Global Payments’ turnaround gets off on the right foot

• Key insights: Investors were encouraged by Global Payments’ fourth quarter earnings results – the first to include WorldPay post acquisition – but some analysts remained sceptical that the legacy fintech could turn its business around.

• What’s at stake: The legacy payments fintech has been attempting to refocus its business as other, newer payment processors such as Stripe, Block and Adyen pose stiff competition.

• Forward look: With the acquisition of WorldPay complete, Global Payments’ next focus will be on integration.

All eyes have been on Global Payments as the legacy payments fintech has sought to refocus its business as competitors such as Stripe, Block and Adyen expand their market share, and fourth quarter earnings did not disappoint investors – at least most of them.

“After much anticipation, Global Payment’s inaugural quarter including Worldpay and excluding [Total System Services] was nothing short of a triumph, marked by Merchant Solutions exiting the year at slightly more than 6% growth,” Mizuho Americas analyst Dan Dolev said in a research note. “We expect a strong year of persistent beat-and-raise top-line and EPS growth.”

Net revenue for the fourth quarter ended December 31 came in at $2.3 billion, an increase of 6% year over year on a constant currency basis, excluding the company’s sale of Total Systems Services to FIS and in line with analysts’ estimates, according to S&P Capital IQ. Global Payments also bought Worldpay from the technology seller. Both those deals closed in January.

Net income landed at $217.5 million, or 92 cents per diluted share. Analysts expected a net income of $394.4 million, or $1.76 per diluted share.

Shares of Global Payments surged more than 13% on Wednesday morning on the release, reinforcing investor confidence in the company’s attempt to re-focus its business.

“Global Payments delivered a solid quarter with stable Merchant trends and a post-Worldpay deal outlook that is better than initially feared, and potentially somewhat conservative, driving [the] positive stock reaction,” Keefe Bruyette and Woods analyst Vasundhara Govil said in a research note. “The focus now shifts to deal integration and management’s ability to demonstrate synergy benefits and build confidence in accelerating revenue growth, which will ultimately determine multiple expansion.”

Global Payments in 2026 expects its adjusted net revenue to grow approximately 5% on a constant-currency basis, excluding dispositions, Chief Financial Officer Joshua Whipple said on the call with analysts. CEO Cameron Bready also said that the company was resuming stock buybacks, starting with a $2.5 billion share repurchase program that includes the immediate repurchase of $550 million worth of shares.

Global Payments is counting on its acquisition of Worldpay, along with a new sales strategy and the relaunch of its Genius point-of-sale technology, to drive revenue growth.

“Beginning with Worldpay integration, our synergy initiatives are already well underway, and we remain confident in our ability to achieve $200 million in annualized revenue and $600 million in expense synergies over the next three years. Worldpay’s U.S. direct sales force is already enabled to sell Genius,” Bready said.

On the sales side, the fintech began using a new technology platform with embedded AI capabilities to better manage lead flow, and onboarded 200 of the 500 new sales professionals it said it was adding in the third quarter.

Not everyone was convinced that Global Payments turnaround is underway, though.

“Don’t believe the hype,” said William Blair analyst Andrew Jeffrey in a research note. “We see Global Payments as an undifferentiated traditional merchant processor that will struggle to deliver accelerating organic revenue growth as lagging innovation constrains share gains, and lack of creativity limits optionality.

“Global is harvesting low-hanging fruit as it hires 500 new salespeople, improves its SMB offering (Genius is better than legacy tech), and enjoys Worldpay’s relatively fast-growing e-commerce and enterprise offerings,” Jeffrey said. “Looking beyond 2026, our view is that innovative processors, like Stripe, Adyen, Checkout.com and Square, will limit [Global Payments’] revenue growth and valuation.”