{"schemaVersion":1,"research":true,"symbol":"gpn","name":"Global Payments","topic":"moat","path":"/stock/gpn/moat","status":"published","version":6,"updatedAt":"2026-10-19T20:52:51.740Z","locked":false,"publicFairValue":false,"fairValue":null,"moat":{"verdict":"uncertain","summary":"Global Payments demonstrates substantial processing scale, recurring merchant relationships, realized cost efficiencies and limited pricing flexibility through cost pass-through. The passages do not establish whether these produce a durable advantage over competing processors. Software integration could increase switching friction, but merchant dependency and comparative switching costs remain unproven. Worldpay increases current scale; its anticipated synergies remain potential benefits. Falling entry barriers and disclosed merchant attrition create erosion concerns without establishing that Global Payments has no moat.","advantages":[{"mechanism":"cost_advantage","claim":"A candidate scale advantage is supported by substantial processing activity, costs that do not vary directly with transaction volume, and realized merchant cost reductions. A sustained cost advantage relative to competitors is not established.","durability":"Existing infrastructure supports operating leverage, but the passages do not demonstrate a lasting relative unit-cost advantage. Worldpay synergy expectations cannot establish completed benefits.","risks":"Technology enables new entrants and falling barriers. Competing processors offer overlapping capabilities, while integration expenses and ongoing investment can absorb efficiencies.","invalidation":"The candidate advantage would be undermined by sustained increases in processing costs per comparable transaction despite stable or rising volume, or disclosed customer losses attributable to competitors offering equivalent service at sustainably lower prices.","competitors":["Fiserv, Inc.","Toast, Inc.","Stripe, Inc."],"evidenceIds":["e1","e2","e3"],"counterEvidenceIds":["e4","e5","e6","e7"]},{"mechanism":"switching_costs","claim":"Payment processing combined with business software and multiyear customer relationships could create switching friction. Current contract obligations support recurring demand, but do not demonstrate strong merchant lock-in.","durability":"Contract-cost amortization assumes benefits over three to seven years, and processing obligations extend beyond the current year. These disclosures support relationship continuity indirectly, rather than measured retention or customer migration costs.","risks":"Global Payments reports actual merchant attrition from competitor losses and unsuccessful renewals. Partners can redirect referrals or processing relationships. Strong termination protections disclosed for the divested Issuer Solutions business do not establish current merchant switching costs.","invalidation":"The candidate advantage would be undermined by sustained deterioration in merchant renewals, material partner-driven merchant departures, or evidence that customers migrate integrated workflows with little disruption or expense.","competitors":["Fiserv, Inc.","Toast, Inc.","Stripe, Inc."],"evidenceIds":["e8","e9","e10","e11"],"counterEvidenceIds":["e12","e13","e14"]}],"evidence":[{"id":"e1","sourceId":"filing-3","location":"CEO and chair message: post-Worldpay processing scale","excerpt":"Global Payments now processes $3.7 trillion in annual payment volume across 94 billion transactions, serving more than six million merchant locations in over 175 countries."},{"id":"e2","sourceId":"filing-2","location":"MD&A: transaction processing operating leverage","excerpt":"Many of those costs do not vary directly with the level of payment transactions we process for our customers, generating operating leverage."},{"id":"e3","sourceId":"filing-1","location":"MD&A: realized Merchant Solutions cost reductions","excerpt":"The increase in gain on sale of $58.3 million contributed approximately 0.8% in operating margin for the year ended December 31, 2025; and •Merchant Solutions operating income increased $152.9 million and operating margin increased 2.1% primarily due to the favorable effect of cost reduction initiatives associated with our new operating model and transformation initiatives."},{"id":"e4","sourceId":"filing-1","location":"Business: competition and falling entry barriers","excerpt":"We expect the payments technology industry to become more competitive over time, as advances in technology enable new entrants, barriers to entry fall and existing providers expand their services, both operationally and geographically."