We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Global Payments Sinks 28.3% YTD: Dip Worth Buying or Just Dead Weight?
Read MoreHide Full Article
Key Takeaways
GPN's shares are down 28.3% YTD as investors weigh its strategic pivot and market pressures.
Pending Worldpay buyout and divestiture aim to refocus GPN into a pureplay merchant solutions firm.
GPN holds strong liquidity with $2.6B in cash and robust FCF supporting investment and buybacks.
Global Payments Inc. (GPN - Free Report) appears well-positioned to regain momentum as it enters a defining phase, guided by transformative portfolio moves, focused partnerships and an improving financial foundation. Even so, competitive intensity and wary investor sentiment continue to weigh on the stock. The Atlanta-based payments provider holds a market cap of $18.3 billion and serves merchants worldwide through a broad suite of technology-driven payment solutions.
Despite its scale and reach, GPN shares have slid 28.3% year to date, lagging both the industry’s decline and the S&P 500’s strong performance. Peers such as Fidelity National Information Services, Inc. (FIS - Free Report) and Fiserv, Inc. (FISV - Free Report) have also witnessed declines, but GPN’s deep pullback has sharpened questions about whether the current weakness presents a window to build a position.
The key consideration for investors is whether this downturn reflects temporary uncertainty or a mispricing of long-term potential. To assess that, it’s important to examine GPN’s strategic plan, earnings trajectory and financial strength.
Image Source: Zacks Investment Research
The company’s most important growth catalyst centers on the pending acquisition of Worldpay from GTCR and Fidelity National, along with the divestiture of GPN’s Issuer Solutions unit to Fidelity National. Both transactions are expected to close in early 2026. This major portfolio realignment will shift GPN into a pureplay merchant solutions company, allowing it to concentrate capital on its core strengths, enhance scale and elevate operating efficiency. The approval from the Competition & Markets Authority in the U.K. strengthened confidence in the path forward.
Once completed, the combined platform is expected to significantly widen GPN’s global network. The integration will extend the company’s presence across diverse verticals and merchant tiers, reaching more than 175 countries and supporting over 6 million clients. Together, the businesses are projected to process 94 billion transactions and $3.7 trillion in volume, helping deepen customer stickiness and reinforce the competitive moat across key markets.
What Does GPN’s Estimates Signal?
GPN’s earnings outlook adds further support. The Zacks Consensus Estimate for 2025 suggests earnings of $12.22 per share, indicating a 5.8% year-over-year increase, followed by an additional 12.3% rise in 2026. Revenue growth projections, though more modest, still trend upward with expected gains of 1.7% in 2025 and 4.6% in 2026. GPN beat earnings estimates in three of the last four quarters and missed once, with an average surprise of 1.9%.
Global Payments Inc. Price, Consensus and EPS Surprise
Financial flexibility remains a major strength. At the end of the third quarter, Global Payments held $2.6 billion in cash and cash equivalents, comfortably exceeding its current portion of long-term debt of $1.9 billion. Operating cash flow totaled $2.1 billion over the first nine months of 2025, and the company continued to achieve adjusted free cash flow conversion above 90%. This liquidity gives GPN room to invest in technology, pursue growth initiatives and fund shareholder returns. The company repurchased $1.6 billion of stock in 2024 and another $1.2 billion in the first nine months of 2025, demonstrating its commitment to capital deployment.
Average Price Target
GPN trades below the average analyst price target of $103.17, implying potential upside of more than 33%. The spread between the high target of $194 and the low target of $70 reflects different risk views, but the consensus direction remains positive.
Key Concerns
However, several hurdles could restrain the stock.
GPN trades at just 6.15X forward earnings, far below its five-year median and the broader industry average. This steep discount underscores investor caution around the execution of the Worldpay integration and the challenge of upgrading its technology stack while supporting growth and continuing shareholder distributions. Meanwhile, Fidelity National and Fiserv are currently trading at 10.58X and 7.99X, respectively, above GPN’s level.
Image Source: Zacks Investment Research
Operating expenses remain elevated despite efficiency efforts, with adjusted costs rising 5.4% in 2023 and 4.8% in 2024, and we expect it to hover near $5.2 billion in 2025. Adjusted EBITDA margins have also softened, slipping from 49.9% in 2023 to 48.6% in 2024 and remaining at that level through 2025.
Competition is another headwind. Fast-growing fintech players are reshaping the payments landscape, pressuring pricing power and accelerating the need for innovation and differentiation.
Conclusion
Global Payments’ sharp valuation discount, solid cash generation and upcoming Worldpay integration create a compelling setup for long-term investors willing to tolerate near-term execution risk. While competition and elevated expenses remain real hurdles, the company’s focused transformation into a pureplay merchant solutions provider, paired with steady earnings growth expectations, supports a constructive outlook.
