Corpay, Inc.

CPAY · NYSE · USD

Analysis

Last 4 earnings calls · through Q2 FY2026

Corpay's growth now comes from corporate payments: cross-border and payables both expand in the high teens and the Alpha and Avid deals are beating plan, while the older fleet business is deliberately slowed to pay for the shift. How much of Alpha's earnings come from holding client cash rather than fees?

  • Corporate payments is now the company's growth engine.

    It grew 16% in Q2 FY2026, with cross-border and payables both up in the high teens, and it keeps more of its customers than the rest of the company does. At over 40% of revenue, the whole company's growth now depends on it.

  • Both big acquisitions are beating what management promised.

    Alpha's volume is 80% moved onto Corpay's platform and Avid's profit more than doubled. Management had guided to a dollar of earnings from the pair this year; it now says they are ahead of that, which is why full-year guidance rose again. How much of Avid's profit gain came from cost cuts versus new sales?

  • Falling interest rates are quietly holding back part of the growth.

    Lower rates cut what Corpay earns on client cash it holds, a drag of nearly two points on corporate payments growth last quarter. Buying Alpha made it more dependent on those deposits, which is why 2026 growth is guided below 2025's pace.

Bullish
  • Corporate Payments growth
    The bull case rests on Corporate Payments, where payables and cross-border are growing at similar rates and now supply the largest share of revenue.
  • Recurring guidance increases
    Management has raised its full-year outlook at each of the last two quarterly updates, drawing on both better trading and a friendlier macro backdrop.
  • Mastercard bank distribution
    The Mastercard partnership gives Corpay introductions to large banks that already handle most cross-border flows, a channel its own sales force could not reach directly.
Bearish
  • Float income compression
    The bear case is that falling interest rates shrink the float income earned on client balances, so reported growth keeps trailing what the fee businesses are doing.
  • U.S. vehicle sales model
    Growth in the U.S. vehicle business now depends on a middle-market sales model management is still proving, while sales spending is redirected to Corporate Payments.
  • Stablecoin demand absent
    Management has built stablecoin wallets and blockchain rails but told investors that merchants and deposit holders have asked for them almost not at all.
See the full bull & bear case
PoliticiansInstitutionsInsiders
PoliticianTransactionAmountTradedFiled
Donald Trump
Republican · Executive
Purchase≥$250KMay 18Jul 1
Donald Trump
Republican · Executive
Purchase≥$15KMay 11Jul 1
Donald Trump
Republican · Executive
Purchase≥$50KMar 18May 13
Donald Trump
Republican · Executive
Purchase≥$100KJan 6May 13
April McClain Delaney
Democratic · House · MD-6
Sale≥$1KAug 3Sep 9

Congressional trading data provided by QuiverQuant

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Product segmentsGeography
FY2025 · USD

How Corpay turned $4.5B of revenue into $2.0B of operating income.

Revenue
Payments$2.1B▲ 6.47% YoY
Corporate Payments$1.6B▲ 33.82% YoY
Lodging$469.5M▼ 3.91% YoY
Total revenue$4.5B
Gross profit$3.2B69.9%
Operating income$2.0B44.0%
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