Global Payments Q1 Earnings Beat on Merchant Solutions Strength

Global Payments Inc. GPN reported first-quarter 2025 adjusted earnings per share (EPS) of $2.82, which beat the Zacks Consensus Estimate of $2.69. The bottom line rose 8.9% year over year. (See the Zacks Earnings Calendar to stay ahead of market-making news.)

Adjusted net revenues improved 1% year over year to $2.2 billion. The top line beat the consensus mark by 0.3%.

The strong quarterly results benefited from lower expenses and growing strength in the Merchant Solutions business.

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 $933.9 billion increased 2.7% year over year in the quarter under review. Adjusted operating margin expanded 70 basis points (bps) year over year to 42.4%.

Total operating expenses of $1.9 billion decreased 1.4% year over year in the first quarter. The decrease was due to lower selling, general and administrative expenses and cost of service. Interest and other expenses declined 3.1% year over year to $157.1 million.

Segmental Performances

Merchant Solutions: The segment recorded adjusted revenues of $1.7 billion in the first quarter, which rose 0.5% year over year. The figure surpassed the Zacks Consensus Estimate by 0.4%.

The unit’s adjusted operating income increased 2.3% year over year to $809 million and also beat the Zacks Consensus Estimate of $802.1 million.

Issuer Solutions: Adjusted revenues were $528.8 million in the segment, which grew 2.6% year over year in the quarter under review and beat the Zacks Consensus Estimate by 0.1%.

Adjusted operating income improved 1.5% year over year to $244.9 million but came in lower than the Zacks Consensus Estimate of $246 million.

GPN’s Financial Position (as of March 31, 2025)

Global Payments exited the first quarter with cash and cash equivalents of $2.9 billion, which increased from $2.5 billion at 2024-end.

Total assets of $47.6 billion rose from $46.9 billion at 2024-end.

Long-term debt amounted to $15 billion, down from $15.2 billion at 2024-end. The current portion of long-term debt totaled $1.2 billion at the first-quarter end.

Total equity of $22.9 billion was in line with the figure at 2024-end.

GPN generated operating cash flows of $555.1 million in 2024, which rose 4.6% year over year.

Capital Deployment Update

GPN repurchased shares worth $446.3 million in the first quarter of 2025.

The company declared a quarterly dividend of 25 cents per share, which will be paid out on June 27, 2025, to its shareholders of record as of June 13.

GPN’s 2025 Outlook Reaffirmed

Adjusted net revenue growth on a constant currency basis is expected to be between 5% and 6% in 2025.

Adjusted EPS growth is 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 expected to increase up to 50 bps in 2025. It was earlier expected to return $2 billion to its shareholders in 2025.

GPN’s Zacks Rank & Key Picks

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

Some better-ranked stocks in the broader business services space are Capgemini SE CGEMY, Stantec Inc. STN and PAR Technology Corp PAR. While Capgemini currently sports a Zacks Rank #1 (Strong Buy), Stantec and PAR Technology carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Capgemini’s current-year earnings of $2.57 per share has witnessed two upward revisions in the past week against no movement in the opposite direction. The consensus estimate for current-year revenues is pegged at $25 million, implying 2.5% year-over-year growth.

The Zacks Consensus Estimate for Stantec’s current-year earnings of $3.74 per share has witnessed four upward revisions in the past 30 days against no movement in the opposite direction. Stantec beat earnings estimates in each of the trailing four quarters, with the average surprise being 6.9%. The consensus estimate for current-year revenues is pegged at $4.7 billion, implying 8.7% year-over-year growth.

The Zacks Consensus Estimate for PAR Technology’s current-year earnings of 16 cents per share has witnessed one upward revision in the past 60 days against no movement in the opposite direction. The consensus estimate for PAR Technology’s current-year revenues is pegged at $450.5 million, implying 16.9% year-over-year growth.

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