Western Union (NYSE:WU) Releases Earnings Results, Beats Expectations By $0.02 EPS

Western Union (NYSE:WU) released its earnings results on Friday. The credit services provider reported $0.45 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.43 by $0.02, FiscalAI reports. Western Union had a return on equity of 60.85% and a net margin of 18.80%.The company had revenue of $1 billion for the quarter, compared to analyst estimates of $1.04 billion. During the same period in the prior year, the firm posted $0.40 EPS. Western Union’s quarterly revenue was down 4.7% on a year-over-year basis. Western Union updated its FY 2026 guidance to 1.750-1.850 EPS.

Here are the key takeaways from Western Union’s conference call:

• Western Union reported Q4 revenue of $1.0 billion (adjusted revenue -5% YoY) and adjusted EPS of $0.45, and gave a constructive 2026 outlook of 6%–9% revenue growth and $1.75–$1.85 adjusted EPS that incorporates an expected Q2 close of Intermex.
• Consumer Services and Branded Digital were growth engines — Q4 Consumer Services adjusted revenue +26% (?30% for the year), Travel Money is approaching $150M, and digital now accounts for over 40% of principal with growing wallet adoption (Vigo, Argentina, Brazil).
• Retail remittance in the Americas remains pressured by shifting migration patterns (notably U.S.?Mexico) and the new U.S. remittance tax; CMT revenue and transactions declined, though management says some quarter?over?quarter stabilization is emerging.
• Cost discipline lifted profitability and liquidity — adjusted operating margin was 20%, operating cash flow $544M, over $500M returned to shareholders in 2025, and leverage (gross 2.9x / net 1.6x) leaves room for buybacks and M&A.
• Management is pursuing strategic initiatives — Intermex integration, a USD payment token (USDPT) pilot and stablecard with Rain/Visa, plus large exclusive agent wins (Deutsche Post, Canada Post, Kroger) expected to add ~$100M in annual retail revenue when fully ramped — but timing, regulatory approvals and execution risk could affect outcomes.

Western Union Stock Down 2.0%

Shares of NYSE WU opened at $9.25 on Friday. The company has a 50 day simple moving average of $9.51 and a 200 day simple moving average of $8.88. The company has a debt-to-equity ratio of 2.80, a current ratio of 1.12 and a quick ratio of 1.12. Western Union has a 1 year low of $7.85 and a 1 year high of $11.94. The firm has a market cap of $2.94 billion, a PE ratio of 4.04, a price-to-earnings-growth ratio of 3.03 and a beta of 0.52.

Western Union Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 31st. Stockholders of record on Tuesday, March 17th will be paid a $0.235 dividend. The ex-dividend date of this dividend is Tuesday, March 17th. This represents a $0.94 annualized dividend and a dividend yield of 10.2%. Western Union’s dividend payout ratio is currently 41.05%.

Hedge Funds Weigh In On Western Union

Several large investors have recently modified their holdings of WU. CIBC Bancorp USA Inc. acquired a new stake in Western Union in the third quarter valued at $164,000. Sig Brokerage LP bought a new stake in shares of Western Union in the 3rd quarter valued at about $173,000. Moors & Cabot Inc. acquired a new stake in shares of Western Union in the third quarter valued at about $180,000. Focus Partners Wealth raised its position in shares of Western Union by 93.5% during the first quarter. Focus Partners Wealth now owns 27,535 shares of the credit services provider’s stock worth $291,000 after acquiring an additional 13,302 shares during the last quarter. Finally, iSAM Funds UK Ltd acquired a new position in shares of Western Union in the fourth quarter worth approximately $287,000. Institutional investors own 91.81% of the company’s stock.

Analyst Ratings Changes

WU has been the topic of a number of analyst reports. Keefe, Bruyette & Woods increased their price objective on shares of Western Union from $9.00 to $10.00 and gave the stock a “market perform” rating in a research note on Friday, January 2nd. UBS Group increased their price target on shares of Western Union from $8.50 to $9.00 and gave the stock a “neutral” rating in a research report on Monday, November 10th. Weiss Ratings restated a “hold (c-)” rating on shares of Western Union in a research report on Wednesday, January 21st. Susquehanna upped their target price on Western Union from $9.00 to $10.00 and gave the stock a “neutral” rating in a research note on Monday, November 10th. Finally, Cantor Fitzgerald upgraded Western Union to a “strong sell” rating in a research note on Tuesday, January 27th. Ten research analysts have rated the stock with a Hold rating and five have assigned a Sell rating to the company. According to MarketBeat, Western Union has a consensus rating of “Reduce” and a consensus price target of $8.82.

Western Union News Summary

Here are the key news stories impacting Western Union this week:

• Positive Sentiment: Q4 adjusted EPS beat estimates — WU reported $0.45 EPS vs. consensus $0.43, helped by lower costs and margin improvements. This supports near-term earnings resilience. Western Union (WU) Surpasses Q4 Earnings Estimates
• Positive Sentiment: Company raised FY?26 revenue target — Western Union provided revenue guidance of $4.2–$4.4B, above some Street estimates, signalling management expects recovery in some businesses. Western Union Reports Fourth Quarter and Full Year 2025 Results
• Positive Sentiment: High dividend/income thesis highlighted — Commentary pieces point to an attractive ~10% yield and a strategic push toward digital, which may appeal to income-focused investors if the transition continues. Western Union: Attractive 10% Yield From A Remittance Giant Going Digital
• Neutral Sentiment: Full Q4 call / transcript available — Management discussed drivers (digital growth, cost controls) and regional dynamics; read the full transcript for commentary that could change near?term sentiment. The Western Union Company (WU) Q4 2025 Earnings Call Transcript
• Neutral Sentiment: Company filings and slide deck posted — Official press release and slides provide detail on one?time items (GAAP vs adjusted) that explain the gap between adjusted EPS and GAAP figures. View Press Release / Slide Deck
• Negative Sentiment: Revenue missed estimates — Q4 revenue was ~$1.008B vs. Street ~$1.045B and declined roughly 4.7–5% YoY, a primary reason the stock sold off despite the EPS beat. What’s Going On With Western Union Stock Today?
• Negative Sentiment: Core Consumer Money Transfer business weakening — The legacy retail remittance segment fell (reported ~7% decline), underscoring competitive pressure from digital rivals and raising questions about sustainability of revenue. Does Western Union’s Earnings Beat Mean Its Transition Is Working?
• Negative Sentiment: Stock sold off on mixed print — Multiple market reports note shares fell on the quarter because the revenue miss and segment weakness outweighed the EPS beat and yield story for many investors. Western Union Stock Drops Amid Q4 Results

About Western Union

Western Union Company (NYSE: WU) is a global leader in cross-border, cross-currency money movement and payments. The company enables individuals and businesses to send and receive money through a variety of channels, including its vast agent network, online platforms, and mobile applications. Core services include person-to-person money transfers, business-to-business cross-border payments, bill payment services and prepaid card programs.

Through its digital offerings, Western Union provides customers with the ability to initiate transfers via its website and mobile app, as well as track transactions in real time.