Global Payments Inc. (GPN) First Take Relatively in line print with reduced guidance to reflect Middle East travel disruption

Equity Research 5 August 2026 | 7:57AM EDT

Global Payments Inc. (GPN): First Take: Relatively in-line print with reduced guidance to reflect Middle East travel disruption

Bottom line: GPN reported a roughly in line print, with total revenues and operating Will Nance | income coming in very slightly below street expectations. GPN also provided Goldman Sachs & Co. LLC

segment disclosures across its 3 business segments, Enterprise, Platforms, and SMB, Jack Evans | although we note limited history in the proformas provides limited context into the Goldman Sachs & Co. LLC

recent growth trajectory of the business. The slides show SMB growing 4% in the Chandru Ravikumar | current quarter and Platforms and enterprise growing 7%. In terms of the outlook, Goldman Sachs India SPL GPN reduced its revenue and EPS guidance for the year to factor in the impact of Middle East travel disruptions, with the updated guidance implying 2H revenues and EPS in-line to slightly below expectations. Overall, we believe the market was partially expecting limited upside to back half numbers on the back of continued travel disruptions given mgmt commentary last quarter around exposures and given the company had not factored in disruptions in the back half of the year. That said, we believe there was some hope that there would be a potential offset to these numbers. Thus, we believe the lowered outlook in 2H could cap performance on the back of results.

What we are looking for on the call: 1) color on underlying trends across the business; 2) updates around middle east travel exposures; 3) color on Genius rollout and trends.

Consolidated results: GPN reported 2Q26 adjusted revenue of ~$3.16bn, vs Visible Alpha Consensus Data of ~$3.17bn. Adjusted operating income came in at $1.33bn (42% margin), in line with consensus. GPN posted adjusted EPS of $3.46, ~in line vs the Street at $3.45. GPN 2Q26 Adj FCF was $687mn, resulting in Adj FCF conversion of 74% (% of Adjusted Net Income).

n Full Year: Management provided their 2026 total company outlook. GPN expects constant currency ex-disposition revenue growth of 4-5%. After adjusting for 2% of dispositions, this puts implied reported adjusted net revenue growth around ~2.5% (vs street at ~2.7%). This implies $13.60-$13.80 of reported EPS. The company also expects 1) ~$860mn of net interest and other expense, 2) 15.5% adj tax rate, 3) $70mn of EII, 4) -$90mn of NI to NCI, 5) ~$1bn of capex, and 6) >90% FCF conversion. The company also expects 150bps of operating margin expansion in the year. Finally, GPN expects FCF adjustments to decline into 2027 as transformation concludes.

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Goldman Sachs Global Payments Inc. (GPN)

Exhibit 1: GPN Act vs Est GPN estimates vs. actuals Actual Actual Actual GS est. Cons. est Act vs GS Act vs cons QoQ YoY Comments 2Q25 1Q26 2Q26A 2Q26 2Q26 %∆ %∆ 2Q/1Q 26/25

Enterprise % 7% Platforms % 7% SMB 1,514 1,369 1,512.6 11% 0% Revenue Other % -22% Intersegment/reimbursables/others 0 -2 0.0 -100% NA Total non-GAAP revenue 3,113 2,856 3,159 3,145 3,169 0% 0% 11% 1% Proforma, 1Q excl stub period

Enterprise % 6% Proforma, 1Q excl stub period % margin 78.4% 78.0% 77.9% -15 bps -53 bps Platforms Proforma, 1Q excl stub period % margin 48.2% 47.1% 45.2% -191 bps -297 bps Operating SMB Proforma, 1Q excl stub period Income % margin 64.7% 59.0% 58.9% -9 bps -580 bps Other/corporate - Proforma, 1Q excl stub period Total Non-GAAP operating income 1,291 1,141 1,325 1,327 1,331 0% 0% 16% 3% Proforma, 1Q excl stub period % margin 41.5% 39.9% 42.0% 42.2% 42.0% -25 bps -4 bps 203 bps 48 bps

Other Other expense (income) % 16% -36%

Pre-tax Pre-tax income 938 947 1,101 1,106 1,111 - -1% 16% 17%

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