Corpay Reports Strong Q3 Earnings, Raises Guidance as Analysts Boost Targets
Corpay posted third-quarter earnings that beat expectations, prompting management to raise full-year guidance and leading multiple brokerages to lift their price targets.
Corpay, Inc. delivered stronger-than-expected third-quarter financial results, driven by double-digit organic top-line expansion and solid momentum across its payment units. For the quarter, the corporate payments specialist recorded adjusted earnings per share of $7.54, exceeding analyst estimates of $7.20. Revenue grew 17.9% year over year to $1.38 billion, topping projections of $1.36 billion, with organic revenue increasing 11%.
Segment performance was led by the Corporate Payments division, which saw revenue surge 41% to $571.3 million, supported by cross-border volume and enhanced payment options. Vehicle Payments, the firm's largest division, grew revenue 8% to $579.8 million, while Lodging Payments revenue expanded 3% to $131.1 million on higher room rates. Corpay also produced approximately $501 million in free cash flow, repurchased 1.9 million shares for $747 million, and completed the sale of its vehicle maintenance unit on November 2 for estimated proceeds around $800 million.
Following the results, Chief Executive Ron Clarke noted sales and profit outpaced the company's internal projections. Corpay lifted its full-year 2026 revenue guidance to between $5.34 billion and $5.36 billion, while adjusted earnings per share are now expected between $27.90 and $28.10. For the fourth quarter, management anticipates revenue ranging from $1.36 billion to $1.38 billion alongside adjusted earnings between $7.55 and $7.75 per share.
Brokerages broadly raised price targets in response to the report. Cantor Fitzgerald lifted its objective from $480.00 to $550.00, Keefe, Bruyette & Woods pushed its target to $525.00, and Scotiabank moved its target to $539.00 while maintaining a sector outperform stance. MarketBeat data indicates an average price target of $474.38 with a Moderate Buy consensus. Separately, regulatory filings revealed Brighton Jones LLC lifted its stake by 118.0% during the third quarter, while company insiders sold about $91.4 million in shares over the preceding three months.