Global Payments 2025 Q2 Earnings Misses Targets with Net Income Down 36.8%

Global Payments (GPN) reported its fiscal 2025 Q2 earnings on August 6, 2025, delivering results modestly ahead of expectations but marked by declines in both revenue and net income. The company reaffirmed its full-year revenue growth guidance and raised its adjusted EPS outlook.

Global Payments' Q2 2025 revenue declined by 0.7% to $1.96 billion, compared to $1.97 billion in Q2 2024. Revenue across segments showed mixed performance, with Point-of-Sale and Software Solutions at $348.39 million, Integrated and Embedded Solutions at $854.96 million, and Core Payments Solutions at $753.40 million.

Earnings per share (EPS) for the quarter dropped significantly, with net income falling to $246.10 million, a 36.8% decline from $389.27 million in the prior year. The company’s EPS for Q2 2025 came in at $0.99, reflecting a 32.7% drop compared to $1.47 in Q2 2024. This marked a disappointing performance, with the EPS decline falling well below prior expectations.

The stock price of Global Payments declined by 2.46% during the latest trading day. However, it showed resilience with a 5.03% gain over the past full trading week and a 6.82% month-to-date increase. Despite this, a post-earnings trading strategy of buying the stock when earnings beat expectations and holding for 30 days underperformed dramatically, with a return of -44.55% versus the benchmark’s 85.42%.

The strategy exhibited high volatility, with a Sharpe ratio of -0.34 and a volatility of 32.91%. This suggests that the approach was not only unprofitable but also carried significant risk.

CEO Cameron Bready highlighted the company's resilience and progress in its transformation initiatives, noting the successful launch of Genius and the completion of the U.S. sales incentive plan rollout. He expressed confidence in the integration of the Worldpay acquisition, which remains on track for a first-half 2026 close.

The company reaffirmed its full-year 2025 constant currency adjusted net revenue growth of 5% to 6% excluding dispositions, and it now expects adjusted EPS growth at the high end of the 10% to 11% range. CFO Josh Whipple stated that adjusted operating margin expansion is expected to exceed 50 basis points, excluding dispositions, and that the business remains on track to close the Worldpay acquisition and Issuer Solutions divestiture in the first half of 2026.

The company also announced an $500 million accelerated share repurchase plan in connection with the Payroll divestiture. In addition, Global Payments declared a $0.25 per share dividend, payable on September 26 to shareholders of record as of September 12.

In the additional news, Global Payments received Hart-Scott-Rodino (HSR) clearances for the acquisition of Worldpay and the divestiture of Issuer Solutions, both of which are key parts of its transformation strategy. The company also increased its expected annual run-rate operating income benefit from its Merchant business transformation to $650 million, underscoring its long-term value-creation initiatives. These moves align with the company’s broader strategy to unlock shareholder value through strategic transactions and operational efficiency.