(Reuters) -Global Payments beat Wall Street estimates for second-quarter profit on Wednesday, helped by strong growth and margin improvement in its merchant and issuer solutions businesses, sending its shares up 5% in premarket trading.
U.S. consumer spending has remained unexpectedly resilient in the face of economic headwinds, with card issuers and payments firms reporting steady transaction volumes in the second quarter, driven by affluent households even as signs of strain emerge among lower-income consumers.
Global Payments’ adjusted net revenue rose 5% on a constant currency basis in the quarter ended June 30.
The company now expects full-year adjusted profit to be at the upper end of its previous growth forecast of 10% to 11%.
Adjusted revenue from its merchant solutions business rose 5.5% on a constant currency basis in the quarter, with margins expanding by 130 basis points. Revenue from its issuer solutions unit grew 3.5%, and margins improved by 190 basis points.
In April, Global Payments agreed to buy rival Worldpay from FIS and private equity firm GTCR for $24.25 billion in a three-way deal, sharpening its focus on merchant services in its race for big-business clients in a crowded payments market.
The Atlanta-based company has been undertaking a review of its business in recent months, shedding smaller pieces to streamline its offering and boost returns.
Global Payments said it remains on track to close the Worldpay deal in the first half of 2026.
“We are more confident than ever the combined business with Worldpay will meaningfully enhance our financial profile, deliver sustainable performance, and unlock value for our shareholders,” CEO Cameron Bready said in a statement.
Global Payments’ profit came in at $3.10 per share on an adjusted basis in the quarter. Analysts on average had expected $3.06, according to data compiled by LSEG.
(Reporting by Manya Saini in Bengaluru; Editing by Shinjini Ganguli)
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