It has been about a month since the last earnings report for Global Payments (GPN) . Shares have added about 1% in that time frame, outperforming the S&P 500.But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Global Payments due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for Global Payments Inc. before we dive into how investors and analysts hav ...

Core Insights - Global Payments Inc. (GPN) reported third-quarter 2025 adjusted earnings per share (EPS) of $3.26, exceeding the Zacks Consensus Estimate of $3.23, with a year-over-year increase of 12% [1][8] - Adjusted net revenues rose 3% year over year to $2.4 billion, surpassing the consensus mark by 0.9% [1][8] - The strong performance was driven by growth in Merchant Solutions and Issuer Solutions, alongside a reduction in operating expenses [1][8] GPN's Operating Performance - Adjusted operating income for the quarter was $1.1 billion, reflecting a 5.5% year-over-year increase [2] - Adjusted operating margin expanded by 110 basis points to 45% [2] - Total operating expenses decreased by 20.9% year over year to $1.2 billion, primarily due to lower selling, general, and administrative expenses [2] Q3 Segmental Performances of Global Payments - **Merchant Solutions**: Adjusted revenues reached $1.9 billion, a 2.2% year-over-year increase, exceeding the Zacks Consensus Estimate by 0.7% [3] - Adjusted operating income for this segment increased by 4.4% year over year to $962.3 million, also beating the consensus estimate [3] - **Issuer Solutions**: Adjusted revenues were $561.8 million, growing 6.2% year over year and surpassing the Zacks Consensus Estimate by 1.8% [4] - Adjusted operating income improved by 9.6% year over year to $263.5 million, exceeding the consensus estimate [4] GPN's Financial Position (As of Sept. 30, 2025) - Cash and cash equivalents increased to $2.6 billion from $2.4 billion at the end of 2024 [5] - Total assets rose to $48 billion from $46.9 billion at the end of 2024 [5] - Long-term debt decreased to $13.3 billion from $15.1 billion at the end of 2024 [5] - Total equity increased to $23.3 billion from $22.9 billion at the end of 2024 [5] Capital Deployment Update - GPN repurchased shares worth $1.2 billion in the first nine months of 2025 [7] - A quarterly dividend of 25 cents per share was declared, payable on December 26, 2025 [7] GPN's 2025 Outlook Reaffirmed - Adjusted net revenue growth on a constant currency basis is expected to be between 5% and 6% in 2025 [9] - Adjusted EPS growth is anticipated to be between 10% and 11% in 2025 [9] - The company expects to convert nearly 90% of adjusted net income into adjusted free cash flow [9] - The annual adjusted operating margin is projected to increase by more than 50 basis points in 2025 [9]

Core Insights - The United Kingdom's Competition and Markets Authority (CMA) has approved Global Payments' acquisition of Worldpay, with the full decision text to be published soon [2][3] - Global Payments is acquiring Worldpay for a net price of $22.7 billion while simultaneously selling its Issuer Solutions business to FIS for $13.5 billion [3] - FIS will divest its remaining stake in Worldpay to Global Payments for $6.6 billion, allowing Global Payments to exit the issuer processing field and focus on merchant solutions [3][4] Company Strategy - Global Payments' CEO described the agreements as transformative, enhancing the company's focus on merchant solutions and expanding its offerings in point-of-sale systems and integrated payments [4] - The recent acquisitions are reminiscent of the megamergers of 2019, indicating a trend of significant consolidation in the payments industry [5] Regulatory Context - The CMA is also investigating FIS's planned acquisition of Global Payments' Issuer Solutions business, which was initially rejected due to incomplete information [5][6] - FIS has stated that despite the need to refile information with the CMA, its acquisition plans remain on track [6]

