GPN · 10-Q · 2026Q2 · Full report

Interest Rate Environment

GLOBAL PAYMENTS INC · 2026-08-05 · Importance 25 · Surprise 6 · In source text

Global Payments states that inflationary pressure and interest-rate fluctuations may increase costs, reduce consumer spending and adversely affect future financial results and asset recoverability. The company reduced exposure through fixed-rate debt and interest-rate swaps covering a significant portion of eligible variable-rate borrowings under its revolving credit facility. Interest and other expense increased by $218.8 million year over year to $519.9 million for the six months ended June 30, 2026, primarily because of higher average borrowings related to Worldpay and higher average interest rates following refinancing in the first half of 2026.

Key facts

• Interest and other expense for the six months ended June 30, 2026 increased $218.8 million to $519.9 million compared to $301.1 million for the prior year. source
• Interest and other expense for the three months ended June 30, 2026 increased $125.0 million to $277.5 million compared to $152.5 million for the prior year. source
• We have sought to reduce interest rate risk by issuing fixed rate debt in place of variable rate debt and through interest rate swap hedging arrangements converting a significant portion of eligible variable rate borrowings under our revolving credit facility to fixed rate. source

Impact estimates