Core Insights - Global Payments Inc. (GPN) reported fourth-quarter 2025 adjusted earnings per share (EPS) of $3.18, which was in line with the Zacks Consensus Estimate, reflecting a 12% year-over-year increase [1] - Adjusted net revenues for the quarter improved 1.4% year over year to $2.3 billion, slightly missing the consensus mark [1] - The earnings growth was driven by the Merchant Solutions business, although elevated operating expenses partially offset the positives [1] GPN's Operating Performance - Adjusted operating income reached $1 billion, marking a 3.3% year-over-year increase, with an adjusted operating margin expansion of 80 basis points to 44.7% [2] - Total operating expenses rose significantly by 42.7% year over year to $1.7 billion, attributed to higher selling, general and administrative expenses, and cost of service [2] - Interest and other expenses increased by 35.1% year over year to $204.5 million [2] Q4 Segmental Performances of Global Payments - Merchant Solutions segment reported adjusted revenues of $1.8 billion, a 0.4% year-over-year increase, surpassing the Zacks Consensus Estimate by 0.8% [3] - Adjusted operating income for Merchant Solutions increased by 2.8% year over year to $877.1 million [3] - Issuer Solutions segment saw adjusted revenues of $557.1 million, growing 5.1% year over year but missing the Zacks Consensus Estimate by 1.6% [3][4] GPN's Financial Position (As of Dec. 31, 2025) - Cash and cash equivalents stood at $8.3 billion, up from $2.4 billion at the end of 2024 [5] - Total assets increased to $53.3 billion from $46.9 billion at the end of 2024 [5] - Long-term debt rose to $19.5 billion compared to $15.1 billion at the end of 2024, with the current portion of long-term debt totaling $1.9 billion [5] - Total equity increased to $23.6 billion from $22.9 billion at the end of 2024 [5] Capital Deployment Update - The company initiated a $550 million accelerated share repurchase program and repurchased shares worth $1.2 billion in 2025 [7] Full-Year 2025 Update - Net revenues for 2025 grew by 2% year over year to $9.3 billion, with adjusted operating margin improving by 97 basis points [10] - Adjusted EPS for 2025 registered an 11% year-over-year growth to $12.22 [10] GPN's 2026 Outlook - Adjusted net revenue growth on a constant currency basis is expected to be around 5% in 2026 [11] - Adjusted EPS growth is anticipated to be between 13% and 15% in 2026, with an expected increase of around 150 basis points in annual adjusted operating margin [11] - The company aims to convert almost 90% of adjusted net income into adjusted free cash flow [11] GPN's Zacks Rank - GPN currently holds a Zacks Rank 2 (Buy) [12]

Revenue Performance - Global Payments Inc. (GPN) reported adjusted revenue of $2.32 billion for Q4 2025, meeting analyst estimates, with GAAP revenue at $1.90 billion, indicating stable execution amid market expectations [4] Valuation Metrics - The trailing price-to-earnings (P/E) ratio of 10.39 suggests that the market values GPN's earnings positively, supported by a strong outlook for fiscal 2026 with adjusted EPS guidance of $13.80–$14.00, above consensus [4] - The price-to-sales (ttm) ratio of 1.67 and enterprise value to revenue (ttm) ratio of 3.25 provide insights into GPN's market value relative to its revenue and debt [5] - The enterprise value to operating cash flow (ttm) ratio of approximately 9.38 highlights how the company's cash flow is valued in relation to its enterprise value [5] Liquidity and Debt - GPN's earnings yield of approximately 9.62% offers an attractive perspective on return on investment for income-seeking investors [6] - The debt-to-equity ratio of 0.69 indicates a moderate level of debt used to finance the company's assets relative to equity, essential for maintaining financial stability [6] - The current ratio of 0.86 may suggest potential liquidity considerations in meeting short-term obligations, important for understanding the company's ability to cover short-term liabilities with short-term assets [6] Company Overview - GPN is a leading provider of payment technology and software solutions, operating globally and facilitating electronic payments for merchants, businesses, and financial institutions [3] - The company competes with major players in the payment processing industry, such as PayPal and Block, striving to maintain its position through innovation and strategic partnerships [3]

