Global Payments (GPN) Down 15% Since Last Earnings Report: Can It Rebound?

It has been about a month since the last earnings report for Global Payments (GPN). Shares have lost about 15% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is Global Payments due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important catalysts.Global Payments Q4 Earnings Meet on Merchant Solutions StrengthGlobal Payments reported fourth-quarter 2025 adjusted earnings per share (EPS) of $3.18, which was in line with the Zacks Consensus Estimate. The bottom line rose 12% year over year.Adjusted net revenues improved 1.4% year over year to $2.3 billion. The top line missed the consensus mark by a whisker.The quarterly earnings benefited from growing strength in the Merchant Solutions business. However, the positives were partly offset by elevated operating expenses.GPN’s Operating PerformanceAdjusted operating income of $1 billion increased 3.3% year over year in the quarter under review. Adjusted operating margin expanded 80 basis points (bps) year over year to 44.7%.Total operating expenses of $1.7 billion increased 42.7% year over year in the fourth quarter. The increase was due to higher selling, general and administrative expenses, and cost of service. Interest and other expenses rose 35.1% year over year to $204.5 million.Q4 Segmental Performances of Global PaymentsMerchant Solutions: The segment recorded adjusted revenues of $1.8 billion in the fourth quarter, which rose 0.4% year over year. The figure surpassed the Zacks Consensus Estimate by 0.8%.The unit’s adjusted operating income increased 2.8% year over year to $877.1 million.Issuer Solutions: Adjusted revenues were $557.1 million in the segment, which grew 5.1% year over year in the quarter under review but missed the Zacks Consensus Estimate by 1.6%.Adjusted operating income improved 5.6% year over year to $267.8 million but missed the Zacks Consensus Estimate of $269.3 million.GPN’s Financial Position (As of Dec. 31, 2025)Global Payments exited the fourth quarter with cash and cash equivalents of $8.3 billion, which increased from $2.4 billion at 2024-end. Total assets of $53.3 billion rose from $46.9 billion at 2024-end.Long-term debt amounted to $19.5 billion compared with $15.1 billion at 2024-end. The current portion of long-term debt totaled $1.9 billion at the fourth-quarter end.Total equity of $23.6 billion rose from the figure of $22.9 billion at 2024-end.GPN generated operating cash flows of $2.7 billion in 2025, which declined from the figure of $3.1 billion a year ago.Capital Deployment UpdateThe company entered into a $550 million accelerated share repurchase program. GPN repurchased shares worth $1.2 billion in 2025.The company declared a quarterly dividend of 25 cents per share, which will be paid out on March 30, 2026, to its shareholders of record as of March 9.Full-Year 2025 UpdateNet revenues grew 2% year over year to $9.3 billion in 2025. Adjusted operating margin improved 97 basis points in 2025. Adjusted EPS registered growth of 11% year over year to $12.22 in 2025.GPN’s 2026 OutlookAdjusted net revenue growth on a constant currency basis, excluding dispositions, is expected to be around 5% in 2026.Adjusted EPS growth is anticipated to be between 13% and 15% in 2026. GPN expects to convert almost 90% of adjusted net income into adjusted free cash flow.The annual adjusted operating margin is expected to increase around 150 bps in 2026.How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in estimates review.VGM ScoresAt this time, Global Payments has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. However, the stock was allocated a score of A on the value side, putting it in the top 20% for value investors.Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Global Payments has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.#1 Semiconductor Stock to Buy (Not NVDA)The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Global Payments Inc. (GPN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks