Western Union (NYSE:WU) Posts Quarterly Earnings Results, Misses Expectations By $0.15 EPS

Key Points

• Western Union reported Q1 EPS of $0.25, missing consensus by $0.15, and revenue of $963.5M below estimates, with operating‑margin compression (higher commissions, vendor incentives and FX) cited as the main driver of the shortfall.
• The company reaffirmed FY2026 adjusted EPS guidance of $1.75–$1.85 and is pursuing growth initiatives including a $150M Travel Money target and a USD‑pegged token launch despite the quarterly miss.
• Western Union pays a quarterly dividend of $0.235 (annualized yield ~10.5%, payout ratio ~61.8%), while analysts maintain a consensus "Reduce" rating with an average target of $8.82.

Western Union (NYSE:WU - Get Free Report) announced its earnings results on Friday. The credit services provider reported $0.25 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.40 by ($0.15), FiscalAI reports. Western Union had a return on equity of 62.01% and a net margin of 12.33%.The firm had revenue of $963.50 million for the quarter, compared to analyst estimates of $1.06 billion. During the same quarter last year, the business earned $0.41 EPS. The company's revenue for the quarter was down .1% compared to the same quarter last year. Western Union updated its FY 2026 guidance to 1.750-1.850 EPS.

Western Union Stock Performance

WU stock opened at $8.93 on Friday. The company has a 50 day moving average price of $9.27 and a 200 day moving average price of $9.17. Western Union has a fifty-two week low of $7.85 and a fifty-two week high of $10.36. The company has a debt-to-equity ratio of 3.00, a current ratio of 1.19 and a quick ratio of 1.19. The stock has a market capitalization of $2.80 billion, a PE ratio of 5.87, a price-to-earnings-growth ratio of 1.83 and a beta of 0.50.

Western Union Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, March 31st. Investors of record on Tuesday, March 17th were given a $0.235 dividend. This represents a $0.94 annualized dividend and a yield of 10.5%. The ex-dividend date was Tuesday, March 17th. Western Union's payout ratio is 61.84%.

Institutional Investors Weigh In On Western Union

A number of institutional investors and hedge funds have recently made changes to their positions in WU. State Street Corp boosted its holdings in Western Union by 4.3% in the fourth quarter. State Street Corp now owns 13,984,472 shares of the credit services provider's stock valued at $130,195,000 after acquiring an additional 580,264 shares during the last quarter. Charles Schwab Investment Management Inc. raised its holdings in Western Union by 5.0% during the 4th quarter. Charles Schwab Investment Management Inc. now owns 13,081,062 shares of the credit services provider's stock worth $121,785,000 after purchasing an additional 624,397 shares during the last quarter. AQR Capital Management LLC lifted its position in Western Union by 9.8% during the 4th quarter. AQR Capital Management LLC now owns 10,746,779 shares of the credit services provider's stock valued at $99,891,000 after purchasing an additional 962,341 shares during the period. Morgan Stanley boosted its stake in shares of Western Union by 44.6% in the 4th quarter. Morgan Stanley now owns 8,648,431 shares of the credit services provider's stock valued at $80,517,000 after purchasing an additional 2,666,265 shares during the last quarter. Finally, Goldman Sachs Group Inc. boosted its stake in shares of Western Union by 401.4% in the 4th quarter. Goldman Sachs Group Inc. now owns 7,604,026 shares of the credit services provider's stock valued at $70,793,000 after purchasing an additional 6,087,613 shares during the last quarter. Institutional investors own 91.81% of the company's stock.

More Western Union News

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

• Positive Sentiment: Management announced a push into Travel Money with a $150M revenue target and plans to launch a USD-pegged token (USDPT) next month — potential new revenue streams and digital expansion that could help growth over time. Western Union reaffirms 2026 EPS of $1.75-$1.85 while targeting $150M Travel Money revenue and launching USDPT next month
• Positive Sentiment: Insider buying was reported (company executive purchased shares), which some investors view as a signal of management confidence. Western Union slides as Q1 earnings fall sharply despite flat revenue and reaffirmed outlook
• Neutral Sentiment: The company reaffirmed FY2026 guidance of $1.75–$1.85 adjusted EPS and revenue guidance in the ~$4.2B–$4.4B range — guidance in line with street expectations but dependent on the expected Intermex acquisition closing. Western Union reaffirms 2026 EPS of $1.75-$1.85 while targeting $150M Travel Money revenue and launching USDPT next month
• Neutral Sentiment: Q1 GAAP revenue was essentially flat year‑over‑year (roughly $980–983M reported), with growth in Consumer Services and Branded Digital offset by weakness in Americas retail. Western Union Reports First Quarter 2026 Results
• Negative Sentiment: Q1 EPS missed expectations — reported $0.25 vs. consensus ~ $0.40–$0.45 — and adjusted EPS declined materially from last year, prompting investor concern about near-term profitability. Western Union Stock Slides After Q1 EPS Miss Despite Revenue Beat
• Negative Sentiment: Operating margin compressed (to roughly mid‑teens vs. high‑teens prior year) due to weaker fixed‑cost coverage at owned locations, timing of vendor incentives, higher commissions for new agents and FX impacts — margin pressure is the main driver of the earnings shortfall. Western Union slides as Q1 earnings fall sharply despite flat revenue and reaffirmed outlook

Analysts Set New Price Targets

Several analysts have recently weighed in on WU shares. Keefe, Bruyette & Woods raised their price objective on shares of Western Union from $9.00 to $10.00 and gave the stock a "market perform" rating in a report on Friday, January 2nd. Cantor Fitzgerald upgraded Western Union to a "strong sell" rating in a research report on Tuesday, January 27th. Finally, Weiss Ratings reissued a "hold (c-)" rating on shares of Western Union in a research note on Wednesday, January 21st. Nine investment analysts have rated the stock with a Hold rating and five have issued a Sell rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of "Reduce" and an average target price of $8.82.

Western Union Company Profile

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.