},{"id":"e5","sourceId":"filing-15","location":"Fiserv competitor disclosure: overlapping payments and POS capabilities","excerpt":"We help clients achieve best-in-class results through a commitment to innovation and excellence in areas including account processing and digital banking solutions; card issuer processing and network services; payments; e-commerce; merchant acquiring and processing; and the Clover® cloud-based point-of-sale (“POS”) and business management platform."},{"id":"e6","sourceId":"filing-2","location":"Segment information: first-half acquisition, transformation and transaction expenses","excerpt":"For the six months ended June 30, 2026 and 2025, operating income included acquisition, transformation, and transaction expenses of $585.1 million and $228.3 million, respectively, which were primarily included within Corporate and other expenses."},{"id":"e7","sourceId":"filing-3","location":"CEO and chair message: prospective Worldpay synergies","excerpt":"With the extensive integration planning completed throughout 2025, we built a strong foundation for a seamless transition, and remain fully on track to deliver the revenue and cost synergies we outlined at announcement."},{"id":"e8","sourceId":"filing-1","location":"Business: commerce enablement and business management services","excerpt":"We also provide a variety of commerce enablement solutions and services, including data analytics and customer engagement, human capital management and payroll, accounts receivable automation, inventory management and reporting that assist our customers with driving demand and operating their businesses more efficiently."},{"id":"e9","sourceId":"filing-1","location":"Accounting policies: expected benefit period for capitalized contract costs","excerpt":"We amortize these assets over the expected period of benefit, which, based on the factors noted above, is typically three to seven years."},{"id":"e10","sourceId":"filing-2","location":"Note 4: remaining processing performance obligations","excerpt":"Accordingly, the total amount of unsatisfied or partially unsatisfied performance obligations related to processing services is significantly higher than the amounts disclosed in the table below (in thousands):\nYear Ending December 31,\nRemainder of 2026\n193,868 \n281,735 \n179,134 \n121,754 \n71,860 \n27,143 \n2032 and thereafter\n28,947 \n904,441 \nNOTE 5—GOODWILL AND OTHER INTANGIBLE ASSETS"},{"id":"e11","sourceId":"filing-2","location":"Note 4: exclusions from remaining performance obligation disclosure","excerpt":"However, as permitted, we have elected to exclude from this disclosure any contracts with an original duration of one year or less, and any variable consideration that meets specified criteria."},{"id":"e12","sourceId":"filing-4","location":"Risk factors: experienced merchant attrition and failed renewals","excerpt":"We experience attrition in merchant credit and debit card processing volume resulting from several factors, including merchant closures, loss of merchant accounts to our competitors, unsuccessful contract renewal negotiations and account closures that we initiate for various reasons, such as heightened credit risks or contract breaches by merchants."},{"id":"e13","sourceId":"filing-4","location":"Risk factors: potential referral-partner departures","excerpt":"If a referral partner switches to another transaction processor, terminates our services, internalizes payment processing functions that we perform, merges with or is acquired by one of our competitors or shuts down or becomes insolvent, we may no longer receive new merchant referrals from such referral partner, and we risk losing existing merchants that were originally enrolled by the referral partner."},{"id":"e14","sourceId":"filing-3","location":"CEO and chair message: acquisition and divestiture completed in January 2026","excerpt":"Both transactions closed in early January 2026, well ahead of plan."},{"id":"e15","sourceId":"filing-1","location":"Regulation: reported ability to pass network fees and costs to customers","excerpt":"The prohibition on network exclusivity has not significantly affected the Company's ability to pass on network fees and other costs to customers, nor do we expect it to in the future."},{"id":"e16","sourceId":"filing-1","location":"Business: negotiated merchant discount rates and pricing structures","excerpt":"Discount rates vary based on negotiations with merchants and the economic characteristics of transactions and take many forms, such as interchange plus our fee or a bundled rate that includes all fees."