Western Union reported first-quarter 2026 revenue of $983 million, flat from a year earlier on a GAAP basis, while adjusted revenue fell 1%. Earnings per share dropped to $0.20 from $0.36 a year ago on a GAAP basis, and adjusted EPS declined to $0.25 from $0.41.
The biggest gains came from consumer services, where revenue rose 24% year over year on a GAAP basis and 33% on an adjusted basis. The company said the increase was driven by its travel money business, including the Eurochange acquisition, and higher bill payment revenue.
Branded digital revenue increased 9% on a GAAP basis and 6% on an adjusted basis, with transactions up 21% from the prior-year quarter. Branded digital accounted for 32% of total consumer money transfer revenue and 42% of transactions in the quarter.
By contrast, the consumer money transfer segment saw revenue fall 3% on a GAAP basis and 6% on an adjusted basis, while transactions were flat. Western Union said pressure in its Americas retail business weighed on results.
Operating margin narrowed sharply to 13% from 18% a year earlier on a GAAP basis, and from 19% on an adjusted basis. The company pointed to higher expenses in North America, including lower vendor incentive payments, higher commissions tied to new agents, foreign currency impacts, and lower fixed cost coverage in owned locations.
The tax rate also moved higher. The GAAP effective tax rate rose to 28% from 16%, while the adjusted rate increased to 15% from 10%.
For 2026, Western Union reaffirmed its full-year outlook for revenue growth of 5% to 8% on a GAAP basis and 6% to 9% on an adjusted basis. It also reiterated EPS guidance of $1.50 to $1.60 on a GAAP basis and $1.75 to $1.85 on an adjusted basis. Following these announcements, the company's shares moved -1.43%, and are now trading at a price of $8.97. For the full picture, make sure to review Western Union CO's 8-K report.
