Global Payments Earnings Lift Shares on Bullish 2026 Guide
Global Payments earnings boosted outlook after the company set 2026 EPS targets and a $2.5 billion repurchase program that supports near-term upside.
KEY TAKEAWAYS
- Global Payments set 2026 adjusted EPS guidance at $13.80-$14.00.
- Board authorized a $2.5 billion repurchase and entered a $550 million ASR.
- Management linked margin expansion to Worldpay integration and targeted about 150 basis points.
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Global Payments Inc. (NYSE: GPN) reported an improved fourth quarter on Feb. 18, 2026, and set 2026 guidance targeting double-digit earnings per share (EPS) growth alongside a multibillion-dollar share-repurchase plan. The results highlight the company’s strategic shift toward merchant solutions.
Quarter Results and 2026 Guidance
The company posted adjusted EPS of $3.18 for the fourth quarter, up 12% year over year (11% on a constant-currency basis). Adjusted net revenue rose 1% to $2.32 billion (6% constant currency, excluding dispositions). Adjusted operating margin expanded 80 basis points to 44.7%.
For 2026, Global Payments set targets for adjusted EPS between $13.80 and $14.00, reflecting 13% to 15% growth. It expects about 5% adjusted net revenue growth on a constant-currency, ex-dispositions basis, roughly 150 basis points of adjusted operating margin expansion, and adjusted free-cash-flow conversion near 90% of adjusted net income. These targets were confirmed in an SEC filing.
Capital Allocation and Strategic Repositioning
The board authorized a $2.5 billion share repurchase program and entered a $550 million accelerated share repurchase agreement. The company expects shareholder returns in 2026 to exceed $2 billion through repurchases and dividends, reaffirming its $7.5 billion capital-return target for 2024–2027. The board also approved a quarterly dividend of $0.25 per share payable March 30, 2026, to shareholders of record on March 9, and appointed Jennifer Bozeman Whyte as chief accounting officer effective March 1.
Global Payments completed its acquisition of Worldpay and divested Issuer Solutions to FIS, repositioning as a pure-play merchant-solutions provider. Management linked margin expansion to operational efficiencies and the full-year contribution from the Worldpay deal.
Operating cash flow declined to $2.7 billion in 2025 from $3.1 billion in 2024. Long-term debt rose to $19.5 billion from $15.1 billion at the end of 2024, with $1.9 billion classified as current portion. Total equity increased to $23.6 billion from $22.9 billion.
The firm’s firm 2026 targets and aggressive repurchase program frame management’s case for near-term upside as it completes integration and focuses on merchant solutions.