},{"id":"e17","sourceId":"filing-7","location":"Second-quarter 2026 summary: normalized adjusted revenue growth","excerpt":"On a normalized basis1, consistent with our full-year outlook, adjusted net revenue increased approximately 4%."},{"id":"e18","sourceId":"filing-7","location":"Second-quarter 2026 summary: normalized adjusted margin expansion","excerpt":"Adjusted operating margin expanded 70 basis points on a normalized basis1 to 42.0%."},{"id":"e19","sourceId":"filing-7","location":"Normalized comparison definition: Worldpay and divested businesses","excerpt":"1 Normalized comparisons include the pre-acquisition results of Worldpay and exclude the results of Issuer Solutions and other divested businesses."},{"id":"e20","sourceId":"filing-2","location":"MD&A: second-quarter GAAP operating income and margin","excerpt":"Three Months Ended June 30, 2026 % of Revenue (1) Three Months Ended June 30, 2025 % of Revenue (1) Change % Change (dollar amounts in thousands) Revenues (2): Enterprise $ 838,301 25.2 % $ 149,022 7.6 % $ 689,279 462.5 % Platforms 652,768 19.7 % 287,774 14.6 % 364,994 126.8 % SMB 1,648,952 49.7 % 1,333,423 67.7 % 315,529 23.7 % Other revenues (3) 180,770 5.4 % 199,068 10.1 % (18,298) (9.2) % Consolidated revenues $ 3,320,791 $ 1,969,287 $ 1,351,504 68.6 % Operating expenses (2): Cost of service 1,293,879 39.0 % 501,772 25.5 % 792,107 157.9 % Selling, general and administrative 1,689,791 50.9 % 1,041,256 52.9 % 648,535 62.3 % Impairment of goodwill — — % 33,218 1.7 % (33,218) (100.0) % Gain on business disposition — — % (267) — % 267 (100.0) % Consolidated operating expenses $ 2,983,670 89.8 % $ 1,575,979 80.0 % $ 1,407,691 89.3 % Operating income (2): Enterprise $ 247,593 $ 84,305 $ 163,288 193.7 % Platforms 192,794 120,248 72,546 60.3 % SMB 628,460 669,187 (40,727) (6.1) % Other revenues (3) 180,770 199,068 (18,298) (9.2) % Corporate and other expenses (4) (449,966) (396,748) (53,218) 13.4 % Technology, operations and product development expenses (5) (462,530) (249,801) (212,729) 85.2 % Impairment of goodwill — (33,218) 33,218 (100.0) % Gain on business disposition — 267 (267) (100.0) % Consolidated operating income (6) $ 337,121 10.2 % $ 393,308 20.0 % $ (56,187) (14.3) % Operating margin (2): Enterprise 29.5 % 56.6 % (27.1) % Platforms 29.5 % 41.8 % (12.3) % SMB 38.1 % 50.2 % (12.1) % 41 Table of Contents NM = Not meaningful (1) Percentage amounts may not sum to the total due to rounding."},{"id":"e21","sourceId":"filing-7","location":"Non-GAAP measures: excluded acquisition and transformation expenses","excerpt":"Adjusted operating income, adjusted operating margin, adjusted net income attributable to Global Payments and adjusted EPS exclude acquisition-related amortization expense, acquisition, integration, separation and transformation expense, gains or losses on business dispositions, and certain other items specific to each reporting period as more fully described in the accompanying reconciliations in Schedules 6 and 7."},{"id":"e22","sourceId":"filing-10","location":"Cash flow statement: 2025 operating cash generation","excerpt":"Depreciation and amortization of property and equipment\n418,837 \n493,003 \nAmortization of acquired intangibles\n996,540 \n1,369,328 \nAmortization of capitalized contract costs\n127,730 \n138,051 \nShare-based compensation expense\n153,647 \n164,244 \nProvision for operating losses and credit losses\n78,773 \n81,018 \nNoncash lease expense\n45,466 \n58,728 \nDeferred income taxes\n(82,040)\n(346,228)\nPaid-in-kind interest capitalized to principal of notes receivable\n(59,356)\n(74,139)\nEquity in income of equity method investments, net of tax\n(120,013)\n(70,499)\nDistributions received on investments\n35,831 \n32,849 \nImpairment of goodwill\n33,218 \n— \nTechnology asset charge\n— \n55,808 \nNet (gain) loss on business dispositions\n(155,527)\n(273,134)\nOther, net\n74,096 \n45,787 \nChanges in operating assets and liabilities, net of the effects of business combinations and dispositions:\nAccounts receivable\n(33,274)\n(10,443)\nPrepaid expenses and other assets\n(173,369)\n(221,447)\nAccounts payable and other liabilities\n(140,014)\n(29,496)\nNet cash provided by operating activities\n2,656,592 \n3,057,583 \nCash flows from investing activities:"},{"id":"e23","sourceId":"filing-10","location":"Cash flow statement: 2025 capital expenditure and acquisitions","excerpt":"Business combinations and other acquisitions, net of cash and restricted cash acquired\n(352,090)\n(487,056)\nCapital expenditures\n(617,769)\n(674,917)\nPayments received on notes receivable\n17,500 \n— \nNet cash from sales of businesses\n713,136 \n962,435 \nProceeds from sales of investments\n8,926 \n19,008 \nOther, net\n— \n6,639 \nNet cash used in investing activities\n(230,297)\n(173,891)\nCash flows from financing activities:"},{"id":"e24","sourceId":"filing-2","location":"Cash flow statement: first-half 2026 operating cash, investment, financing and repurchases","excerpt":"UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) Six Months Ended June 30, 2026 June 30, 2025 Cash flows from operating activities: Net income (loss) $ (1,750,128) $ 558,870 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and amortization of property and equipment 244,072 225,105 Amortization of acquired intangibles 1,504,738 551,074 Amortization of capitalized contract costs 51,796 66,966 Share-based compensation expense 57,193 79,550 Provision for operating losses and credit losses 72,783 41,880 Noncash lease expense 35,612 25,163 Deferred income taxes (881,242) 95,584 Paid-in-kind interest capitalized to principal of notes receivable (33,396) (38,961) Equity in income of equity method investments, net of tax (41,531) (38,299) Distributions received on investments — 7,512 Impairment of goodwill — 33,218 Gain on business disposition (22,174) (4,260) Other, net 49,937 19,621 Changes in operating assets and liabilities, net of the effects of business combinations: Accounts receivable (141,531) (102,565) Prepaid expenses and other assets (288,990) (124,058) Income taxes payable 2,333,824 (15,461) Accounts payable and other liabilities (817,165) (8,290) Net cash provided by operating activities 373,798 1,372,649 Cash flows from investing activities: Business combinations and other acquisitions, net of cash and restricted cash acquired (1,421,470) (205,825) Capital expenditures (497,000) (279,747) Principal payment received on notes receivable 8,750 8,750 Net cash from sales of businesses 7,362,347 — Net cash provided by (used in) investing activities 5,452,627 (476,822) Cash flows from financing activities: Changes in funds held for customers (24,077) (118,967) Changes in settlement processing assets and obligations, net (694,176) 630,244 Net borrowings from settlement lines of credit 827,464 87,551 Net borrowings from commercial paper notes 674,393 797,732 Proceeds from long-term debt 9,331,133 2,755,112 Repayments of long-term debt (18,055,394) (3,769,614) Payments of debt issuance costs (9,798) (40,512) Repurchases of common stock (1,099,942) (691,089) Proceeds from stock issued under share-based compensation plans 12,331 16,244 Common stock repurchased - share-based compensation plans (33,795) (37,372) Distributions to noncontrolling interests (37,781) (30,095) Dividends paid (134,717) (121,501) Net cash used in financing activities (9,244,359) (522,267) Effect of exchange rate changes on cash, cash equivalents and restricted cash (5,586) 230,353 Increase (decrease) in cash, cash equivalents and restricted cash (3,423,520) 603,913 Cash, cash equivalents and restricted cash, beginning of the period 9,116,414 2,735,975 Cash, cash equivalents and restricted cash, end of the period $ 5,692,894 $ 3,339,888 See Notes to Unaudited Consolidated Financial Statements."},{"id":"e25","sourceId":"filing-2","location":"MD&A: transaction-related payments affecting operating cash flow","excerpt":"Operating cash flows for the six months ended June 30, 2026 reflect the payment of costs associated with the acquisition of Worldpay and divestiture of our Issuer Solutions business, along with certain liabilities assumed in the acquisition of Worldpay."},{"id":"e26","sourceId":"filing-2","location":"Acquisition accounting: Worldpay consideration and common stock issuance","excerpt":"Legal Proceedings\nPrice per share of Global Payments common stock as of January 8, 2026 (2)\n78.69 \nFair value of common stock issued\n3,366,342 \nCash paid to GTCR (3)\n6,047,171 \n9,413,513 \nConsideration transferred to FIS:\nFair value of the Issuer Solutions business transferred to FIS (4)\n15,086,000 \nCash received from FIS, including reimbursement of cash in business transferred (5)\n(7,516,216)\n7,569,784 \nTotal purchase consideration\n16,983,297 \n(1) Number of shares issued is net of 488,253 shares, with post-combination employee service requirements and includes 729,600 shares related to Worldpay equity awards that vested automatically at closing and were converted into Global Payments common stock."