A month has gone by since the last earnings report for Corpay (CPAY). Shares have added about 7% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Corpay due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for Corpay, Inc. before we dive into how investors and analysts have reacted as of late.
Corpay Q3 Earnings Meet Estimates
Corpay reported impressive third-quarter 2025 results, wherein earnings and revenues beat the Zacks Consensus Estimate.
CPAY’s earnings per share of $5.7 beat the consensus estimate by 1.2% and rose 14% year over year. The total revenues of $1.2 billion surpassed the consensus estimate by a slight margin and gained 13.9% from the year-ago quarter.
Corpay's Segmental Results
Vehicle payments’ revenues of $553.2 million increased 9% from the year-ago quarter. This figure beat our estimate of $550.3 million. In Brazil, growth in 6% tag and expansion of the company’s extended network, including a new card debt offering, drove this segment’s growth. Performance was impressive across the U.K., Europe and ANZ as CPAY witnessed strong sales in those regions.
Revenues from corporate payments amounted to $409.7 million, up 27% year over year, surpassing our estimate of $398.5 million. Strength in the payables business, fueled by robust execution on Paymerang synergies, and solid progress implementing and enhancing new full AP customers, drove this segment’s performance.
Lodging payments posted revenues of $127 million, declining 5% from the year-ago quarter. The reported figure missed our projection of $138 million.
CPAY's Margins
EBITDA increased 12.5% from the year-ago quarter to $627.5 million, missing our estimation of $630.6 million. The EBITDA margin was 57.7%, down 10 basis points from the year-ago quarter.
Balance Sheet & Cash Flow of CPAY
Corpay exited the third quarter of 2025 with cash and cash equivalents of $2 billion compared with $2.2 billion in the second quarter of 2025. The long-term debt was $5.8 billion compared with $5.9 billion in the preceding quarter.
CPAY utilized $378.9 million in cash from operating activities in the quarter. Capital expenditure amounted to $50.9 million.
Corpay's 2025 Outlook
For 2025, CPAY raised the revenue guidance to $4.51-$4.53 billion compared with the preceding quarter’s view of $4.41-$4.49 billion.
The guidance for adjusted net income per diluted share was raised to $21.14-$21.34 compared with $20.86-$21.26 from the preceding quarter.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in estimates review.
VGM Scores
At this time, Corpay has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for value investors.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Corpay has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Corpay is part of the Zacks Financial Transaction Services industry. Over the past month, Fiserv (FISV), a stock from the same industry, has gained 7.2%. The company reported its results for the quarter ended September 2025 more than a month ago.
Fiserv reported revenues of $4.92 billion in the last reported quarter, representing a year-over-year change of +0.7%. EPS of $2.04 for the same period compares with $2.30 a year ago.
For the current quarter, Fiserv is expected to post earnings of $1.92 per share, indicating a change of -23.5% from the year-ago quarter. The Zacks Consensus Estimate has changed -4.2% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #5 (Strong Sell) for Fiserv. Also, the stock has a VGM Score of C.
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Corpay, Inc. (CPAY): Free Stock Analysis Report Fiserv, Inc. (FISV): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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