Global Payments cuts annual forecasts as Middle East conflict hits travel spending

Payment technology company Global Payments has reduced its annual net revenue and profit forecasts, citing economic uncertainty linked to the Middle East conflict. This conflict has disrupted global travel, leading to decreased spending on travel and cross-border transactions, which directly affects payment processors.

The company now projects normalized constant currency adjusted net revenue growth of approximately 4% to 5% for the full year 2026. Adjusted earnings per share are expected to be between $13.60 and $13.80. This marks a downward revision from its previous forecast of about 5% adjusted net revenue growth and adjusted profit between $13.80 and $14 per share.

Despite the revised annual outlook, Global Payments reported an increase in its quarterly net profit. For the three months ending June 30, the company's adjusted net profit attributable to it rose to $934.31 million, or $3.46 per share, compared to $754.19 million, or $3.10 per share, in the same period last year.

Shares of Global Payments, which had seen a 14% increase year-to-date, fell about 2.7% in premarket trading following the release of its results. The company provides technology and services that enable customers to accept various forms of payment, including card, check, and digital payments.