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Global Payments Inc. GPN reported first-quarter 2025 adjusted earnings per share (EPS) of $2.82, which beat the Zacks Consensus Estimate of $2.69. The bottom line rose 8.9% year over year. (See the Zacks Earnings Calendar to stay ahead of market-making news.)
Adjusted net revenues improved 1% year over year to $2.2 billion. The top line beat the consensus mark by 0.3%.
The strong quarterly results benefited from lower expenses and growing strength in the Merchant Solutions business.
Global Payments Inc. Price, Consensus and EPS Surprise
Global Payments Inc. price-consensus-eps-surprise-chart | Global Payments Inc. Quote
GPN’s Operating Performance
Adjusted operating income of $933.9 billion increased 2.7% year over year in the quarter under review. Adjusted operating margin expanded 70 basis points (bps) year over year to 42.4%.
Total operating expenses of $1.9 billion decreased 1.4% year over year in the first quarter. The decrease was due to lower selling, general and administrative expenses and cost of service. Interest and other expenses declined 3.1% year over year to $157.1 million.
Segmental Performances
Merchant Solutions: The segment recorded adjusted revenues of $1.7 billion in the first quarter, which rose 0.5% year over year. The figure surpassed the Zacks Consensus Estimate by 0.4%.
The unit’s adjusted operating income increased 2.3% year over year to $809 million and also beat the Zacks Consensus Estimate of $802.1 million.
Issuer Solutions: Adjusted revenues were $528.8 million in the segment, which grew 2.6% year over year in the quarter under review and beat the Zacks Consensus Estimate by 0.1%.
Adjusted operating income improved 1.5% year over year to $244.9 million but came in lower than the Zacks Consensus Estimate of $246 million.
GPN’s Financial Position (as of March 31, 2025)
Global Payments exited the first quarter with cash and cash equivalents of $2.9 billion, which increased from $2.5 billion at 2024-end.
Total assets of $47.6 billion rose from $46.9 billion at 2024-end.
Long-term debt amounted to $15 billion, down from $15.2 billion at 2024-end. The current portion of long-term debt totaled $1.2 billion at the first-quarter end.
Total equity of $22.9 billion was in line with the figure at 2024-end.
GPN generated operating cash flows of $555.1 million in 2024, which rose 4.6% year over year.
Capital Deployment Update
GPN repurchased shares worth $446.3 million in the first quarter of 2025.
The company declared a quarterly dividend of 25 cents per share, which will be paid out on June 27, 2025, to its shareholders of record as of June 13.