Financial Data and Key Metrics Changes - The company reported adjusted net revenue of $2,360 million, an increase of 5% on a constant currency basis excluding dispositions [38] - Adjusted operating margin for the quarter increased by 130 basis points to 44.6%, translating to 110 basis points of expansion excluding dispositions [39] - Adjusted earnings per share (EPS) was $3.1, reflecting an 11% increase on both reported and constant currency basis [39] Business Line Data and Key Metrics Changes - Merchant Solutions achieved adjusted net revenue of $1,830 million for the second quarter, reflecting growth of approximately 5.5% excluding dispositions [39] - The integrated embedded business grew in the high single digits range excluding dispositions, with strong growth in new POS locations [40] - Issuer Solutions produced adjusted net revenue of $547 million for the second quarter, reflecting growth of approximately 3.5% on a constant currency basis [40] Market Data and Key Metrics Changes - Strong growth was noted in international markets, particularly in Central Europe, LatAm, and Asia Pacific, all achieving high single-digit or greater growth [40] - The company added 15 million traditional accounts on file year to date, driven by new implementations and growth with existing customers [41] - The adjusted operating margin for the Issuer Solutions business improved by 190 basis points from the prior year to 48.7% [42] Company Strategy and Development Direction - The company is focused on a transformation agenda aimed at streamlining operations and enhancing growth, with an expected annual run rate operating income benefit of $650 million [48][50] - The acquisition of Worldpay is seen as a significant opportunity to enhance competitive strengths and accelerate growth trajectory [34][37] - The company plans to return $7.5 billion in capital to shareholders between 2025 and 2027, consistent with its capital allocation plan [47][51] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business model despite a fluid macro environment and muted consumer sentiment [7] - The company expects adjusted net revenue growth of 5% to 6% over 2024, with adjusted EPS growth anticipated at the high end of the 10% to 11% range for the full year [44][47] - Management highlighted the positive reception of the Genius platform and its potential to drive growth in the second half of the year [80] Other Important Information - The company announced the sale of its payroll business for $1.1 billion, allowing for $500 million of additional shareholder returns through an accelerated share repurchase program [6][22] - The company has initiated integration planning for the Worldpay transaction and established critical work streams to support a successful integration [7][32] - The company achieved strong adjusted free cash flow of approximately $800 million for the quarter, representing a conversion rate of adjusted net income to adjusted free cash flow of approximately 110% [43] Q&A Session Summary Question: Should we expect normal seasonal patterns in Q3 and Q4 for merchant growth? - Management expects growth for merchant to be approximately 5.5% in the first half and anticipates acceleration in Q3 and Q4 due to transformation benefits from the Genius platform [55] Question: What is the expected impact of the payroll divestiture on revenue? - The payroll divestiture is expected to close at the end of Q3, contributing approximately $65 million in revenue per quarter [56] Question: Are there plans for additional divestitures in light of the Worldpay acquisition? - Management is reassessing portfolio composition and may consider additional divestitures that do not align with the Worldpay strategy, with proceeds used for shareholder returns [66][70] Question: Is there any friction or attrition related to the Genius brand consolidation? - Management noted a slight pause in buying behavior prior to the Genius launch but has not seen significant attrition in the existing customer base [72] Question: What is the confidence level in the acceleration of growth in the second half of the year? - Management expressed confidence in achieving slightly above 6% growth in the merchant business in the second half, bolstered by the success of the Genius platform and sales force transformation [80]

