WEX raises 2026 forecast as Q3 profit and sales top estimates

WEX Inc. (WEX) said on Oct. 28 that its third-quarter 2026 revenue rose 12.8% to $780.1 million. Adjusted earnings of $6.13 per diluted share topped the $5.70 consensus estimate compiled by Finnhub, and revenue beat the $753.47 million estimate.

The company also raised its full-year 2026 forecast for revenue and adjusted earnings, according to a news release and Form 8-K filed with the SEC.

The company said higher fuel prices added a net $57.3 million to revenue in the quarter, and foreign exchange rates added $0.8 million.

Chief Executive Officer and President Melissa Smith said in the release: “We delivered another quarter of strong revenue and adjusted EPS, expanded margins, and returned the vast majority of our adjusted free cash flow to shareholders through share repurchases.”

Here's how the company did:

• Revenue: $780.1 million vs. $691.8 million a year earlier, and $753.47 million expected, according to Finnhub

• Adjusted EPS: $6.13 per diluted share vs. $4.59 a year earlier, and $5.70 expected, according to Finnhub

• GAAP EPS: $3.88 per diluted share vs. $2.30 a year earlier

• Net income attributable to shareholders: $134.1 million vs. $80.3 million a year earlier

Adjusted net income rose 33.6% to $211.9 million. GAAP operating income margin was 30.6%, compared with 26.5% a year earlier.

Guidance

For full-year 2026, the company now expects revenue of $2.97 billion to $2.99 billion, up from the $2.86 billion to $2.90 billion range it gave on July 22.

It expects adjusted net income of $736 million to $743 million, or $21.28 to $21.48 per diluted share. Its July 22 range was $689 million to $703 million, or $19.68 to $20.08 per diluted share.

For the fourth quarter, the company expects revenue of $760 million to $780 million and adjusted net income of $193 million to $200 million, or $5.67 to $5.87 per diluted share.

The company said its guidance assumes U.S. retail fuel prices of $4.50 per gallon for the full year and $4.81 per gallon for the fourth quarter.

The company said third-quarter results were better than its previous guidance, due to higher-than-anticipated fuel prices and underlying organic growth.

Segment results

Mobility revenue was $435.1 million, up 20.6% from a year earlier, with a segment adjusted operating income margin of 46.9%.

Benefits revenue was $207.6 million, up 4.8%, and its segment adjusted operating income margin was 42.2%.

Corporate Payments revenue was $137.4 million, up 3.5%, with a segment adjusted operating income margin of 49.9%.

Cash and capital returns

The company said it repurchased about $200 million of shares during the third quarter and a further $75 million through Oct. 26.

Adjusted free cash flow was $234.3 million, compared with $166.2 million a year earlier. Operating cash flow was negative $11.2 million, against $376.6 million provided a year earlier.

The leverage ratio, as defined in its Credit Agreement, fell to 2.7 times as of Sept. 30, from 2.9 times as of June 30.

Chief Financial Officer Jagtar Narula said: “Our strong cash generation gives us significant flexibility to invest in organic growth while returning capital to shareholders.”

The company will host a conference call on Oct. 29 at 10:00 a.m. ET.