| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 75 | — | 17.8x | Top tier | |
Growth | 46 | 43.4% | 7.1% | Around median | |
Quality | 21 | — | — | Bottom tier | |
Safety | 47 | — | — | Around median | |
Capital Return | 38 | 1.13% | 2.12% | Bottom tier | |
Momentum | 73 | -0.6% | 2.9% | Top tier | |
Sentiment | 84 | 21 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Global Payments provides commerce and payments technology solutions through three operating segments. The Small and Medium-Sized Businesses segment serves merchants with annual transaction volumes below $50 million through payment processing, software, and the Genius platform, while the Enterprise segment serves large and multinational companies with card-present and e-commerce payments and value-added services, and the Platforms segment distributes embedded payment solutions through software companies, payment facilitators, and digital marketplaces.
In fiscal Q2 2026, the financial statements reported revenue of $3.3 billion and gross profit of $2.0 billion, equivalent to a gross margin of approximately 60.6%, net income of $13 million, and earnings per share of $0.05. On management's adjusted basis, net revenue reached $3.16 billion with organic growth of 4%, adjusted operating margin expanded by 70 basis points, and adjusted earnings per share rose 12% to $3.46, highlighting a significant gap between GAAP profitability and adjusted results.
The Small and Medium-Sized Businesses segment was the largest contributor, with adjusted net revenue of $1.51 billion and a contribution margin of 59%, followed by the Enterprise segment with revenue of $838 million and a margin of 78%, then the Platforms segment with revenue of $628 million and a margin of 45%. Adjusted free cash flow reached $687 million, alongside which the company spent $236 million on capital expenditures, while returning $550 million to shareholders through the repurchase of approximately 8 million shares during the quarter.
The analyst consensus is "Buy," with an average price target of $99 and a wide range between $80 and $125, while the average is slightly above the top of the 52-week range of $95.88. No usable positive price-to-earnings ratio is available, consistent with the trailing twelve-month loss of $417.7 million and negative earnings per share, despite fiscal Q2 2026 improving to net income of $13 million. Therefore, the positive valuation case depends on achieving adjusted revenue growth of between 4% and 5% and margin expansion of 150 basis points, while the wide gap between the $80 and $125 targets reflects uncertainty surrounding travel, the Worldpay integration, and the conversion of adjusted earnings into sustainable GAAP profit.
Figures in the text are as of 2026-08-28; the live price is shown at the top of the page.
The main growth drivers are Genius, embedded payments, value-added services, and the activation of Enterprise contracts. In fiscal Q2 2026, revenue in both the Enterprise and Platforms segments grew 7%, and Platforms volumes increased 10%, while Banking as a Service revenue rose 25%. Enterprise bookings also increased 10% since the beginning of the year, and approximately one-third of newly signed customers went live, including Aldi, Morrisons, and Careem.
Genius is the primary point-of-sale platform that Global Payments uses to integrate software, payments, and AI-powered services. During fiscal Q2 2026, new Genius locations increased by more than 50% annually and approximately 25% quarterly, while bookings rose by more than 25% compared with the previous quarter. However, management confirmed on August 5, 2026, that Genius's revenue contribution remains limited relative to the size of the segment, so its full impact is not yet reflected in the Small and Medium-Sized Businesses segment's revenue growth rate of 4%.
Automated analysis for informational purposes only — not investment advice.
The decline in travel volumes associated with the conflict reduced group growth by approximately 100 basis points and Enterprise segment growth by approximately 400 basis points in fiscal Q2 2026. Management said on August 5, 2026, that capacity and forward bookings remained well below pre-conflict levels and that the recovery was stronger in lower-yielding short-haul travel than in long-haul travel. Based on the assumption that the impact will continue through the end of the year, the constant-currency adjusted net revenue growth outlook is now between 4% and 5%, and the adjusted earnings per share outlook is between $13.60 and $13.80.
Global Payments generated adjusted free cash flow of $687 million in fiscal Q2 2026, equivalent to approximately 75% of adjusted net income. During the quarter, it returned $550 million through the repurchase of approximately 8 million shares, in addition to dividends, surpassing on August 5, 2026, the halfway point of its annual commitment of more than $2 billion. Management expects the conversion of adjusted net income to adjusted free cash flow to exceed 90% for fiscal 2026, supported by seasonality that makes the second half stronger than the first half.
Global Payments has defined the operating model, leadership structure, target technology architecture, and commercial organization for the combined entity across the Small and Medium-Sized Businesses, Enterprise, and Platforms segments. However, management expects approximately $600 million of nonrecurring integration and separation costs, with spending in the first half of fiscal 2026 reaching nearly $300 million and approximately $100 million of additional spending expected during the remainder of the year. The company is also seeking to accelerate the separation of Worldpay's technology environment from FIS, while the decline in these costs extends gradually through 2028, making execution speed and cost control critical factors.
The average analyst target is $99, compared with a low of $80 and a high of $125, while the 52-week range extends from $61.16 to $95.88. The recommendation consensus is "Buy," but the wide target range reflects significant differences in estimates of the profitability trajectory. No positive price-to-earnings ratio is available because the trailing twelve months recorded a net loss of $417.7 million, despite fiscal Q2 2026 turning to positive net income of $13 million.
