Western Union falls as revenue misses analyst estimates

Investing.com - Western Union Company (NYSE: WU) reported fourth-quarter results that missed revenue expectations despite beating on earnings, with shares falling 2.5% following the announcement.

The money transfer company posted adjusted earnings per share of $0.45 for the fourth quarter, topping the analyst estimate of $0.43. However, revenue of $1.0 billion fell short of the $1.04 billion consensus and declined 5% YoY on both a reported and adjusted basis.

The revenue shortfall was largely driven by a slowdown in the Americas retail business, which offset growth in Consumer Services and Branded Digital operations.

For fiscal 2026, Western Union issued adjusted EPS guidance of $1.75 to $1.85. The midpoint of $1.80 slightly exceeds the analyst consensus of $1.79. The company projects revenue growth of 6% to 9% on an adjusted basis for the full year, assuming the pending acquisition of International Money Express closes in the second quarter.

"Despite a challenging operating environment in 2025, we delivered meaningful progress across the business," said Devin McGranahan, President and Chief Executive Officer. "We strengthened our Consumer Services offerings, expanded our owned retail footprint, and accelerated our transition to a more digital-first operating model."

Consumer Services segment revenue grew 26% on an adjusted basis in the quarter, driven by expansion of the Travel Money business, including the acquisition of Eurochange Limited. Branded Digital revenue increased 6% on an adjusted basis with transaction growth of 13%, representing 30% of total Consumer Money Transfer revenues.

The company's adjusted operating margin improved to 20% from 17% in the prior year period, benefiting from cost efficiencies. The Board approved a first quarter 2026 dividend of $0.235 per share, payable March 31.

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