Financial Data and Key Metrics Changes - The company reported adjusted net revenue of $2,360 million, reflecting a 5% increase on a constant currency basis excluding dispositions [40] - Adjusted operating margin increased by 130 basis points to 44.6%, translating to 110 basis points of expansion excluding dispositions [40] - Adjusted earnings per share (EPS) rose by 11% on both reported and constant currency basis [41] Business Line Data and Key Metrics Changes - Merchant Solutions achieved adjusted net revenue of $1,830 million for the second quarter, reflecting growth of approximately 5.5% excluding dispositions [41] - The integrated embedded business saw strong growth, particularly in international markets, with high single-digit growth in Central Europe, LatAm, and Asia Pacific [42] - Issuer Solutions produced adjusted net revenue of $547 million, reflecting growth of approximately 3.5% on a constant currency basis [42] Market Data and Key Metrics Changes - The company noted stable transaction volume trends and growth in accounts on file, with over 15 million accounts converted year-to-date [43] - The company experienced notable growth in new POS locations, particularly following the launch of the Genius platform [41][42] - International signings for software partnerships increased by more than 30% over the last six months compared to the prior year period [17] Company Strategy and Development Direction - The company is focused on streamlining and unifying its business globally, with significant progress in transformation initiatives expected to yield $650 million in annual run rate operating income benefits [50][49] - The acquisition of Worldpay is seen as a unique opportunity to enhance competitive strengths and accelerate growth, with integration planning already underway [34][35] - The company plans to return $7.5 billion in capital to shareholders between 2025 and 2027, consistent with its capital allocation strategy [52] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business model despite a fluid macro environment and muted consumer sentiment [7] - The company anticipates adjusted net revenue growth of 5% to 6% over 2024, with adjusted EPS growth expected to be at the high end of the 10% to 11% range for the full year [45][48] - Management highlighted the positive reception of the Genius platform and the expected acceleration in growth in the second half of the year [80] Other Important Information - The company announced the divestiture of its payroll business for $1.1 billion, allowing for additional shareholder returns through an accelerated share repurchase program [6][23] - The company has initiated the approval process for the Worldpay acquisition with regulators, with expectations to close in 2026 [32][33] - The company is enhancing its integrated digital technologies to improve efficiency and customer engagement [28] Q&A Session Summary Question: Should we expect normal seasonal patterns in Q3 and Q4 for merchant growth? - Management expects growth for the merchant business to be approximately 5.5% in the first half of the year, with acceleration anticipated in Q3 and Q4 due to transformation benefits from the Genius platform [56] Question: What is the expected impact of the payroll divestiture on revenue? - The payroll divestiture is expected to close at the end of Q3, contributing approximately $65 million in revenue per quarter [57] Question: Are there plans for additional share buybacks? - Management confirmed that they have bought back approximately $690 million worth of shares year-to-date and expect to execute a $500 million accelerated share repurchase following the payroll transaction [60] Question: What are the considerations for additional divestitures in light of the Worldpay acquisition? - Management indicated that they are reassessing portfolio composition and may consider additional divestitures that do not align with the Worldpay strategy [68] Question: Is there any concern about attrition during the Genius rollout? - Management noted that while there was some pause in buying behavior leading up to the launch, they have not seen significant attrition in the existing customer base [72]

2Q 2025 Financial Highlights - Adjusted net revenue reached $2.4 billion, reflecting a growth of 2%, or 5% on a constant currency basis excluding dispositions[11] - Adjusted operating margin was 44.6%, an increase of 130 basis points, or 110 basis points excluding dispositions[11] - Adjusted EPS stood at $3.10, representing an 11% increase, or 11% on a constant currency basis[11] - The company generated strong adjusted free cash flow with a 108% conversion rate[10] Segment Performance - Merchant Solutions reported adjusted net revenue of $1.8 billion, up 1%, or 5.5% on a constant currency basis excluding dispositions, with an adjusted operating margin of 50.1%, up 130 basis points[13] - Issuer Solutions reported adjusted net revenue of $547 million, up 4%, or 3.5% on a constant currency basis, with an adjusted operating margin of 48.7%, up 190 basis points[13] Key Metrics - New partners increased by 15% for merchants and 28% for issuers[15] - Traditional accounts on file growth was 9%[15] - Bookings growth was 13%[15] 2025 Outlook - The company anticipates adjusted net revenue growth of 5% to 6% on a constant currency basis excluding dispositions[17] - Adjusted operating margin expansion is expected to be greater than 50 basis points excluding dispositions[17] - Adjusted EPS growth is projected to be at the high end of 10% to 11% on a constant currency basis[17] - Adjusted free cash flow conversion is expected to be 90%+[17] Strategic Initiatives - The company is entering into a $500 million accelerated share repurchase plan in connection with the Payroll divestiture[10] - Capital return expectations for 2025-2027 have been raised to $7.5 billion, excluding returns associated with asset dispositions[10] - The expected annual run-rate operating income benefit from operational transformation has been increased to $650 million[10]

