Corpay (CPAY) Just Posted A Record Quarter, So Why The Caution?

Corpay Inc. (NYSE:CPAY) reported record revenue of $1.34 billion in its second quarter of 2026, marking a 21% year-over-year increase. Cash earnings per share reached an all-time high of $7.00, up 36%. Management raised full-year 2026 revenue guidance to $5.31 billion, a 17% growth, and cash EPS guidance to $27.35, implying 28% growth for the year.

The company's organic revenue growth of 10% was driven by 16% growth in Corporate Payments and 8% in Vehicle Payments. Retention held steady at 93%, new bookings grew 30% year-over-year, and same-store sales turned positive at 1%. Two acquisitions, Alpha and Avid, added $0.39 to cash EPS. However, the company recorded a $100 million settlement charge related to an FTC matter and operating costs rose 9% due to sales investment and higher credit losses.

Corporate Payments organic growth of 16% absorbed a 180 basis point drag from float revenue compression. Management also announced plans to divest Epics, a smaller vehicle payments asset, expected to close between September and October, with a potential $40 million impact on 2026 revenue. Hedge fund interest in Corpay increased, with 43 funds holding positions in the most recent quarter. The forward P/E of 16.13 suggests the market has not fully priced in the growth story yet.