With shares trading well below historical and peer multiples, much of the skepticism already appears priced in. Given the balanced mix of opportunity and risk, GPN merits a Zacks Rank #3 (Hold) now, with potential upside as integration milestones are met and financial momentum strengthens. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Global Payments Sinks 28.3% YTD: Dip Worth Buying or Just Dead Weight?
Key Takeaways
Global Payments Inc. (GPN - Free Report) appears well-positioned to regain momentum as it enters a defining phase, guided by transformative portfolio moves, focused partnerships and an improving financial foundation. Even so, competitive intensity and wary investor sentiment continue to weigh on the stock. The Atlanta-based payments provider holds a market cap of $18.3 billion and serves merchants worldwide through a broad suite of technology-driven payment solutions.
Despite its scale and reach, GPN shares have slid 28.3% year to date, lagging both the industry’s decline and the S&P 500’s strong performance. Peers such as Fidelity National Information Services, Inc. (FIS - Free Report) and Fiserv, Inc. (FISV - Free Report) have also witnessed declines, but GPN’s deep pullback has sharpened questions about whether the current weakness presents a window to build a position.
The key consideration for investors is whether this downturn reflects temporary uncertainty or a mispricing of long-term potential. To assess that, it’s important to examine GPN’s strategic plan, earnings trajectory and financial strength.
The company’s most important growth catalyst centers on the pending acquisition of Worldpay from GTCR and Fidelity National, along with the divestiture of GPN’s Issuer Solutions unit to Fidelity National. Both transactions are expected to close in early 2026. This major portfolio realignment will shift GPN into a pureplay merchant solutions company, allowing it to concentrate capital on its core strengths, enhance scale and elevate operating efficiency. The approval from the Competition & Markets Authority in the U.K. strengthened confidence in the path forward.
Once completed, the combined platform is expected to significantly widen GPN’s global network. The integration will extend the company’s presence across diverse verticals and merchant tiers, reaching more than 175 countries and supporting over 6 million clients. Together, the businesses are projected to process 94 billion transactions and $3.7 trillion in volume, helping deepen customer stickiness and reinforce the competitive moat across key markets.
What Does GPN’s Estimates Signal?
GPN’s earnings outlook adds further support. The Zacks Consensus Estimate for 2025 suggests earnings of $12.22 per share, indicating a 5.8% year-over-year increase, followed by an additional 12.3% rise in 2026. Revenue growth projections, though more modest, still trend upward with expected gains of 1.7% in 2025 and 4.6% in 2026. GPN beat earnings estimates in three of the last four quarters and missed once, with an average surprise of 1.9%.
Global Payments Inc. Price, Consensus and EPS Surprise
Global Payments Inc. price-consensus-eps-surprise-chart | Global Payments Inc. Quote
GPN’s Financial Health
Financial flexibility remains a major strength. At the end of the third quarter, Global Payments held $2.6 billion in cash and cash equivalents, comfortably exceeding its current portion of long-term debt of $1.9 billion. Operating cash flow totaled $2.1 billion over the first nine months of 2025, and the company continued to achieve adjusted free cash flow conversion above 90%. This liquidity gives GPN room to invest in technology, pursue growth initiatives and fund shareholder returns. The company repurchased $1.6 billion of stock in 2024 and another $1.2 billion in the first nine months of 2025, demonstrating its commitment to capital deployment.
Average Price Target
GPN trades below the average analyst price target of $103.17, implying potential upside of more than 33%. The spread between the high target of $194 and the low target of $70 reflects different risk views, but the consensus direction remains positive.
Key Concerns
However, several hurdles could restrain the stock.
GPN trades at just 6.15X forward earnings, far below its five-year median and the broader industry average. This steep discount underscores investor caution around the execution of the Worldpay integration and the challenge of upgrading its technology stack while supporting growth and continuing shareholder distributions. Meanwhile, Fidelity National and Fiserv are currently trading at 10.58X and 7.99X, respectively, above GPN’s level.
Operating expenses remain elevated despite efficiency efforts, with adjusted costs rising 5.4% in 2023 and 4.8% in 2024, and we expect it to hover near $5.2 billion in 2025. Adjusted EBITDA margins have also softened, slipping from 49.9% in 2023 to 48.6% in 2024 and remaining at that level through 2025.
Competition is another headwind. Fast-growing fintech players are reshaping the payments landscape, pressuring pricing power and accelerating the need for innovation and differentiation.
Conclusion
Global Payments’ sharp valuation discount, solid cash generation and upcoming Worldpay integration create a compelling setup for long-term investors willing to tolerate near-term execution risk. While competition and elevated expenses remain real hurdles, the company’s focused transformation into a pureplay merchant solutions provider, paired with steady earnings growth expectations, supports a constructive outlook.
With shares trading well below historical and peer multiples, much of the skepticism already appears priced in. Given the balanced mix of opportunity and risk, GPN merits a Zacks Rank #3 (Hold) now, with potential upside as integration milestones are met and financial momentum strengthens. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.