GPN
FinancialsGlobal Payments
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Financials
XBRL · SEC EDGAR2009–2025(18yr)| Metric | FY 2009 | FY 2010 | FY 2011 | FY 2012 | FY 2013 | FY 2014 | FY 2015 | FY 2016 | FY 2016 | FY 2017 | FY 2018 | FY 2019 | FY 2020 | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025Latest | YoY |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $1.5B | $1.6B | $1.9B | $2.2B | $2.4B | $2.6B | $2.8B | $2.9B | $3.4B | $4.0B | $3.4B | $4.9B | $7.4B | $8.5B | $9.0B | $9.7B | $10.1B | $7.7B | -23.7% |
| Gross Profit | $957.5M | $1.1B | $1.2B | $1.4B | $1.5B | $1.6B | $1.8B | $1.8B | $1.8B | $2.0B | $2.3B | $2.8B | $3.8B | $4.8B | $5.2B | $5.9B | $6.3B | $5.6B | -11.9% |
| Gross Margin | 65.5% | 64.4% | 64.2% | 64.4% | 63.7% | 62.7% | 63.2% | 60.4% | 52.4% | 51.5% | 67.5% | 57.8% | 50.8% | 55.7% | 57.9% | 61.4% | 62.8% | 72.6% | +9.8pp |
| Operating Income | $292.5M | $323.3M | $331.6M | $307.3M | $357.2M | $405.5M | $456.6M | $424.9M | $356.3M | $558.9M | $737.1M | $791.4M | $894.0M | $1.4B | $640.2M | $1.7B | $2.3B | $1.8B | -24.8% |
| Operating Margin | 20.0% | 19.7% | 17.8% | 13.9% | 15.0% | 15.9% | 16.5% | 14.7% | 10.6% | 14.1% | 21.9% | 16.1% | 12.0% | 15.9% | 7.1% | 17.8% | 23.1% | 22.8% | -0.3pp |
| Net Income | $37.2M | $203.3M | $209.2M | $188.2M | $216.1M | $245.3M | $278.0M | $271.7M | $201.8M | $468.4M | $452.1M | $430.6M | $584.5M | $965.5M | $111.5M | $986.2M | $1.6B | $1.4B | -10.8% |
| Net Margin | 2.5% | 12.4% | 11.3% | 8.5% | 9.1% | 9.6% | 10.0% | 9.4% | 6.0% | 11.8% | 13.4% | 8.8% | 7.9% | 11.3% | 1.2% | 10.2% | 15.5% | 18.2% | +2.6pp |
| Free Cash Flow | $342.0M | $409.7M | $611.2M | -$283.4M | $142.0M | $112.7M | $332.2M | $493.4M | — | $330.5M | $892.8M | $1.1B | $1.9B | $2.3B | $1.6B | $1.6B | $2.9B | $2.0B | -28.7% |
| FCF Margin | 23.4% | 24.9% | 32.9% | -12.9% | 6.0% | 4.4% | 12.0% | 17.0% | — | 8.3% | 26.5% | 22.1% | 25.3% | 26.8% | 18.1% | 16.5% | 28.3% | 26.5% | -1.8pp |
| EPS (Diluted) | $0.46 | $2.48 | $2.60 | $2.37 | $2.76 | $3.37 | $4.12 | $2.04 | $1.37 | $3.01 | $2.84 | $2.16 | $1.95 | $3.29 | $0.40 | $3.77 | $6.16 | $5.78 | -6.2% |
1. THE BIG PICTURE
Global Payments is attempting to shed its identity as a fragmented holding company to become a "unified, streamlined operating company" (8-K). This pivot is defined by two massive moves: the acquisition of Worldpay and the $1.1 billion sale of its payroll business. While Global Payments currently leads its peer group in cash flow efficiency, it is doing so while navigating a significant revenue contraction caused by these divestitures.
2. WHERE THE RISKS HIT HARDEST
Global Payments’s "disciplined acquisition approach" is currently being tested by the Worldpay integration, which risks diverting management attention and preventing the realization of "anticipated synergies" (Risks). This internal focus comes at a dangerous time; Global Payments identifies its "worldwide presence" as a core strength, yet this same global footprint makes it a "frequent target" for ransomware and cybersecurity attacks that could lead to regulatory fines and a loss of PCI DSS compliance (10-K Item 1, Risks). Furthermore, its reliance on "strong, long-lasting partner relationships" with banks is threatened by the rise of nontraditional technology companies that offer lower margins and disruptive tools that could bypass traditional processors entirely (Risks).
