Global Payments Inc · Q1 2022 earnings

Briefing

Global Payments' business demonstrated resilience in Q1 2022, exceeding expectations despite macro headwinds, with Merchant Solutions showing ongoing momentum.

Global Payments Inc. reported strong Q1 2022 results, with performance exceeding expectations despite macro headwinds. Adjusted net revenues increased by 8% to $1.95 billion, and adjusted earnings per share increased by 14% to $2.07. The company reaffirmed its outlook for 2022, expecting adjusted net revenue to be in the range of $8.42 billion to $8.50 billion and adjusted earnings per share to be in the range of $9.45 to $9.67.

• GAAP revenues were $2.16 billion, compared to $1.99 billion in the first quarter of 2021.
• Adjusted net revenues increased 8% to $1.95 billion, compared to $1.81 billion in the first quarter of 2021.
• Adjusted earnings per share increased 14% to $2.07, compared to $1.82 in the first quarter of 2021.
• Adjusted operating margin of 41.1% expanded 50 basis points.

Headline financials

Revenue & EPS history

For 2022, the company continues to expect adjusted net revenue to be in a range of $8.42 billion to $8.50 billion, reflecting growth of 9% to 10% (10% to 11% on a constant currency basis) over 2021, and adjusted earnings per share to be in a range of $9.45 to $9.67, reflecting growth of 16% to 19% (17% to 20% on a constant currency basis) over 2021. We are raising our expectation for annual adjusted operating margin for 2022 to expand by up to 125 basis points (up to 175 basis points excluding acquisitions), an increase from the prior outlook of up to 100 basis points (up to 150 basis points excluding acquisitions).