Industry Overview - The Financial Transaction Services industry is part of the broader FinTech space, encompassing card and payment processing, ATM services, money remittance, and investment solutions for financial advisors [2] - The industry benefits from ongoing digitization accelerated by the pandemic, facilitating quick and secure monetary transactions across multiple currencies globally [2] Key Growth Drivers - Expanding global trade, rising international travel, and increasing demand for cross-border payments and remittances are key factors driving growth in the industry [5] - Continued e-commerce growth and a resilient labor market are sustaining transaction volumes, although inflation and tariff pressures may strain consumer budgets [1][4] Technology Investments - Companies are significantly increasing technology expenditures to enhance digital infrastructure, including investments in biometric authentication, QR-code payments, and Buy Now, Pay Later (BNPL) platforms [3] - The rise in digital payments has led to increased exposure to cyber threats, prompting companies to invest heavily in cybersecurity and fraud detection systems [3] Strategic Mergers and Acquisitions - Companies in the sector are engaging in strategic mergers and acquisitions to strengthen digital ecosystems, expand service offerings, and enhance global reach [6][7] - Expectations for interest rate cuts in 2026 may encourage companies to utilize debt financing for M&A activities, allowing them to pursue growth opportunities while preserving cash [7] Consumer Spending Trends - Stable consumer spending supports higher transaction volumes, although persistent inflation may lead to more cautious spending behavior [4] - A resilient labor market with low unemployment and steady wage growth could help sustain consumer purchasing activity in the near term [4] Industry Performance - The Zacks Financial Transaction Services industry has underperformed compared to the Business Services sector and the S&P 500, declining 24.3% over the past year [11] - The industry's current valuation is at a forward 12-month price/earnings ratio of 18.15X, lower than the S&P 500's 22.51X [15] Notable Companies - **Global Payments**: Positioned for growth with strong performances in Merchant and Issuer Solutions, benefiting from increasing transaction volumes [18] - **Visa**: A major player in digital payments, expanding through strategic alliances and acquisitions, with a focus on technology investment [23] - **Mastercard**: Operates a multi-rail infrastructure for seamless payments, with a strong cross-border payments platform [26] - **Fiserv**: Maintains a competitive position in digital payments with a broad portfolio and strategic acquisitions [30] - **Fidelity National**: Achieving solid revenue growth through Banking and Capital Markets Solutions, with a strategic international footprint [34]

I've been researching companies in-depth for over a decade, from commodities like oil, natural gas, gold and copper to tech like Google or Nokia and many emerging market stocks, which I believe could help me provide useful content for readers. After writing my own blog for about 3 years, I decided to switch to a value investing-focused YouTube channel, where I researched hundreds of different companies so far. I would say my favorite type of company to cover are metals and mining stocks, but I am comfortabl ...

Group 1 - The payments software provider reported fourth-quarter earnings that slightly exceeded estimates [1] - The company provided strong full-year guidance, indicating positive future performance [1]

Global Payments (GPN) came out with quarterly earnings of $3.18 per share, in line with the Zacks Consensus Estimate . This compares to earnings of $2.95 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -0.03%. A quarter ago, it was expected that this electronics payment processing company would post earnings of $3.23 per share when it actually produced earnings of $3.26, delivering a surprise of +0.93%.Over the last four quart ...

