Western Union Company (NYSE:WU) reported fourth-quarter results that beat earnings expectations but missed on revenue, sending shares down about 2.5% following the release.
The payments and money transfer provider posted adjusted earnings per share of $0.45 for the quarter, exceeding the $0.43 analyst consensus. Revenue, however, totaled $1.0 billion — below the $1.04 billion expected by analysts — and declined 5% year over year on both a reported and adjusted basis.
The revenue miss was primarily attributed to weaker performance in the Americas retail segment, which outweighed gains in the Consumer Services and Branded Digital businesses.
For fiscal 2026, Western Union guided to adjusted EPS in the range of $1.75 to $1.85. The midpoint of $1.80 is modestly above the consensus estimate of $1.79. The company also expects adjusted revenue to grow between 6% and 9% for the full year, assuming the planned acquisition of International Money Express is completed 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.”
Within the Consumer Services segment, revenue increased 26% on an adjusted basis during the quarter, driven in part by the expansion of the Travel Money business and the acquisition of Eurochange Limited. Branded Digital revenue rose 6% on an adjusted basis, with transaction volumes up 13%, accounting for 30% of total Consumer Money Transfer revenue.
Adjusted operating margin improved to 20%, up from 17% in the same period last year, reflecting ongoing cost discipline. The board also declared a first-quarter 2026 dividend of $0.235 per share, payable on March 31.