Paymentus (PAY) continues to capitalize on the increasing digitization of bill payments, with higher transaction activity reflecting the durability of its business model and a strong backlog of opportunities for the rest of the year, Wedbush Securities said in a note Tuesday.

After the Q1 beat, the company raised its full year 2026 revenue guidance to $1.43 billion to $1.44 billion, ahead of the Street's $1.40 billion estimate, as it looks to execute against its robust backlog of diversified, large enterprises, according to the note.

Contribution profit is expected to range $450 million to $457 million, up from the prior forecast of $442 million to $452 million and adjusted earnings before interest, taxes, depreciation, and amortization are projected to be $165 million to $172 million, above the Street's $163.4 million estimate, the brokerage said.

Wedbush said it remains positive on Paymentus' differentiated cloud-based platform position and sees potential for the company to expand its market share.

Wedbush maintained an outperform rating on Paymentus and raised the price target to $36 from $32.

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