GPN · 8-K · 20260805PR000082
Operating Expense Trends
GLOBAL PAYMENTS INC · 2026-08-05 · Importance 73 · Surprise 64 · From source text
Second-quarter GAAP cost of service increased 157.9% year over year to $1.294 billion, while selling, general and administrative expense increased 62.3% to $1.690 billion. Second-quarter adjusted earnings excluded $764.6 million of cost-of-service items, including $757.6 million of acquired-intangible amortization, and $229.0 million of SG&A items. The SG&A adjustments included $157.4 million of acquisition, integration and separation expenses and $40.1 million of business-transformation charges. Six-month adjusted SG&A adjustments totaled $629.2 million, including $448.6 million of acquisition, integration and separation costs and $136.0 million of business-transformation charges.
Key facts
- Three months ended June 30, 2026 cost of service was $1,293,879 (in thousands), a 157.9% increase YoY source
- Three months ended June 30, 2026 selling, general and administrative expense was $1,689,791 (in thousands), a 62.3% increase YoY source
- For the three months ended June 30, 2026, earnings adjustments to operating income include $764.6 million in cost of service and $229.0 million in selling, general and administrative expenses source
- For the three months ended June 30, 2026 adjustments to COS include amortization of acquired intangibles of $757.6 million source
- For the six months ended June 30, 2026 earnings adjustments to operating income include $1,523.5 million in COS and $629.2 million in SG&A source
- For the six months ended June 30, 2026 adjustments to COS include amortization of acquired intangibles of $1,504.6 million source
- Capital expenditures for the six months ended June 30, 2026 were $(497,000) (in thousands) source
- For the three months ended June 30, 2026 adjustments to SG&A include acquisition, integration and separation expenses of $157.4 million source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | negative | realized | -48.2% | For the six months ended June 30, 2026 earnings adjustments to operating income include $1,523.5 million in COS and $629.2 million in SG&A |
| operating_income | negative | realized | -25.1% | Three months ended June 30, 2026 cost of service was $1,293,879 (in thousands), a 157.9% increase YoY |
| operating_income | negative | realized | -24.2% | For the three months ended June 30, 2026, earnings adjustments to operating income include $764.6 million in cost of service and $229.0… |
| operating_income | negative | realized | -20.5% | Three months ended June 30, 2026 selling, general and administrative expense was $1,689,791 (in thousands), a 62.3% increase YoY |
| operating_income | negative | realized | -19.9% | For the six months ended June 30, 2026 earnings adjustments to operating income include $1,523.5 million in COS and $629.2 million in SG&A |
| operating_income | negative | realized | -7.3% | For the three months ended June 30, 2026, earnings adjustments to operating income include $764.6 million in cost of service and $229.0… |
| operating_income | negative | realized | — | Six months ended June 30, 2026 amortization of acquired intangibles was $1,504,738 (in thousands) |
| net_income | negative | realized | — | Six months ended June 30, 2026 amortization of acquired intangibles was $1,504,738 (in thousands) |