Corpay Caps Record 2025 with Strong Q4, Forecasts Sustained Growth Amid Strategic Portfolio Shifts
Global payments leader Corpay (NYSE:CPAY) wrapped up a record-breaking 2025 with a powerful fourth-quarter performance, setting the stage for what executives project will be another year of significant expansion in 2026. The company's latest earnings reveal a business firing on multiple cylinders, with organic growth, strategic acquisitions, and disciplined cost management converging to deliver results that surpassed internal expectations.
"Our fourth quarter was better than we anticipated, largely thanks to exceptional performance in Cross-Border and the seamless integration of our Alpha acquisition," stated Chairman and CEO Ron Clarke during the earnings call. The numbers support his optimism: Q4 revenue hit $1.248 billion, a 21% year-over-year increase, while adjusted cash earnings per share climbed 13% to $6.04.
Beyond the headline figures, underlying operational health appears solid. The company logged 11% overall revenue growth for the third consecutive quarter, while new sales bookings surged 29%. A notable turnaround was seen in same-store sales within the U.S. vehicle payments business, which turned positive for the first time in six quarters. For the full year 2025, revenue reached $4.528 billion, up 14%.
Looking ahead, management's guidance for 2026 points to continued momentum. The midpoint forecast calls for revenue of $5.265 billion (up 16%) and adjusted EPS of $26.00 (up 22%). CFO Peter Walker attributed this confidence to "strong exit trends, a disciplined sales engine, and a more favorable macroeconomic backdrop." The company expects 10% organic revenue growth, though Walker cautioned that "float headwinds"—primarily from lower interest rates compressing certain revenues—would be more pronounced in the first half of the year.
Strategic Moves and Portfolio Pruning
A key theme of the call was strategic portfolio management. Clarke described 2025 as an "active repositioning year," highlighted by the acquisition of Alpha, which is already exceeding commercial expectations. Alpha is projected to contribute roughly $300 million in incremental revenue in 2026. Simultaneously, Corpay is streamlining its portfolio, having signed a deal to sell the non-core PayByPhone asset and working on two additional "late-stage" vehicle-related divestitures. Proceeds from these sales, potentially over $1 billion, are earmarked for share repurchases.
Segment Performance: Corporate Payments Lead, Lodging Lags
The corporate payments division was a standout, delivering 16% organic growth in Q4 despite a significant drag from lower float income. Spend volumes on a pro forma basis skyrocketed 44% to over $81 billion. The vehicle payments segment grew organically by 10%, with strength across its U.S., European, and Brazilian operations. The lodging segment, representing less than 10% of total revenue, declined 7% year-over-year, though this was largely due to a reduction in emergency-related (FEMA) revenue. Management expects low single-digit growth for lodging in 2026.
Analyst and Investor Reactions
Market voices weighed in on the results:
"The consistency of double-digit organic growth is impressive in this environment," said Michael Thorne, a portfolio manager at Horizon Capital. "The guidance for over 20% EPS expansion suggests they're not just growing the top line but also leveraging scale effectively. The planned divestitures and buybacks are a clear signal of capital discipline."
"Another quarter, another beat. Corpay's model seems resilient," noted Sarah Chen, fintech analyst at Broadgate Research. "The cross-border segment's stability amid trade uncertainty and the rapid Alpha integration are key positives. My focus is on whether they can maintain the 10% organic growth target if macro conditions shift."
"Let's not get carried away," countered David R. Feld, editor of The Skeptical Investor newsletter. "Yes, they beat expectations they set for themselves. But 'float headwinds' sound like a convenient excuse pre-loaded for 2026. Selling assets to buy back shares is financial engineering, not operational genius. The market is rewarding acquisition-driven growth, but what's the underlying organic innovation? I'm not convinced."
"The positive turn in U.S. vehicle same-store sales is a major green flag," observed Priya Sharma, a payments industry consultant. "It suggests their foundational business is healing after a tough period. Combined with the corporate payments momentum, it paints a picture of a company executing well across both established and growth verticals."
Corpay ended the quarter with a leverage ratio of 2.8x and repurchased $500 million worth of shares in Q4. The company also reported it had remediated a previously disclosed material weakness in user access controls.