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Sep 30, 2023

Global Payments Q3 2023 Earnings Report

Delivered strong third quarter performance, raised 2023 outlook, and increased targeted synergies from EVO acquisition.

Key Takeaways

Global Payments Inc. reported strong third quarter results ahead of expectations, with adjusted net revenues increasing 9% to $2.23 billion and adjusted earnings per share increasing 11% to $2.75. The company has made outstanding progress with the integration of EVO Payments and now expects to deliver approximately $135 million in annual run-rate synergies.

GAAP revenues were $2.48 billion, compared to $2.29 billion in 2022; diluted earnings per share were $1.39 compared to $1.05 in the prior year; and operating margin was 22.5% compared to 16.9% in the prior year.

Adjusted net revenues increased 9% to $2.23 billion, compared to $2.06 billion in 2022.

Adjusted earnings per share increased 11% to $2.75, compared to $2.48 in 2022.

Adjusted operating margin expanded 50 basis points to 45.7%.

Total Revenue
$2.48B
Previous year: $2.06B
+20.3%
EPS
$2.75
Previous year: $2.48
+10.9%
Adjusted Operating Margin
45.7%
Previous year: 45.2%
+1.1%
Gross Profit
$1.56B
Previous year: $1.35B
+15.2%
Cash and Equivalents
$1.94B
Previous year: $1.99B
-2.6%
Free Cash Flow
$257M
Total Assets
$48.9B
Previous year: $43.9B
+11.3%

Global Payments

Global Payments

Global Payments Revenue by Segment

Forward Guidance

The company continues to expect adjusted net revenue to be in a range of $8.660 billion to $8.735 billion, reflecting growth of 7% to 8% over 2022, and for adjusted operating margin to expand by up to 120 basis points in 2023. We now anticipate adjusted earnings per share to be in a range of $10.39 to $10.45, reflecting growth of 11% to 12% over 2022, or roughly 17% excluding dispositions.

Revenue & Expenses

Visualization of income flow from segment revenue to net income