Global Payments Inc. (NYSE:GPN) is one of the most profitable large cap stocks to buy right now. On November 11, Global Payments announced the introduction of the industry’s first modular, countertop point-of-sale/POS device. The new hardware is purpose-built for the company’s flagship POS platform called Genius, and is designed to bring higher flexibility, durability, and speed to retail and restaurant environments. The device’s design incorporates direct input from merchants and partners for effortless ...

Core Insights - Global Payments has launched the industry's first modular countertop point-of-sale device, enhancing flexibility, durability, and speed for retail and restaurant environments [1][18] - The new device is designed to scale with businesses of all sizes, from small retailers to multi-location enterprises, based on direct input from merchants and partners [2][3] Product Features - The device includes a dual screen premium checkout option, providing a superior experience with both merchant and customer screens, and is optimized for various environments [6][7] - It features enterprise-grade modularity with configurations such as a countertop stand, customer-facing display, and wall mount, along with Power over Ethernet (PoE) capabilities [7] - The device is designed for speed, utilizing a best-in-class processor for frictionless transactions, and has a minimalist design with a 15.6-inch merchant display [7] - It is built to withstand various conditions, offering IP43 ingress protection against spills, humidity, and dust [7] Market Rollout - The commercial rollout in the U.S. will begin in December for enterprise customers, followed by small businesses in the first quarter of 2026 [8]

Global Payments’ new point-of-sale software, Genius, has been resonating with merchants since the launch of its configurations for restaurants and retail in the second quarter, executives said Tuesday (Nov. 4) during the company’s third quarter earnings call.By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions .Complete the form to unlock this a ...

Global Payments (NYSE:GPN) Q3 2025 Earnings Call November 04, 2025 08:00 AM ET Company ParticipantsNate Rosof - Head of Investor RelationsCameron Bready - CEOBob Cortopassi - President and COOJosh Whipple - CFOConference Call ParticipantsDan Dolev - AnalystDave Koning - AnalystAdam Frisch - AnalystDarrin Peller - AnalystJason Kupferberg - AnalystBryan Keane - AnalystAndrew Schmidt - AnalystOperatorLadies and gentlemen, thank you for standing by, and welcome to Global Payments' third quarter 2025 earnings co ...

Financial Data and Key Metrics Changes - The company reported adjusted net revenue of $2.43 billion for Q3 2025, a 6% increase from the prior year on a constant currency basis, excluding dispositions [31] - Adjusted operating margins expanded by 110 basis points to 45%, or 80 basis points excluding dispositions [32] - Adjusted earnings per share (EPS) was $3.26, reflecting a 12% increase on a reported basis and 11% on a constant currency basis [33] - Adjusted free cash flow for the quarter was approximately $784 million, representing a conversion rate of adjusted net income to adjusted free cash flow of approximately 100% [38] - The company reduced its net leverage position to 2.9 times at the end of Q3, down from 3.15 times at the end of Q2 [40] Business Line Data and Key Metrics Changes - Merchant solutions generated adjusted net revenue of $1.88 billion for the quarter, reflecting approximately 6% growth on a constant currency basis, excluding dispositions [33] - The POS and software business achieved high single-digit growth, excluding dispositions, for Q3 [33] - Issuer Solutions generated adjusted net revenue of $562 million for Q3, reflecting over 5% growth on a constant currency basis, marking an acceleration from the first half of the year [36] Market Data and Key Metrics Changes - The international markets demonstrated relative strength with high single-digit constant currency revenue growth across Central Europe and Asia-Pacific [35] - The company added nearly 60 new partners globally during the quarter, with about half of these new ISV partners located outside North America [35] Company Strategy and Development Direction - The company is focused on transforming into a pure-play merchant solutions provider, with the anticipated closing of the WorldPay acquisition and divestiture of Issuer Solutions in early 2026 [44][46] - A significant annual capital investment of approximately $1 billion is dedicated exclusively to merchant and commerce enablement solutions [45] - The integration of AI is enhancing the product development lifecycle, enabling faster innovation and improved velocity across the technology portfolio [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the trajectory of the business, expecting adjusted earnings per share growth to be at the high end of the 10%-11% range on a constant currency basis for the year [43] - The company anticipates continued strong free cash flow generation, with expectations to return $7.5 billion to shareholders between 2025 and 2027 [46] - Management noted that the macroeconomic backdrop remains stable, supporting the view that consumer spending is resilient [33] Other Important Information - The company closed the divestiture of its payroll business in September, allowing for an incremental $500 million of capital to be returned to shareholders through an accelerated share repurchase program [6] - The company partnered with Google to enable agentic commerce using the Agent Payments Protocol, enhancing secure and reliable commerce for customers [6] Q&A Session Summary Question: Thoughts on capital returns given the massive amount of free cash flow - Management expects to return close to $9 billion from dispositions and cash flow generation between 2025 and 2027, prioritizing capital returns to shareholders while also investing in business growth [50] Question: Insights on Genius wins and competitive landscape - Management indicated that initial wins with Genius are coming from both competitive takeaways and new customers, with a notable increase in new annual recurring revenue (ARR) since its launch [55][56] Question: Pricing environment and backbook sales - Management stated that the pricing environment remains constructive, focusing on value-based pricing rather than being the low-cost provider, while also harmonizing pricing structures across portfolios [62]

