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

Western Union (NYSE:WU) released its quarterly earnings data on Friday. The credit services provider reported $0.45 earnings per share for the quarter, topping analysts’ consensus estimates of $0.43 by $0.02, FiscalAI reports. The firm had revenue of $1 billion during the quarter, compared to analyst estimates of $1.04 billion. Western Union had a return on equity of 60.85% and a net margin of 18.80%.The business’s quarterly revenue was down 4.7% compared to the same quarter last year. During the same quarter in the prior 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 Trading Down 5.3%

Shares of NYSE:WU traded down $0.50 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. The stock has a market capitalization of $2.84 billion, a price-to-earnings ratio of 3.90, a price-to-earnings-growth ratio of 3.09 and a beta of 0.52. Western Union has a 12 month low of $7.85 and a 12 month high of $11.94. The company has a debt-to-equity ratio of 2.80, a current ratio of 1.12 and a quick ratio of 1.12. The business’s 50 day simple moving average is $9.52 and its two-hundred day simple moving average is $8.88.

Western Union Dividend Announcement

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

Analysts Set New Price Targets

Several equities analysts have weighed in on the company. Citigroup upgraded Western Union to a “hold” rating in a report on Thursday, October 23rd. Keefe, Bruyette & Woods boosted their price target on shares of Western Union from $9.00 to $10.00 and gave the stock a “market perform” rating in a research report on Friday, January 2nd. Susquehanna increased their price objective on shares of Western Union from $9.00 to $10.00 and gave the company a “neutral” rating in a research report on Monday, November 10th. Weiss Ratings restated a “hold (c-)” rating on shares of Western Union in a research report on Wednesday, January 21st. Finally, UBS Group upped their price objective on Western Union from $8.50 to $9.00 and gave the company a “neutral” rating in a research report on Monday, November 10th. Ten investment analysts have rated the stock with a Hold rating and five have assigned a Sell rating to the company. Based on data from MarketBeat, the stock has a consensus rating of “Reduce” and an average target price of $8.82.

More Western Union News

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

Institutional Investors Weigh In On Western Union

Several large investors have recently added to or reduced their stakes in the stock. Integrated Wealth Concepts LLC raised its stake in shares of Western Union by 15.5% during the first quarter. Integrated Wealth Concepts LLC now owns 39,859 shares of the credit services provider’s stock valued at $422,000 after acquiring an additional 5,351 shares in the last quarter. Goldman Sachs Group Inc. raised its position in Western Union by 27.4% during the 1st quarter. Goldman Sachs Group Inc. now owns 1,964,972 shares of the credit services provider’s stock valued at $20,789,000 after purchasing an additional 422,715 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its position in Western Union by 9.0% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 1,861,908 shares of the credit services provider’s stock valued at $19,699,000 after purchasing an additional 154,110 shares in the last quarter. Focus Partners Wealth grew its position in shares of Western Union by 93.5% during the 1st quarter. Focus Partners Wealth now owns 27,535 shares of the credit services provider’s stock worth $291,000 after buying an additional 13,302 shares in the last quarter. Finally, Prudential Financial Inc. increased its stake in shares of Western Union by 24.7% during the second quarter. Prudential Financial Inc. now owns 36,874 shares of the credit services provider’s stock valued at $310,000 after buying an additional 7,314 shares during the period. 91.81% of the stock is owned by hedge funds and other institutional investors.

About Western Union

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.