Western Union Shares Slip Despite Digital Growth and Dividend Hike
Western Union (WU) shares fell 2.18% to $9.44 after reporting a 5% revenue decline, with pre-market trading extending losses to $9.23. The dip reflects weaker Americas retail performance, though digital transactions surged 13% and consumer services showed resilience.
Margins improved despite the top-line contraction, with GAAP operating margin expanding 160 basis points to 21.3%. The board approved a $0.235 quarterly dividend, maintaining capital returns that totaled $529 million in 2025.
Management maintains 2026 guidance of 5%-8% revenue growth and EPS up to $1.60, betting on digital acceleration to offset retail softness. The mixed results highlight WU's transition pains as it rebalances toward digital channels.