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

Western Union (NYSE:WU) posted its quarterly earnings results on Friday. The credit services provider reported $0.45 EPS for the quarter, topping analysts’ consensus estimates of $0.43 by $0.02, FiscalAI reports. The business had revenue of $1 billion during the quarter, compared to analysts’ expectations of $1.04 billion. Western Union had a return on equity of 60.85% and a net margin of 18.80%.Western Union’s quarterly revenue was down 4.7% on a year-over-year basis. During the same quarter 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 Trading Down 2.0%

WU stock opened at $9.25 on Friday. Western Union has a 52 week low of $7.85 and a 52 week high of $11.94. The company has a market capitalization of $2.94 billion, a PE ratio of 6.08, a price-to-earnings-growth ratio of 2.97 and a beta of 0.52. The company’s 50-day simple moving average is $9.51 and its 200 day simple moving average is $8.89. The company has a debt-to-equity ratio of 2.80, a quick ratio of 1.12 and a current ratio of 1.12.

Western Union Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, March 31st. Stockholders of record on Tuesday, March 17th will be given a $0.235 dividend. This represents a $0.94 dividend on an annualized basis and a dividend yield of 10.2%. The ex-dividend date of this dividend is Tuesday, March 17th. Western Union’s payout ratio is presently 41.05%.

Key Western Union News

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

• Positive Sentiment: Q4 adjusted EPS beat estimates — WU reported $0.45 EPS vs. consensus $0.43, helped by lower costs and margin improvements. This supports near-term earnings resilience. Western Union (WU) Surpasses Q4 Earnings Estimates
• Positive Sentiment: Company raised FY‑26 revenue target — Western Union provided revenue guidance of $4.2–$4.4B, above some Street estimates, signalling management expects recovery in some businesses. Western Union Reports Fourth Quarter and Full Year 2025 Results
• Positive Sentiment: High dividend/income thesis highlighted — Commentary pieces point to an attractive ~10% yield and a strategic push toward digital, which may appeal to income-focused investors if the transition continues. Western Union: Attractive 10% Yield From A Remittance Giant Going Digital
• Neutral Sentiment: Full Q4 call / transcript available — Management discussed drivers (digital growth, cost controls) and regional dynamics; read the full transcript for commentary that could change near‑term sentiment. The Western Union Company (WU) Q4 2025 Earnings Call Transcript
• Neutral Sentiment: Company filings and slide deck posted — Official press release and slides provide detail on one‑time items (GAAP vs adjusted) that explain the gap between adjusted EPS and GAAP figures. View Press Release / Slide Deck
• Negative Sentiment: Revenue missed estimates — Q4 revenue was ~$1.008B vs. Street ~$1.045B and declined roughly 4.7–5% YoY, a primary reason the stock sold off despite the EPS beat. What’s Going On With Western Union Stock Today?
• Negative Sentiment: Core Consumer Money Transfer business weakening — The legacy retail remittance segment fell (reported ~7% decline), underscoring competitive pressure from digital rivals and raising questions about sustainability of revenue. Does Western Union’s Earnings Beat Mean Its Transition Is Working?
• Negative Sentiment: Stock sold off on mixed print — Multiple market reports note shares fell on the quarter because the revenue miss and segment weakness outweighed the EPS beat and yield story for many investors. Western Union Stock Drops Amid Q4 Results

Institutional Trading of Western Union

Institutional investors have recently modified their holdings of the stock. Compound Planning Inc. acquired a new stake in shares of Western Union during the 4th quarter worth $161,000. Corient Private Wealth LLC grew its stake in Western Union by 64.7% during the fourth quarter. Corient Private Wealth LLC now owns 45,641 shares of the credit services provider’s stock worth $425,000 after buying an additional 17,928 shares in the last quarter. Mercer Global Advisors Inc. ADV grew its stake in Western Union by 5.3% during the fourth quarter. Mercer Global Advisors Inc. ADV now owns 177,765 shares of the credit services provider’s stock worth $1,655,000 after buying an additional 9,017 shares in the last quarter. Beacon Pointe Advisors LLC increased its holdings in Western Union by 4.2% in the 4th quarter. Beacon Pointe Advisors LLC now owns 112,951 shares of the credit services provider’s stock valued at $1,052,000 after buying an additional 4,533 shares during the period. Finally, EP Wealth Advisors LLC acquired a new position in shares of Western Union in the 4th quarter valued at approximately $135,000. 91.81% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

A number of research analysts recently weighed in on WU shares. UBS Group boosted their target price on Western Union from $8.50 to $9.00 and gave the stock a “neutral” rating in a report on Monday, November 10th. Cantor Fitzgerald raised shares of Western Union to a “strong sell” rating in a research report on Tuesday, January 27th. Susquehanna upped their price objective on shares of Western Union from $9.00 to $10.00 and gave the company a “neutral” rating in a report on Monday, November 10th. Weiss Ratings restated a “hold (c-)” rating on shares of Western Union in a research note on Wednesday, January 21st. Finally, Keefe, Bruyette & Woods upped their price target on shares of Western Union from $9.00 to $10.00 and gave the company a “market perform” rating in a research note on Friday, January 2nd. Ten equities research analysts have rated the stock with a Hold rating and five have given a Sell rating to the company’s stock. Based on data from MarketBeat, the company currently has an average rating of “Reduce” and an average target price of $8.82.

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.