Quanta Services at Baird conference: growth broadens across power and data

On November 11, 2026, WEX showcased its strategic reset at the KBW Fintech Ecosystem Conference. CFO Jagtar Narula highlighted stronger pricing, new products, and increased investment in sales and development, but acknowledged uneven demand in certain parts of the portfolio. Q3 margin expanded 90 basis points year-over-year, with a full-year target of 75 basis points already met.

Direct AP in Corporate Payments grew 24% in Q3 and now accounts for about 20% of the segment. Sixty new card products reached $1 billion in run-rate volume. Mobility faces challenges from high diesel prices and trucking weakness, with same-store sales down 150 basis points year-over-year. Benefits showed steady growth, including a 7.7% increase in HSA accounts and an 11.2% jump in assets under management.

WEX aims for 5% to 10% long-term revenue growth and 10% to 15% earnings growth. Free cash flow supported $225 million in share repurchases, and leverage fell to 2.7 times. Incremental margins remain high, particularly in Mobility and Corporate Payments. Management expects to direct most adjusted free cash flow to buybacks. Three segments contribute differently to the reset: same-store sales declined in trucking, finance fees normalized, and pricing actions supported growth.

WEX introduced 10-4, a new product for the trucking market using AI and data collection. The company's embedded payments platform has a strong pipeline, but longer implementation cycles are expected. HSA accounts grew 7.7%, and assets under management increased 11.2%. Pricing actions and AI-driven expense improvements contributed to the margin expansion.

Management expects to be within the 5% to 10% long-term revenue growth range in Q4, contingent on better demand conditions and product scaling. Analyst sentiment is positive, with 14 analysts revising earnings estimates upward recently.