How Higher Revenue Guidance and Mixed Earnings at WEX (WEX) Has Changed Its Investment Story

• WEX Inc. recently announced its third quarter 2025 earnings, reporting a year-over-year increase in revenue to US$691.8 million while also raising its full-year 2025 revenue guidance to a range of US$2.63 billion to US$2.65 billion.
• This update reflects management's confidence in the company's forward outlook, despite a decline in net income compared to the same period last year.
• We'll examine how WEX's improved revenue guidance and earnings performance could shape the company's investment narrative going forward.

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WEX Investment Narrative Recap

To be a shareholder in WEX right now, you have to believe that the company can successfully expand beyond its legacy fuel card business, capitalize on digital payments growth, and keep pace with rapid sector innovation. The recent raise in full-year revenue guidance bolsters confidence in growth despite near-term margin pressure, but it does not materially change the biggest short-term catalyst, ongoing product innovation and customer wins in Mobility and Corporate Payments, nor does it diminish the primary risk: declining fuel card transaction volumes as fleet decarbonization accelerates.

Among recent announcements, the expanded partnership with NCR Voyix to integrate WEX payment processing for commercial fuel transactions stands out. This product-focused move is closely tied to the company's growth catalyst, as it aims to broaden WEX’s reach in digital fleet payments, addressing both relevance and revenue diversification at a time when fuel market transitions are top of mind.

However, investors should be aware that if the pace of fleet electrification picks up faster than WEX adapts new revenue streams...

Read the full narrative on WEX (it's free!)

WEX's narrative projects $3.0 billion revenue and $450.9 million earnings by 2028. This requires 4.9% yearly revenue growth and a $144.4 million earnings increase from current earnings of $306.5 million.

Uncover how WEX's forecasts yield a $178.00 fair value, a 20% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members offered two fair value estimates for WEX stock, ranging widely from US$178 to US$330.64. While opinions vary, many are watching closely to see if product innovation and digital adoption outpace the risks from shifting industry technologies and decarbonization, so you may want to consider how your outlook aligns with theirs.

Explore 2 other fair value estimates on WEX - why the stock might be worth over 2x more than the current price!

Build Your Own WEX Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your WEX research is our analysis highlighting 3 key rewards that could impact your investment decision.
• Our free WEX research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate WEX's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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