Global Payments Reports Progress in Restructuring Initiatives

Global Payments CEO Cameron Bready highlighted the company's restructuring efforts during the fourth-quarter 2024 earnings call, noting signs of progress but acknowledging the disruptive nature of the changes.

Financial Performance

For the quarter ended December 31, 2024, Global Payments reported a 57% increase in net income to $567 million, a 6.5% rise in net revenue to $2.29 billion, and a 6% gain in adjusted earnings per share (EPS) to $2.95. EPS and revenue slightly missed analyst estimates.

Business Segments

The company's merchant business saw a 7% increase in net revenue to $1.8 billion, while the card issuer business experienced a 3% growth to $2.1 billion.

For the full year 2024, Global Payments reported a 6% increase in net revenue to $9.15 billion and an 11% rise in adjusted EPS to $11.55.

Strategic Transformation

Global Payments is implementing a new product development and sales strategy, similar to its payment industry peers. It is also focusing on expanding relationships with core business segments such as small businesses, restaurants, and entertainment venues.

In late 2024, the company announced a reorganization to streamline operations and launch new products faster. This included job cuts and increased collaboration between departments.

Genius Platform Launch

Global Payments is set to launch its expanded Genius retail payments and merchant service platform in 2025. Genius is a combination of new technology and existing product enhancements that aims to offer a seamless experience for merchants without requiring significant setup or integration efforts.

Analyst Outlook

Analysts remain cautiously optimistic about Global Payments' new strategy. While they acknowledge the potential benefits, they also note the challenges posed by competition from tech-forward rivals in the merchant segment.

Future Outlook

Bready indicated that the full impact of the restructuring is expected to become more apparent during the latter half of 2025. The company is pursuing exits from certain businesses and markets where it sees limited growth opportunities.

Global Payments is also investing in generative AI to streamline customer service and enhance operational efficiency. The company expects its restructuring efforts to yield over $600 million in annual run-rate operating income by the first half of 2027.