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Global Payments Inc. GPN is well-poised to grow on the back of rising transaction volumes, strategic partnerships and improving financial performance and shareholder value. However, increasing costs remain a concern.
Global Payments — with a market cap of $24.3 billion — is a payment solutions provider based in Atlanta, GA. It provides innovative software and services all around the globe. The payments technology company has a massive network in the Americas, Europe and the Asia-Pacific.
Courtesy of solid prospects, this Zacks Rank #3 (Hold) stock is worth holding on to at the moment.
Where Do GPN’s Estimates Stand?
The Zacks Consensus Estimate for Global Payments’ 2025 earnings is pegged at $12.41 per share, indicating a 7.5% year-over-year rise. The estimate remained stable over the past week. Furthermore, the consensus mark for revenues is pegged at $9.28 billion for 2025, indicating a 1.4% year-over-year rise.
Global Payments Inc. Price and EPS Surprise
Global Payments Inc. price-eps-surprise | Global Payments Inc. Quote
GPN’s Growth Drivers
The continuously increasing demand for digital payment methods is expected to support Global Payments’ transaction volume growth, strengthening its Issuer Solutions business. Adjusted revenues from the segment grew 5.3% and 3.3% in 2023 and 2024, respectively. We expect it to further witness around 3% increase in 2025.
To sustain long-term growth, the company strategically forms high-impact partnerships and invests in technology advancements while divesting non-core assets to streamline operations. Its financial position remains robust, with $2.5 billion in cash and cash equivalents as of 2024 end, more than double its short-term debt obligations of $1.1 billion.
Global Payments has also demonstrated strong cash flow generation. Operating cash flows increased from $2.2 billion in 2023 to $3.5 billion in 2024, while free cash flows surged nearly 80% over the past year. This financial flexibility allows the company to invest in business expansion and shareholder returns.
In 2024, Global Payments repurchased $1.6 billion worth of shares and plans to return $2 billion to shareholders in 2025. With consistent revenue growth, disciplined capital management and a strong balance sheet, GPN remains well-positioned for sustained success in the evolving digital payments landscape.
Based on short-term price targets offered by 29 analysts, the Wall Street average price target for Global Payments is at $130.48 per share, suggesting a 31.9% upside from current levels.
Key Concerns
There are a few factors that can hinder the stock’s growth.