Corpay grew Q2 2026 revenue 21.5% to $1.34B (10% organic, led by 16% in Corporate Payments), but a $100M FTC settlement charge cut GAAP EPS 7% to $3.70; full-year guidance was raised.
Revenue
$1.3B
+21.5% YoY
Net income
$248M
-12.6% YoY
Diluted EPS
$3.70
-7.0% YoY
Operating margin
35.3%
Overview
Corpay (formerly FLEETCOR) grew second-quarter 2026 revenue 21.5% to $1,338.8 million, but GAAP net income fell 12.6% to $248.3 million and diluted EPS fell 7.0% to $3.70. The gap between the two has one main cause: a $100 million charge booked for a proposed settlement with the Federal Trade Commission (FTC), which would resolve the lawsuit the FTC filed in 2019 alleging unfair and deceptive practices. Without that charge, operating income would have risen about 19% instead of falling 1.5%.
The revenue growth came from several sources, and they are worth separating:
Organic growth of 10%. This is growth from the existing business, after stripping out acquisitions, sales of businesses, fuel prices and currency moves. The 10-Q says it was "driven by increases in spend and transaction volumes, implementation and ramping of new sales and business initiatives."
Acquisitions added about 7%, mostly Alpha Group, the UK cross-border payments firm bought for about $2.4 billion in October 2025.
Business sales took away about $28 million, mainly the PayByPhone parking app (sold March 2026) and the BP private-label fuel card portfolio (sold October 2025).
Because EPS is divided over fewer shares after heavy buybacks, it fell less than net income did (−7.0% vs −12.6%). Diluted shares were 66.3 million, down from 71.4 million a year earlier.
Key metrics
Metric
Q2 2026
Q2 2025
YoY Change
Revenue
$1,338.8M
$1,102.0M
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Operating margin is operating income divided by revenue: the share of revenue left after running the business, before interest and tax. Adjusted figures are company-defined and exclude items such as amortization of acquired intangibles, stock-based pay, the FTC charge and deal costs. Adjusted EPS, adjusted EBITDA and organic growth come from the Q2 earnings release (8-K Exhibit 99.1, August 5, 2026).
The GAAP operating margin fell by 8.2 points. Nearly all of that is the FTC charge: adding back the $99.9 million "other operating, net" line puts the margin at about 42.7%, compared with 43.5% a year ago. The small remaining gap reflects higher selling and G&A costs. Selling expense rose 30.1%, which the 10-Q attributes to "marketing investments to drive future growth" and higher commissions. G&A rose 26.4%, including acquisition-related deal fees and IT investment.
Segment performance
Corpay now reports four segments. Corporate Payments has become about the same size as the original fuel-card business.
Segment
Q2 2026 revenue
Q2 2025 revenue
Reported growth
Organic growth*
Q2 2026 operating income
YoY
Corporate Payments
$548.7M
$387.3M
+42%
+16%
$199.6M
+27%
Vehicle Payments
$580.2M
$512.0M
+13%
+8%
$190.1M
−21%
Lodging Payments
$123.2M
$119.8M
+3%
+2%
$49.5M
+0.4%
Other (gift, payroll card, card processing)
$86.7M
$82.9M
+5%
+5%
$33.1M
+5%
*Pro forma and macro-adjusted growth, from Exhibit 2 of the earnings release.
Corporate Payments (supplier payments, corporate cards and cross-border currency payments) grew 42% as reported. Of that, about $78 million came from Alpha, and organic growth was 16%. Spend volume, meaning the dollar value of payments flowing through Corpay, rose 43% on a like-for-like basis to $94.6 billion. Revenue earned per dollar of spend fell from 0.70% to 0.58%. The company says this is due to "new payables and cross-border enterprise clients": big customers move more money at lower rates. So volume is growing much faster than revenue, and the take rate is the figure to watch. Segment operating income rose 27%, less than revenue. The 10-Q cites sales investment and "one-time integration expenses", and depreciation and amortization in the segment nearly doubled (+89%) after the Alpha deal.
Vehicle Payments (fuel cards, toll tags and the Brazil vehicle-payments business) grew revenue 13%, but most of that came from outside factors. About $29 million came from currency, $17 million from fuel prices and $10 million from fuel price spreads, while business sales took away about $28 million. Organic growth was 8%. Reported transactions fell 29% because PayByPhone's 67.8 million low-value parking transactions are gone. That same removal is why revenue per transaction jumped 59% to $3.93. On a like-for-like basis, revenue per transaction was flat at $3.56 and transactions rose 8%. Fleet transactions rose 2% like-for-like, and toll-tag transactions rose 5%. Segment operating income fell 21% to $190.1 million because the full $100 million FTC charge was booked here.
