2 hours ago
2
Reuben Gregg Brewer, The Motley Fool
Sun, March 22, 2026 astatine 5:35 PM CDT 3 min read
Western Union (NYSE: WU) has an iconic, trusted sanction and a concern dating backmost to the mid-1800s. That didn't support the institution from competitors who utilized the net to connection little costs and easier-to-access wealth transportation services. Since 2020, Western Union's banal has mislaid astir two-thirds of its value. But a turning constituent for the concern could beryllium connected the horizon.
Wall Street didn't miss immoderate memos; Western Union's revenues person been heading little for years. There was a flimsy uptick during the coronavirus pandemic, but request for its services has intelligibly been successful decline. Earnings, meanwhile, person been volatile.
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One of the biggest problems is that competitors person utilized the net to connection competing services. Upstarts often effort to undercut existing companies connected price, siphoning disconnected customers. That has had a predictable interaction connected Western Union's business. And the accrued contention has forced Western Union to put successful improving its ain offering to vie with the upstarts.
A batch of dense lifting has taken spot astatine the fiscal services provider. Most notably, Western Union has leaned heavy into modernizing its technology, shifting toward the web portion inactive maintaining its highly disposable carnal presence. That means it inactive has wide marque recognition, but present it besides has a amended quality to instrumentality connected the start-ups that were pulling its customers away.
However, the bigger communicative for investors is the company's adjusted operating margin. In the 4th fourth of 2024, Western Union's borderline was 17%. It jumped to 19% successful the archetypal fractional of 2025 and past roseate to 20% successful the 2nd half. Year implicit year, the company's adjusted operating borderline accrued 3 percent points successful the 4th fourth of 2025. That's an aboriginal motion that Western Union could beryllium nearing an important inflection constituent arsenic a business.
Over the past six months, Western Union's banal terms has accrued by astir 10%. The S&P 500 index (SNPINDEX: ^GSPC) has mislaid astir 1% implicit that aforesaid span. With a lofty 10% dividend output and a turnaround program that appears to beryllium gaining traction, I'm watching to spot if Western Union tin support improving its margins.
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