[Overview of Second Quarter 2025 Performance](index=1&type=section&id=Overview%20of%20Second%20Quarter%202025%20Performance) Global Payments' Q2 2025 performance exceeded expectations, driven by strategic initiatives and a positive full-year outlook [Management Commentary](index=1&type=section&id=Management%20Commentary) Management reported Q2 2025 results modestly ahead of expectations, highlighting business resilience and successful transformation program execution - Q2 results were modestly ahead of expectations, demonstrating business model resilience and strong execution on key initiatives[2](index=2&type=chunk) - The successful launch of the **'Genius' platform** is noted as a critical milestone in the company's transformation program[2](index=2&type=chunk) - Significant progress has been made on the Worldpay acquisition and Issuer Solutions divestiture, with U.S. antitrust review cleared, reinforcing confidence in synergy opportunities[4](index=4&type=chunk) - The company is more confident than ever that the combined business with Worldpay will meaningfully enhance its financial profile and deliver sustainable performance[4](index=4&type=chunk) [Q2 2025 Financial Highlights](index=1&type=section&id=Q2%202025%20Financial%20Highlights) Global Payments reported Q2 2025 GAAP diluted EPS of $0.99, adjusted EPS of $3.10, and adjusted net revenue growth of 5% constant currency Q2 2025 Key Financial Metrics | Metric | Value | Change (Constant Currency) | | :--- | :--- | :--- | | GAAP Diluted EPS | $0.99 | - | | Adjusted Diluted EPS | $3.10 | +11% | | GAAP Revenue | $1.96 billion | Approx. flat | | Adjusted Net Revenue (ex-dispositions) | $2.36 billion | +5% | | Adjusted Operating Margin | 44.6% | +130 bps | [Full Year 2025 Outlook](index=2&type=section&id=Full%20Year%202025%20Outlook) The company reaffirmed its full-year 2025 adjusted net revenue growth outlook and raised its adjusted EPS and operating margin expansion forecasts - Reaffirms full-year 2025 constant currency adjusted net revenue growth outlook of **5% to 6%**, excluding dispositions[3](index=3&type=chunk)[6](index=6&type=chunk) - Now expects adjusted earnings per share growth to be at the **high end of the 10% to 11% range**[3](index=3&type=chunk)[6](index=6&type=chunk) - Expects annual adjusted operating margin expansion to be **slightly more than 50 basis points**, excluding dispositions[6](index=6&type=chunk) [Strategic Initiatives and Corporate Actions](index=1&type=section&id=Strategic%20Initiatives%20and%20Corporate%20Actions) Key strategic milestones include HSR clearance for Worldpay acquisition and Issuer Solutions divestiture, increased transformation benefits, and new capital allocation plans - Received Hart-Scott-Rodino (HSR) clearances for the acquisition of Worldpay and divestiture of Issuer Solutions, with transactions expected to close in **H1 2026**[3](index=3&type=chunk)[4](index=4&type=chunk) - The expected annual run-rate operating income benefit from the operational transformation of the Merchant business has been increased to **$650 million**[3](index=3&type=chunk) - The company is entering into a **$500 million accelerated share repurchase plan**[3](index=3&type=chunk)[9](index=9&type=chunk) - The Board of Directors approved a quarterly dividend of **$0.25 per share**[9](index=9&type=chunk) [Financial Statements and Schedules](index=7&type=section&id=Financial%20Statements%20and%20Schedules) This section presents Global Payments' GAAP income statements, balance sheets, cash flows, and non-GAAP reconciliations for Q2 2025 [Consolidated Statements of Income (GAAP)](index=7&type=section&id=Consolidated%20Statements%20of%20Income%20%28GAAP%29) Q2 2025 GAAP revenues decreased 0.7% to $1.96 billion, with net income attributable to Global Payments declining 35.5% to $241.6 million Q2 2025 GAAP Income Statement Highlights (in thousands) | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Revenues | $1,956,747 | $1,971,025 | (0.7)% | | Operating Income | $427,206 | $475,388 | (10.1)% | | Net Income Attributable to Global Payments | $241,640 | $374,760 | (35.5)% | | Diluted EPS | $0.99 | $1.47 | (32.7)% | [Segment Performance](index=9&type=section&id=Segment%20Performance) Merchant Solutions reported non-GAAP revenue of $1.83 billion, while Issuer Solutions (discontinued) showed strong non-GAAP revenue growth of 4.0% Q2 2025 Non-GAAP Segment Performance (in thousands) | Segment | Non-GAAP Revenue | % Change | Non-GAAP Operating Income | % Change | | :--- | :--- | :--- | :--- | :--- | | Merchant Solutions | $1,831,727 | 1.1% | $917,261 | 3.7% | | Issuer Solutions | $547,368 | 4.0% | $266,354 | 8.0% | [Consolidated Balance Sheet](index=10&type=section&id=Consolidated%20Balance%20Sheet) As of June 30, 2025, total assets were $48.5 billion, with $14.2 billion in long-term debt and $22.6 billion in shareholders' equity Key Balance Sheet Items as of June 30, 2025 (in thousands) | Account | Amount | | :--- | :--- | | Cash and cash equivalents | $2,611,662 | | Goodwill | $16,742,403 | | Total assets | $48,518,510 | | Long-term debt | $14,150,983 | | Total liabilities | $25,096,921 | | Total Global Payments shareholders' equity | $22,593,075 | [Consolidated Statement of Cash Flows](index=11&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows) For H1 2025, net cash from operating activities was $1.37 billion, with significant cash used in investing and financing activities Cash Flow Summary for Six Months Ended June 30, 2025 (in thousands) | Cash Flow Category | Amount | | :--- | :--- | | Net cash provided by operating activities | $1,372,649 | | Net cash used in investing activities | $(476,822) | | Net cash used in financing activities | $(522,267) | [Non-GAAP Financial Measures and Reconciliations](index=8&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) Global Payments uses non-GAAP metrics, including adjusted net revenue of $2.36 billion and adjusted diluted EPS of $3.10 for Q2 2025 - The company uses non-GAAP measures to evaluate performance, adjusting for items like acquisition-related amortization, integration expenses, and disposition gains/losses[11](index=11&type=chunk)[53](index=53&type=chunk)[55](index=55&type=chunk) Q2 2025 Key Non-GAAP Results (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Adjusted net revenue | $2,361,234 | $2,324,121 | 1.6% | | Adjusted operating income | $1,052,749 | $1,007,084 | 4.5% | | Adjusted net income | $754,189 | $713,840 | 5.7% | | Adjusted diluted EPS | $3.10 | $2.80 | 10.7% | - The Issuer Solutions business is accounted for as discontinued operations under GAAP, but its performance is included in the company's non-GAAP financial measures[8](index=8&type=chunk)

