Key Takeaways
Global Payments Inc. (GPN) rose more than 4% in early trading after the company reported first-quarter earnings that topped analyst estimates and announced a significant new share buyback program.
"Our solid first-quarter results reflect the durability of our business model and the successful execution of our strategic initiatives," CEO Cameron Bready said in a statement. "The new share repurchase authorization shows our commitment to delivering shareholder value while continuing to invest in long-term growth."
The Atlanta-based payments technology firm posted adjusted earnings of $2.96 per share for the quarter ended March 31, beating the Zacks Consensus Estimate of $2.82. Revenue for the quarter was also ahead of expectations, coming in at $2.45 billion against a consensus of $2.43 billion.
The company's board of directors approved a new share repurchase authorization of $2 billion. This is in addition to the approximately $1.5 billion remaining under its previous authorization from December 2021. Global Payments also maintained its full-year 2026 outlook for adjusted net revenue growth of 6% to 7% and adjusted earnings per share growth of 11% to 13%.
The strong performance and capital return plan suggest Global Payments is navigating the current economic environment effectively. Investors will be watching the company's ability to sustain its growth momentum and execute on its share repurchase strategy in the upcoming quarters.
This article is for informational purposes only and does not constitute investment advice.
