Global Payments Reaffirms 2026 Outlook, Raises Worldpay Synergy Target

Global Payments Inc. (NYSE: GPN) reaffirmed its 2026 outlook after reporting higher third-quarter adjusted earnings and margin on a normalized basis, while increasing its annual run-rate expense synergy target from the Worldpay integration to $650 million.

For the quarter ended September 30, adjusted net revenue was $3.18 billion, representing normalized growth of more than 4%. Adjusted operating margin reached 42.5%, an expansion of 220 basis points on the same basis, while adjusted earnings per share increased 10% to $3.58.

Adjusted free cash flow totaled $870 million, equivalent to 92% of adjusted net income attributable to Global Payments. The company’s normalized comparisons include Worldpay’s pre-acquisition results and exclude Issuer Solutions and other divested businesses.

Growth Across All Three Segments

The SMB segment generated $1.55 billion of adjusted net revenue, up 5% on a normalized basis, and $928 million of adjusted operating income. Its contribution margin, which excludes corporate expenses, was 60%. Normalized payment volume increased 3%.

Genius remained a central growth initiative for the segment. Genius bookings rose approximately 140% year over year, while new Genius locations increased about 65%. During the quarter, Global Payments introduced the platform to financial institutions in Worldpay’s channel, expanded its Canadian offering with countertop and software enhancements, and continued its push into higher education.

The Enterprise segment reported adjusted net revenue of $836 million, an 8% normalized increase, and adjusted operating income of $658 million, for a 79% contribution margin. Normalized volume grew 10%, including an approximately 200-basis-point benefit from a large enterprise customer that temporarily shifted all of its volume to Global Payments. Year-to-date bookings increased 23%, and cross-sell bookings rose 29%.

Platforms also recorded 8% normalized adjusted net revenue growth, reaching $625 million. Adjusted operating income was $279 million, producing a 45% contribution margin. Normalized volume increased 11%, while embedded-payments volume rose 16% and value-added services revenue grew 22%. The business signed 52 new software partners, 35% of which were international.

Worldpay Integration and Product Priorities

Global Payments said it is introducing Genius into Worldpay’s financial-institution channel and cross-selling FraudSight and other value-added services across its segments. The company has also streamlined its organization and leadership structure and is advancing plans for its future technology architecture.

Based on integration work completed to date, the company increased its annual run-rate expense synergy target to $650 million. Its planned product initiatives for the fourth quarter and 2027 include continuing the Genius rollout through Worldpay financial institutions, delivering the next phase of Drive-Thru Intelligence, expanding a new mobile app across channels and geographies to reach micro-merchants, and enhancing Genius AI.

2026 Outlook Reaffirmed

Global Payments maintained its expectation for 4% to 5% normalized constant-currency adjusted net revenue growth in 2026. It also continues to project approximately 150 basis points of normalized adjusted operating margin expansion and normalized adjusted EPS of $13.60 to $13.80.

The company expects adjusted free cash flow conversion of about 90% and annual capital investment of approximately $1 billion, or roughly 8% of adjusted net revenue. It plans to return more than $2 billion to shareholders through share repurchases and dividends.

Other guidance assumptions include approximately $880 million of adjusted net interest and other expense, a roughly 15% adjusted effective tax rate, about $70 million of income from equity-method investments and approximately $90 million of net income attributable to noncontrolling interests. Global Payments said free-cash-flow adjustments are expected to decline into 2027 as integration and separation activities progress.

The outlook remains subject to risks including delays or difficulties integrating Worldpay, failure to realize anticipated cost savings, acquisition-related business disruption and elevated indebtedness. The company also identified payment-network compliance, cybersecurity and operational failures, competition, regulatory changes, foreign-exchange movements, inflation, interest rates, tariffs and broader economic and political uncertainty as factors that could affect results.