Corpay beat expectations in Q3, with revenue up 18% and cash EPS up 32%, and the stock rose 6.8% after earnings. Management raised Q4 guidance and reiterated a 9%–11% organic revenue growth outlook for 2027.
- Q3 revenue was $1.38 billion, up 18%; cash EPS was $7.54, up 32%. Organic revenue growth was 11%, marking six consecutive quarters of double-digit growth.
- Corporate Payments organic growth accelerated to 18% (20% excluding float); Vehicle Payments grew 8%. New bookings rose 24% year over year, retention was 92.2%, and same-store sales increased 2%.
- Q4 guidance midpoint is $1.37 billion in revenue and $7.65 in cash EPS, with expected organic revenue growth of 10%. Corporate Payments growth is expected to remain in the high teens.
- For 2027, management expects 9%–11% organic revenue growth, with Corporate Payments growth of mid-teens or better. It expects to deploy roughly $2 billion of free cash flow toward acquisitions or buybacks.
- Alpha and Avid are expected to contribute more than $1.40 in combined cash EPS accretion in 2026, versus an initial target of $1. Management also said it has launched additional divestiture candidates, while Avid is expected to exit Q4 with double-digit organic revenue growth.
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