Corpay, Inc. CPAY stock has gained 14.6% over the past three months, outperforming the industry’s 0.2% decline and the Zacks S&P 500 Composite's 3.8% return.
CPAY’s Three-Month Share Price Performance
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Let us delve deeper into the factors that have contributed to the company’s outperformance.
CPAY’s Broad-Based Segment Growth Supports Revenue Momentum
Corpay is benefiting from sustained demand across its payment businesses. In the second quarter of 2026, Corporate Payments revenues rose 42% year over year to $548.7 million, contributing 41% of total revenues. Pro-forma and macro-adjusted revenues grew 16%, while adjusted spend volume rose 43%, driven by cross-border and payables activity.
Vehicle Payments revenues increased 13% to $580.2 million, with adjusted growth of 8%, supported by continued strength in Brazil and Europe. Lodging Payments revenues rose 3% to $123.2 million, with organic growth of 2%, reflecting sequential improvement as prior-year comparisons eased. Continued momentum in Corporate Payments and steady expansion in Vehicle Payments support revenue growth, while a recovery in Lodging Payments provides additional upside.
CPAY’s Past Buyouts Accelerate Corporate Payments Growth
Corpay’s acquisitions expand its corporate payments capabilities and addressable market. The 2025 acquisition of Alpha Group International strengthened its cross-border foreign exchange and global accounts offerings, while the AvidXchange investment expanded its presence in payables automation. Together, Alpha and Avid contributed 39 cents to adjusted EPS in the second quarter of 2026. More than 80% of Alpha’s corporate volume had migrated to Corpay’s global platform, while Avid’s sales grew more than 30% and EBITDA more than doubled year over year. These investments deepen Corpay’s corporate payments exposure and create opportunities for cross-selling and operational efficiencies. Continued integration and scaling support earnings growth and a more diversified revenue mix.
Share Buybacks Drive Per-Share Earnings Growth for CPAY
Corpay’s ongoing share repurchases reinforce its commitment to shareholder returns. In the second quarter of 2026, the company repurchased approximately 1 million shares for $321 million, with $1.4 billion remaining under its authorization. Management also plans to deploy proceeds from the vehicle maintenance divestiture toward additional buybacks to offset the transaction’s expected adjusted EPS impact. The substantial remaining authorization provides flexibility for continued repurchases. A lower share count supports per-share earnings growth and enhances shareholder value.
CPAY’s Zacks Rank & Stocks to Consider
Corpay currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
A couple of better-ranked stocks in the broader Business Services sector are CBIZ, Inc. CBZ and EVERTEC, Inc. EVTC.
CBIZ carries a Zacks Rank #2 (Buy) at present. It has a long-term earnings growth expectation of 10%.
CBZ beat earnings estimates in three of the trailing four quarters and missed once, delivering an earnings surprise of 8.9% on average.
EVERTEC also holds a Zacks Rank of 2 at present. It has a long-term earnings growth expectation of 10%.
EVTC beat earnings estimates in three of the trailing four quarters and missed once, with an average earnings surprise of 3.8%.
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This article originally published on Zacks Investment Research (zacks.com).