Why Is Corpay (CPAY) Down 3.2% Since Last Earnings Report?

A month has gone by since the last earnings report for Corpay (CPAY). Shares have lost about 3.2% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Corpay due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important drivers.

Corpay Q4 Earnings Beat Estimates

Corpay reported better-than-expected fourth-quarter 2025 results.

CPAY’s earnings per share of $6.04 beat the consensus mark by 1.5% and rose 12.7% year over year. Total revenues of $1.2 billion marginally exceeded the consensus mark and increased 20.7% from the year-ago quarter.

Corpay's Segmental Results

Vehicle payments’ revenues of $572.9 million increased 9.5% from the year-ago quarter and beat the consensus estimate of $550.3 million. CPAY witnessed strong sales in the United States, Europe and Brazil, which drove sales growth in this segment.

Revenues from corporate payments totaled $480.8 million, up 38.9% year over year, surpassing the consensus estimate of $475.8 million. Strength in the payables business, fueled by the recent Alpha Group integration efforts and strategic investment in Avid Exchange during the quarter, drove this segment’s performance.

Lodging payments posted revenues of $113 million, which declined 6.9% from the year-ago quarter. The reported figure missed our projection of $119.8 million. 

CPAY's Margins

Adjusted EBITDA increased 17.7% from the year-ago quarter to $712 million. The adjusted EBITDA margin was 57.1%, declining 40 basis points from the year-ago quarter.

Balance Sheet & Cash Flow of CPAY

Corpay exited the fourth quarter of 2025 with cash and cash equivalents of $2.5 billion, up from $2 billion in the third quarter of 2025. Long-term debt was $6.7 billion compared with $5.8 billion in the preceding quarter.

CPAY generated $812.8 million in cash from operating activities during the quarter, while capital expenditure was $52.4 million. 

Corpay's Q1 & 2026 Outlook

For the first quarter of 2026, CPAY anticipates revenues in the range of $1.20 billion-$1.22 billion. Adjusted net income per share is expected to be between $5.38 and $5.52.

For the full-year 2026, the company expects revenues in the range of $5.22 billion-$5.32 billion. Adjusted net income per share for 2026 is expected in the range of $25.50-$26.50.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in estimates revision.

VGM Scores

Currently, Corpay has a average Growth Score of C, however its Momentum Score is doing a bit better with a B. Following the exact same course, the stock was allocated a score of B on the value side, putting it in the top 40% for this investment strategy.

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 broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Corpay has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

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

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