Western Union (NYSE:WU) Shares Gap Down on Disappointing Earnings

The Western Union Company (NYSE:WU)’s stock price gapped down before the market opened on Friday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $9.33, but opened at $8.35. Western Union shares last traded at $8.1760, with a volume of 9,951,676 shares trading hands.

The credit services provider reported $0.25 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.40 by ($0.15). Western Union had a net margin of 12.33% and a return on equity of 62.01%. The company had revenue of $963.50 million for the quarter, compared to analysts’ expectations of $1.06 billion. During the same quarter in the prior year, the firm earned $0.41 EPS. Western Union’s quarterly revenue was down .1% compared to the same quarter last year. Western Union has set its FY 2026 guidance at 1.750-1.850 EPS.

Western Union Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, March 31st. Stockholders of record on Tuesday, March 17th were issued a dividend of $0.235 per share. The ex-dividend date was Tuesday, March 17th. This represents a $0.94 annualized dividend and a dividend yield of 10.5%. Western Union’s dividend payout ratio is 61.84%.

Key Western Union News

Here are the key news stories impacting Western Union this week:

• Positive Sentiment: Management announced a push into Travel Money with a $150M revenue target and plans to launch a USD-pegged token (USDPT) next month — potential new revenue streams and digital expansion that could help growth over time. Western Union reaffirms 2026 EPS of $1.75-$1.85 while targeting $150M Travel Money revenue and launching USDPT next month
• Positive Sentiment: Insider buying was reported (company executive purchased shares), which some investors view as a signal of management confidence. Western Union slides as Q1 earnings fall sharply despite flat revenue and reaffirmed outlook
• Neutral Sentiment: The company reaffirmed FY2026 guidance of $1.75–$1.85 adjusted EPS and revenue guidance in the ~$4.2B–$4.4B range — guidance in line with street expectations but dependent on the expected Intermex acquisition closing. Western Union reaffirms 2026 EPS of $1.75-$1.85 while targeting $150M Travel Money revenue and launching USDPT next month
• Neutral Sentiment: Q1 GAAP revenue was essentially flat year‑over‑year (roughly $980–983M reported), with growth in Consumer Services and Branded Digital offset by weakness in Americas retail. Western Union Reports First Quarter 2026 Results
• Negative Sentiment: Q1 EPS missed expectations — reported $0.25 vs. consensus ~ $0.40–$0.45 — and adjusted EPS declined materially from last year, prompting investor concern about near-term profitability. Western Union Stock Slides After Q1 EPS Miss Despite Revenue Beat
• Negative Sentiment: Operating margin compressed (to roughly mid‑teens vs. high‑teens prior year) due to weaker fixed‑cost coverage at owned locations, timing of vendor incentives, higher commissions for new agents and FX impacts — margin pressure is the main driver of the earnings shortfall. Western Union slides as Q1 earnings fall sharply despite flat revenue and reaffirmed outlook

Wall Street Analysts Forecast Growth

WU has been the topic of several research reports. Cantor Fitzgerald raised Western Union to a “strong sell” rating in a research report on Tuesday, January 27th. Keefe, Bruyette & Woods upped their target price on Western Union from $9.00 to $10.00 and gave the company a “market perform” rating in a report on Friday, January 2nd. Finally, Weiss Ratings reiterated a “hold (c-)” rating on shares of Western Union in a report on Wednesday, January 21st. Nine analysts have rated the stock with a Hold rating and five have issued a Sell rating to the stock. Based on data from MarketBeat, the company has an average rating of “Reduce” and a consensus price target of $8.82.

Hedge Funds Weigh In On Western Union

Large investors have recently made changes to their positions in the stock. Wilmington Savings Fund Society FSB grew its stake in Western Union by 606.7% in the 3rd quarter. Wilmington Savings Fund Society FSB now owns 3,265 shares of the credit services provider’s stock valued at $26,000 after acquiring an additional 2,803 shares during the last quarter. UMB Bank n.a. grew its stake in Western Union by 260.7% in the 3rd quarter. UMB Bank n.a. now owns 3,593 shares of the credit services provider’s stock worth $29,000 after acquiring an additional 2,597 shares during the period. Salomon & Ludwin LLC increased its stake in shares of Western Union by 1,546.5% during the 4th quarter. Salomon & Ludwin LLC now owns 3,326 shares of the credit services provider’s stock valued at $31,000 after acquiring an additional 3,124 shares during the last quarter. Fifth Third Bancorp grew its stake in shares of Western Union by 67.0% during the 4th quarter. Fifth Third Bancorp now owns 3,331 shares of the credit services provider’s stock valued at $31,000 after buying an additional 1,336 shares during the period. Finally, Caitong International Asset Management Co. Ltd boosted its holdings in Western Union by 179.6% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 3,341 shares of the credit services provider’s stock valued at $31,000 after acquiring an additional 2,146 shares during the last quarter. Hedge funds and other institutional investors own 91.81% of the company’s stock.

Western Union Price Performance

The company’s fifty day moving average is $9.27 and its 200 day moving average is $9.17. The company has a quick ratio of 1.19, a current ratio of 1.19 and a debt-to-equity ratio of 3.00. The stock has a market cap of $2.80 billion, a PE ratio of 5.87, a price-to-earnings-growth ratio of 1.83 and a beta of 0.50.

About Western Union

Western Union Company (NYSE: WU) is a global leader in cross-border, cross-currency money movement and payments. The company enables individuals and businesses to send and receive money through a variety of channels, including its vast agent network, online platforms, and mobile applications. Core services include person-to-person money transfers, business-to-business cross-border payments, bill payment services and prepaid card programs.

Through its digital offerings, Western Union provides customers with the ability to initiate transfers via its website and mobile app, as well as track transactions in real time.