Shares of Corpay, Inc. CPAY have had a decent run over the past month. The stock has risen 10.4% compared with the industry’s 2.5% growth. The Zacks S&P 500 composite has gained 4.1% during the said time frame.
The company’s third-quarter 2026 earnings are expected to increase 25.8% year over year. Its 2026 and 2027 earnings are projected to rise 28.2% and 14.1%, respectively. Revenues are anticipated to grow 17.4% in 2026 and 8% in 2027.
Factors That Bode Well for CPAY
Continued Momentum for Corporate Payments: Corpay’s Corporate Payments segment continues to grow, driven by strong execution, accelerating cross-border activity and continued portfolio transformation efforts. The segment's revenues jumped 42% year over year to $548.7 million and accounted for 41% of consolidated revenues for the second quarter of 2026. On a pro forma and macro-adjusted basis, segment revenues increased 16% to $538.1 million.
Vehicle Business Remains Solid: CPAY’s Vehicle business consistently delivers strong results, supported by strong demand in the United States, Europe and Brazil. Revenues from the segment increased 13% year over year during the second quarter of 2026. The company continues to develop new brand advertisements to raise awareness while exploring new monetization options with its merchant and vendor base through instant payment options, debit card payments and eChecks.
Acquisitions & Investments Drive Growth: The company continues to pursue acquisitions and investments both domestically in the United States and globally to drive long-term growth. The acquisition of Alpha Group International plc, a European business-to-business cross-border foreign exchange solution firm, in November 2025 has expanded its global customer reach. The company invested in AvidXchange, which continued to perform strongly. These investments mark a significant expansion of the company's product portfolio and geographic presence.
Watch Out for These Risks to CPAY Stock
Elevated Expenses: Corpay is witnessing high operating and interest expenses. Interest expense increased 9.8% and 5.4% year over year in 2024 and 2025, respectively. The company reported that its operating costs rose 9% year over year during the second quarter of 2026, primarily driven by increased sales investments and modestly higher credit losses. Hence, the bottom line is likely to remain under pressure going forward.
Bleak Liquidity: CPAY’s current ratio (a measure of liquidity) at the end of the second quarter of 2026 was 0.97, lower than the industry's 1.07 and the year-ago quarter’s 1.12 figures. A current ratio of less than 1 indicates that the company might have difficulty meeting its short-term obligations.
Corpay currently carries a Zacks Rank of #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stocks to Consider
A couple of better-ranked stocks in the broader Business Services sector are Bright Horizons Family Solutions Inc. BFAM and CBIZ, Inc. CBZ.
Bright Horizons Family Solutions carries a Zacks Rank #2 (Buy) at present. It has a long-term earnings growth expectation of 13.9%.
BFAM delivered a trailing four-quarter earnings surprise of 7.6%, on average.
CBIZ also holds a Zacks Rank of 2 at present. It has a long-term earnings growth expectation of 11.6%.
CBZ beat earnings estimates in three of the last four quarters and missed once, with an average earnings surprise of 8.9%.
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