Core Insights - FIS's acquisition of Global Payments' Issuer Solutions business is progressing as planned, despite the need to refile information with the U.K. regulator [1][2] - The transaction is expected to close in the first half of 2026, as previously announced [3] - The U.K. Competition and Markets Authority (CMA) rejected the initial merger notice due to incomplete information, which has led to a pause in the statutory timetable for the review [3] Company Transactions - Global Payments sold its Issuer Solutions business to FIS for $13.5 billion while acquiring Worldpay for a net price of $22.7 billion [4] - FIS will divest its remaining stake in Worldpay to Global Payments for $6.6 billion, facilitating the monetization of its minority holding [4] Strategic Implications - FIS's CEO stated that the acquisition of Issuer Solutions is strategic and accretive, aimed at expanding FIS's payment product suite and replacing a non-cash generating stake with growing recurring revenues [5] - The recent transactions are reminiscent of significant mergers in 2019, highlighting a trend of large-scale consolidations in the payments industry [6] Regulatory Context - The CMA is also reviewing Global Payments' acquisition of Worldpay, with a phase 1 decision deadline set for November 11 [7]

Core Insights - Global Payments Inc (GPN) reported second-quarter 2025 adjusted earnings per share (EPS) of $3.10, exceeding the Zacks Consensus Estimate of $3.03, with an 11% year-over-year increase [1][8] - Adjusted net revenues rose 2% year over year to $2.4 billion, slightly surpassing the consensus mark by 0.2% [1] - The strong performance was driven by growth in Merchant Solutions and Issuer Solutions, although elevated expenses partially offset the gains [1] GPN's Operating Performance - Adjusted operating income for the quarter was $1.1 billion, reflecting a 4.5% year-over-year increase [2] - Adjusted operating margin expanded by 130 basis points to 44.6% [2] - Total operating expenses increased by 2.3% year over year to $1.5 billion, primarily due to higher selling, general, and administrative expenses [2] Segmental Performances - **Merchant Solutions**: Adjusted revenues reached $1.8 billion, up 1.1% year over year, exceeding the Zacks Consensus Estimate by 0.7% [3] - Adjusted operating income for this segment increased by 3.7% year over year to $917.3 million, beating the consensus estimate of $902.5 million [3] - **Issuer Solutions**: Adjusted revenues were $547.4 million, growing 4% year over year and surpassing the Zacks Consensus Estimate by 1.1% [4] - Adjusted operating income improved by 8% year over year to $266.4 million, exceeding the consensus estimate of $255.7 million [4] GPN's Financial Position (As of June 30, 2025) - Cash and cash equivalents increased to $2.6 billion from $2.4 billion at the end of 2024 [5] - Total assets rose to $48.5 billion from $46.9 billion at the end of 2024 [5] - Long-term debt decreased to $14.2 billion from $15.1 billion at the end of 2024, with the current portion totaling $1.9 billion [5] - Total equity increased to $23.2 billion from $22.9 billion at the end of 2024 [5] Cash Flow and Capital Deployment - GPN generated operating cash flows of $818 million in the second quarter, up from $736.9 million a year ago [6] - The company repurchased shares worth $691.1 million in the first half of 2025 [9] - A quarterly dividend of 25 cents per share was declared, payable on September 26, 2025 [9] 2025 Outlook - GPN reaffirmed its 2025 guidance, expecting adjusted net revenue growth of 5% to 6% on a constant currency basis [10] - Adjusted EPS growth is anticipated to be between 10% and 11% in 2025 [10] - The company expects to convert nearly 90% of adjusted net income into adjusted free cash flow [10] - An increase of more than 50 basis points in the annual adjusted operating margin is also expected [10]