3. WHAT THE NUMBERS SAY TOGETHER
(XBRL) The financial data reveals a company that is highly profitable but shrinking in size as it reshuffles its portfolio. Global Payments keeps 16.7 cents of every dollar as net profit—the highest in its peer group—and converts 36.2% of its revenue into free cash flow. However, its TTMTTMTrailing Twelve Months — the most recent full year of financial data, updated on a rolling basis each quarter revenue growth of -23.7% is the worst among its peers, a figure largely explained by the divestiture of its Issuer Solutions and Payroll businesses (10-Q, 8-K).
Within its remaining operations, the results are mixed: while integrated and embedded software solutions grew 6.7%, the core point-of-sale and software solutions line fell 9.6% (10-Q). This divergence suggests that Global Payments’s "solutions-led" strategy is gaining traction in cloud-based payments even as legacy software channels struggle. Sentiment remains cautious, with short interest sitting at 4.5% of the float (Yahoo Finance).
4. IS IT WORTH IT AT THIS PRICE?
At a forward P/EP/EPrice-to-Earnings ratio — share price divided by annual earnings per share; how much investors pay per dollar of profit. Higher P/E = higher growth expectations of 4.6x, Global Payments trades at a significant discount to the peer median of 7.8x (Yahoo Finance). According to CAPM analysis, this price implies the market expects long-term growth of only 0.5%. This valuation appears attractively valued when compared to management's 2026 guidance of 5% revenue growth and 150 basis points of margin expansion (8-K).
The steep discount is likely a reflection of Global Payments's leverage and integration risks. With $13.5 billion in net debt—roughly 4.2 times its annual free cash flow—investors are demanding a higher risk premium (CAPM analysis). For the current price to be "right," Global Payments would essentially have to fail to grow at all over the long term. If Global Payments merely matches GDP-paced growth of 2.5%, the sensitivity analysis suggests a justified multiple of 16.6x, implying the market is currently overlooking Global Payments's sector-leading FCFFCFFree Cash Flow — cash left after paying for operations and capital investments; what the company can actually spend, save, or return to shareholders margins (36.2%).
5. WHAT WOULD CHANGE THIS VIEW?
- Constructive if the Worldpay integration achieves its projected cost savings ahead of schedule, allowing Global Payments to accelerate its 5.7% buyback yield or reduce its $13.5 billion debt load.
- Cautious if the 9.6% decline in point-of-sale and software solutions accelerates, suggesting that "nontraditional technology companies" are successfully eroding Global Payments's core Merchant Solutions segment (10-Q, Risks).
6. BOTTOM LINE
Structural Advantage: A dominant free-cash-flow engine (36.2% margin) supported by high switching costs in its integrated software-and-payment solutions. Bottom Line: Global Payments is a highly profitable turnaround story priced as if it will never grow again.
1. Top 5 Material Risks
- Cybersecurity and Data Protection: Global Payments processes sensitive information and is a frequent target for malicious attacks, including ransomware and "zero-day" exploits. A breach could lead to lost revenue, regulatory fines, and removal from PCI DSS compliant service provider lists, which would prevent Global Payments from conducting business on its current scale.
- Worldpay Integration: The complexity of combining Worldpay with existing operations risks diverting management attention, increasing operating costs, and failing to achieve projected cost savings or revenue enhancements.
- Competitive Pressure: The payments technology industry is highly innovative and competitive. Larger financial institutions and nontraditional technology companies may offer services at lower margins or utilize disruptive technologies that minimize the role of traditional processors like Global Payments.
- Technological and Operational Failures: Software defects, hardware failures, or third-party provider outages could interrupt services. Such failures trigger contractual penalties and damage Global Payments’s reputation, potentially leading to a loss of customers.
- Network and Sponsor Dependency: Global Payments relies on Visa, Mastercard, and various financial institution sponsors to process transactions. The loss of these registrations or sponsorships, or an increase in capital requirements imposed by these networks, would severely restrict Global Payments’s ability to operate.
2. Company-Specific Risks
- Enterprise Segment Volume: Large enterprise merchants often maintain non-exclusive agreements with multiple providers and have the technical capability to redirect transaction volume away from Global Payments at their discretion.
