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Global Payments (GPN) Up 1% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for Global Payments (GPN - Free Report) . 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 have reacted as of late.
Global Payments Q3 Earnings Beat on Merchant Solutions Strength
Global Payments reported third-quarter 2025 adjusted earnings per share (EPS) of $3.26, which beat the Zacks Consensus Estimate of $3.23. The bottom line rose 12% year over year.
Adjusted net revenues improved 3% year over year to $2.4 billion. The top line beat the consensus mark by 0.9%.
The strong quarterly results benefited from growing strength in the Merchant Solutions and Issuer Solutions businesses. Moreover, declining operating expenses also contributed to the bottom line.
GPN’s Operating Performance
Adjusted operating income of $1.1 billion increased 5.5% year over year in the quarter under review. Adjusted operating margin expanded 110 basis points (bps) year over year to 45%.
Total operating expenses of $1.2 billion decreased 20.9% year over year in the third quarter. The decrease was due to lower selling, general and administrative expenses. Interest and other expenses fell 3.4% year over year to $143.8 million.
Q3 Segmental Performances of Global Payments
Merchant Solutions: The segment recorded adjusted revenues of $1.9 billion in the third quarter, which rose 2.2% year over year. The figure surpassed the Zacks Consensus Estimate by 0.7%.
The unit’s adjusted operating income increased 4.4% year over year to $962.3 million and also beat the Zacks Consensus Estimate of $956.8 million.
Issuer Solutions: Adjusted revenues were $561.8 million in the segment, which grew 6.2% year over year in the quarter under review and beat the Zacks Consensus Estimate by 1.8%.
Adjusted operating income improved 9.6% year over year to $263.5 million and beat the Zacks Consensus Estimate of $257.6 million.
GPN’s Financial Position (As of Sept. 30, 2025)
Global Payments exited the third quarter with cash and cash equivalents of $2.6 billion, which increased from $2.4 billion at 2024-end. Total assets of $48 billion rose from $46.9 billion at 2024-end.
Long-term debt amounted to $13.3 billion compared with $15.1 billion at 2024-end. The current portion of long-term debt totaled $1.9 billion at the third-quarter end.
Total equity of $23.3 billion rose from the figure of $22.9 billion at 2024-end.
GPN generated operating cash flows of $2.1 billion in the first nine months of 2025, which declined from the figure of $1.2 billion a year ago.
Capital Deployment Update
GPN repurchased shares worth $1.2 billion in the first nine months of 2025.
The company declared a quarterly dividend of 25 cents per share, which will be paid out on Dec. 26, 2025, to its shareholders of record as of Dec. 12.
GPN’s 2025 Outlook Reaffirmed
Adjusted net revenue growth on a constant currency basis is still expected to be between 5% and 6% in 2025.
Adjusted EPS growth is still anticipated to be between 10% and 11% in 2025. GPN continues to expect to convert almost 90% of adjusted net income into adjusted free cash flow.
The annual adjusted operating margin is now expected to increase more than 50 bps in 2025.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
VGM Scores
At this time, Global Payments has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for value investors.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Global Payments has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Global Payments belongs to the Zacks Financial Transaction Services industry. Another stock from the same industry, Fiserv (FISV - Free Report) , has gained 4.6% over the past month. More than a month has passed since the company reported results for the quarter ended September 2025.
Fiserv reported revenues of $4.92 billion in the last reported quarter, representing a year-over-year change of +0.7%. EPS of $2.04 for the same period compares with $2.30 a year ago.
Fiserv is expected to post earnings of $1.92 per share for the current quarter, representing a year-over-year change of -23.5%. Over the last 30 days, the Zacks Consensus Estimate has changed -4.2%.
Fiserv has a Zacks Rank #5 (Strong Sell) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.
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Global Payments (GPN) Up 1% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Global Payments (GPN - Free Report) . 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 have reacted as of late.
Global Payments Q3 Earnings Beat on Merchant Solutions Strength
Global Payments reported third-quarter 2025 adjusted earnings per share (EPS) of $3.26, which beat the Zacks Consensus Estimate of $3.23. The bottom line rose 12% year over year.
Adjusted net revenues improved 3% year over year to $2.4 billion. The top line beat the consensus mark by 0.9%.
The strong quarterly results benefited from growing strength in the Merchant Solutions and Issuer Solutions businesses. Moreover, declining operating expenses also contributed to the bottom line.
GPN’s Operating Performance
Adjusted operating income of $1.1 billion increased 5.5% year over year in the quarter under review. Adjusted operating margin expanded 110 basis points (bps) year over year to 45%.
Total operating expenses of $1.2 billion decreased 20.9% year over year in the third quarter. The decrease was due to lower selling, general and administrative expenses. Interest and other expenses fell 3.4% year over year to $143.8 million.
Q3 Segmental Performances of Global Payments
Merchant Solutions: The segment recorded adjusted revenues of $1.9 billion in the third quarter, which rose 2.2% year over year. The figure surpassed the Zacks Consensus Estimate by 0.7%.
The unit’s adjusted operating income increased 4.4% year over year to $962.3 million and also beat the Zacks Consensus Estimate of $956.8 million.
Issuer Solutions: Adjusted revenues were $561.8 million in the segment, which grew 6.2% year over year in the quarter under review and beat the Zacks Consensus Estimate by 1.8%.
Adjusted operating income improved 9.6% year over year to $263.5 million and beat the Zacks Consensus Estimate of $257.6 million.
GPN’s Financial Position (As of Sept. 30, 2025)
Global Payments exited the third quarter with cash and cash equivalents of $2.6 billion, which increased from $2.4 billion at 2024-end. Total assets of $48 billion rose from $46.9 billion at 2024-end.
Long-term debt amounted to $13.3 billion compared with $15.1 billion at 2024-end. The current portion of long-term debt totaled $1.9 billion at the third-quarter end.
Total equity of $23.3 billion rose from the figure of $22.9 billion at 2024-end.
GPN generated operating cash flows of $2.1 billion in the first nine months of 2025, which declined from the figure of $1.2 billion a year ago.
Capital Deployment Update
GPN repurchased shares worth $1.2 billion in the first nine months of 2025.
The company declared a quarterly dividend of 25 cents per share, which will be paid out on Dec. 26, 2025, to its shareholders of record as of Dec. 12.
GPN’s 2025 Outlook Reaffirmed
Adjusted net revenue growth on a constant currency basis is still expected to be between 5% and 6% in 2025.
Adjusted EPS growth is still anticipated to be between 10% and 11% in 2025. GPN continues to expect to convert almost 90% of adjusted net income into adjusted free cash flow.
The annual adjusted operating margin is now expected to increase more than 50 bps in 2025.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
VGM Scores
At this time, Global Payments has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for value investors.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Global Payments has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Global Payments belongs to the Zacks Financial Transaction Services industry. Another stock from the same industry, Fiserv (FISV - Free Report) , has gained 4.6% over the past month. More than a month has passed since the company reported results for the quarter ended September 2025.
Fiserv reported revenues of $4.92 billion in the last reported quarter, representing a year-over-year change of +0.7%. EPS of $2.04 for the same period compares with $2.30 a year ago.
Fiserv is expected to post earnings of $1.92 per share for the current quarter, representing a year-over-year change of -23.5%. Over the last 30 days, the Zacks Consensus Estimate has changed -4.2%.
Fiserv has a Zacks Rank #5 (Strong Sell) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.