Global Payments Inc. Q1 FY2026 earnings call

• Strong financial and operational performance in Q1 with results exceeding expectations, reinforcing confidence in business trajectory and WorldPay integration progress. WorldPay integration activities: teams moving quickly with excellent alignment, using a deliberate best of both approach across talent, products, and technology, and showing strong commercial opportunities with execution on the ground such as WorldPay's U.S. direct sales force selling Genius and integration of e-commerce solution into SMB distribution channels. Go-to-market execution: global distribution footprint as a key competitive advantage, expanding geographically and across new channels with notable wins in enterprise, software/info services, integrated/platforms, and SMB channels, and progress in building sales capacity and launching new products. Genius: strong momentum with expanding footprint, deepening capabilities, and extending relevance, including bookings growth, yield increases, and brand awareness building. AI and agentic commerce: work accelerating with OpenAI's focus aligning with strengths, trusted payments infrastructure, and embedding AI in various aspects of the business.

In the first quarter, normalized adjusted net revenue grew approximately 5.5% or approximately 4.5% on a constant currency basis. Adjusted operating margins expanded 110 basis points on a normalized basis and adjusted earnings per share grew 10% on an as reported and constant currency basis. Capital allocation saw more than $600 million returned to shareholders through dividends and share repurchases in the first quarter, with a target of $7.5 billion of capital returns for the period 2025 through 2027 and entering an accelerated share repurchase program to immediately repurchase $500 million of shares. WorldPay integration showed strong early progress with successful integration of e-commerce solution into SMB distribution channels and new sales increasing 25% sequentially and more than doubling year over year. Go-to-market execution had global distribution footprint as a competitive advantage with bookings increasing 8% year over year and notable wins in various channels. Genius bookings increased more than 25% sequentially and nearly double year-over-year with yields with new clients increasing by more than 30% year-over-year, expanding its footprint and capabilities.

• Reaffirm full year outlook for adjusted net revenue growth, adjusted operating margin expansion, and adjusted earnings per share. For Q2, potential impacts from the Middle East conflict and softer tax payment volumes to be up to 100 basis point headwind to adjusted net revenue growth, with currency impacts roughly neutral for Q2. Full year normalized constant currency adjusted net revenue growth expected approximately 5%, normalized adjusted operating margin to expand approximately 150 basis points, and adjusted earnings per share in the range of $13.80 to $14. Cash flow conversion rate of adjusted net income to adjusted free cash flow expected to exceed 90% for full year 2026, with capital allocation plans unchanged including target capital expenditures and commitment to returning capital to shareholders.

Q: Dan Dolliv with Mizuho asked about Genius progress and yields.

A: Cameron and Bob discussed Genius being more feature-rich, revamped sales plan with cross-selling and better dealer channel payments penetration driving yields.

Q: Brian Keene with Citigroup asked about share repurchase plan and Genius market coverage.

A: Cameron and Bob talked about share repurchase progress and Genius covering various verticals in different markets.

Q: Darren Peller with Wolf asked about notable wins and sales ads integration.

A: Cameron and Bob discussed commercial productivity, sales transformation, and global scale and local expertise driving wins and sales ads integration progress.

Q: Adam Frisch with Evercore ISO asked about revenue synergies timing and AI leveraging.

A: Josh and Cameron discussed revenue synergies timeline, tactical plans, and AI leveraging in product acceleration and productivity improvements.

Q: Andrew Schmidt with KeyBank asked about AI-related revenue and technology environment harmonization.

A: Cameron discussed AI in existing products, agentic commerce, fraud prevention, and technology environment harmonization progress.

Q: Jeff Cantwell with Seaport asked about Genius customer feedback, sales momentum, and synergy targets.

A: Cameron and Bob talked about Genius customer feedback, sales momentum in different segments, and confidence in synergy targets with early progress