Core Insights - Global Payments Inc. (GPN) is expected to report second-quarter 2025 results on August 6, 2025, with earnings estimated at $3.03 per share and revenues at $2.35 billion, reflecting a year-over-year increase of 3.4% and 1.3% respectively [1][6] - For the full year 2025, the revenue estimate stands at $9.3 billion, indicating a 1.6% year-over-year rise, while the EPS estimate is $12.11, suggesting a 4.9% increase year-over-year [2] Earnings Estimates - The second-quarter earnings estimate has increased by 1 cent over the past 60 days [1] - GPN has an Earnings ESP of -0.02% and a Zacks Rank of 3, indicating uncertainty regarding an earnings beat this quarter [3] Revenue Breakdown - Adjusted revenues from Issuer Solutions are projected to rise nearly 3% year-over-year, driven by higher accounts and transactions [6] - Merchant Solutions revenues are expected to grow by 0.4%, with operating income anticipated to increase by around 2% year-over-year [6][7] - The consensus estimate for adjusted revenues from Merchant Solutions indicates a 0.4% increase from the previous year's $1.8 billion, while adjusted operating income is expected to grow by 2% from $884.8 million [7] - Adjusted revenues from Issuer Solutions are expected to show an almost 3% increase from last year's $541.5 million, with adjusted operating income projected to rise by 3.7% from $246.6 million [8] Regional Performance - The consensus estimate for Europe operations indicates a 2.1% year-over-year increase, while revenues from Americas operations are expected to rise by 0.9% and Asia Pacific by 1.5% [9] Cost Considerations - Profit growth may be partially offset by increased costs, with an anticipated 1.4% rise in adjusted cost of service year-over-year due to ongoing investments in digital capabilities [10]

According to the collective judgment of analysts, 'Non-Gaap Revenues- Issuer Solutions' should come in at $541.47 million. The estimate suggests a change of +2.9% year over year. Analysts expect 'Revenues- Issuer Solutions' to come in at $632.97 million. The estimate points to a change of +3.2% from the year-ago quarter. The consensus EPS estimate for the quarter has undergone a downward revision of 0.5% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a w ...

Core Insights - Global Payments Inc. (GPN) has expanded its collaboration with Banco Nacional de México, processing nearly 900 million transactions annually through its EVO Payments division [1][8] - The multi-year renewal of the partnership aims to serve a wide range of merchants, from small and mid-sized businesses to large enterprises, integrating GPN's payment solutions with Banamex's banking services [2][8] - The alliance is expected to enhance commerce and payment solutions in Mexico, particularly benefiting SMEs that account for 52% of the country's revenues [3] Company Strategy - Global Payments is focusing on upgrading its payments infrastructure and enhancing digital capabilities to boost its presence in Mexico and increase revenue through higher utilization of its solutions [4][5] - The company is actively pursuing divestitures to streamline operations and free up capital for investments in core areas, reinforcing its position as a commerce-focused solutions provider [5][6] Market Performance - Shares of Global Payments have increased by 23.1% over the past three months, outperforming the industry growth of 7.8% [7]

Group 1 - Truist Securities raised the target price for Global Payments Inc. from $79 to $83 [1]

Core Insights - Global Payments Inc (NYSE:GPN) stock has increased by 4.3%, reaching $80.92, following reports of activist investor Elliott Management acquiring a "sizeable" stake in the company [1] - Despite today's gains, the stock is still down 27.9% year-to-date, indicating significant volatility and potential challenges ahead [1] Analyst Sentiment - There is potential for positive outlooks if the current bearish sentiment among analysts shifts; out of 32 analysts, 22 have a "hold" or worse recommendation for Global Payments stock [2] - Short interest in Global Payments has decreased by 25.5% over the last two reporting periods, suggesting a retreat from short sellers; however, short interest still represents 3.7% of the stock's total float, equating to just over two days of buying power [2]

Investment & Shareholding - Elliott Investment Management has built a significant stake in Global Payments [1] Company Focus - Global Payments is a payments services company [1]