Global Payments (NYSE: GPN) reported second-quarter 2026 GAAP revenue of $3.32 billion, up 68.6% year over year, while diluted EPS fell to $0.05 from $0.99. Adjusted net revenue reached $3.16 billion, but growth was 4% on a normalized basis; adjusted EPS increased 11.7% to $3.46. The company updated its full-year revenue and EPS outlook because the Middle East conflict is affecting its travel portfolio.
Core financial results
The acquisition of Worldpay and divestiture of Issuer Solutions significantly changed the year-over-year comparison. Reported adjusted net revenue increased 33.8%, while the normalized comparison—which includes Worldpay’s pre-acquisition results and excludes Issuer Solutions and other divested businesses—showed 4% growth.
GAAP and adjusted profitability also moved in different directions. GAAP operating income and EPS declined, while adjusted operating income, margin, and EPS increased.
| Metric | Q2 2026 | Q2 2025 | Year-over-year change |
|---|---|---|---|
| GAAP revenue | $3.321 billion | $1.969 billion | +68.6% |
| GAAP operating income | $337.1 million | $393.3 million | -14.3% |
| Net income attributable to Global Payments | $13.0 million | $241.6 million | -94.6% |
| GAAP diluted EPS | $0.05 | $0.99 | -94.9% |
| Adjusted net revenue | $3.159 billion | $2.361 billion | +33.8% reported; +4% normalized |
| Adjusted operating income | $1.325 billion | $1.053 billion | +25.9% |
| Normalized adjusted operating margin | 42.0% | Approximately 41.3% | +70 basis points |
| Adjusted net income | $934.3 million | $754.2 million | +23.9% |
| Adjusted diluted EPS | $3.46 | $3.10 | +11.7% |
Business and segment performance
Enterprise and Platforms recorded the largest reported increases following the addition of Worldpay, while SMB remained the largest segment by adjusted net revenue. These figures are not normalized, so their growth rates should not be interpreted as purely organic expansion.
| Segment | Adjusted net revenue, Q2 2026 | Adjusted net revenue, Q2 2025 | Change | Adjusted operating income, Q2 2026 |
|---|---|---|---|---|
| Enterprise | $838.1 million | $147.5 million | +468.2% | $652.8 million |
| Platforms | $627.5 million | $221.1 million | +183.8% | $283.6 million |
| SMB | $1.513 billion | $1.276 billion | +18.5% | $891.2 million |
| Issuer Solutions | — | $535.7 million | Not meaningful | — |
| Other | $180.8 million | $199.2 million | -9.3% | — |
SMB adjusted operating income increased 7.4%, slower than its 18.5% adjusted net revenue growth. Corporate and other adjusted operating losses widened to $502.1 million from $289.5 million, partly offsetting the segment-level gains.
Worldpay lifted scale, but GAAP earnings moved lower
The quarter’s 68.6% GAAP revenue increase did not translate into higher GAAP operating profit. Cost of service rose 157.9% to $1.29 billion, while selling, general and administrative expenses increased 62.3% to $1.69 billion. As a result, GAAP operating income declined 14.3% despite the larger revenue base.
Financing and discontinued operations added further pressure. Interest and other expense increased 81.9% to $277.5 million, while the loss from discontinued operations widened to $102.0 million from $9.3 million. Continuing operations contributed $0.43 per diluted share, but discontinued operations reduced total GAAP EPS by $0.38.
In contrast, adjusted operating income rose 25.9%, and normalized adjusted operating margin expanded 70 basis points to 42.0%. The divergence makes normalized and adjusted measures useful for evaluating the underlying business, while GAAP figures remain important for assessing acquisition, financing, and divestiture effects.
Profitability, cash flow, and the balance sheet
Cash-flow data were provided only for the first six months of 2026, not for the second quarter alone. Year-to-date operating cash flow declined substantially even as adjusted earnings increased, while capital expenditures and shareholder returns rose.
| Six-month cash-flow item | 2026 | 2025 | Approximate change |
|---|---|---|---|
| Operating cash flow | $373.8 million | $1.373 billion | -72.8% |
| Capital expenditures | $497.0 million | $279.7 million | +77.7% |
| Operating cash flow less capital expenditures | -$123.2 million | $1.093 billion | Not meaningful |
| Share repurchases | $1.100 billion | $691.1 million | +59.2% |
| Dividends paid | $134.7 million | $121.5 million | +10.9% |
The operating-cash-flow-less-capital-expenditures figure is a simple calculation and is not the company’s adjusted free cash flow measure. Global Payments reported returning approximately $1.2 billion to shareholders year to date, including repurchases and dividends.
