The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how diversified financial services stocks fared in Q2, starting with NCR Atleos (NYSE:NATL).
Diversified financial services encompass specialized offerings outside traditional categories. These firms benefit from identifying niche market opportunities, developing tailored financial products, and often facing less direct competition. Challenges include scale limitations, regulatory classification uncertainties, and the need to continuously innovate to maintain market differentiation against larger competitors expanding their offerings.
The 10 diversified financial services stocks we track reported a satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 0.9%.
In light of this news, share prices of the companies have held steady as they are up 2.1% on average since the latest earnings results.
NCR Atleos (NYSE:NATL)
Spun off from NCR Voyix in 2023 to focus exclusively on self-service banking technology, NCR Atleos (NYSE:NATL) provides self-directed banking solutions including ATM and interactive teller machine technology, software, services, and a surcharge-free ATM network for financial institutions and retailers.
NCR Atleos reported revenues of $1.10 billion, up 2.1% year on year. This print exceeded analysts’ expectations by 2%. Overall, it was an exceptional quarter for the company with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
“NCR Atleos posted another strong quarter and carries strategic momentum into the second half of 2025. Once again, our team delivered revenue and profitability at the high-end of our expectations, all while driving industry-leading service levels, executing productivity initiatives and advancing strategic growth efforts. Robust demand for our self-service banking technology coupled with accelerating interest in ATM outsourcing resulted in a strong order book and backlog. We continue to believe that our full year guidance ranges are appropriate and remain confident that our simple strategy to generate more service revenue from every machine across our leading global installed base will create significant shareholder value,” said Tim Oliver, President and Chief Executive Officer.
Interestingly, the stock is up 21.4% since reporting and currently trades at $39.45.
Is now the time to buy NCR Atleos? Access our full analysis of the earnings results here, it’s free.
Best Q2: Paymentus (NYSE:PAY)
Founded in 2004 to simplify the complex world of bill payments, Paymentus (NYSE:PAY) provides a cloud-based platform that helps utilities, municipalities, and service providers automate billing and payment processes.
Paymentus reported revenues of $280.1 million, up 41.9% year on year, outperforming analysts’ expectations by 8.7%. The business had an incredible quarter with a beat of analysts’ EPS and EBITDA estimates.
Paymentus achieved the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 21.8% since reporting. It currently trades at $35.64.
Is now the time to buy Paymentus? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: NerdWallet (NASDAQ:NRDS)
Born from founder Tim Chen's frustration with the lack of transparent credit card information when helping his sister in 2009, NerdWallet (NASDAQ:NRDS) is a digital platform that provides financial guidance to help consumers and small businesses make smarter decisions about credit cards, loans, insurance, and other financial products.
NerdWallet reported revenues of $186.9 million, up 24.1% year on year, falling short of analysts’ expectations by 4.4%. It was a disappointing quarter as it posted a significant miss of analysts’ EPS estimates.
NerdWallet delivered the weakest performance against analyst estimates in the group. The stock is flat since the results and currently trades at $11.02.
Read our full analysis of NerdWallet’s results here.
WEX (NYSE:WEX)
Originally founded in 1983 as Wright Express to serve the fleet card market, WEX (NYSE:WEX) provides payment processing and business solutions across fleet management, employee benefits, and corporate payments sectors.
WEX reported revenues of $659.6 million, down 2.1% year on year. This result surpassed analysts’ expectations by 1%. Overall, it was a strong quarter as it also logged a solid beat of analysts’ Account Servicing segment estimates and a decent beat of analysts’ EBITDA estimates.
The stock is up 5.1% since reporting and currently trades at $172.64.
Read our full, actionable report on WEX here, it’s free.
PayPal (NASDAQ:PYPL)
Originally spun off from eBay in 2015 after being acquired by the auction giant in 2002, PayPal (NASDAQ:PYPL) operates a global digital payments platform that enables consumers and merchants to send, receive, and process payments online and in person.
PayPal reported revenues of $8.29 billion, up 5.1% year on year. This print topped analysts’ expectations by 2.8%. It was a strong quarter as it also recorded a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ transaction volumes estimates.
The stock is down 13.4% since reporting and currently trades at $67.77.
Read our full, actionable report on PayPal here, it’s free.
Market Update
The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.
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