Financial Data and Key Metrics Changes - For the full year 2025, adjusted net revenue was $9.32 billion, a 6% increase from the prior year on a constant currency basis, excluding dispositions [40] - Adjusted operating margin improved by 100 basis points to 44.2% for the full year [41] - Adjusted earnings per share (EPS) for the full year was $12.22, a 12% increase compared to 2024 [42] - In Q4, adjusted net revenue was $2.32 billion, reflecting a 6% increase year-over-year on a constant currency basis [42] - Adjusted operating margin for Q4 increased by 80 basis points to 44.7% [42] - Adjusted EPS for Q4 was $3.18, a 12% increase compared to the prior year [42] Business Line Data and Key Metrics Changes - Merchant Solutions segment achieved adjusted net revenue of $1.78 billion for Q4, reflecting growth of slightly over 6% [43] - POS and software business within Merchant Solutions achieved high single-digit growth in Q4 [43] - Genius's payments attach rate in the enterprise segment nearly doubled in Q4, enhancing customer lifetime value [44] - Integrated and embedded business grew in the high single digits in Q4 [44] - Core payments delivered mid-single-digit growth in Q4, benefiting from strong distribution channels [45] Market Data and Key Metrics Changes - Revenue in Central Europe grew in the mid-teens, with Greece experiencing one of the strongest quarters on record [45] - New sales in the U.S. during Q4 were 35% higher than the prior year, marking the strongest quarter in several years [45] Company Strategy and Development Direction - The acquisition of Worldpay is seen as a pivotal moment for the company, aimed at creating a better Global Payments with enhanced scale and capabilities [4][5] - The company plans to invest approximately $1 billion annually in commerce technology to expand omni-channel offerings and advance AI-enabled product roadmaps [12] - Four strategic pillars include pure-play focus, client-centric approach, enhanced capabilities through innovation, and global reach with local expertise [16] - In 2026, the company will focus on integrating Worldpay, accelerating go-to-market strategies, expanding Genius, and leveraging AI for new revenue streams [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving $200 million in annualized revenue and $600 million in expense synergies over the next three years from the Worldpay integration [17] - The company expects constant currency adjusted net revenue growth of approximately 5% for 2026, with modest acceleration anticipated in the second half of the year [50][51] - Management highlighted the importance of a disciplined integration plan to support future growth and the need to unite as one global team [38][39] Other Important Information - The company generated strong free cash flow in 2025, with over 100% adjusted free cash flow conversion [7] - A $2.5 billion share repurchase authorization was approved, with an immediate repurchase of $550 million of shares [8] - The company plans to return more than $2 billion of capital to shareholders in 2026 through share repurchases and dividends [52] Q&A Session Summary Question: What is the split between enterprise and SMB growth? - Management indicated that the merchant business exited the year a little over 6% organically, with SMB approximately 50% of revenue composition and enterprise and platforms each representing about 25% [59][62] Question: What is the trajectory of the expected synergies? - The company expects to realize $600 million in cost synergies over three years, with $70 million-$80 million expected in 2026 [69][70] Question: How is the cross-sell into the SMB business at Worldpay progressing? - Management expressed optimism about cross-selling capabilities into the existing Worldpay base and leveraging distribution platforms to enhance market penetration [71][72]

Global Payments (NYSE:GPN) Q4 2025 Earnings call February 18, 2026 08:00 AM ET Company ParticipantsAndrew Schmidt - Managing DirectorBob Cortopassi - COOCameron Bready - CEODarrin Peller - Managing DirectorDominic Ball - VP of Equity ResearchJosh Whipple - CFONate Rozof - SVP of Investor RelationsTien-Tsin Huang - Managing DirectorConference Call ParticipantsDan Dolev - Senior Analyst of FinTech Equity ResearchDave Koning - Equity Research AnalystDave Koning - Senior Research AnalystJames Cantwell - Senior ...

Global Payments (NYSE:GPN) Q4 2025 Earnings call February 18, 2026 08:00 AM ET Speaker12Ladies and gentlemen, thank you for standing by, and welcome to Global Payments' fourth quarter and full year 2025 earnings conference call. At this time, all participants are in a listen-only mode. Later, we will open the lines for questions and answers. As a reminder, today's conference will be recorded. At this time, I would like to turn the conference over to your host, Senior Vice President, Investor Relations, Nath ...

Core Insights - Global Payments reported a rise in fourth-quarter profit and forecasted annual earnings above Wall Street estimates, leading to an over 8% increase in its shares [1] Financial Performance - The company expects adjusted earnings per share for fiscal year 2026 to be between $13.80 and $14, surpassing Wall Street's estimate of $13.64 [1] - Quarterly net profit attributable to Global Payments rose to $754.7 million, or $3.18 per share, on an adjusted basis, compared to $717.9 million, or $2.85 per share, a year earlier [1] - The merchant solutions segment, the largest for the company, saw a nearly 3% increase in adjusted operating income to $877.1 million in the fourth quarter year-over-year [1] - Adjusted operating income from the issuer solutions business increased to $267.8 million in the fourth quarter from $253.6 million the previous year [1] Market Dynamics - Consumer spending among higher-income shoppers remains strong, while middle and lower-income households are reducing expenditures due to macroeconomic pressures [1] - The diversified nature of Global Payments' merchant business across sectors and regions provides a buffer against economic downturns [1] Capital Management - CEO Cameron Bready stated the company expects to return $7.5 billion of capital to shareholders through the end of 2027 following the completion of major transactions [1]