Cash and cash equivalents declined to $5.41 billion from $8.34 billion at December 31, 2025. Current and long-term debt totaled approximately $22.42 billion, compared with approximately $21.46 billion at year-end. The board also approved a $0.25-per-share dividend payable September 25, 2026, to shareholders of record on September 11.
2026 guidance
Global Payments updated its full-year adjusted revenue and EPS outlook because the Middle East conflict is affecting its travel portfolio. The source did not provide the previous revenue growth or EPS ranges, so the size of those revisions cannot be determined; the company continued to expect approximately 150 basis points of normalized margin expansion and reaffirmed its capital-return plan.
| Metric | Latest 2026 outlook | Status or context |
|---|---|---|
| Normalized constant-currency adjusted net revenue growth | Approximately 4%-5% | Updated due to travel-portfolio pressure |
| Adjusted EPS | $13.60-$13.80 | Updated |
| Normalized adjusted operating margin expansion | Approximately 150 basis points | Reaffirmed |
| Capital returned to shareholders | More than $2 billion | Reaffirmed |
Global Payments had already returned more than half of its planned 2026 capital allocation by the end of the second quarter. Management also maintained its objective of returning approximately $7.5 billion between 2025 and 2027.
Management’s view
CEO Cameron Bready characterized Worldpay integration as progressing and said adoption of the Genius platform was accelerating across the company’s markets. Management is also using artificial intelligence to enhance products, customer experiences, and operational efficiency, although it did not quantify Genius adoption or AI-related savings.
CFO Josh Whipple described the period as the first full quarter in which Global Payments operated as a pure-play commerce solutions provider. His outlook emphasized scale, distribution, margin expansion, and free-cash-flow generation, while acknowledging the travel-related pressure incorporated into the updated guidance.
Recent insider transactions
The supplied six-month summary reported no insider purchases or sales and total insider ownership of approximately 2.47 million shares. The 10 latest reported records consisted of one CEO derivative-security exercise or conversion and nine zero-price director stock awards, rather than open-market purchases or sales.
| Date | Insider | Role | Transaction | Ownership | Reported value |
|---|---|---|---|---|---|
| Jul. 29, 2026 | Cameron M. Bready | CEO | Derivative-security exercise/conversion at $74.66 per share | Direct | $724,426 |
| May 1, 2026 | Joia M. Johnson | Director | Stock award at $0.00 | Direct | $0 |
| May 1, 2026 | Marion Troy Woods | Director | Stock award at $0.00 | Direct | $0 |
| May 1, 2026 | Connie D. McDaniel | Director | Stock award at $0.00 | Direct | $0 |
| May 1, 2026 | William B. Plummer | Director | Stock award at $0.00 | Direct | $0 |
| May 1, 2026 | Kirsten Marie Kliphouse | Director | Stock award at $0.00 | Direct | $0 |
| May 1, 2026 | Archana Deskus | Director | Stock award at $0.00 | Direct | $0 |
| May 1, 2026 | Patricia A. Watson | Director | Stock award at $0.00 | Direct | $0 |
| May 1, 2026 | John G. Bruno | Director | Stock award at $0.00 | Direct | $0 |
| May 1, 2026 | Joseph Osnoss | Director | Stock award at $0.00 | Indirect | $0 |
Risks investors should monitor
- Travel-related pressure: The Middle East conflict is affecting the travel portfolio and was the stated reason for updating the full-year revenue and EPS outlook.
- Worldpay integration: Reported scale and future operating benefits depend partly on integrating Worldpay without material delays or business disruption.
- GAAP profitability and financing costs: GAAP operating income declined, interest and other expense rose 81.9%, and total debt increased from year-end.
- Cash conversion: Six-month operating cash flow fell 72.8%, while capital expenditures exceeded operating cash generation on a simple unadjusted basis.
- Limited comparability: The Worldpay acquisition and Issuer Solutions divestiture make reported growth rates less representative of underlying demand than normalized comparisons.
Summary
Global Payments’ second-quarter results reflected a much larger post-Worldpay revenue base, but normalized adjusted net revenue growth was a more moderate 4%. Adjusted EPS and normalized margin improved, while GAAP earnings and year-to-date cash generation weakened under higher operating costs, financing expense, and discontinued-operation losses. The main issues to monitor are Worldpay integration, travel-related pressure from the Middle East conflict, cash conversion, and execution against the updated 2026 outlook.
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