Global Payments Inc. Reports $10.1 Billion Revenue for Fiscal Year 2024, Driven by Merchant Solutions Growth

Global Payments Inc. reported a consolidated revenue of $10.1 billion for the fiscal year ending December 31, 2024, marking a 4.7% increase from $9.7 billion in the previous year. The growth was primarily driven by an increase in transaction volume, particularly in the Merchant Solutions segment, which saw revenues rise by 7.5% to $7.7 billion. The Issuer Solutions segment also contributed to the overall revenue growth, with a 3.5% increase to $2.5 billion. However, the company faced challenges due to the sale of its consumer and gaming businesses in April 2023, which impacted revenue figures.

In terms of profitability, Global Payments reported an operating income of $2.3 billion, a significant increase of 36% compared to $1.7 billion in 2023. This improvement was attributed to higher revenues and lower acquisition and integration expenses. The operating margin also improved to 23.1%, up from 17.8% in the prior year. The company recognized a gain of $273.1 million from the sale of AdvancedMD, which positively influenced its operating income for the year.

Strategically, Global Payments has been active in reshaping its business through acquisitions and divestitures. The acquisition of EVO Payments, completed in March 2023 for approximately $4 billion, expanded the company's geographic presence and enhanced its business-to-business software solutions. Additionally, the company sold its AdvancedMD business for about $1 billion in December 2024, further streamlining its operations. These strategic moves are part of a broader transformation initiative aimed at enhancing operational efficiency and focusing on high-growth areas.

Operationally, Global Payments reported a workforce of approximately 27,000 employees across 37 countries. The company has been focusing on small- and medium-sized businesses within its Merchant Solutions segment, which has seen increased engagement and adoption of its technology-enabled services. The company also noted a significant increase in its allowance for credit losses, which rose to $24.7 million from $19.0 million, reflecting a proactive approach to managing credit risk amid changing market conditions.

Looking ahead, Global Payments anticipates continued growth driven by the ongoing shift towards digital payments and the expansion of its service offerings. The company expects its transformation initiatives to generate over $600 million in annual run-rate operating income benefits by the first half of 2027. However, it remains cautious about potential economic headwinds, including inflation and geopolitical risks, which could impact consumer and business spending.