Financial Data and Key Metrics Changes - The company reported adjusted net revenue of $2.43 billion for Q3 2025, a 6% increase from the prior year on a constant currency basis, excluding dispositions [32] - Adjusted operating margins expanded by 110 basis points to 45%, or 80 basis points excluding dispositions, due to strong execution and transformation benefits [32] - Adjusted earnings per share (EPS) reached $3.26, reflecting a 12% increase on a reported basis and 11% on a constant currency basis [33] - Adjusted free cash flow for the quarter was approximately $784 million, representing a conversion rate of adjusted net income to adjusted free cash flow of nearly 100% [39] Business Line Data and Key Metrics Changes - Merchant solutions generated adjusted net revenue of $1.88 billion for the quarter, reflecting approximately 6% growth on a constant currency basis, excluding dispositions [33] - The POS and software business achieved high single-digit growth, excluding dispositions, with a notable increase in new Genius locations sold, seeing a 37% monthly increase since launch [34] - Issuer Solutions generated adjusted net revenue of $562 million for the third quarter, reflecting over 5% growth on a constant currency basis, marking an acceleration from the first half of the year [37] Market Data and Key Metrics Changes - International markets showed relative strength with high single-digit constant currency revenue growth across Central Europe and Asia-Pacific, benefiting from strong secular payment trends [36] - The macroeconomic backdrop remains stable, supporting the view that consumer spending is resilient [33] Company Strategy and Development Direction - The company is focused on transforming into a pure-play merchant solutions provider, with plans to close the WorldPay acquisition and divestiture of Issuer Solutions in Q1 2026 [4][5] - A partnership with Google was announced to enable agentic commerce, enhancing the company's capabilities in emerging commerce channels [5] - The company is investing approximately $1 billion annually in capital investment dedicated to merchant and commerce enablement solutions, aiming to accelerate product development and innovation [45][46] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the trajectory of the business, expecting adjusted earnings per share growth at the high end of the 10%-11% range on a constant currency basis for the full year [44] - The anticipated closing of the WorldPay acquisition is seen as a pivotal moment for the company's evolution, enhancing operational efficiency and maximizing cash flow [45] - Management highlighted the importance of leveraging increased scale and realizing meaningful synergies to generate significantly more leverage-free cash flow [46] Other Important Information - The company repurchased $500 million in shares during the third quarter, bringing total share repurchases to approximately $1.2 billion year-to-date [39] - The net leverage position was reported at 2.9 times at the end of Q3, down from 3.15 times at the end of Q2, indicating faster-than-anticipated deleveraging [40] Q&A Session Summary Question: Thoughts on capital returns given the free cash flow generation - Management reiterated the commitment to return capital to shareholders, expecting to return close to $9 billion from cash flow generated in the business between 2025 and 2027 [48] Question: Insights on Genius and competitive landscape - Management noted that the company is winning in various markets, with 90% of new sales to new customers and a significant increase in new annual recurring revenue since launching Genius [52][53] Question: Pricing environment and competitive actions - Management stated that the pricing environment remains constructive, focusing on delivering value rather than being the low-cost provider, while remaining price competitive [58][59] Question: Organic growth components and pricing increases - Management highlighted that organic growth is driven by new sales productivity and stable same-store sales trends, with ongoing efforts to harmonize pricing structures across portfolios [60][62]

3Q 2025 earnings Forward-looking statements This presentation may contain certain forward-looking statements within the meaning of the "safe-harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, which are based on current expectations, estimates and projections about the industry and geographies in which we operate, and beliefs of and assumptions made by our management, involve risks, uncertainties and assumptions that could significantly affect the fi ...

This story was originally published on Payments Dive. To receive daily news and insights, subscribe to our free daily Payments Dive newsletter. Dive Brief: Global Payments is leaning into its rollout of the Genius brand worldwide to increase its payments volume and revenue, CEO Cameron Bready said Wednesday in discussing the company’s third-quarter earnings results with analysts. The Atlanta-based payments processor’s third-quarter revenue climbed a half percent to $2 billion, according to a Wednesday ...

