JP Morgan maintains Corpay at Overweight, raises price target to $500 from $470

Corpay (CPAY) reported Q3 gross margin at 30.4%, up from Q2 but down annually. Cash position was CAD 50.6M. Acquired AISPECO for airborne sensors. Expects revenue synergies sooner. Plans to scale manufacturing and expand commercial/defense businesses. Corpay provides corporate payment solutions.

Corpay reported 3Q 2026 revenue of $1.38B, up 17.9% YoY, and net income of $378.42M, up 36.2% YoY. Growth was driven by organic spend and transaction volumes, new sales, and acquisitions. Higher operating expenses and other costs partly offset gains. Management expects liquidity to meet needs for the next 12 months.

Corpay (CPAY) raised Q4 2026 revenue guidance to $1.37B and cash EPS to $7.65, up 27%. Full-year 2026 revenue is expected to rise 18%, with cash EPS up over 30%. For 2027, Corpay anticipates 9-11% organic revenue growth. The company has divested noncore businesses, using proceeds for share buybacks, and plans to allocate $2B in free cash flow to acquisitions or buybacks. Corporate Payments segment growth is expected to remain in the high teens.

Corpay (CPAY) shares rose 10% after Q3 earnings beat expectations with $7.54 adjusted EPS and $1.38B revenue. The company raised its 2026 adjusted EPS guidance to $28.00, above analyst estimates of $27.43. Corporate Payments grew 18% organically, outpacing rivals WEX (WEX) and BILL (BILL).

Corpay (NYSE:CPAY) expects 9-11% organic revenue growth in 2027, with $2B in free cash flow for acquisitions or share repurchases. The company divested noncore businesses in 2026, using proceeds for buybacks. Alpha and Avid are expected to contribute over $1.40 in combined cash EPS accretion in 2026. Corpay aims to compound adjusted EPS by over 20% annually through 2029.

Corpay Inc (CPAY) reported Q3 2026 earnings, guiding Q4 organic revenue growth at 10%, slightly below Q3's 11%. Corporate payments growth is ~17% excluding one-time items, while lodging and vehicle payments show mixed results. The company may pursue divestitures and is uncertain about acquiring the remaining stake in Avid. Operating costs rose 9%, and tax rate decreased to 23.4%. CEO Ronald Clarke highlighted strong corporate payments growth and potential for 2027.