CPAY · Q1 2026 Earnings

Bullish

Corpay

Reported May 7, 2026

30-second summary

30-second take: Q1 FY2026 revenue grew 25% YoY to $1.261B with 11% organic growth, beating the prior $1.19–1.23B guide, and adjusted EPS of $5.80 (+29% YoY) cleared the $5.33–5.57 guide by 4–9%. Management raised FY2026 revenue to $5.25–5.33B (midpoint +$25M to $5.29B, +17% YoY) and FY adjusted EPS to $26.30–27.10 (midpoint +$0.70 to $26.70, +25% YoY) — both raises crediting Q1 over-performance, higher fuel prices, and durable fundamentals; FY organic growth held at 10%. Diluted share assumption was also lowered to ~67M (from ~70M) on buyback pace, and interest expense guide was raised to $415–445M (from $370–400M). Corporate Payments revenue grew +46% reported / +16% organic, the portfolio rotation thesis from Q2 2025 is now visibly executing, and management deployed $786M on a 2.4M-share buyback in the quarter.

Headline numbers

EPS

Q1 FY2026

$5.80

Revenue

Q1 FY2026

$1.26B

+25.0% YoY

Operating margin

Q1 FY2026

50.5%

Key financials

Q1 FY2026

Metric	Q1 FY2026	YoY	Q4 FY2025	QoQ
Revenue	$1.26B	+25.0%	$1.25B	+1.0%
EPS	$5.80	—	$6.04	-4.0%
Operating margin	50.5%	—	45.2%	+530bps

Guidance

Guidance is issued for the full year only, refreshed each quarter. Prior and new below are the same FY updated this quarter.

Actuals vs prior guidance

Metric	Period	Prior guide	Actual	Δ	Result
Revenue	Q1 FY2026	$1.19B - $1.23B	$1.261B	+$0.031B - $0.071B above guide	Beat
Adjusted EPS	Q1 FY2026	$5.33 - $5.57	$5.80	+$0.23 - $0.47 above guide	Beat
Organic Revenue Growth	Q1 FY2026	9%	11%	+2 points above guide	Beat
Adjusted EPS YoY Growth	Q1 FY2026	21%	—	—	Beat

New guidance

Metric	Period	Guide	YoY
Revenue	Q2 FY2026	$1.295B	+17.7% YoY
Adjusted EPS	Q2 FY2026	$6.55	+28%
Revenue YoY Growth	Q2 FY2026	18%	—
Adjusted EPS YoY Growth	Q2 FY2026	28%	—

Changes to prior guidance

Metric	Period	Prior guide	New guide	Δ	Result
Revenue	FY2026	$5.215B - $5.315B (midpoint $5.265B)	$5.250B - $5.330B (midpoint $5.290B)	+$0.025B midpoint increase	Raised
Adjusted EPS	FY2026	$25.50 - $26.50 (midpoint $26.00)	$26.30 - $27.10 (midpoint $26.70)	+$0.70 midpoint increase	Raised
Revenue YoY Growth	FY2026	16%	17%	+1 point	Raised
Adjusted EPS YoY Growth	FY2026	22%	25%	+3 points	Raised

Reaffirmed unchanged this quarter: Organic Revenue Growth (10%)

Segment performance

Q1 FY2026

Segment	Q1 FY2026	YoY
Corporate Payments	$0.504B	+46.0%
Vehicle Payments	$0.564B	+19.0%
Lodging Payments	$0.111B	+1.0%
Other	$0.082B	+8.0%
Corporate Payments Organic Growth	16%	—

Capital & returns

Q1 FY2026

Segment	Q1 FY2026
Leverage Ratio	2.7x
Share Repurchases (Q1)	2.4M shares / $786M

Other KPIs

Q1 FY2026

Segment	Q1 FY2026	YoY
US	$0.543B	+7.1%
Brazil	$0.211B	+29.4%
UK	$0.205B	+40.4%
Other International	$0.302B	+58.9%
Organic Revenue Growth	11%	—
Adjusted EBITDA	$688.6M	—
Adjusted EBITDA Margin	54.6%	—
Corporate Payments Spend Volume	$81.8B	—
Vehicle Payments Transactions	209.0M	—

Management tone

Narrative arc: Q2 2025 portfolio rotation under pressure → Q3 capacity-building credit amendment → Q4 macro flips to tailwind → Q1 FY2026 "blowout quarter" with explicit franchise-building roadmap.

Portfolio rotation hardened from "two assets on the block" to "late innings with more queued." Last quarter management disclosed Pay by Phone signed plus two vehicle divestitures with $1B–$1.3B proceeds within 30 days; this quarter the language tightened to "late innings with a non-core vehicle payments divestiture and actually teeing up a couple more businesses potentially for sale" alongside "a couple new corporate payment acquisition opportunities that do look quite interesting to us." The Q2 2025 frame of "fewer bigger businesses" is now a concrete pipeline on both sides of the balance sheet, not aspirational.

