Orin
GPNNYSE·Specialty Business Services

Global Payments Inc. GPN

Market cap $21.3BP/E —no earnings to divide byGross margin 63.9%Reports Tue 3 Nov, before the open
$85.78
+0.47 (+0.55%)live 11:25 ET
52-wk $61.16 – $95.88
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Orin's take
0.62conviction · moderate
Refreshed 21 Aug · take v7. A new filing or a print queues the next refresh.

Global Payments posted Q2 2026 results (quarter ended 2026-06-30) that showed genuine operational improvement — 4% normalized adjusted net revenue growth, 70 bps of adjusted operating-margin expansion, and 12% adjusted EPS growth to $3.46 — yet management simultaneously lowered full-year revenue and earnings guidance citing Middle East conflict pressure on travel volumes, which tempers enthusiasm. The stock has rallied to $91.74 (as of 2026-08-19), well above the 50-day MA of $78.31 and 200-day MA of $74.71, but FY2025 revenue collapsed 23.75% to $7.7B, total debt stands at $21.9B against $2.0B in free cash flow, and the negative reported PE of -23.52x signals persistent earnings-quality distortions.

Smart money is essentially flat at 0.033 as of Q2 2026, and while insiders are net buyers over 24 months ($22.6M net), recent activity is dominated by option exercises and tax withholding rather than conviction purchases. Hold until the lowered guidance proves conservative or deteriorates further.

What could go wrong

  • Guidance deterioration. Management already lowered full-year revenue and earnings outlook in Q2 2026 due to Middle East travel-volume pressure; further cuts would undermine the margin-expansion narrative.
  • Leverage and earnings quality. Total debt of $21.9B against FY2025 free cash flow of $2.0B creates a ~10.7x debt-to-FCF ratio, and the negative reported PE of -23.52x indicates accounting distortions that obscure true profitability.
  • Revenue decline persistence. FY2025 revenue fell 23.75% to $7.7B from $10.1B in FY2024; if this reflects structural rather than transactional/disposition-driven declines, the growth story is compromised.
  • Technical overextension. RSI at 63.18 with the stock at $91.74, well above both the 50-day ($78.31) and 200-day ($74.71) moving averages, leaves limited near-term upside before mean reversion risk increases.

What would change my mind

Guidance re-raise or upward revision. Management raises full-year 2026 revenue or adjusted EPS guidance in Q3 2026 commentary, signaling Middle East headwinds are transitorybullish
Deleveraging acceleration. Total debt declines meaningfully below $21.9B with FCF deployment toward debt reduction rather than buybacks, improving the balance sheet profilebullish
Further guidance cuts. Q3 2026 results show continued normalized revenue growth below 4% or another downward revision to full-year outlookbearish
Smart money outflow. 13F Q3 2026 composite shows smart money score turning negative below -0.03 with fund count dropping below 55bearish

Where this comes from: news snippet (MarketBeat, 2026-08-08; Zacks, 2026-08-05) · news snippet (MarketBeat, 2026-08-08) · FMP fundamentals FY2025; derived_metrics revenue_growth_yoy · FMP fundamentals FY2025 (period ended 2025-12-31). Orin's read on GPN; not advice.

Twelve months actual closes to 2026-09-24 · actual filings

Sept 25Nov 25Jan 26Mar 26May 26Jul 26

50-day average 200-day average · volume below

Largest holders · 13F Q2 2026

Money flow
FilerPositionOf fund
Vanguard Capital Management$1.1B0.0% of fund
Harris Associates L P$937.0M1.2% of fund
Ameriprise Financial$884.0M0.2% of fund
State Street$762.8M0.0% of fund
Vanguard Portfolio Management$718.4M0.0% of fund
Glenview Capital Management$646.3M11.8% of fund

87 filers · quarter ended Q2 2026 · positions, not flows

Insiders, last 24 months: 75 Form 4 filings, net $22.6M. Of the 50 on hand, 4 were open-market purchases and 3 sales— the rest are grants, option exercises and tax withholding.

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Where it trades

vs its own 5y · Industrials
MetricNowOwn medianSector
EV/EBITDA12.5×13.0×—
P/S2.08×3.05×—
P/B1.0×1.3×—

Its P/E sits below all 5 of the last 5 years (−1.05σ from its own mean).

What the price assumes

-1.3%

free-cash-flow growth every year for 10 years, discounted at 10%, is what today’s price implies — starting from $2.0B of trailing free cash flow. It is an assumption the market is making, not a forecast Orin is making.

What Wall Street published

63 firms · 2026-09-24
Consensus target

$99

$80 – $125 · +16% against today's price

How they rate it
  • 37 buy or overweight
  • 22 hold
  • 4 underweight or sell

The analysts’ consensus and their own ratings, not Orin’s. A target is a twelve-month opinion published by the firm that wrote it.

Against the companies it is compared to

median P/E 26.3× of 8 peers
CompanyMarket capP/EEV/EBITDAGrossNetROE
GPNGlobal Payments Inc.$21B—12.5×63.9%-9.4%-4%
ACMAecom$8B26.5×—5.7%1.9%13%
CHRWC.H. Robinson Worldwide, Inc.$17B27.5×19.1×10.1%3.7%36%
EXPDExpeditors International of Washington, Inc.$24B26.7×18.7×23.9%7.6%41%
LIILennox International Inc.$13B16.6×12.9×33.1%14.6%65%
PNRPentair plc$8B13.2×10.9×41.3%16.2%17%
RBARB Global, Inc.$15B35.1×13.7×42.1%10.0%8%
SNASnap-on Incorporated$19B18.5×12.4×51.2%20.4%17%
ULSUL Solutions Inc.$13B26.2×13.6×50.2%16.0%38%

The median is of the 8 peers listed above and nothing else — check it against the column. The peer set is the vendor’s, so a company can appear here that a person would not have chosen.

What it has traded at

P/E by fiscal year
FY15 25.3×FY25 13.3×

What its sector has traded at

Industrials
FY14 173.5×FY26 32.6×

Two scales, drawn separately on purpose: a sector median and one company’s multiple are not the same number and putting them on one axis invites a comparison neither series supports.

Discounted cash flow

not recomputed since
ModelFair valueAgainstComputed
Standard DCF$178$62.63 · +184%2026-06-10
Levered DCF$149$62.63 · +139%2026-06-10

The vendor’s intrinsic-value models. Treat them as a low-growth anchor — for a fast grower the market routinely pays well above a DCF. These were computed against the price in the “against” column, not today’s.

Every estimate on one scale

price $85.78
52-week range$61 – $96
Analyst targets$80 – $125
Standard DCF$178 as of 2026-06-10, when it was $62.63
Levered DCF$149 as of 2026-06-10, when it was $62.63

The vertical rule is the current price. Ranges and point estimates are the backend’s, published as they were calculated; an arrow means the estimate sits beyond this scale, and its number is on the right.