Wex (WEX) Up 11.8% Since Last Earnings Report: Can It Continue?

A month has gone by since the last earnings report for Wex (WEX). Shares have added about 11.8% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Wex due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important catalysts.

WEX Q4 Earnings Beat Estimates

WEX reported better-than-expected fourth-quarter 2025 results, with both earnings and revenues beating the Zacks Consensus Estimate.

The company reported fourth-quarter 2025 earnings of $4.11 per share, which beat the Zacks Consensus Estimate by 5.1% and increased 15.1% year over year. Revenues of $672.9 million beat the consensus mark marginally and increased 5.7% from the year-ago quarter.

Segmental Revenues of WEX

The Mobility segment’s revenues of $345.1 million remained almost flat from the year-ago quarter, missing our estimate of $362.5 million. The Corporate Payments segment’s revenues were $122.9 million, rising 17.8% from the fourth quarter of 2024 and beating our estimate of $88.5 million.

The Benefits segment’s revenues increased 9.6% year over year to $204.9 million, lagging our estimate of $205.8 million.

WEX's Operating Results

Adjusted operating income rose 2.3% to $247.1 million from the year-ago quarter and beat our estimate of $233.4 million. The adjusted operating margin of 36.7% outpaced our estimate of 35.5% but declined 120 basis points year over year.

Balance Sheet & Cash Flow of WEX

WEX exited the quarter with cash and cash equivalents of $905.8 million compared with $595.8 million in the December-end quarter of 2024. The long-term debt was $3.53 billion compared with $3.08 billion in the December-end quarter of 2024.

The company generated $294.7 million in cash from operating activities during the quarter. The adjusted free cash flow was $261.3 million. Capital expenditure totaled $38.4 million.

WEX's Q1 & 2026 Outlook

For the first quarter of 2026, adjusted net income per share is expected to be between $3.80 and $4.00. Revenues are expected to be between $650 million and $670 million.

For 2026, revenues are expected to be between $2.70 billion and $2.76 billion. Adjusted net income per share is expected to be between $17.25 and $17.85. 

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates have trended downward during the past month.

VGM Scores

Currently, Wex has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a score of A on the value side, putting it in the top quintile for value investors.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Wex 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

Wex belongs to the Zacks Financial Transaction Services industry. Another stock from the same industry, Paypal (PYPL), has gained 19.4% over the past month. More than a month has passed since the company reported results for the quarter ended December 2025.

Paypal reported revenues of $8.68 billion in the last reported quarter, representing a year-over-year change of +3.7%. EPS of $1.23 for the same period compares with $1.19 a year ago.

For the current quarter, Paypal is expected to post earnings of $1.29 per share, indicating a change of -3% from the year-ago quarter. The Zacks Consensus Estimate has changed -4.5% over the last 30 days.

Paypal has a Zacks Rank #4 (Sell) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.

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This article originally published on Zacks Investment Research (zacks.com).

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