WU NYSE Russell 1000 Earnings call
Western Union (WU) · Q2 2026 results and valuation
Share price: $6.73 · 2026-11-11
Results Q2 2026 vs Q1 2026 · previous quarter · published 30 Jul 2026 and 24 Apr 2026
Net income up 18.5% on the previous quarter. Management sounded about as positive as a typical company call, in its script and in answers to analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
+18.5%
Net income vs Q1 2026
Outlook given
Net income 76.7M vs 64.7M
Revenue +3.1%
Against the same quarter last year (Q2 2025) it is −37.2%, so the move on last quarter looks seasonal or timing-related rather than a trend.
2 · How management spoke
Typical
Less upbeat than 60% of company calls
Answers to analysts: typical, in line with the script.
Similar to last call.
3 · What stood out
Figure
The company reported results despite macro headwinds because its strategy and geographic diversification enabled the performance.
Valuation
Is Western Union undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At −3.3% growth a year (3-year revenue growth), the model's fair value is $9.56 a share — the stock trades 30% below it. Today's price assumes −6.4% growth a year.
Current price
$6.73
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
-6.4% for 10 yrs
Fair value / share
$9.56
Buy below
$7.17
Price vs fair value
Undervalued 30%
Price vs buy-below price
Undervalued 6%
Read between the lines
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Key theme
Adjusted effective tax rate dropped to 14% from 16%, driven by expenses recognized last year.
Source quote
“The decrease in adjusted effective tax rate was primarily due to discrete expenses in the prior year period. Our adjusted effective tax rate in the quarter was 14%, compared to 16% in the prior year. Now turning to Consumer Services business contributed 15% of total revenue in the quarter compared to...”
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Key theme
Payouts are shifting from cash to digital wallets like Nequi in Colombia, enabling real-time payment processing.
Source quote
“To payout to account Bancolombia but more importantly, payout to a wallet there called the Nequi wallet, and this shift... The shift that has happened from what was traditionally a very significant payout to cash business for us. And so we were fortunate that we were enabled into the Nequi wallet and then we enabled Transfiya Matt will remember, probably in the fourth quarter of last year or the first quarter of this year.”
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Guidance
The company anticipates that the update will improve on all three dimensions of cost, quality, and speed.
Source quote
“We anticipate this will improve on all 3 dimensions of cost, quality and speed.”
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Guidance
Capital expenditures are expected to reach roughly $200 million this year because of new partnerships and a higher renewal cycle.
Source quote
“As discussed in February, we expect CapEx to be roughly $200 million this year due to new strategic partnerships as well as a higher renewal cycle.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“While meaningful transformation takes time, our view is that the combination of improving growth and enhanced cost discipline will strengthen margins, improve profitability, and increase returns over time.”
“Consumer money transfer transactions grew at 3% in the quarter, which was a 300-basis-point improvement from Q1 a 600-basis-point improvement year over year and the highest transaction growth rate since...”
“Account payout transactions also continued with a strong momentum growing at 50% in the quarter.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-06-30)
| Metric | Q2 2026period end 2026-06-30 | Q1 2026period end 2026-03-31 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 1.01B | 982.7M | +3.1% | 1.03B | −1.3% |
| Gross profit | 336.5M | 327.8M | +2.7% | 383.3M | −12.2% |
| Operating income | 132.1M | 123.0M | +7.4% | 192.7M | −31.4% |
| Net income | 76.7M | 64.7M | +18.5% | 122.1M | −37.2% |
| EPS | 0.24 | 0.20 | +20.0% | 0.37 | −35.1% |
| P/E today 4.9 | 6.2 | 6.4 | −0.2 | 3.2 | +3.0 |
Topics
Most discussed now
- In a world that is rapidly going to digital payouts, Western Union must reduce the cost of capital that it has...
- However, the accelerated shift from cash payout transactions with higher revenue per transaction RPT, and higher contribution profit per…
- Where possible, Western Union has reconciled those items to the most comparable GAAP measures in its earnings release attached to its...
- Today's call is being recorded, and Western Union's comments include forward looking statements.
- Consumer money transfer transactions grew at 3% in the quarter, which was a 300-basis-point improvement from Q1 a 600-basis-point…
Faded since Q1 2026
- Fading This quarter, Western Union agains saw incremental improvement in its CMT transaction rates quarter-over-quarter.
- Fading Western Union's expectation is Q1 will be the lowest growth rate of the year due to the benefits of the Intermex...
- Fading Those factors include a lack of vendor incentive payments, which Western Union expects to receive in future quarters this year, and...
- Fading The other item that Western Union has is its dual track got dislocated.
Latest announcements
Official filings, newest first.
- Other events · SEC 8-K
- Regulation FD disclosure; Other events · SEC 8-K
- Results of operations · SEC 8-K
- Director or officer change · SEC 8-K
- Other events · SEC 8-K
- Shareholder vote results · SEC 8-K
- Other events · SEC 8-K
- Results of operations · SEC 8-K