Global Payments (NYSE:GPN) reported higher adjusted earnings and expanding margins in the third quarter of 2026, as the payments company raised its Worldpay cost-savings target and reaffirmed its full-year outlook.
Adjusted net revenue was $3.18 billion, up more than 4% excluding dispositions, while adjusted earnings per share rose 10% to $3.58. Adjusted operating margin expanded 220 basis points to 42.5%, excluding dispositions, as the company realized additional Worldpay integration savings.
Worldpay Integration and Growth Strategy
Global Payments has reorganized around three segments—small and midsize businesses, Enterprise, and Platforms—following its combination with Worldpay and exit from the Issuer business. Bready said the company is now focused entirely on commerce solutions.
The company plans to offer modular products and services that clients can use with different payment processors, rather than requiring them to consolidate all processing on one platform. Bready said a unified technology interface would make it easier for customers to access products and help the company cross-sell services.
Asked about reports of a potential take-private transaction, Bready said the company does not comment on market rumors or speculation. He said management and the board remain focused on executing the company’s strategy and creating long-term shareholder value.
Genius Growth and Segment Results
The SMB segment generated $1.55 billion in adjusted net revenue, up 5% on a normalized basis excluding dispositions. Chief Financial Officer Josh Whipple said increased adoption of value-added services helped revenue grow faster than the segment’s 3% volume growth.
Bready said bookings for Genius, the company’s flagship SMB platform, more than doubled year over year. Whipple said the number of locations sold rose approximately 65%, while yields on new bookings increased nearly 60%.
After a pilot with three Worldpay financial institution partners, Global Payments began rolling out Genius to more than 30 bank partners in October. Bready said the additional distribution channel should help drive incremental momentum in 2027. The company also plans to pursue other indirect partners after demonstrating it can scale through the financial institution channel.
Enterprise adjusted net revenue rose 8% on a normalized basis to $836 million. Segment volume increased 10%, including an approximately 200-basis-point temporary benefit from load testing for a large customer. Whipple said the revenue effect of that testing was immaterial and would not recur in the fourth quarter.
Platforms adjusted net revenue also rose 8% on a normalized basis, reaching $625 million, while volume grew 11%. The company signed 52 software partners during the quarter, ahead of its plan, and normalized value-added services revenue in the segment increased 22%.
Outlook and Capital Returns
Global Payments reaffirmed its 2026 forecast for normalized constant-currency adjusted net revenue growth of approximately 4% to 5%, adjusted operating margin expansion of about 150 basis points and adjusted earnings per share of $13.60 to $13.80.
The outlook assumes a stable macroeconomic environment and resilient consumer spending. It also assumes the Middle East conflict will continue to weigh on the Enterprise segment’s travel portfolio through the rest of 2026. Whipple said travel had improved modestly from the second quarter but remained below pre-conflict levels. Bready said the company would lap the financial impact toward the end of the first quarter of 2027.
The company generated $870 million in adjusted free cash flow during the third quarter and returned more than $200 million to shareholders through buybacks and dividends. It continues to expect more than $2 billion in shareholder returns in 2026 and approximately $7.5 billion cumulatively over 2025 through 2027.
Whipple said the company expects to have returned approximately $3 billion by the end of 2026, leaving approximately $4 billion for 2027. Global Payments ended the quarter with net leverage of 3.4 times and continues to target three times by the end of 2027.
Bready declined to provide a formal 2027 outlook, saying the company was still planning for the year. He said commercial momentum and additional Worldpay synergies could support performance, with a full outlook expected on the fourth-quarter call.
About Global Payments (NYSE:GPN)
Global Payments Inc (NYSE:GPN) is a financial technology and payments company that provides software and payment solutions to businesses, financial institutions and other organizations. Its services help merchants accept payments through credit cards, debit cards, digital wallets and other electronic methods across in-store, online and mobile channels.
The company offers payment processing, point-of-sale technology, commerce management software, payment security and reporting tools. Its solutions are used in industries including retail, restaurants, hospitality, healthcare, education and government.
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