Second Quarter 2026
Filed Jul 30, 2026Western Union Reports Second Quarter 2026 Results
GAAP revenue of $1.0 billion declined 1%, GAAP EPS fell to $0.24 from $0.37, adjusted EPS fell to $0.31 from $0.42, and GAAP operating margin declined to 13% from 19%.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenueGAAP | $1.0 billion | – | down 1% |
| Adjusted revenue changenon-GAAP | down 1% | – | down 1% |
| EPSGAAP | $0.24 | – | – |
| Adjusted EPSnon-GAAP | $0.31 | – | – |
| Operating marginGAAP | 13% | – | – |
| Adjusted operating marginnon-GAAP | 15% | – | – |
| Effective tax rateGAAP | 20% | – | – |
| Adjusted tax ratenon-GAAP | 14% | – | – |
| Branded Digital transaction growthother | 25% | – | 25% |
| CMT transaction growthother | 3% | – | 3% |
| Branded Digital share of total CMT revenuesother | 32% | – | – |
| Branded Digital share of total CMT transactionsother | 43% | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Consumer ServicesHigher revenues from the bill payment business and growth in the travel money business. | not reported | – | grew 4% on a GAAP basis, or 12% on an adjusted basis |
| Branded DigitalTransaction growth of 25% compared to the prior year period. | not reported | – | increased 7% on a GAAP basis, and 6% on an adjusted basis |
| Consumer Money Transfer (CMT)Transactions grew 3% compared to the prior year period; Americas retail business slowed. | not reported | – | decreased 2% on a GAAP basis; on an adjusted basis, revenues declined 3% |
full year 2026 outlook
- RevenueGAAP revenue: 3% to 5%; Adjusted revenue: 4% to 6%
- Tax rateThe GAAP effective tax rate is expected to be 20% to 22% and the adjusted effective tax rate is expected to be 13% to 15%.
- NoteAdjusted EPS: $1.25 to $1.35
- Note2026 Outlook modeling assumes Intermex deal closes on September 1st, 2026.
What drove it
- Consumer Services growth was driven by higher bill payment revenue and growth in travel money.
- Branded Digital revenue increased 7% on a GAAP basis, with transaction growth of 25%.
- The Company said adjusted revenue was largely affected by a slowdown in the Americas retail business, offset by growth in Consumer Services and Branded Digital.
- The lower GAAP and adjusted effective tax rates were primarily due to discrete expenses in the prior year period.
Concerns
- The Company did not see the expected improvement in Americas Retail.
- The delayed close of the Intermex acquisition pushed out expected synergies.
- GAAP and adjusted operating margins were affected by lower CMT retail revenue, higher CMT retail expenses, lower Consumer Services margins, and higher operating expenses.
- The outlook assumes no material changes in macroeconomic conditions, including immigration policies, foreign currencies, Argentina inflation, or prolonged impact or escalation of ongoing conflicts in the Middle East.
What to watch
- Whether the Intermex transaction closes after final regulatory approval and satisfaction of other customary closing conditions.
- The assumed Intermex closing date of September 1st, 2026 in the full-year outlook.
- The pace of accelerated operating-expense reductions in the second half of the year.
- Americas Retail performance and the associated effect on CMT revenue, expenses, and margins.
- Progress in Branded Digital transactions and Consumer Services revenue growth.
Analysis
Western Union reported second-quarter GAAP revenue of $1.0 billion, down 1% on both a reported and adjusted basis. The Company attributed the adjusted-revenue change largely to a slowdown in the Americas retail business, partly offset by growth in Consumer Services and Branded Digital. Management stated that revenue was in line with its expectations.
The business mix showed divergent trends. Consumer Services revenue grew 4% on a GAAP basis, or 12% on an adjusted basis, supported by bill payment and travel money. Branded Digital revenue increased 7% on a GAAP basis and 6% on an adjusted basis, while transactions grew 25%. Branded Digital represented 32% of total CMT revenues and 43% of total CMT transactions. CMT revenue decreased 2% on a GAAP basis and declined 3% on an adjusted basis, despite 3% transaction growth.
Profitability weakened materially. GAAP operating margin was 13%, compared with 19% in the prior-year period, and adjusted operating margin was 15%, compared with 19%. The Company cited lower revenues and higher expenses in CMT retail, lower Consumer Services margins, and higher operating expenses. GAAP EPS declined to $0.24 from $0.37, and adjusted EPS declined to $0.31 from $0.42.
Tax rates were lower year over year, with the GAAP effective tax rate at 20% versus 24% and the adjusted tax rate at 14% versus 16%. The Company said the decreases were primarily due to discrete expenses in the prior-year period. Those tax-rate changes partially offset the revenue and expense pressures affecting current-period EPS.
The Company updated its full-year 2026 outlook to GAAP revenue growth of 3% to 5%, adjusted revenue growth of 4% to 6%, and adjusted EPS of $1.25 to $1.35. It expects a GAAP effective tax rate of 20% to 22% and an adjusted effective tax rate of 13% to 15%. The outlook assumes the Intermex deal closes on September 1st, 2026, although the Company remains in discussions with regulators to obtain final approval and said delayed closing had pushed out expected synergies. Management's stated response is more forceful cost reduction in the second half while continuing digital and consumer-services investment.
Management, verbatim
In the second quarter, we did not see the improvement in Americas Retail that we had expected, and the delayed close of our Intermex acquisition pushed out expected synergies, contributing to meaningful margin pressure and lower-than-expected EPS. This difficult operating environment requires us to accelerate cost reductions more forcefully in the second half of the year.
Devin McGranahan, President and Chief Executive Officer
With revenue in line with our expectations, we remain focused on our dual-track strategy: accelerating reductions in operating expenses while continuing to invest in the future through our digital products and consumer services businesses.
Devin McGranahan, President and Chief Executive Officer
Not in the filing
stated, not guessed- Period-end date.
- GAAP operating income.
- Adjusted operating income.
- GAAP net income.
- Adjusted net income.
- Gross margin.
- Segment revenue dollar amounts for Consumer Services, Branded Digital, and Consumer Money Transfer.
- Prior-quarter revenue, EPS, margin, tax-rate, segment-revenue, and transaction comparisons.
- Operating cash flow.
- Free cash flow.
- Cash and cash equivalents.
- Debt.
- Share repurchases.
- Dividends.
- Capital-return amounts.
- GAAP EPS guidance, which the Company stated was not provided.
- Prior outlook figures needed to compare reported results with prior guidance.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.