Key Takeaways:
- Global Payments reported solid first-quarter results, with over 5% constant-currency-adjusted net revenue growth, excluding dispositions, and a 70-basis-point expansion of adjusted operating margin.
- The company announced transformational transactions to acquire Worldpay and divest its Issuer Solutions business, creating a pure-play merchant commerce platform.
- With combined pro forma adjusted net revenue of $12.5 billion and processing volume of nearly $4 trillion annually, the merged entity will become a leading global commerce solutions provider.
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Valued at a market capitalization of $18.3 billion, Global Payments (GPN) operates as a comprehensive technology-enabled payments company serving merchants, financial institutions, and software providers worldwide.
It processes billions of transactions annually across three primary business segments: Merchant Solutions, Issuer Solutions, and integrated payment technology platforms.
GPN stock has grossly underperformed the broader market over the past decade, but it trades at an attractive valuation as of June 2025.
Let’s explore why you should consider adding GPN stock to your equity portfolio right now.
1. A Focus on Execution
Global Payments demonstrated resilience with solid first-quarter performance that exceeded expectations across key metrics.
It delivered adjusted net revenue of $2.2 billion, reflecting constant currency growth of 5% excluding dispositions, while achieving a 70-basis-point expansion in adjusted operating margin and 11% constant currency growth in adjusted earnings per share.
The Merchant Solutions segment achieved adjusted net revenue of $1.69 billion, reflecting 6% growth on a constant currency basis, excluding dispositions.
Performance was driven by high single-digit growth in both point-of-sale software and integrated embedded businesses, while core payments grew in the mid-single digits, despite absorbing exits from certain wholesale relationships.
Management reaffirmed its full-year outlook, expecting constant-currency-adjusted net revenue growth of 5% to 6% and a 50-basis-point expansion of adjusted operating margin for 2025.
Its transformation initiatives continue progressing as planned, positioning Global Payments stock for accelerated growth in subsequent years.
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2. GPN Stock Positioned for Transformational Growth
The GPN stock price has responded positively to the company’s announcement of acquiring Worldpay while divesting its Issuer Solutions business to FIS.
This strategic portfolio transformation creates a pure-play merchant commerce solutions provider with unmatched global scale and complementary capabilities across the entire merchant spectrum.
The combined entity will process nearly $4 trillion in annual volume across 100 billion transactions, serving millions of merchants and thousands of platform partners across 175 countries.
Worldpay brings best-in-class e-commerce and enterprise capabilities, manages PayFac solutions through its Payrix platform, and has a presence in attractive geographies where Global Payments currently lacks scale.
The transaction directly supports Global Payments’ three merchant pillars: point-of-sale and software, integrated and embedded payments, and core payment processing.
Its upcoming Genius platform launch will benefit from immediate distribution through Worldpay’s existing SMB merchant base and financial institution partnerships, which span over 6,000 branches.
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3. Global Payments to Gain from Synergy Opportunities
Global Payments stock has attracted investor interest due to its clear line of sight to substantial synergy opportunities from the Worldpay acquisition.
Management expects to achieve at least $600 million in annual run-rate cost synergies within three years of closing, which will represent approximately 18% of Worldpay’s expense base.
Cost synergies are expected to be derived from consolidating technology infrastructure, aligning business operations, streamlining transaction processing environments, and eliminating duplicative corporate support structures.
GPN’s integration experience and proven track record of exceeding synergy targets in previous acquisitions provide confidence in its execution capabilities.
Revenue synergies of at least $200 million annually are expected from cross-selling commerce enablement solutions, expanding omnichannel capabilities, and deepening penetration across high-growth verticals.
The combined company’s 6.5 million merchants worldwide, including more than 500,000 enterprise clients, create substantial cross-selling opportunities that leverage complementary product portfolios and distribution networks.
Valuation Setup for GPN Stock
Analysts tracking GPN stock expect its sales to rise from $9.15 billion in 2024 to $10.36 billion in 2027. Comparatively, adjusted earnings are forecast to increase from $11.55 per share to $15.30 per share in this period.
GPN stock currently trades at a forward price-to-earnings multiple of 6x, which is below its 10-year average multiple of 18x.
If the tech stock is priced at a multiple of 8x and reaches its projected $15.30 in normalized EPS, it will trade around $122/share in June 2027, indicating an upside potential of 63% from current levels.
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Average Analyst Price Target for GPN Stock
Wall Street remains bullish on GPN stock, with a consensus price target of $95/share. Analysts expect the stock to gain 27% from current levels.
Notably, GPN stock currently has a high target price of $131 and a low target price of $64.
Of the 34 analysts tracking GPN stock, 12 recommend “Buys”, 20 recommend “Hold,” and two recommend “Sell.”
TIKR Takeaway for Global Payments Stock
Global Payments stock presents a compelling investment opportunity as it executes a strategic transformation that sharpens focus while expanding scale and capabilities.
The Worldpay acquisition creates a complete commerce solutions platform with complementary strengths across SMB and enterprise segments, while the Issuer divestiture enables concentrated investment in high-growth merchant solutions.
The combined entity’s $1 billion annual innovation investment capacity, supported by unmatched processing scale, positions it for sustained market share gains in the evolving commerce landscape.
GPN’s disciplined approach to integration, proven synergy realization capabilities, and commitment to maintaining investment-grade credit ratings while returning substantial capital to shareholders create an attractive risk-adjusted return profile for investors seeking exposure to the global payments transformation.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
