10-QPeriod: Q1 FY2026

GLOBAL PAYMENTS INC Quarterly Report for Q1 Ended Mar 31, 2026

Filed May 8, 2026For Securities:GPN

Summary

Global Payments Inc. (GPN) reported significant changes in its financial performance for the three months ended March 31, 2026, largely driven by the acquisition of Worldpay and the divestiture of its Issuer Solutions business. Revenues surged by 63.1% year-over-year to $2.97 billion, primarily due to the inclusion of Worldpay's operations. However, this topline growth came with a substantial increase in operating expenses, particularly cost of service and selling, general, and administrative expenses, which rose by 157.2% and 78.8%, respectively. The company reported a net loss attributable to Global Payments of $1.8 billion for the quarter, a stark contrast to the net income of $305.7 million in the prior year. This significant loss is heavily influenced by a large loss from discontinued operations ($1.59 billion) and increased operating expenses and interest expenses. The acquisition of Worldpay, while boosting revenue, also led to a substantial increase in goodwill ($27.1 billion) and other intangible assets, alongside higher amortization expenses. The company ended the quarter with a reduced cash position of $5.86 billion, down from $8.34 billion at the end of the previous year.

Financial Highlights

50 data points
Beta

Revenue

$2.97B

57.1% Gross Margin

Net Income

-$1.80B

-60.6% Net Margin

EPS (Diluted)

$-6.59

Total Assets

$64.25B

Cash & Equivalents

$5.86B

Free Cash Flow

-$288.82M

Financial Statements
Beta
Revenue$2.97B
Cost of Revenue$1.27B
Gross Profit$1.70B
SG&A Expenses$1.71B
Operating Expenses$2.99B
Operating Income-$15.65M
Interest Expense$239.20M
Net Income-$1.80B
EPS (Basic)$-6.59
EPS (Diluted)$-6.59
Shares Outstanding (Basic)273.22M
Shares Outstanding (Diluted)273.22M

Key Highlights

  • 1Revenue increased by 63.1% to $2.97 billion, driven by the acquisition of Worldpay.
  • 2Reported a net loss attributable to Global Payments of $1.8 billion, compared to a net income of $305.7 million in the prior year.
  • 3A significant loss from discontinued operations of $1.59 billion impacted the overall net income.
  • 4Operating expenses (Cost of Service and SG&A) increased substantially by 157.2% and 78.8% respectively, largely due to the Worldpay acquisition.
  • 5Goodwill and intangible assets saw a significant increase post-acquisition, reaching $27.1 billion and $20.2 billion respectively.
  • 6Interest and other expense increased by $93.8 million, primarily due to higher average outstanding borrowings.
  • 7Cash and cash equivalents decreased to $5.86 billion from $8.34 billion at the end of the prior year.

Frequently Asked Questions

The primary driver of the 63.1% revenue increase to $2.97 billion was the acquisition of Worldpay, which was completed on January 9, 2026. This acquisition contributed approximately $1.2 billion in revenue for the quarter.

The substantial net loss of $1.8 billion is attributed to several factors, including a significant loss from discontinued operations ($1.59 billion) related to the divestiture of the Issuer Solutions business. Additionally, increased operating expenses, particularly amortization of intangible assets and transformation costs stemming from the Worldpay acquisition, along with higher interest expenses, contributed to the overall loss.

The Worldpay acquisition significantly increased Global Payments' assets. Goodwill more than doubled, reaching $27.1 billion, and other intangible assets increased substantially to $20.2 billion. Long-term debt also increased to $22.6 billion. Conversely, cash and cash equivalents decreased to $5.86 billion.

The company expects its transformation initiatives, including the integration of Worldpay, to generate over $650 million in annual run-rate operating income benefit by mid-2027 and $600 million in annual run-rate expense synergies by the end of 2028. These initiatives involve ongoing integration, separation, and transformation activities, with anticipated incremental expenses through 2028.