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1. Company Snapshot

1.a. Company Description

Global Payments Inc.provides payment technology and software solutions for card, electronic, check, and digital-based payments in the Americas, Europe, and the Asia-Pacific.It operates through three segments: Merchant Solutions, Issuer Solutions, and Business and Consumer Solutions.


The Merchant Solutions segment offers authorization services, settlement and funding services, customer support and help-desk functions, chargeback resolution, terminal rental, sales and deployment, payment security services, consolidated billing and statements, and on-line reporting services.This segment also provides an array of enterprise software solutions that streamline business operations of its customers in various vertical markets; and value-added services, such as point-of-sale solutions, and analytic and engagement tools, as well as payroll and human capital management services.The Issuer Solutions segment offers solutions that enable financial institutions and retailers to manage their card portfolios through a platform; and commercial payments and ePayables solutions for businesses and governments.


The Business and Consumer Solutions segment provides general-purpose reloadable prepaid debit and payroll cards, demand deposit accounts, and other financial service solutions to the underbanked and other consumers, and businesses under the Netspend brand.It markets its products and services through direct sales force, trade associations, agent and enterprise software providers, referral arrangements with value-added resellers, and independent sales organizations.The company was founded in 1967 and is headquartered in Atlanta, Georgia.

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1.b. Last Insights on GPN

Global Payments Inc.'s recent performance faces challenges due to rising service and operating costs, which may limit profit growth. The company's Q3 earnings, set to be released on November 4, 2025, are expected to post modest gains. Despite a solid Q2 earnings beat, driven by Issuer and Merchant Solutions growth, higher expenses weighed on the results. The UK's CMA clearance of its planned acquisition of Worldpay is a positive development. However, integration risks and manageable leverage remain key concerns.

1.c. Company Highlights

2. Global Payments' Q3 Earnings: A Strong Beat on Revenue and EPS

Global Payments reported a strong third quarter, with adjusted net revenue growth of 6% on a constant currency basis, excluding dispositions, reaching $2.43 billion. Adjusted operating margins expanded 110 basis points to 45%, and adjusted EPS came in at $3.26, beating estimates of $3.23. The company's adjusted free cash flow was $784 million, allowing it to reduce its adjusted net leverage to 2.9x, below the 3x target. The financial performance was driven by the merchant business, which exhibited ongoing momentum with adjusted net revenue growth accelerating to 6% constant currency, excluding dispositions.

Publication Date: Nov -15

📋 Highlights
  • Revenue Growth Acceleration: Adjusted net revenue grew 6% constant currency, excluding dispositions, with POS and software achieving high single-digit growth and Genius locations sold rising 37% monthly.
  • Margin Expansion: Adjusted operating margins expanded 110 basis points to 45%, excluding dispositions, driven by efficiency gains and transformation initiatives.
  • Free Cash Flow & Leverage: Generated $784 million in adjusted free cash flow, reducing net leverage to 2.9x, below the 3x target, with $9 billion in capital returns planned for 2025–2027.
  • Worldpay Acquisition Progress: Regulatory approval in the U.K. secured, aiming to close the Worldpay acquisition and divest Issuer Solutions by Q1 2026, targeting a pure-play merchant solutions provider.
  • Sales Force Transformation: Expanded sales force by 500 in North America, with double-digit increases in annual revenue per deal and 40% faster speed to first deal in early-adopting channels.

Merchant Solutions Driving Growth

Merchant Solutions produced adjusted net revenue of $1.88 billion for the quarter, reflecting growth of approximately 6% on a constant currency basis, excluding dispositions. The POS and software business achieved high single-digit growth, with Genius locations sold increasing by 37% monthly since launching in June. As Cameron Bready noted, "We're delighted with the momentum and reception from the market," highlighting the success of Genius, with 90% of new sales coming from new customers.

Transformation Journey and Integration Planning

Global Payments is making significant strides in its transformation journey, with a focus on unifying its capabilities and exposing them to customers globally. The company is investing in its technology strategy, including modern API environments and AI assistance, to integrate and consume its services. Integration planning for Worldpay is well underway, with all critical milestones established, and the company expects to close the acquisition in the first quarter of 2026.

Valuation and Outlook

With a P/E Ratio of 10.16 and an EV/EBITDA of 7.3, Global Payments appears to be reasonably valued. Analysts estimate next year's revenue growth at 4.2%, which is lower than the current year's expected growth rate of 5-6%. The company's guidance for full-year adjusted operating margin expansion of more than 50 basis points, excluding dispositions, is also positive. As the company continues to execute on its transformation journey and integrate Worldpay, investors will be watching for further progress and potential upside to estimates.