Core Insights - Global Payments (GPN) reported revenue of $2.36 billion for the quarter ended June 2025, marking a year-over-year increase of 1.6% and an EPS of $3.10 compared to $2.93 a year ago, with revenue meeting Zacks Consensus Estimate and an EPS surprise of +2.31% [1] Financial Performance - Non-GAAP Revenues for Merchant Solutions were $1.83 billion, slightly above the average estimate of $1.82 billion, reflecting a year-over-year change of +1.1% [4] - Non-GAAP Revenues for Issuer Solutions reached $547.37 million, exceeding the average estimate of $541.47 million, with a year-over-year increase of +4% [4] - Non-GAAP Revenues for Intersegment Elimination reported at $-17.86 million, compared to the average estimate of $-15.55 million, showing a year-over-year change of +19.2% [4] - Revenues for Merchant Solutions were $1.96 billion, slightly below the estimated $1.97 billion, representing a year-over-year decrease of -0.7% [4] Operating Income - Non-GAAP Operating Income for Corporate was reported at $-130.87 million, compared to the average estimate of $-127.02 million [4] - Non-GAAP Operating Income for Merchant Solutions was $917.26 million, exceeding the average estimate of $902.47 million [4] - Non-GAAP Operating Income for Issuer Solutions was $266.35 million, surpassing the average estimate of $255.74 million [4] - Operating Income for Merchant Solutions was $716.93 million, compared to the average estimate of $687.89 million [4] - Operating Income for Corporate was $-289.99 million, compared to the average estimate of $-205.89 million [4] Stock Performance - Shares of Global Payments have returned -2.8% over the past month, while the Zacks S&P 500 composite has changed by +0.5% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Insights - Global Payments reported revenue of $2.2 billion for the quarter ended March 2025, reflecting a 1% increase year-over-year and matching the Zacks Consensus Estimate, with an EPS of $2.82, up from $2.59 in the previous year [1] - The company achieved an EPS surprise of +4.83%, exceeding the consensus estimate of $2.69 [1] Revenue Performance - Non-GAAP Revenues from Merchant Solutions reached $1.69 billion, slightly above the $1.68 billion estimate, marking a +0.5% year-over-year change [4] - Non-GAAP Revenues from Issuer Solutions were reported at $528.82 million, surpassing the $528.21 million estimate, with a +2.6% change compared to the previous year [4] - Revenues from Issuer Solutions totaled $620.73 million, exceeding the $607.50 million estimate, representing a +3% year-over-year increase [4] - Revenues from Merchant Solutions were $1.81 billion, slightly below the $1.82 billion estimate, indicating a -1.4% year-over-year change [4] Operating Income Analysis - Non-GAAP Operating Income for Merchant Solutions was $808.95 million, above the $802.11 million estimate [4] - Non-GAAP Operating Income for Issuer Solutions was $244.94 million, slightly below the $246.04 million estimate [4] - Operating Income for Merchant Solutions was reported at $614.10 million, exceeding the $599.26 million estimate [4] - Operating Income for Corporate was -$256.53 million, worse than the -$215.98 million estimate [4]

Core Viewpoint - Global Payments (GPN) is expected to report quarterly earnings of $2.68 per share, reflecting a 3.5% increase year-over-year, with revenues projected at $2.2 billion, a 0.7% increase compared to the previous year [1]. Earnings Estimates - Over the last 30 days, the consensus EPS estimate has been revised downward by 2.2%, indicating a collective reassessment by analysts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate revisions and short-term stock performance [3]. Revenue Projections - Analysts estimate 'Non-GAAP Revenues - Merchant Solutions' at $1.68 billion, a year-over-year change of +0.1% [5]. - 'Non-GAAP Revenues - Issuer Solutions' is projected to reach $528.21 million, indicating a +2.4% change year-over-year [5]. - The average estimate for 'Revenues - Issuer Solutions' is $607.50 million, suggesting a +0.8% change year-over-year [5]. Geographic Revenue Insights - 'Revenues - Merchant Solutions' is estimated at $1.82 billion, reflecting a -0.5% change year-over-year [6]. - 'Geographic Revenue - Europe' is forecasted to be $399.04 million, indicating a +3.7% change year-over-year [6]. - 'Geographic Revenue - Americas' is expected to reach $1.95 billion, showing a -1.4% change from the prior year [6]. - 'Geographic Revenue - Asia Pacific' is projected at $60.09 million, indicating a -0.4% change year-over-year [7]. Operating Income Estimates - The consensus for 'Non-GAAP Operating Income - Merchant Solutions' stands at $802.11 million, compared to $790.41 million reported in the same quarter last year [7]. - 'Non-GAAP Operating Income - Issuer Solutions' is estimated at $246.04 million, up from $241.40 million in the previous year [8]. - 'Operating Income - Merchant Solutions' is expected to be $599.26 million, compared to $580.44 million reported last year [8]. - 'Operating Income - Issuer Solutions' is projected at $109.78 million, compared to $106.10 million in the same quarter last year [9]. Stock Performance - Shares of Global Payments have declined by -23.4% over the past month, contrasting with the Zacks S&P 500 composite's -0.7% change [9].