Will Higher Costs Spoil Global Payments' Q3 Earnings? Key Insights

Core Insights - Global Payments Inc. (GPN) is scheduled to report its third-quarter 2025 results on November 4, 2025, with earnings estimated at $3.23 per share and revenues at $2.41 billion, reflecting a year-over-year earnings increase of 4.9% and revenue growth of 2.1% [1][6] Financial Estimates - For the full year 2025, the Zacks Consensus Estimate for Global Payments' revenues is $9.31 billion, indicating a year-over-year rise of 1.7%. The EPS estimate for the current year stands at $12.18, suggesting a year-over-year increase of approximately 5.5% [2] - The earnings surprise history shows that GPN has beaten the consensus estimate in two of the last four quarters, with an average surprise of 1.5% [2] Earnings Predictions - The current model indicates a negative Earnings ESP of -0.90% and a Zacks Rank of 3 (Hold), suggesting that the odds of an earnings beat are not favorable this time [3] - Increased costs are expected to impact GPN's profit expansion in Q3, with adjusted total operating costs anticipated to exceed $1.3 billion, driven by continuous investments in digital capabilities [9] Segment Performance - The consensus estimate for adjusted revenues from Merchant Solutions indicates a 1.5% increase from the previous year's $1.8 billion, while adjusted operating income is expected to grow by 3.8% from $921.5 million [7] - For Issuer Solutions, adjusted revenues are projected to rise by around 4% from last year's $529 million, with adjusted operating income expected to increase by 7.2% from $240.4 million [8] Regional Performance - The consensus estimate for revenues from European operations indicates a significant year-over-year decrease of 31%, while revenues from the Americas are expected to fall by approximately 20%. In contrast, revenues from the Asia Pacific region are projected to grow by 2.5% year-over-year [10]