CPAY · Corpay, Inc.

Corpay’s Q1 2026 results reflect exceptional operational execution, with GAAP revenue growing 25% YoY to $1,261.0 million and adjusted EPS rising 29% to $5.80 — both materially ahead of analyst consensus and prior guidance. The 11% organic revenue growth marks the fourth straight quarter at that level, underscoring resilience in core business drivers: Corporate Payments delivered 16% organic growth, while lodging showed sequential improvement. Adjusted EBITDA expanded 24% to $688.6 million, with management explicitly attributing the outperformance to high flow-through of incremental revenue and EBITDA margins exceeding expectations by over 100 basis points — a direct signal of pricing power and operating leverage. The $81 million gain on sale of a business inflated GAAP net income but was excluded from adjusted metrics, reinforcing that core profitability is strengthening organically. In response, Corpay raised full-year 2026 adjusted EPS guidance to $26.30–$27.10 (up ~$0.50 at midpoint), citing not only Q1 over-performance but also higher anticipated fuel prices and sustained fundamental trends. Second-quarter guidance further confirms momentum: $6.55 adjusted EPS (28% YoY) implies continued acceleration. Management’s commentary highlights disciplined capital allocation — $786 million spent repurchasing 2.4 million shares — while maintaining leverage at 2.7x, suggesting confidence in durable free cash flow generation. The outlook assumes stable FX, no material M&A impact, and an effective tax rate of 25–27%, all consistent with prior assumptions — indicating the raise is grounded in operational delivery, not external tailwinds alone.