Core Insights - Global Payments Inc. (GPN) is a global payments technology company that has seen its shares decline by 24.8% year-to-date, contrasting with the industry's growth of 1.8% [1][2] Company Overview - GPN is headquartered in Atlanta, GA, with a market capitalization of $20.8 billion, and is positioned for growth due to rising transactions, strategic acquisitions, and strong financials [2] - The company operates through two segments: Merchant Solutions and Issuer Solutions, with a forward 12-month P/E ratio of 6.34X, significantly lower than the industry average of 21.42X [2][10] Financial Estimates - The Zacks Consensus Estimate for GPN's 2025 earnings is $12.19 per share, with two upward revisions in the past 30 days, and revenue estimates for 2025 are pegged at $9.3 billion, indicating a 1.8% year-over-year growth [3] - GPN has beaten earnings estimates in two of the past four quarters and missed twice [3] Growth Drivers - The Merchant Solutions division benefits from an innovative payment facilitation model, with adjusted revenues growing 8.7% year-over-year in 2024 and 1.1% in Q2 2025 [4][10] - The Issuer Solutions segment reported adjusted revenue growth of 4% year-over-year in Q2 2025 [4] Strategic Initiatives - GPN is preparing to acquire Worldpay to expand its global footprint and product range while divesting non-core assets, including its payroll business to Acrisure [6] - The company is also entering a $500 million accelerated share repurchase plan related to the payroll divestiture [6] Product Development - The launch of Genius aims to simplify GPN's solutions by integrating global point-of-sale payment products into a user-friendly platform [7] Cash Flow and Financial Health - GPN demonstrated strong cash flow generation, with operating cash flow increasing from $2.2 billion in 2023 to $3.5 billion in 2024, and generating $818 million in Q2 2025 [8] Operational Efficiency - Despite cost control measures, GPN's operating expenses increased by 5.4% and 8.2% year-over-year in 2023 and 2024, respectively, with a 2.3% rise in Q2 2025 [11] - GPN's return on equity (ROE) stands at 12.9%, significantly below the industry's average of 50.7%, indicating potential inefficiencies in utilizing shareholder funds [11]

Summary of Global Payments Conference Call Company Overview - **Company**: Global Payments - **Industry**: Payments and IT Services - **Transaction**: Acquisition of Worldpay Key Points Company Growth and Transformation - Global Payments has grown from over $1 billion in revenue to nearly $10 billion over the past 11 years, indicating significant growth driven by M&A activities [4][5] - A transformation effort was launched to reorient the business from a holding company structure to a unified operating company model, aimed at long-term growth and sustainability [5][6] - The focus is shifting towards merchant solutions, with the exit from the issuer solutions business as part of the Worldpay acquisition strategy [6][7] Genius Platform - Genius is a unified point-of-sale platform aimed at enhancing capabilities for restaurant and retail customers globally [10][11] - The platform has met key milestones, including launches in the U.S. and U.K., with plans for expansion into Canada, Mexico, and other international markets starting in 2026 [12][15] - The platform is designed to be highly configurable and scalable, targeting both SMB and enterprise segments [12][13] Sales Transformation - A new sales compensation structure has been implemented, replacing a long-standing plan from 1994, with over 90% retention during the transition [19][20] - Investments are being made in marketing, lead generation, and customer experience to enhance sales execution and productivity [20][21] Worldpay Acquisition - The acquisition of Worldpay is expected to close in the first half of 2026, with regulatory approvals progressing well [29][30] - The combined entity will have pro forma revenues of nearly $13 billion and process $4 trillion in payments annually across 175 countries [35][36] - The integration plan focuses on positioning the combined business for long-term growth, competitive advantage, and leveraging the strengths of both organizations [34][35] E-commerce and Enterprise Focus - Worldpay's strengths in enterprise and e-commerce, which account for 50% of its business, are seen as key growth drivers [42][43] - Global Payments aims to leverage its product capabilities, including Genius, to enhance Worldpay's SMB offerings and re-accelerate growth in that segment [49][50] Alternative Payment Methods - The proliferation of various payment methods, including Buy Now, Pay Later and stablecoins, is viewed as net additive to the business, enhancing the value provided to clients [62][63] - Stablecoins are expected to play a role in B2B payments and cross-border transactions, with ongoing investments to support these capabilities [65][66] Divestitures and Capital Allocation - Global Payments has divested approximately $550 million in revenue, returning about $1 billion to shareholders, and is evaluating further divestitures post-Worldpay acquisition [68][70] - The company plans to return $7.5 billion to shareholders from regular cash flow between 2025 and 2027 while targeting a leverage ratio of three times [75][76] Future Outlook - The combined business is expected to generate nearly $5 billion in leverage-free cash flow by 2028, significantly enhancing shareholder return potential [79][81] - The payments industry is anticipated to undergo further consolidation, with scale becoming increasingly important for competitive positioning and regulatory compliance [89][90] Additional Insights - The integration of Global Payments and Worldpay is seen as a unique opportunity to create a powerful player in the payments industry, with complementary strengths and capabilities [40][41] - The focus on innovation and technology investment is critical for maintaining competitive advantage in a rapidly evolving market [85][88]