Corpay CPAY stock has jumped 14.9% in the past three months. While the stock lagged the industry’s 20.5% return, it surpassed the Zacks S&P 500 Composite's marginal uptick.
3-Month Share Price Performance
Let us delve deeper into the factors that have contributed to the company’s performance.
Sustained Organic Growth, Corporate Payments Drive Momentum
Corpay recorded double-digit organic revenue growth for the fifth consecutive quarter in the second quarter of 2026. This consistency was led by the Corporate Payments segment, which notably posted 16% year-over-year organic growth during the second quarter of 2026 despite a 180-basis-point drag from lower interest rates.
Solid performance across cross-border and payables, coupled with 43% year-over-year growth in organic spend, supported the segment’s growth. Organic growth trajectory’s durability is supported by the company’s 30% year-over-year bookings growth and management’s expectation for the Corporate Payments segment’s mid-teens-plus organic growth.
Optimistic 2026 Outlook
Over the past two reported quarters, management appears to have an optimistic view of the company’s top- and bottom-line trajectory for 2026. During the first quarter, the company expected 2026 revenues to be $5.25-$5.33 billion, which was then revised to $5.29-$5.33 billion in the following quarter. Raising the lower end of the guidance, management anticipates a higher minimum revenue baseline for 2026, hinting at greater confidence in the outlook.
For EPS, the guidance was raised to $27.15-$27.55 in the second quarter of 2026 from the preceding quarter’s view of $26.3-$27.1. Raising the bottom-line guidance highlights stronger-than-expected first-half results, continued business momentum and productivity enhancements.
Aggressive Buybacks Support Bottom Line
During the first half of 2026, Corpay deployed substantial capital toward share repurchases, buying back $1.1 billion worth of shares. The company's earnings outlook was supported by the lower share count, while management plans to leverage divestiture proceeds for additional buybacks. Refinancing raised the company’s revolver to $3.7 billion, extended debt maturities, and lowered borrowing costs. At the end of the second quarter of 2026, the company had $1.6 billion in revolver capacity, which allowed it to retain flexibility to pursue buybacks and accretive acquisitions. This strategy supports the company’s long-term bottom-line growth momentum.
Zacks Rank & Stocks to Consider
CPAY currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Business Services sector are Acuity AYI and Amadeus IT Group AMADY, each currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Acuity has a long-term earnings growth expectation of 10%. AYI delivered a trailing four-quarter earnings surprise of 4.9%, on average.
Amadeus IT Group has a long-term earnings growth expectation of 34.5%. AMADY delivered a trailing four-quarter earnings surprise of 4.2%, on average.
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Corpay, Inc. (CPAY): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).