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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. The bottom line rose 12% year over year.
Adjusted net revenues improved 1.4% year over year to $2.3 billion. The top line missed the consensus mark by a whisker.
The quarterly earnings benefited from growing strength in the Merchant Solutions business. However, the positives were partly offset by elevated operating expenses.
Global Payments Inc. price-consensus-eps-surprise-chart | Global Payments Inc. Quote
Adjusted operating income of $1 billion increased 3.3% year over year in the quarter under review. Adjusted operating margin expanded 80 basis points (bps) year over year to 44.7%.
Total operating expenses of $1.7 billion increased 42.7% year over year in the fourth quarter. The increase was due to higher selling, general and administrative expenses, and cost of service. Interest and other expenses rose 35.1% year over year to $204.5 million.
Merchant Solutions: The segment recorded adjusted revenues of $1.8 billion in the fourth quarter, which rose 0.4% year over year. The figure surpassed the Zacks Consensus Estimate by 0.8%.
The unit’s adjusted operating income increased 2.8% year over year to $877.1 million.
Issuer Solutions: Adjusted revenues were $557.1 million in the segment, which grew 5.1% year over year in the quarter under review but missed the Zacks Consensus Estimate by 1.6%.
Adjusted operating income improved 5.6% year over year to $267.8 million but missed the Zacks Consensus Estimate of $269.3 million.
Global Payments exited the fourth quarter with cash and cash equivalents of $8.3 billion, which increased from $2.4 billion at 2024-end. Total assets of $53.3 billion rose from $46.9 billion at 2024-end.
Long-term debt amounted to $19.5 billion compared with $15.1 billion at 2024-end. The current portion of long-term debt totaled $1.9 billion at the fourth-quarter end.
Total equity of $23.6 billion rose from the figure of $22.9 billion at 2024-end.
GPN generated operating cash flows of $2.7 billion in 2025, which declined from the figure of $3.1 billion a year ago.
The company entered into a $550 million accelerated share repurchase program. GPN repurchased shares worth $1.2 billion in 2025.
The company declared a quarterly dividend of 25 cents per share, which will be paid out on March 30, 2026, to its shareholders of record as of March 9.
Net revenues grew 2% year over year to $9.3 billion in 2025. Adjusted operating margin improved 97 basis points in 2025. Adjusted EPS registered growth of 11% year over year to $12.22 in 2025.
Adjusted net revenue growth on a constant currency basis, excluding dispositions, is expected to be around 5% in 2026.
Adjusted EPS growth is anticipated to be between 13% and 15% in 2026. GPN expects to convert almost 90% of adjusted net income into adjusted free cash flow.
The annual adjusted operating margin is expected to increase around 150 bps in 2026.
GPN currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Several companies in the business services space, including Mastercard Incorporated MA, Visa Inc. V and Marsh & McLennan Companies, Inc. MRSH, have also reported their financial results for the December quarter of 2025. Here’s how they had performed:
Mastercard reported fourth-quarter 2025 adjusted earnings of $4.76 per share, which surpassed the Zacks Consensus Estimate by 13.3%. The bottom line improved 25% year over year. The quarterly results were aided by growing cross-border volumes, an increase in switched transactions and solid growth in value-added services revenues. However, the upside was partly offset by MA’s elevated operating expenses due to acquisitions and administrative costs.
Visa reported first-quarter fiscal 2026 EPS of $3.17, which beat the Zacks Consensus Estimate of $3.14. The bottom line increased 15% year over year. The quarterly results benefited from higher payments and cross-border volumes. Resilient consumer spending remains a tailwind. However, the upside was partly offset by V’s increased operating expenses and lower-than-expected processed transactions.
Marsh reported fourth-quarter 2025 adjusted EPS of $2.12, which surpassed the Zacks Consensus Estimate by 7.6%. The bottom line advanced 10% year over year. The quarterly results benefited from solid growth in the Risk and Insurance Services and Consulting unit, particularly from the Guy Carpenter, Mercer and Marsh Management Consulting businesses. However, the upside was partially offset by MRSH’s elevated operating expenses, primarily due to increased compensation and benefits.
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This article originally published on Zacks Investment Research (zacks.com).
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