Lodging Payments (hotel booking and payment for crews and workforces) grew 3%, even though room nights fell 13% to 7.5 million. Revenue per room night rose 18% to $16.34, which the 10-Q says was up "across all solutions". Revenue is up while volume is down, so pricing and mix are carrying this segment for now.
Year-to-date (first half 2026)
Metric
H1 2026
H1 2025
YoY
Revenue
$2,599.8M
$2,107.7M
+23%
Operating income
$1,108.4M
$906.5M
+22%
Net income attributable to Corpay
$598.4M
$527.4M
+13%
Diluted EPS
$8.79
$7.38
+19%
Operating cash flow
$1,413.5M
$1,066.1M
+33%
Two one-off items affect the first half. It includes a $122.5 million pre-tax gain on the PayByPhone sale (booked mainly in Q1), with about $40.0 million of tax on that gain. It also includes the $100 million FTC charge in Q2. The first half also absorbed $22.7 million of losses from equity-method investments, which the company records under "other expense". These are mainly its roughly 35% stake in the partnership with TPG that took AvidXchange private in October 2025.
Deals, buybacks and debt
Maintenance business sale. In June 2026 Corpay agreed to sell its Maintenance business (part of Vehicle Payments) for about £600 million (about $800 million). Closing is expected in the second half of 2026, pending UK and Australian regulatory approval. The guidance assumes the proceeds go to share buybacks.
AvidXchange. Corpay invested about $578 million for about 35% of the TPG partnership. It has the right to buy the rest 33 months after the October 2025 closing, at about 2.5 times the partners' invested capital. If it doesn't, and TPG sells within the following 15 months, Corpay must guarantee its partners a minimum return of about 1.6 times invested capital, subject to limits. Shareholders should keep this contingent obligation in mind.
Buybacks. Corpay repurchased 3.4 million shares for $1.1 billion in the first half. Of that, about 1 million shares for $321 million were bought in Q2, per the CFO's comments in the release. $1.4 billion of authorization remained at June 30.
Debt. In May, Corpay refinanced its bank facilities. It raised its revolving credit line by $0.9 billion to $3.7 billion, enlarged Term Loan A to $3.3 billion and Term Loan B-6 to $2.95 billion, and repaid Term Loan B-5 in full. This produced a $6.6 million loss on extinguishment of debt. Interest expense rose 18% to $114.7 million because of acquisition borrowing, partly offset by lower rates: Term Loan A averaged 5.06%, down from 5.80%. The CFO said leverage ended the quarter at 2.55x (company-defined debt relative to earnings). About $2.18 billion of debt matures in the rest of 2026, which the company classifies as current.
Takeaway: The 7% fall in GAAP EPS comes from a one-time $100 million FTC settlement charge. The underlying business grew organically 10%, led by 16% growth in Corporate Payments. Still, about $67 million of this quarter's revenue came from fuel prices and exchange rates, which Corpay does not control. And the fastest-growing segment earns less on each dollar it processes: its take rate fell from 0.70% to 0.58%.
Outlook
Management raised its full-year 2026 guidance, citing the quarter's results and "favorable macro conditions":
FY2026 guidance
Range
Revenue
$5.290B – $5.330B (about +17% at midpoint)
Net income (GAAP)
$1.285B – $1.325B
Diluted EPS (GAAP)
$19.50 – $19.90
Adjusted EPS
$27.15 – $27.55 (about +28% at midpoint)
For Q3 2026, the company guides to revenue of about $1.355 billion at the midpoint (+16%), GAAP EPS of $5.26–$5.46 and adjusted EPS of $7.15 at the midpoint (+26%). The guidance assumes U.S. fuel at $4.02 a gallon for the rest of the year, fuel spreads roughly flat with the 2025 average, and interest expense of $435–$465 million for the year.
Our read. Management expects revenue growth to slow to 16% in Q3, from 21.5% in Q2. Alpha, acquired on October 31, 2025, still adds to the Q3 comparison, but it stops counting as acquired growth from November. The Maintenance sale will also remove revenue once it closes. So reported growth in Q4 and 2027 will depend more on organic growth. Adjusted EPS guidance still grows faster than revenue, helped by buybacks and a lower share count (about 66 million assumed). The guide depends on fuel prices and currency. A pullback in fuel from the $4.02 assumption, or a weaker Brazilian real, would take revenue away just as it added revenue this quarter. The FTC settlement still needs approval from the FTC commissioners and the court, which the company expects later this year. If it is approved on the proposed terms, a litigation risk that has hung over the stock since 2019 would be settled for the $100 million already recorded. The full-year GAAP guidance already includes that charge.