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

Western Union (NYSE:WU) released its earnings results on Friday. The credit services provider reported $0.45 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.43 by $0.02, FiscalAI reports. Western Union had a net margin of 18.80% and a return on equity of 60.85%. The company had revenue of $1 billion for the quarter, compared to the consensus estimate of $1.04 billion. During the same period in the prior year, the company posted $0.40 EPS. The company’s revenue was down 4.7% compared to the same quarter last year. 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 Stock Performance

WU stock traded down $0.29 during midday trading on Friday, reaching $9.16. The company had a trading volume of 10,317,674 shares, compared to its average volume of 8,557,221. 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 stock has a 50 day moving average price of $9.52 and a 200 day moving average price of $8.88. The firm has a market capitalization of $2.91 billion, a PE ratio of 3.98, a P/E/G ratio of 3.09 and a beta of 0.52. Western Union has a fifty-two week low of $7.85 and a fifty-two week high of $11.94.

Western Union Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, December 31st. Investors of record on Monday, December 22nd were given a dividend of $0.235 per share. This represents a $0.94 dividend on an annualized basis and a dividend yield of 10.3%. The ex-dividend date of this dividend was Monday, December 22nd. Western Union’s dividend payout ratio is currently 41.05%.

Analysts Set New Price Targets

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

Institutional Inflows and Outflows

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

Key Headlines Impacting Western Union

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

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.