WEX reported higher third-quarter revenue and earnings, with growth in total payment volume and a stronger operating margin. The payments company also raised its full-year 2026 revenue and adjusted earnings guidance and said it repurchased about $200 million of shares during the quarter, followed by another $75 million through October 26.
Key details
- Revenue rose 12.8% to $780.1 million from a year earlier. The increase included $57.3 million in net favorable effects from fuel prices and $0.8 million from foreign exchange rates.
- Net income was $134.1 million, or $3.88 per diluted share, up 68.7% per share year over year. Adjusted net income was $211.9 million, or $6.13 per diluted share, an increase of 33.6% per share.
- Operating margins improved: the GAAP operating income margin was 30.6%, compared with 26.5% a year earlier. The adjusted margin was 42.6%, up from 39.5%.
- Total volume across WEX’s segments reached $78.5 billion, up 18.5%.
- Mobility segment revenue increased 20.6% to $435.1 million. The segment reported a 38.7% operating income margin and a 46.9% adjusted operating income margin. Payment-processing transactions rose 1.7% to 142.3 million.
- WEX repurchased approximately $200 million of shares in the third quarter and bought another $75 million through October 26.
- The company raised its 2026 outlook to revenue of $2.97 billion to $2.99 billion and adjusted net income of $21.28 to $21.48 per diluted share.
What changes for investors
The raised outlook signals higher expected full-year revenue and adjusted earnings than under WEX’s previous guidance. The repurchases represent a substantial return of capital to shareholders, while the quarter’s higher margins show that earnings growth outpaced revenue growth. The reported revenue increase also benefited materially from fuel prices.