Cross-border moved from "MasterCard pipeline" to "blockchain rails with JPM and BBNK." Q4 disclosed 50–70 MasterCard opportunities and 2 closed; this quarter management said "We've converted about 15% of alpha clients to our tech platform... We just signed JP Morgan and BBNK agreements to speed the addition of blockchain rails to our global settlement network." MasterCard signed contracts are 3–4 deals at ~$5M run rate with 50 in pipeline — modest but proof the partnership channel is converting. The shift to disclosing blockchain rail partnerships with two named tier-one banks is a notable escalation in cross-border infrastructure ambition.

The growth algorithm got formalized into a 2030 EPS target. Q2 2025 framed organic growth at 10% as a non-negotiable floor (with lodging on a divestiture clock against it). Q4 reaffirmed 10% for 2026. This quarter Clarke reframed it as the foundation for a longer arc: "our midterm objectives really remain intact most important is to grow revenue organically 10% and remain a top quartile grower our business model and operating leverage do enable us to grow earnings much faster... think 15% plus and our goal is to double cash EPS to $50 a share during the forecast period." Anchoring on a doubled cash EPS figure is more aggressive than Corpay's typical annual-incrementalism cadence.

Macro tailwind got quantified, not just acknowledged. Q4 was when Clarke first called macro "our friend." This quarter, the tailwind has a price tag: "Higher fuel prices benefited this segment, driving a portion of the macro beat... we'll increase rest-of-year revenue guidance another $50 million as a result of higher fuel price expectations and ongoing or continued better fundamental performance." Splitting the FY raise into macro-attributable and fundamentals-attributable dollars is unusual transparency and a signal management is trying to inoculate the guide against a fuel-price reversal.

Three-segment portfolio reframed as three global franchises. Q4 talked about Corporate Payments, Vehicle Payments, and Lodging as operating segments. This quarter the framing shifted to "employee payments... B2B payments business, AP and supplier solutions... cross-border payments... each of which have like massive TAMs." It's a deliberate reorganization of the investor narrative around addressable-market scale and "helping businesses better manage and control their spending" — language that positions Corpay against pure spend-management peers (Brex, Ramp, Coupa) rather than fleet/lodging legacy peers.

Recurring themes management leaned on this quarter:

Portfolio rotation to corporate payments and fewer bigger businessesCross-border momentum with Alpha integration and blockchain infrastructureDurability of 10-11% organic growth across four consecutive quartersStrong sales (24% bookings growth) and retention (93.5%) trendsLeverage optimization and capital deployment for shareholder returnsAI integration into products and internal process redesign

Risks management surfaced:

Float revenue compression from lower interest rates (200 basis point drag in Q1)Pay-by-phone divestiture impact ($75 million revenue headwind rest of year)Higher bad debt impacting operating costsFX volatility exposure despite current favorable backdropIntegration execution risk on Alpha platform migration and AVID minority investment performance

Q&A highlights

Sanjay Safrani · KBW

Asked about underlying business trends versus macro tailwinds and what puts and takes are factored into full-year guidance, implying stronger trends could support higher upside.

Management clarified Q1 outperformance at 11% organic growth, with 3 remaining quarters growing over 11% to achieve 10% full-year target. Attributed back-half raise of $50M ($25M Q2, $25M back-half) to combination of business performance and macro, with $100M seasonal revenue climb built into guidance from Q1 to Q4.

Q1 organic growth: 11%Remaining 3 quarters: >11% growthFull-year target: 10% growthBack-half guidance raise: $50M total ($25M Q2, $25M rest of year)

Darren Peller · Wolf Research

Asked about US fleet business growth rate and what conditions would be needed for same-store sales to break out of 0-1% range, and requested breakdown of corporate payments growth between AP spend management and cross-border.

Fleet base grew +1% same-store sales (vs -2% in Q1 2025), representing 3-point swing. Management emphasized growth now hinges entirely on new middle-market sales model success. Both AP spend management and cross-border grew in the high teens with similar rates. Highlighted new European spend management business now at $15M run rate and cross-border 75% originated outside US.

US fleet same-store sales: +1% in Q1 (vs -2% in Q1 2025)Fleet business: 10% of company revenueCorporate payments growth: both segments in high teensEuropean spend management run rate: $15M (up from zero ~6 months ago)

Ting Jin Hung · JPMorgan

Asked what capabilities and TAM characteristics company is seeking in corporate payments acquisitions, and how valuations compare to stock buybacks given management repurchases more than half company valuation.

Management stated they have most capabilities needed already (citing Alpha acquisition for bank account capability), seeking geographic and vertical expansion rather than new functionality. Emphasized acquisitions close to existing business generate biggest synergies and focus on year-one accretion. Committed to buying additional assets in 2024 with geographic and vertical bulking-up strategy.

Acquisition strategy: geographic and vertical expansion, not new capabilitiesSelection criteria: year-one accretion focusSynergy driver: closeness to existing businessCommitment: buying additional assets this year

Ramsey LL Sales · Cantor Fitzgerald

Asked why middle market is the focus for US sales and what makes it most beneficial, and requested update on lodging business acceleration drivers.

