Euronet Worldwide, Inc. EEFT reported second-quarter 2026 adjusted earnings per share of $2.82, which missed the Zacks Consensus Estimate by 5.1%. However, the bottom line rose 10.2% year over year.
Total revenues improved 3% year over year and 2% on a constant-currency basis to $1.1 billion. The top line missed the consensus mark by 3.4%.
The quarterly results were affected by higher operating expenses and weakness in the Cross-Border Payments segment. However, this was partly offset by strong performance in the Payments Infrastructure and epay segments, supported by ongoing digital initiatives.
Euronet Worldwide, Inc. Price, Consensus and EPS Surprise
Euronet Worldwide, Inc. price-consensus-eps-surprise-chart | Euronet Worldwide, Inc. Quote
EEFT’s Q2 Update
EEFT’s net income totaled $77.4 million, which fell 20.7% year over year. Operating income declined 14% year over year and 14% on a constant-currency basis to $137.1 million.
Total operating expenses of $971.3 million increased 6.1% year over year due to higher direct operating costs, salaries and benefits, and selling, general and administrative expenses.
Adjusted EBITDA decreased 6% year over year and 7% on a constant-currency basis to $192.8 million.
EEFT’s Segmental Performances
The Payments Infrastructure Segment (formerly EFT Processing Segment) revenues rose 11% year over year and 10% on a constant-currency basis to $377.1 million in the second quarter. However, the metric was lower than the Zacks Consensus Estimate of $386.3 million.
Adjusted EBITDA was $117.9 million, which advanced 7% year over year and 6% on a constant-currency basis.
Operating income grew 2% year over year and 2% on a constant-currency basis to $86.1 million.
Continued strength in merchant acquiring and payment processing supported the unit's performance despite softer European travel spending.
The epay segment recorded revenues of $294 million, which rose 5% year over year and 4% on a constant-currency basis. The metric missed the consensus mark of $295.3 million.
Adjusted EBITDA rose 5% from the year-ago figure and 5% on a constant-currency basis to $34.4 million.
Operating income was $32.8 million, which rose 5% year over year and 5% on a constant-currency basis. Transactions in the unit totaled 986 million, which decreased 11% year over year, mainly due to high-volume, low-value transactions in India.
Higher-value digital content, prepaid and payment products, coupled with expansion of its payment acceptance footprint, drove the segment's performance.
The Cross-Border Payments Segment (formerly known as Money Transfer Segment) posted revenues of $439.6 million, which declined 4% year over year and 5% on a constant-currency basis. The metric missed the Zacks Consensus Estimate of $467.6 million.
Adjusted EBITDA decreased 31% year over year and 32% on a constant-currency basis to $49.7 million.
Operating income of $43.3 million declined 34% year over year and 35% on a constant-currency basis. Total digital transactions increased to 7.9 million from 5.9 million in the year-ago period. Total transactions of 45.7 million fell from 46.1 million a year ago.
This segment was pressured by a weaker U.S. outbound remittance market and the absence of favorable prior-year items, partially offset by growth in its digital business, continued momentum in the Dandelion platform and global network expansion.
Corporate and Other expenses rose to $25.1 million from $22.7 million a year earlier.
EEFT’s Q2 Financial Update
Euronet exited the second quarter with cash and cash equivalents of $1.2 billion, which increased from $1 billion as of 2025-end
Total assets remained largely flat at $6.5 billion compared with the fiscal 2025-end level.
Debt obligations, net of the current portion, increased to $1.8 billion from $1.0 billion as of 2025-end. Short-term debt amounted to $827 million.
Equity decreased to $1.2 billion from the 2025-end figure of $1.3 billion.
There was roughly $1 billion left under EEFT’s revolving credit facilities at the end of the second quarter.
EEFT’s Capital Deployment
EEFT bought back shares worth $50 million in the second quarter.
EEFT’s 2026 EPS View
Management still expects to achieve adjusted EPS growth in the 10-15% range in 2026.
EEFT’s Zacks Rank
Euronet currently has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
How Did Peers Perform?
Several companies in the business services space, including Marsh & McLennan Companies, Inc. MRSH, Visa Inc. V and Mastercard Incorporated MA, have also reported their financial results for the June quarter of 2026. Here’s how they have performed:
Marsh reported second-quarter 2026 adjusted earnings per share of $2.96, which surpassed the Zacks Consensus Estimate by 2.8%. The bottom line advanced 8.8% year over year. Consolidated revenues of $7.4 billion improved 6.2% year over year. The figure rose 5% on an underlying basis. The top line beat the consensus mark by 2%. Marsh’s quarterly results benefited from solid growth in the Risk and Insurance Services and Consulting units. However, the upside was partially offset by elevated operating expenses, primarily due to increased compensation and benefits.
Visa delivered third-quarter fiscal 2026 adjusted earnings of $3.32 per share, which rose 11% year over year and beat the Zacks Consensus Estimate by 2.8%. Net revenues were $11.63 billion, rising 14% year over year. Visa’s quarterly results reflected resilient spending trends, higher cross-border volumes and solid network activity, including a 10% year-over-year increase in payments volume on a constant-dollar basis. However, the upside was partly offset by increased operating expenses.
Mastercard reported second-quarter 2026 adjusted earnings of $5.04 per share, which topped the Zacks Consensus Estimate by 5.7%. The bottom line improved 21.4% year over year. Net revenues advanced 14.1% year over year to $9.3 billion. The top line beat the consensus mark by 2.4%. Mastercard’s quarterly results benefited from strong cross-border volume growth, increased switched transactions and robust demand for value-added services. However, the upside was partly offset by higher payment network rebates from renewed deals and an escalating operating expense level.
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