Western Union tops Q3 profit estimates, misses on revenue

Western Union (WU) said on Nov. 4 that adjusted earnings for the third quarter of 2026 were 42 cents per share, topping the 35-cent consensus estimate. Revenue of $1.01 billion missed the $1.05 billion consensus estimate.

Shares rose 1.1% in after-hours trading as of 4:41 p.m. ET, from a regular-session close of $6.60.

The company moves money and provides payment services across more than 200 countries and territories. Its Consumer Money Transfer segment accounted for 85% of revenue in the quarter.

Revenue fell 2% on a GAAP basis, from $1.03 billion a year earlier, and adjusted revenue declined 1%. The company said the decline was largely driven by a slowdown in its North America retail business, partly offset by growth in Branded Digital and Consumer Services.

Here's how the company did:

• Revenue: $1.01 billion vs. $1.03 billion a year earlier, $1.05 billion expected
• Adjusted EPS: 42 cents vs. 47 cents a year earlier, 35 cents expected
• GAAP EPS: 25 cents vs. 43 cents a year earlier
• GAAP operating margin: 13% vs. 20% a year earlier

Adjusted EPS fell from 47 cents a year earlier, the company said, as lower revenue and higher expenses in its retail business were partly offset by a lower adjusted tax rate and fewer shares outstanding.

President and Chief Executive Officer Devin McGranahan said the company's second-quarter initiatives were beginning to show results. "Importantly, the initiatives we launched in the second quarter are streamlining our cost structure and have begun to materialize in our financial results," he said.

Segment results

Consumer Money Transfer revenue was $857.2 million, down 2% from $878.0 million a year earlier. Segment operating income fell to $146.8 million from $172.2 million.

Consumer Services revenue was $152.1 million, down 2% on a GAAP basis but up 5% on an adjusted basis.

Branded Digital revenue grew 8% on both a GAAP and an adjusted basis, and transactions rose 21%. Branded Digital made up 32% of Consumer Money Transfer revenue and 45% of its transactions in the quarter.

2026 outlook

The company updated its full-year 2026 outlook. Including Intermex, it expects GAAP revenue growth of 0% to 1%, and adjusted revenue growth of 0% to 1%. Excluding Intermex, it expects GAAP revenue to fall 2% to 1%, and adjusted revenue to fall 2% to 1%.

On July 30, the company had forecast 2026 GAAP revenue growth of 3% to 5% and adjusted revenue growth of 4% to 6%.

The company expects a GAAP effective tax rate of 20% to 22% and an adjusted effective tax rate of 10% to 12%.

The outlook including International Money Express, or Intermex, assumes the deal closes on Nov. 10, 2026. Western Union agreed on Aug. 10, 2025 to acquire Intermex. The merger is subject to the California Department of Financial Protection and Innovation reinstating its approval, which the companies continue to discuss with the regulator. Either party may terminate the merger agreement if it is not completed by Nov. 10, 2026.

Costs and charges

Operating income fell to $130.8 million from $201.9 million a year earlier. Total expenses rose 6% to $878.5 million.

The company recorded $37.3 million in one-time costs tied to its Beyond efficiency program, which it announced in July 2026. Those costs include a voluntary retirement program in the United States, the relocation of a regional operating center, and other workforce reductions.