Management explained move away from micro market due to credit losses, short account lives, and durability issues. Middle market preferred because accounts are larger, more stable, longer-lived, and enable fleet to become part of broader corporate payments platform rather than standalone product. Lodging same-store sales improved dramatically from -18% eight quarters ago to +6% in Q1; expects mid to high single-digit growth in second half as base is now stabilized.

Lodging same-store sales: +6% in Q1 (vs -18% eight quarters prior)Lodging expected H2 growth: mid to high single-digit (right side of 5%)Fleet consolidation impact: improving from -6% to +6-7% in H2Strategy: fleet becoming spend category within corporate payments platform

Michael Infante · Morgan Stanley

Asked about MasterCard partnership progress, resource commitment, and whether 1-2 points of cross-border contribution for 2026 remains appropriate.

Management expressed satisfaction with MasterCard partnership, noting they're pleased with engagement and resource commitment. Reported 3-4 sales contracts totaling ~$5M run rate with 50 accounts in pipeline. Surprising finding: foreign/multi-currency bank account product generating more interest than payment capabilities. Characterized as slower sales cycle versus direct B2B but formula is working; remains bullish with updates expected summer/fall.

MasterCard contracts: 3-4 signedRun rate from MasterCard deals: ~$5MPipeline accounts: 50Product mix: foreign bank account product outperforming payment capabilities

Answers to last quarter's watch list

Q1 FY2026 organic growth print vs. 9% guide. Q1 organic came in at 11% — 2 points above guide. The 9% guide was attributed to SOFR/float compression last quarter, and the beat suggests either float drag was less severe or fundamentals outpaced it; management said both. Status: Resolved positively

Pay by Phone close and the two other vehicle divestitures. Pay by Phone closed on March 31, with ~$420M proceeds reflected in cash flow and $75M removed from rest-of-year revenue guide. Management characterized additional non-core divestitures as "teasing out" with potential signings by year-end. The $786M Q1 buyback (2.4M shares) included $450M of pre-purchased Pay by Phone proceeds. Status: Resolved positively

MasterCard pipeline conversion. Q4 disclosed 50–70 opportunities and 2 closed; this quarter the running tally is 3–4 contracts at ~$5M run rate with 50 accounts still in pipeline. Conversion is happening but slowly, and management noted the foreign-bank-account product is unexpectedly the leading driver. Status: Continue monitoring

Corporate Payments organic growth holding at mid-teens through 2026. Q1 FY2026 organic for Corporate Payments was +16%, exactly within the mid-teens guide. Float drag is contained so far. Status: Resolved positively

Lodging same-store sales trajectory and the H2 inflection. Lodging segment revenue was +1% in Q1 FY2026 vs -7% in Q4 — first positive print after extended decline. Management said same-store sales were +6% in Q1 FY2026 (vs -18% eight quarters ago) with mid-to-high single-digit H2 growth expected. The H2 inflection management called for last quarter is showing up earlier and more decisively than guided. Status: Resolved positively

AI cost-takeout disclosure. Management noted AI agents are reducing live-agent expense in lodging but did not quantify the opex impact on this print. The narrative remains qualitative. Status: Continue monitoring

What to watch into next quarter

Q2 FY2026 organic growth vs. 9–11% guide. Q1 printed 11%; sustained 11% in Q2 would imply full-year organic likely above the 10% reaffirmed target and set up an FY organic raise at Q2 or Q3.

Additional divestiture announcements and proceeds deployment. With Pay by Phone closed, management said additional non-core vehicle divestitures are "teasing out" — watch for closing announcements and whether incremental proceeds extend the buyback pace beyond the $786M Q1 run rate.

MasterCard run-rate trajectory. $5M run rate from 3–4 signed deals against 50 accounts in pipeline is a slow conversion. Watch whether Q2 prints the first material step-up (e.g. run rate above $15M) or whether the channel stalls.

JPM and BBNK blockchain settlement integration. First disclosure of these partnerships — watch for any quantification of corridors enabled, settlement volume, or revenue contribution by mid-2026.

Lodging H2 inflection sustainability. +1% reported / +6% same-store in Q1 FY2026; management guided mid-to-high single-digit H2. A Q2 print at flat or negative reopens the divestiture conversation that was put aside in Q4.

Net interest expense vs. $415–445M FY guide (raised from $370–400M). The interest expense range was raised by $45M at the midpoint, with the term-loan refinancing not yet reflected in guidance — watch whether the May closing of the new credit facility allows management to walk the range lower at Q2.

Sources

Corpay Q1 FY2026 Press Release (Form 8-K Ex. 99.1), SEC filing dated 2026-05-07: https://www.sec.gov/Archives/edgar/data/1175454/000117545426000029/ex991q1_2026.htm
Corpay Q1 FY2026 earnings conference call commentary and Q&A

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