Global Payments (GPN 9.09%), a leading provider of payment technology and software solutions for merchants and businesses, reported its financial results on August 6, 2025. The company delivered adjusted earnings per share of $3.10, ahead of analyst expectations by $0.05 (non-GAAP), and non-GAAP revenue of $2.36 billion. Non-GAAP revenue was slightly above consensus. On a GAAP basis, net income and diluted EPS both declined due to restructuring, transformation expenses, and the classification of Issuer Solutions as discontinued operations. The quarter showed stable execution on transformation efforts and early progress with product launches and sales alignment, supporting a generally positive view of the period's performance despite ongoing integration and regulatory risks.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (Non-GAAP) | $3.10 | $3.05 | $2.80 | 10.7 % |
| Revenue (Non-GAAP) | $2.36 billion | $2.36 billion | $2.32 billion | 1.7 % |
| EPS (GAAP) | $0.99 | $1.47 | (32.7%) | |
| Revenue (GAAP) | N/A | N/A | N/A | |
| Adjusted Operating Margin | 44.6 % | 43.3% | 1.3 pp |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
About Global Payments and Its Business Focus
Global Payments is a technology company that provides payment processing, digital commerce, and software services to merchants, businesses, and financial institutions around the world. Its core operations help companies accept payments across in-person, online, and mobile channels, supporting millions of businesses in over 100 vertical markets globally.
Recently, Global Payments has concentrated its efforts on merchant solutions and business-to-business payment services. The company’s strategy includes divesting non-core assets, such as its Issuer Solutions segment, and integrating new acquisitions like EVO Payments. Key success factors include ongoing product innovation, global market expansion, regulatory compliance, and technology investments, all designed to meet the shifting demands of the payment industry.
Quarter Highlights: Transformation, Product Innovation, and Financial Results
The quarter marked significant progress in Global Payments' transformation plan. The most notable milestone was the full launch of the Genius platform, its new point-of-sale (POS) and software solution aimed at retailers and restaurants. Genius is designed to modernize merchant payment systems, harmonize different platforms, and accelerate digital feature deployment. Management highlighted strong early momentum in product adoption, with an initial focus on onboarding new clients and transitioning legacy users at their own pace to limit attrition.
The company's strategic shift continues with the planned acquisition of Worldpay, a large payments firm, and the divestiture of its Issuer Solutions business to Fidelity National Information Services. The acquisition received U.S. antitrust clearance in the quarter, but still requires international approvals. Preparations are underway for a smooth integration, with management reaffirming expectations for at least $600 million in annual expense savings and $200 million in additional annual revenue synergies once the Worldpay transaction closes, projected for the first half of 2026. These initiatives are intended to sharpen Global Payments’ focus on its core merchant activities and enhance its technology-driven offerings.
Financially, the company reported adjusted net revenue growth of 1.6%, driven primarily by the Merchant Solutions segment, which contributed $1.83 billion in adjusted revenue (up 1.1% from the prior year). Adjusted operating margin expanded by 1.3 percentage points to 44.6%. By comparison, reported GAAP net income fell by 35.5%, reflecting costs associated with restructuring activities and asset sales, including the reclassification of Issuer Solutions as discontinued operations. Adjusted net income increased 5.7% to $754 million.
Other key operational updates included a revamp of the U.S. sales force, with harmonized leadership and unified sales incentives under the “Salesforce of the Future” program. This contributed to a stronger sales pipeline and record monthly production in March. The company also continued its investment in cloud and payments technology, with capital spending set to exceed $1 billion annually after the Worldpay integration. The combined company is expected to serve 6.5 million merchants, process nearly $4 trillion in annual payment volume, and operate in 175 countries.
Looking Ahead: Guidance, Risks, and Areas to Watch
Management reaffirmed its outlook, expecting constant currency adjusted net revenue growth between 5% and 6% (excluding divestitures). Adjusted operating margin expansion is forecast to be “slightly more than 50 basis points,” with adjusted EPS (constant currency, non-GAAP) growth at the high end of the 10% to 11% range. These targets assume a stable macroeconomic environment through the rest of the year, with additional benefits anticipated from continued transformation and innovation programs.
For the medium term, after the Worldpay acquisition closes, Global Payments expects adjusted net revenue growth to accelerate to the high single digits by FY2027, with further adjusted operating margin improvements of 100 to 200 basis points annually. Adjusted earnings per share growth is projected to rise to the mid-teens over the medium term, and Capital returns to shareholders are set to reach $7 billion from 2025 to 2027. The company declared a quarterly dividend of $0.25 per share for the third quarter. Key areas for investors to watch include integration planning for Worldpay, progress toward expected synergies, U.S. regulatory developments, and early momentum for the Genius platform.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