- Chargeback Exposure: Global Payments incurs losses when merchants cannot reimburse chargebacks. The acquisition of Worldpay has increased Global Payments’s exposure to "high risk" merchants who promise future delivery of goods, a category prone to higher chargeback rates.
- Business Transformation: Global Payments is currently executing a multi-year transformation program (running through 2027) to create a unified operating company; failure to realize the expected benefits or disruption caused by this reorganization could harm financial results.
- Allowance for Credit Losses: As of December 31, 2025, the allowance for credit losses reached $50.2 million, representing a 109% increase from the $24.0 million reported on December 31, 2024.
3. Regulatory/Legal Risks
- Interchange Fee Scrutiny: Legislation such as the Dodd-Frank Act and potential new laws limiting interchange fees could reduce the economic opportunity of transactions and require costly technological changes to processing systems.
- Systemic Importance: The Financial Stability Oversight Council has the authority to designate Global Payments as "systemically important," which would subject Global Payments to increased regulatory burdens and oversight by the Federal Reserve.
- AI Regulation: The development and deployment of AI technologies are subject to rapidly evolving global laws. Flawed algorithms or biased datasets could lead to legal liability, regulatory scrutiny, and competitive harm.
- Tax Contingencies: Global Payments is subject to audits by various taxing authorities. Unfavorable outcomes or changes in tax regulations—such as the implementation of the "One Big Beautiful Bill Act" (OBBBA) or the OECD’s Pillar Two global minimum tax rules—could increase tax expenses.
4. Financial Impact Map
Cybersecurity Threats → Operating Expenses → Increased costs to contain and remediate incidents, plus potential regulatory fines and penalties. Worldpay Integration → Operating Expenses → Increased costs due to complex system integration and potential failure to achieve anticipated cost synergies. Competitive Pricing Pressure → Revenues → Potential loss of customers or forced price reductions to remain competitive against lower-margin financial institution offerings. Chargeback Losses → Results of Operations → Direct financial loss when merchants are unable to reimburse chargebacks, impacting net earnings. Debt Ratings Downgrade → Interest Costs → Increased borrowing costs and restricted access to debt capital markets if ratings fall below investment grade.
Recent Filings
| Form | Filed | Period |
|---|---|---|
| 10-K | Feb 2026 | Dec 2025 |
| 8-K | Feb 2026 | — |
| 10-Q | Nov 2025 | Sep 2025 |
| 14A | Mar 2025 | — |
AI-extracted key facts from press releases and SEC filings. Significance 1–10.
Raymond James downgrades GPN and FISV to Market Perform citing fintech multiple compression
- ▸Raymond James downgraded GPN and FISV from Outperform to Market Perform
- ▸Fintech sector average NTM P/E ratio declined 45% since 2022
- ▸Organic revenue growth identified as primary driver for sector valuation
- ▸Sector valuation correlation with organic growth R-squared of 0.65
- ▸Analyst cites moderating PCE growth and increased competition as headwinds
Global Payments Q4 EPS $3.18 meets estimates, revenue $2.3B misses consensus
- ▸Q4 adjusted EPS $3.18, +12% YoY, in line with estimates
- ▸Q4 adjusted net revenue $2.3B, +1.4% YoY, missed consensus
- ▸Merchant Solutions revenue $1.8B, +0.4% YoY, beat estimates by 0.8%
- ▸Issuer Solutions revenue $557.1M, +5.1% YoY, missed estimates by 1.6%
- ▸Total operating expenses $1.7B, +42.7% YoY, driven by SG&A and service costs
Goldman Sachs reinstates Global Payments at Neutral with $88 price target
- ▸Goldman Sachs reinstates GPN coverage with Neutral rating and $88 price target
- ▸FY2026 guidance projects 5% adjusted net revenue growth
- ▸FY2026 adjusted EPS guidance range $13.80–$14.00
- ▸Targeted 150 basis points of operating margin expansion
- ▸Free cash flow conversion projected above 90%
SoFi partners with Mastercard to enable SoFiUSD stablecoin for global network settlement
- ▸SoFiUSD integrated as settlement option across Mastercard global payments network
- ▸First stablecoin issued by US nationally chartered bank on public blockchain
- ▸Applications include cross-border remittances, B2B transfers, and programmable treasury use cases
- ▸Partnership aims to shift revenue mix toward fee-based payments and infrastructure income
- ▸SoFi projects $5.1B revenue and $954.1M earnings by 2028