | 36.8% | — |
| Total Volume (All Segments): | $68.9 billion | — | +15.7% |
The revenue increase included net favorable impacts of $63.8 million from fuel prices and $2.1 million from foreign exchange rates. Six-month total revenues for the period ended June 30, 2026, were $1,427.4 million, compared to $1,296.1 million in the prior year period.
Segment Performance
All three business segments delivered revenue growth. The Mobility segment led with $422.4 million in revenue, up 22.0%, while the Benefits and Corporate Payments segments grew 5.6% and 5.8%, respectively.
| Segment: | Q2 2026 Revenue | YoY Change |
|---|---|---|
| Mobility: | $422.4 million | +22.0% |
| Benefits: | $206.0 million | +5.6% |
| Corporate Payments: | $125.1 million | +5.8% |
Mobility Segment
The Mobility segment recorded an operating income margin of 34.9% and a segment adjusted operating income margin of 43.2%. Payment processing transactions increased slightly to 139.3 million.
Benefits Segment
The Benefits segment reported an operating income margin of 27.1% and a segment adjusted operating income margin of 40.5%. Average SaaS accounts grew 2.2% to 21.7 million, and average HSA custodial cash assets increased 11.1% to $5.2 billion.
Corporate Payments Segment
The Corporate Payments segment achieved an operating income margin of 37.5% and a segment adjusted operating income margin of 46.7%. Purchase volume decreased 3.6% to $19.8 billion, while total volume processed increased 4.5% to $38.6 billion.
Balance Sheet and Cash Flow
Net cash used for operating activities was $77.6 million, compared to $264.6 million provided by operating activities in the prior year, primarily due to higher domestic fuel prices impacting receivable balances. Adjusted free cash flow was $219.0 million, up from $194.3 million. The leverage ratio improved to 2.9x as of June 30, 2026, down from 3.1x at the end of the first quarter. Share repurchases totaled approximately $60 million during Q2, with an additional $33 million executed through July 20.
Financial Guidance
WEX raised its full year 2026 guidance, exceeding analyst estimates. The updated outlook reflects strong momentum across the business segments.
| Period: | Revenue Guidance | Adjusted Net Income Guidance | Adjusted EPS Guidance |
|---|---|---|---|
| Q3 2026: | $733 million to $753 million | $189 million to $196 million | $5.45 to $5.65 per diluted share |
| Full Year 2026 (Updated): | $2.86 billion to $2.90 billion | $689 million to $703 million | $19.68 to $20.08 per diluted share |
| Full Year 2026 (Previous): | $2.82 billion to $2.88 billion | $667 million to $688 million | $18.95 to $19.55 per diluted share |
For the third quarter, WEX projects adjusted EPS of $5.45 to $5.65, compared to the analyst estimate of $5.38. The company anticipates sales between $733.000 million and $753.000 million, versus the analyst estimate of $736.154 million. Key assumptions for the guidance include U.S. retail fuel prices of $3.90 and $3.91 per gallon for the third quarter and full year 2026, respectively. The adjusted net income effective tax rate is assumed at 25.0%. Weighted average diluted shares outstanding are estimated at 34.7 million for Q3 and 35.0 million for the full year.
How will WEX sustain the Mobility segment's 22% revenue growth amidst potential economic headwinds?
What impact will volatile U.S. retail fuel prices have on Q3 operating cash flow and receivable balances?
Can the Benefits segment maintain margin expansion as HSA custodial cash assets grow?
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