Global Payments 2025 Q2 Earnings Misses Targets as Net Income Dives 36.8%

Global Payments (GPN) reported its fiscal 2025 Q2 earnings on August 7, 2025, with key metrics falling below expectations. The company reaffirmed its full-year 2025 net revenue growth outlook but raised its adjusted earnings per share (EPS) guidance to the high end of the 10% to 11% range.

Revenue
Total revenue declined by 0.7% year-over-year to $1.96 billion in Q2 2025, compared to $1.97 billion in Q2 2024. The company’s revenue performance was driven by its three key business segments. The Point-of-Sale and Software Solutions segment generated $348.39 million, contributing a notable portion to the overall revenue. Meanwhile, the Integrated and Embedded Solutions segment, the largest in terms of revenue, brought in $854.96 million. The Core Payments Solutions segment added $753.40 million, rounding out the revenue breakdown.

Earnings/Net Income
Global Payments’ earnings were significantly down compared to the prior year. The company’s EPS dropped 32.7% to $0.99 in Q2 2025, down from $1.47 in Q2 2024. Similarly, net income for the quarter fell to $246.10 million, a 36.8% decline from the $389.27 million reported in Q2 2024. The sharp drop in net income and EPS indicates a challenging quarter for the company.

Price Action
In the wake of the earnings report, the stock price of Global Payments experienced a mixed short-term response. On the latest trading day, the stock edged down 2.46%, but it showed resilience during the week with a 5.03% gain. Over the past month, the stock rose 6.82%.

Post-Earnings Price Action Review
The post-earnings trading strategy for Global Payments was notably unproductive. A buy-and-hold approach following a positive earnings surprise resulted in a -48.42% return over 30 days, underperforming the benchmark by 134.62%. The strategy was marked by a maximum drawdown of 0% and a Sharpe ratio of -0.38, highlighting the high risk and low return potential associated with the stock in this timeframe.

CEO Commentary
Cameron Bready, CEO of Global Payments, emphasized the company’s resilience and progress in transformational initiatives. He highlighted the successful launch of Genius, a revamped sales incentive plan, and progress on the acquisition of Worldpay. Bready expressed confidence in the company’s ability to integrate Worldpay by early 2026 and create long-term value for shareholders.

Guidance
Global Payments reaffirmed its full-year 2025 constant currency adjusted net revenue growth outlook of 5% to 6% excluding dispositions. The company also raised its adjusted EPS growth guidance to the high end of the 10% to 11% range. CFO Josh Whipple noted the company expects operating margin expansion of slightly over 50 basis points and remains on track to complete the Worldpay acquisition and Issuer Solutions divestiture by mid-2026.

Additional News
Global Payments announced several key developments. The company secured Hart-Scott-Rodino (HSR) clearances for the acquisition of Worldpay and the divestiture of Issuer Solutions, with the transaction expected to close in the first half of 2026. Additionally, the company raised its expected annual run-rate operating income benefit from operational transformation for the Merchant business to $650 million. In a related move, Global Payments entered into a $500 million accelerated share repurchase plan tied to the Payroll divestiture. These strategic actions are aimed at accelerating profitability and enhancing long-term capital allocation.