GPN · 10-Q · 2026Q2 · Full report
Operating Expense Trends
GLOBAL PAYMENTS INC · 2026-08-05 · Importance 69 · Surprise 64 · No source text
Cost of service increased 157.9% to $1,293.9 million in the second quarter and 157.5% to $2,567.5 million for the first six months, primarily from Worldpay. Acquired-intangible amortization rose to $757.6 million for the quarter and $1,504.7 million for six months, representing approximately 59% of cost of service in each period. SG&A increased 62.3% to $1,689.8 million for the quarter and 70.2% to $3,401.5 million for six months, with Worldpay contributing approximately $792.9 million and $1,528.7 million, respectively. Technology, operations and product development expense increased 85.2% to $462.5 million for the quarter and 74.3% to $891.1 million for six months, while acquisition, transformation and transaction expenses reached $197.8 million and $585.1 million, respectively.
Key facts
- Cost of service for the three months ended June 30, 2026 increased by $792.1 million, or 157.9%, to $1,293.9 million from $501.8 million in the prior year. source
- Selling, general and administrative expense for the three months ended June 30, 2026 increased by $648.5 million, or 62.3%, to $1,689.8 million from $1,041.3 million in the prior year. source
- Technology, operations and product development expenses for the three months ended June 30, 2026 increased by $212.7 million, or 85.2%, to $462.5 million from $249.8 million in the prior year. source
- Consolidated operating expenses for the six months ended June 30, 2026 were $5,968,998 thousand (94.9% of revenue) compared to $3,024,338 thousand (79.8%) for the prior year. source
- For the three months ended June 30, 2026, the Worldpay acquisition increased cost of service by approximately $732.4 million and cost of service as a percentage of revenue by 9.7%. source
- For the three months ended June 30, 2026, the Worldpay acquisition increased selling, general and administrative expense by approximately $792.9 million. source
- Operating income included acquisition, transformation and transaction expenses of $585.1 million and $228.3 million for the six months ended June 30, 2026 and 2025, respectively. source
- Operating income included acquisition, transformation and transaction expenses of $197.8 million and $133.7 million for the three months ended June 30, 2026 and 2025, respectively. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | negative | realized | -88.7% | Consolidated operating expenses for the six months ended June 30, 2026 were $5,968,998 thousand (94.9% of revenue) compared to $3,024,338… |
| operating_income | negative | realized | -45.3% | Amortization of acquired intangible assets was $1,504.7 million for the six months ended June 30, 2026, representing approximately 59% of… |
| operating_income | negative | realized | -23.9% | Cost of service for the three months ended June 30, 2026 increased by $792.1 million, or 157.9%, to $1,293.9 million from $501.8 million… |
| operating_income | negative | realized | -22.8% | Amortization of acquired intangible assets was $757.6 million for the three months ended June 30, 2026, representing approximately 59% of… |
| operating_income | negative | realized | -22.1% | For the three months ended June 30, 2026, the Worldpay acquisition increased cost of service by approximately $732.4 million and cost of… |
| operating_income | negative | realized | -19.5% | Selling, general and administrative expense for the three months ended June 30, 2026 increased by $648.5 million, or 62.3%, to $1,689.8… |
| margin | negative | realized | -13.5% | Cost of service as a percentage of revenues increased to 39.0% for the three months ended June 30, 2026 from 25.5% in the prior year. |
| operating_income | negative | realized | -10.7% | Operating income included acquisition, transformation and transaction expenses of $585.1 million and $228.3 million for the six months… |
| operating_income | negative | realized | -6.4% | Technology, operations and product development expenses for the three months ended June 30, 2026 increased by $212.7 million, or 85.2%, to… |
| operating_income | negative | realized | -1.9% | Operating income included acquisition, transformation and transaction expenses of $197.8 million and $133.7 million for the three months… |