3. NewsRoom

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Contrasting Global Payments (NYSE:GPN) and Tenet Fintech Group (OTCMKTS:PKKFF)

Dec -04

Source: defenseworld.net

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Global Payments Inc. (GPN) Presents at UBS Global Technology and AI Conference 2025 Transcript

Dec -02

Source: seekingalpha.com

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Justin Sebastiano Joins Game Play Network as Executive Vice President and Chief Financial Officer

Dec -02

Source: prnewswire.com

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Global Payments to Present at UBS Global Technology and AI Conference

Nov -28

Source: businesswire.com

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Boston Partners Decreases Holdings in Global Payments Inc. $GPN

Nov -28

Source: defenseworld.net

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Visa (NYSE:V) vs. Global Payments (NYSE:GPN) Financial Survey

Nov -27

Source: defenseworld.net

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Larry Robbins' Strategic Acquisition of Butterfly Network Inc. Shares

Nov -25

Source: gurufocus.com

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5 Financial Transaction Stocks to Watch Despite Rising Tech Costs

Nov -24

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.40%)

6. Segments

Merchant Solutions

Expected Growth: 10.47%

Global Payments' Merchant Solutions growth is driven by increasing adoption of omnichannel payment solutions, expansion in e-commerce and online transactions, strategic partnerships, and investments in digital capabilities. Additionally, the shift towards contactless payments, growth in cross-border transactions, and increasing demand for integrated payment solutions also contribute to the 10.47% growth.

Issuer Solutions

Expected Growth: 10.27%

Issuer Solutions from Global Payments Inc. growth of 10.27% driven by increasing adoption of digital payments, expansion into new markets, and strategic partnerships. Additionally, the segment benefits from the growing demand for issuer processing services, cross-border transactions, and the need for secure and efficient payment solutions.

Consumer Solutions

Expected Growth: 9.27%

The 9.27% growth in Consumer Solutions from Global Payments Inc. is driven by increasing adoption of digital payments, expansion into new markets, and strategic partnerships. Additionally, the segment benefits from the growing demand for omnichannel payment solutions, innovative product offerings, and a strong brand reputation.

Intersegment Eliminations

Expected Growth: 10.47%

The 10.47% growth in Intersegment Eliminations from Global Payments Inc. is driven by increasing cross-border transactions, expansion of e-commerce platforms, and strategic partnerships. Additionally, the company's focus on digital transformation, investment in technology, and growing demand for payment processing services also contribute to this growth.

7. Detailed Products

Payment Processing

Global Payments provides payment processing services to merchants, enabling them to accept various payment methods, including credit and debit cards, online payments, and mobile payments.

Point of Sale (POS) Solutions

Global Payments offers POS solutions that integrate payment processing, inventory management, and customer management capabilities.

E-commerce Solutions

Global Payments provides e-commerce solutions that enable online businesses to accept payments, manage orders, and track inventory.

Mobile Payments

Global Payments offers mobile payment solutions that enable merchants to accept payments on-the-go.

Gift and Loyalty Programs

Global Payments provides gift and loyalty program solutions that enable merchants to create and manage customer loyalty programs.

Payment Security and Fraud Prevention

Global Payments offers payment security and fraud prevention solutions that protect merchants from fraudulent transactions.

Business Analytics and Insights

Global Payments provides business analytics and insights solutions that enable merchants to track sales, customer behavior, and market trends.

8. Global Payments Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Global Payments Inc. operates in a highly competitive industry with many substitutes, but its strong brand recognition and diversified product offerings mitigate the threat.

Bargaining Power Of Customers

Global Payments Inc. has a large customer base, but individual customers do not have significant bargaining power due to the company's diversified customer base and lack of concentration.

Bargaining Power Of Suppliers

Global Payments Inc. has a diversified supplier base, and no single supplier has significant bargaining power, reducing the threat of supplier negotiations.

Threat Of New Entrants

While there are barriers to entry in the payment processing industry, new entrants can still disrupt the market, but Global Payments Inc.'s established brand and scale of operations mitigate the threat.

Intensity Of Rivalry

The payment processing industry is highly competitive, with many established players, leading to a high intensity of rivalry, but Global Payments Inc.'s diversified product offerings and strong brand recognition help to differentiate it from competitors.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 43.04%
Debt Cost 4.63%
Equity Weight 56.96%
Equity Cost 8.80%
WACC 7.01%
Leverage 75.55%

11. Quality Control: Global Payments Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
TransDigm Group

A-Score: 6.4/10

Value: 3.0

Growth: 7.9

Quality: 6.7

Yield: 9.0

Momentum: 4.0

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
PACCAR

A-Score: 6.0/10

Value: 3.7

Growth: 6.7

Quality: 6.1

Yield: 8.0

Momentum: 3.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
Paychex

A-Score: 5.8/10

Value: 1.8

Growth: 5.8

Quality: 9.0

Yield: 6.0

Momentum: 3.0

Volatility: 9.3

1-Year Total Return ->

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Stock-Card
Cintas

A-Score: 5.2/10

Value: 1.0

Growth: 7.1

Quality: 7.6

Yield: 2.0

Momentum: 4.0

Volatility: 9.7

1-Year Total Return ->

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Stock-Card
Global Payments

A-Score: 5.0/10

Value: 6.8

Growth: 7.1

Quality: 5.9

Yield: 2.0

Momentum: 2.0

Volatility: 6.0

1-Year Total Return ->

View Full Report
Stock-Card
Thomson Reuters

A-Score: 4.7/10

Value: 1.2

Growth: 4.7

Quality: 8.2

Yield: 2.0

Momentum: 3.0

Volatility: 9.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

78.85$

Current Price

78.85$

Potential

-0.00%

Expected Cash-Flows