Global Payments Misses Q4 Earnings, Plans To Deliver Over $600 Million Of Annual Run-Rate

Global Payments Inc. (GPN) reported fourth-quarter earnings that missed analyst estimates, but the company remains optimistic about its long-term growth prospects. The company's CEO, Cameron Bready, attributed the shortfall to a combination of factors, including lower-than-expected growth in the Issuer Solutions segment and the impact of the company's transformation agenda. Despite the miss, Global Payments expects FY25 adjusted revenue growth of 5%-6% and adjusted EPS growth of 10%-11%. The company also plans to return approximately $2 billion to shareholders during the year.



Global Payments' transformation agenda, launched in 2024, aims to unlock substantial value and position the business for long-term sustainable growth and success. The company expects to deliver more than $600 million of annual run-rate operating income benefits through this transformation by the first half of 2027. This agenda involves reorienting to a unified operating model globally to address the company's complexity, enhance its agility, and better position the business to execute against its refreshed strategy.



The company's long-term debt in the quarter under review contracted to $15.164 billion, from $15.692 billion a year ago. Global Payments exited the quarter with cash and equivalents worth $2.538 billion. The company entered into a $250 million accelerated share repurchase plan, further demonstrating its commitment to returning capital to shareholders.

Global Payments' Board of Directors approved a dividend of $0.25 per share payable on March 28, 2025, to shareholders of record as of March 14, 2025. The company's management will host a live audio webcast today, February 13, 2025, at 8:00 a.m. ET to discuss financial results and business highlights. The audio webcast, along with supplemental financial information, can be accessed via the investor relations page of the company's website at investors.globalpayments.com.

In conclusion, while Global Payments missed its Q4 earnings estimates, the company remains focused on its long-term growth prospects. The company's transformation agenda, combined with its commitment to returning capital to shareholders, positions Global Payments for success in the years to come. Investors should closely monitor the company's progress as it works to achieve its strategic objectives and deliver value to shareholders.