WEX Inc. operates a commerce platform in the United States and internationally. It has three segments: Mobility, which offers fleet payment solutions, transaction processing, and information management services; Corporate Payments, which provides payment solutions including embedded payments and accounts payable automation; and Benefits, which offers a SaaS platform for consumer-directed healthcare benefits and benefit enrollment. WEX Inc. was formerly known as Wright Express Corporation and changed its name in October 2012. Founded in 1983, it is headquartered in Portland, Maine.
Piper Sandler names Q2 Holdings preferred pick in payments coverage
Piper Sandler initiated coverage of financial infrastructure and specialized payments companies on Thursday, naming Q2 Holdings its preferred stock with an Overweight rating and an $82 price target that implies about 36% upside from its recent share price. The brokerage cited recurring revenue growth, improving margins and stronger free-cash-flow conversion, and said earnings growth and margin expansion should drive gains without a return to the elevated valuation multiples the stock commanded historically. Q2's subscription revenue accounted for about 83% of total revenue in the second quarter, up from roughly 73% in the first quarter of 2021, while total annualized recurring revenue rose to about $971 million in the second quarter from roughly $401 million in the fourth quarter of 2019 and remaining performance obligations reached $2.76 billion. Piper Sandler also highlighted Q2's core-agnostic platform, which integrates with incumbent banking systems rather than requiring financial institutions to replace their entire technology stack, and noted the company has been selected as the technology provider in more than 90% of customer mergers and acquisitions it has tracked since 2021. The brokerage forecasts adjusted earnings per share of $3.57 in fiscal 2027 and $4.41 in fiscal 2028, growth of about 27% and 24% respectively, with free cash flow of $271 million in fiscal 2027 and $315 million in fiscal 2028. In the same initiation, Jack Henry received a Neutral rating and a $171 price target, while Fidelity National Information Services, Global Payments and WEX were also rated Neutral with price targets of $42, $101 and $209, respectively.
QTWO · Capital · Positive Piper Sandler named Q2 Holdings its preferred pick with an Overweight rating and $82 price target, citing recurring revenue growth and margin expansion.
JKHY · Capital · Neutral Received a Neutral rating and $171 price target in the initiation, but not the preferred pick.
FIS · Capital · Neutral Rated Neutral with a $42 price target in Piper Sandler's initiation, a passing analyst mention.
GPN · Capital · Neutral Rated Neutral with a $101 price target in the same initiation, only a passing mention.
WEX · Capital · Neutral Rated Neutral with a $209 price target in the same initiation, only a passing mention.
WEX shares have climbed 15.4% since the company reported second-quarter 2026 results that beat Zacks Consensus Estimates on both earnings and revenue. Adjusted earnings were $5.35 per share, up 35.4% year over year and 5.3% above estimates, while revenue rose 14.2% to $753.5 million. The company raised its full-year 2026 revenue guidance to $2.86 billion to $2.90 billion and adjusted earnings guidance to $19.68 to $20.08 per share. WEX also repurchased about $60 million of shares during the quarter and said most adjusted free cash flow will go toward buybacks in the near term.
WEX to Report Earnings Amid 12.1% Revenue Growth Expectations
Payment solutions provider WEX is set to report earnings this Wednesday afternoon. Analysts expect revenue to grow 12.1% year on year, a reversal from the 2.1% decline in the same quarter last year. The company met revenue expectations last quarter with $673.8 million, up 5.8% year on year, and delivered a strong beat on EBITDA estimates. WEX has missed Wall Street revenue estimates multiple times over the past two years, though analyst estimates have been largely reconfirmed in the last 30 days. Shares of WEX have risen 25.8% over the past month, outpacing the 6.2% average gain for financial services stocks.
WEX leans on fleet solutions and buybacks as high debt and fuel volatility weigh
WEX is leaning on strategic fleet management initiatives and acquisitions to drive growth, while elevated debt and fuel price swings remain key concerns. The company launched the WEX Electric Vehicle Depot, extended a long-term contract with Enterprise Fleet Management, and expanded partnerships with Circle K, alongside the 2024 acquisition of Sawatch Labs to bolster EV analytics. Share repurchases reached $303.4 million in 2023, $652 million in 2024, and $800 million in 2025, though the firm carries a debt-to-total-capital ratio of 73.9% as of the first quarter of 2026, well above the industry average of 46.4%. First-quarter 2026 earnings per share came in at $4.15, beating estimates by 3.8% and rising 18.2% year over year, on revenues of $673.8 million that edged past consensus by 0.9% and grew 5.8% from the prior-year period.
Capital One, WEX, and Western Union are flagged as financial stocks with warning signs. Capital One's annual earnings per share growth of 4.6% lagged its revenue growth over the last five years, and its 1.4% annual tangible book value per share increase over two years fell short of peers, reflecting low return on equity. WEX posted muted 2.1% annual revenue growth over two years and 6% annual EPS growth, trailing its peer group. Western Union saw revenue decline 2.8% annually over five years and EPS dip 3.2% annually over the same period.
COF · Capital · Negative Annual EPS growth of 4.6% lagged revenue growth, and tangible book value per share growth of 1.4% fell short of peers, indicating low return on equity.
WEX · Capital · Negative Muted 2.1% annual revenue growth and 6% annual EPS growth over two years, trailing its peer group.
WU · Capital · Negative Revenue declined 2.8% annually over five years and EPS dipped 3.2% annually over the same period.
TFS Financial and WEX launch equipment financing program as trucking industry rebounds
TFS Financial and WEX have launched a new equipment financing program for North American trucking fleets. The program, called Equipment Financing Powered by TFS, gives WEX Over-the-Road customers access to TFS' multi-lender platform, which uses a proprietary Match Engine Technology with over 70 lending partners to connect carriers with financing based on credit profile, asset type, and loan terms. The launch comes as many fleets that delayed purchases during the prolonged freight recession are returning to the market, with TFS President Aaron Case noting that fleet confidence has skyrocketed in the last eight weeks. The financing can cover Class 8 tractors, trailers, light-duty trucks, and mixed fleets for companies of all sizes, from owner-operators to large carriers.
TFSL · Demand · Positive TFS Financial launches equipment financing program with WEX, benefiting from returning trucking fleet demand as freight recession ends.
WEX · Demand · Positive WEX partners with TFS Financial to offer equipment financing to its Over-the-Road customers, capitalizing on rising fleet confidence and purchase demand.
StockStory highlights Coca-Cola and Paymentus as profitable picks, flags WEX as a sell
StockStory identified two profitable stocks with competitive advantages and one facing headwinds. Coca-Cola, with a trailing 12-month GAAP operating margin of 29.3%, boasts a best-in-class gross margin of 61.4% and saw its free cash flow margin jump by 27.5 percentage points over the last year. Paymentus delivered annual revenue growth of 40.2% over the last two years and earnings per share growth of 51% annually, indicating highly profitable incremental sales. In contrast, WEX posted annual revenue growth of just 2.1% over the last two years and earnings per share growth of only 6% annually, falling short of peer group averages.
United States