Western Union (NYSE:WU) Releases Quarterly Earnings Results, Beats Expectations By $0.02 EPS

Western Union (NYSE:WU) issued its quarterly earnings data on Friday. The credit services provider reported $0.45 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.43 by $0.02, FiscalAI reports. The company had revenue of $1 billion for the quarter, compared to analyst estimates of $1.04 billion. Western Union had a net margin of 18.80% and a return on equity of 60.85%. Western Union’s revenue was down 4.7% compared to the same quarter last year. During the same period last year, the company posted $0.40 earnings per share. Western Union updated its FY 2026 guidance to 1.750-1.850 EPS.

Here are the key takeaways from Western Union’s conference call:

• Western Union reported Q4 revenue of $1.0 billion (adjusted revenue -5% YoY) and adjusted EPS of $0.45, and gave a constructive 2026 outlook of 6%–9% revenue growth and $1.75–$1.85 adjusted EPS that incorporates an expected Q2 close of Intermex.
• Consumer Services and Branded Digital were growth engines — Q4 Consumer Services adjusted revenue +26% (≈30% for the year), Travel Money is approaching $150M, and digital now accounts for over 40% of principal with growing wallet adoption (Vigo, Argentina, Brazil).
• Retail remittance in the Americas remains pressured by shifting migration patterns (notably U.S.→Mexico) and the new U.S. remittance tax; CMT revenue and transactions declined, though management says some quarter‑over‑quarter stabilization is emerging.
• Cost discipline lifted profitability and liquidity — adjusted operating margin was 20%, operating cash flow $544M, over $500M returned to shareholders in 2025, and leverage (gross 2.9x / net 1.6x) leaves room for buybacks and M&A.
• Management is pursuing strategic initiatives — Intermex integration, a USD payment token (USDPT) pilot and stablecard with Rain/Visa, plus large exclusive agent wins (Deutsche Post, Canada Post, Kroger) expected to add ~$100M in annual retail revenue when fully ramped — but timing, regulatory approvals and execution risk could affect outcomes.

Western Union Price Performance

Shares of WU stock traded down $0.50 during trading hours on Friday, hitting $8.94. 9,092,551 shares of the company’s stock were exchanged, compared to its average volume of 8,498,553. Western Union has a fifty-two week low of $7.85 and a fifty-two week high of $11.94. The firm has a market cap of $2.84 billion, a P/E ratio of 3.90, a P/E/G ratio of 3.09 and a beta of 0.52. The company has a quick ratio of 1.12, a current ratio of 1.12 and a debt-to-equity ratio of 2.80. The firm has a 50 day moving average of $9.52 and a two-hundred day moving average of $8.88.

Western Union Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, December 31st. Stockholders of record on Monday, December 22nd were given a $0.235 dividend. The ex-dividend date was Monday, December 22nd. This represents a $0.94 dividend on an annualized basis and a dividend yield of 10.5%. Western Union’s payout ratio is 41.05%.

Hedge Funds Weigh In On Western Union

Several hedge funds and other institutional investors have recently added to or reduced their stakes in WU. New York State Common Retirement Fund increased its stake in shares of Western Union by 1.1% during the fourth quarter. New York State Common Retirement Fund now owns 183,199 shares of the credit services provider’s stock worth $1,706,000 after purchasing an additional 2,000 shares in the last quarter. Prelude Capital Management LLC boosted its holdings in Western Union by 13.6% in the 3rd quarter. Prelude Capital Management LLC now owns 20,480 shares of the credit services provider’s stock worth $164,000 after buying an additional 2,456 shares during the last quarter. Private Advisor Group LLC increased its stake in Western Union by 9.9% during the 3rd quarter. Private Advisor Group LLC now owns 28,798 shares of the credit services provider’s stock worth $230,000 after buying an additional 2,591 shares in the last quarter. CANADA LIFE ASSURANCE Co raised its holdings in shares of Western Union by 0.9% during the third quarter. CANADA LIFE ASSURANCE Co now owns 295,248 shares of the credit services provider’s stock valued at $2,362,000 after acquiring an additional 2,707 shares during the last quarter. Finally, Wilmington Savings Fund Society FSB raised its holdings in shares of Western Union by 606.7% during the third quarter. Wilmington Savings Fund Society FSB now owns 3,265 shares of the credit services provider’s stock valued at $26,000 after acquiring an additional 2,803 shares during the last quarter. 91.81% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

A number of equities analysts have recently issued reports on the company. Keefe, Bruyette & Woods upped their price target on Western Union from $9.00 to $10.00 and gave the stock a “market perform” rating in a research report on Friday, January 2nd. Cantor Fitzgerald upgraded Western Union to a “strong sell” rating in a research note on Tuesday, January 27th. Citigroup upgraded Western Union to a “hold” rating in a research note on Thursday, October 23rd. Susquehanna lifted their price objective on shares of Western Union from $9.00 to $10.00 and gave the stock a “neutral” rating in a research note on Monday, November 10th. Finally, UBS Group raised their price target on shares of Western Union from $8.50 to $9.00 and gave the stock a “neutral” rating in a research report on Monday, November 10th. Ten analysts have rated the stock with a Hold rating and five have assigned a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of “Reduce” and a consensus target price of $8.82.

Western Union News Roundup

Here are the key news stories impacting Western Union this week:

• Positive Sentiment: Adjusted EPS beat consensus, reporting $0.45 versus the $0.43 estimate — a sign the company is managing costs and non-GAAP performance. Western Union (WU) Surpasses Q4 Earnings Estimates
• Positive Sentiment: FY2026 guidance: EPS of $1.75–$1.85 (midpoint ~$1.80) is essentially in line with analyst consensus, and revenue guidance of $4.2–$4.4B is above the Street — this provides forward visibility and a modest upside revenue signal. Western Union Reports Fourth Quarter and Full Year 2025 Results
• Neutral Sentiment: Analyst write‑ups and metric deep dives point to mixed underlying trends — some KPIs beat or surprised, but others lag; these analyses help investors parse what drove the beat and where execution must improve. Western Union (WU) Q4 Earnings: Taking a Look at Key Metrics Versus Estimates
• Negative Sentiment: Revenue missed expectations: Q4 revenue was ~$1.0B vs. consensus ~$1.04B, and the core Consumer Money Transfer business declined (~7% YoY), reflecting ongoing digital competition and retail weakness — a substantive headwind to growth. Does Western Union’s Earnings Beat Mean Its Transition Is Working?
• Negative Sentiment: GAAP results were weaker (GAAP Q4 EPS fell to $0.36 from $1.13 a year ago) and revenue declined ~4.7–5% YoY; combined with a high debt-to-equity ratio (about 2.8), these fundamentals increase investor sensitivity to execution and macro risk. Western Union Stock Page

Western Union Company Profile

Western Union Company (NYSE: WU) is a global leader in cross-border, cross-currency money movement and payments. The company enables individuals and businesses to send and receive money through a variety of channels, including its vast agent network, online platforms, and mobile applications. Core services include person-to-person money transfers, business-to-business cross-border payments, bill payment services and prepaid card programs.

Through its digital offerings, Western Union provides customers with the ability to initiate transfers via its website and mobile app, as well as track transactions in real time.