Global Payments' shares surge on quarterly profit rise, strong annual forecast

Feb 18 (Reuters) - Global Payments GPN.N forecast annual earnings above Wall Street estimates and reported a rise in fourth-quarter profit on Wednesday, sending the payment technology firm's shares up over 8% in trading before the bell.

The Atlanta-based company expects adjusted earnings per share between $13.80 and $14 for fiscal year 2026, compared with Wall Street's view of $13.64, according to estimates compiled by LSEG.

Consumer spending among higher‑income shoppers has held strong, even as macroeconomic pressures prompt middle‑ and lower‑income households to cut back.

Global Payments' merchant business is diversified across sectors and regions, allowing it to shield against a downturn in the economy. Consumer spending levels in an economy directly affect the earnings of payment technology companies.

The merchant solutions segment, the company's biggest, posted a nearly 3% rise in its adjusted operating income to $877.1 million in the fourth quarter from a year ago. This unit earns per transaction fees and is dependent on volumes.

"With our major transactions now complete, we continue to expect to return $7.5 billion of capital to shareholders through the end of 2027," CEO Cameron Bready said in a statement.

Adjusted operating income from its issuer solutions business rose to $267.8 million in the fourth quarter from $253.6 million in the year earlier.

Global Payments' issuer solutions unit provides technology and processing services that support banks, credit unions and other financial institutions in issuing and managing credit, debit and prepaid cards.

Quarterly net profit attributable to the company rose to $754.7 million, or $3.18 per share, on an adjusted basis in the three months ended December 31, compared with $717.9 million, or $2.85 per share, a year earlier.