Global Payments Q2 Earnings Beat on Issuer Solutions Strength

Global Payments Inc GPN reported second-quarter 2025 adjusted earnings per share (EPS) of $3.10, which beat the Zacks Consensus Estimate of $3.03. The bottom line rose 11% year over year.

Adjusted net revenues improved 2% year over year to $2.4 billion. The top line beat the consensus mark by 0.2%.

The strong quarterly results benefited from growing strength in the Merchant Solutions and Issuer Solutions businesses. However, the upside was partly offset by an elevated expense level.

Global Payments Inc. Price, Consensus and EPS Surprise

Global Payments Inc. price-consensus-eps-surprise-chart | Global Payments Inc. Quote

GPN’s Operating Performance

Adjusted operating income of $1.1 billion increased 4.5% year over year in the quarter under review. Adjusted operating margin expanded 130 basis points (bps) year over year to 44.6%.

Total operating expenses of $1.5 billion increased 2.3% year over year in the second quarter. The increase was due to higher selling, general and administrative expenses. Interest and other expenses rose 2.7% year over year to $152.2 million.

Segmental Performances

Merchant Solutions: The segment recorded adjusted revenues of $1.8 billion in the second quarter, which rose 1.1% year over year. The figure surpassed the Zacks Consensus Estimate by 0.7%.

The unit’s adjusted operating income increased 3.7% year over year to $917.3 million and also beat the Zacks Consensus Estimate of $902.5 million.

Issuer Solutions: Adjusted revenues were $547.4 million in the segment, which grew 4% year over year in the quarter under review and beat the Zacks Consensus Estimate by 1.1%.

Adjusted operating income improved 8% year over year to $266.4 million and beat the Zacks Consensus Estimate of $255.7 million.

GPN’s Financial Position (As of June 30, 2025)

Global Payments exited the second quarter with cash and cash equivalents of $2.6 billion, which increased from $2.4 billion at 2024-end.

Total assets of $48.5 billion rose from $46.9 billion at 2024-end.

Long-term debt amounted to $14.2 billion, down from $15.1 billion at 2024-end. The current portion of long-term debt totaled $1.9 billion at the second-quarter end.

Total equity of $23.2 billion rose from the figure of $22.9 billion at 2024-end.

GPN generated operating cash flows of $818 million in the second quarter, which rose from the figure of $736.9 million a year ago.

Capital Deployment Update

GPN repurchased shares worth $691.1 million in the first half of 2025.

The company declared a quarterly dividend of 25 cents per share, which will be paid out on Sept. 26, 2025, to its shareholders of record as of Sept. 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.

GPN’s Zacks Rank & Key Picks

GPN currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the business services space are Coherent Corp COHR, APi Group Corp APG and Evertec Inc EVTC, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Coherent’s current-year earnings of $3.53 per share has witnessed three upward revisions in the past 30 days against no movement in the opposite direction. Coherent beat earnings estimates in each of the trailing four quarters, with the average surprise being 15.2%. The consensus estimate for current-year revenues is pegged at $5.8 billion, implying 23.1% year-over-year growth.

The Zacks Consensus Estimate for APi Group’s current-year earnings of $1.42 per share has witnessed three upward revisions in the past 30 days against no movement in the opposite direction. APi Group beat earnings estimates in three of the trailing four quarters and met once, with the average surprise being 4.3%. The consensus estimate for current-year revenues is pegged at $7.7 billion, suggesting 9.4% year-over-year growth.

The Zacks Consensus Estimate for Evertec’s current-year earnings of $3.49 per share has witnessed three upward revisions in the past 30 days against no movement in the opposite direction. Evertec beat earnings estimates in each of the trailing four quarters, with the average surprise being 12.4%. The consensus estimate for current-year revenues is pegged at $901.8 million, calling for a 6.7% year-over-year increase.

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