},{"id":"e27","sourceId":"filing-3","location":"Compensation practices: ownership thresholds, clawbacks and hedging restrictions","excerpt":"Compensation Practices ​ What We Do ​ ​ ​ What We Don’t Do ​ ​ ☑ Tie pay to financial and share price performance ​ ☑ Employ robust goal-setting process to align goals with Company strategy ​ ☑ Retain an independent compensation consultant ​ ☑ Benchmark against our peer group ​ ☑ Conduct an annual say-on-pay vote ​ ☑ Adjust performance metrics under our short-term incentive plan to reflect acquisition and disposition impacts ​ ☑ Require Compensation Committee certification of performance results for purposes of NEOs’ compensation ​ ☑ Payouts under our short-term incentive plan and long-term PSUs are capped at 200% of target ​ ☑ Employ “double-trigger” change-in-control compensation ​ ☑ Maintain a comprehensive clawback policy that requires the Company to recover incentive compensation in the event of an accounting restatement ​ ☑ Impose minimum stock ownership thresholds as a percentage of base salary (CEO, 600%; all other NEOs, 400%) and holding periods until such thresholds are met ​ ☑ Engage with our shareholders on executive compensation and communicate feedback to our board ​ ​ ​ ​ ☒ Provide for excise tax gross-ups ​ ☒ Permit hedging or pledging of our stock ​ ☒ Re-price or backdate stock options or issue discounted stock options or SARs ​ ☒ Permit liberal share recycling or “net share counting” upon exercise of stock options or SARs ​ ☒ Pay dividend equivalent rights on PSUs ​ ☒ Provide excessive perquisites, benefits or severance benefits ​ ☒ Count unexercised options (vested or unvested) and unearned PSUs towards satisfaction of stock ownership guidelines ​ ​ GLOBAL PAYMENTS INC."},{"id":"e28","sourceId":"filing-3","location":"Stock ownership guidelines: reported NEO compliance","excerpt":"Each of our NEOs was in compliance with the stock ownership guidelines as of the record date."},{"id":"e29","sourceId":"filing-3","location":"Compensation: performance units actually granted in 2025","excerpt":"2025 Performance Units Design In 2025, our Compensation Committee granted approximately 50% of the target 2025 LTI awards to our NEOs in performance units."},{"id":"e30","sourceId":"filing-3","location":"Compensation: three-year PSU performance period and relative TSR modifier","excerpt":"​ ​ +/- 25% multiplier based on the Company’s total shareholder return rank relative to the S&P 500 index over the three-year performance period ​ ​ The 2025 PSUs have a three-year performance period and may be earned based on the sustained year-over-year growth in our annual adjusted EPS, subject to downward or upward adjustment of 25% based on relative TSR (up to the 200% of target maximum)."},{"id":"e31","sourceId":"filing-3","location":"Pay versus performance: adjusted EPS exclusions","excerpt":"Our company selected measure is adjusted EPS, which is a non-GAAP measure, that excludes (i) acquisition-related amortization expense, (ii) share-based compensation expense, (iii) acquisition, integration and separation expenses, (iv) goodwill impairment charges and gain or losses on business divestitures, (v) facilities exit charges, (vi) equity method investment earnings from the Company’s interest in a private equity investment fund, (vii) discrete tax items and (viii) certain other items specific to each reporting period."},{"id":"e32","sourceId":"filing-3","location":"Governance: existing board independence and shareholder rights","excerpt":"In keeping with our commitment to foster and maintain responsible corporate governance, we have implemented robust governance practices that provide independent oversight and promote accountability, including: • annual election of all directors; ​ • majority voting for the election of directors in uncontested elections, with directors who fail to receive the required majority vote required to tender their resignation for consideration by the board; ​ • independent board leadership with a strong non-employee Chairman of the Board; ​ • a market standard proxy access right that permits stockholders owning 3% or more of our outstanding shares of common stock the right to nominate director candidates constituting up to 20% of our board, and to solicit votes for those candidates using our proxy materials; ​ • shareholders who own 15% of the outstanding shares of common stock for a one-year period may call a special meeting of shareholders; ​ • no supermajority shareholder voting requirements in our articles of incorporation and bylaws; ​ • no shareholder rights plans; and ​ • all standing board committees are chaired by and composed solely of independent directors."},{"id":"e33","sourceId":"filing-3","location":"Audit committee report: private oversight sessions conducted in 2025","excerpt":"held separate private sessions, during its regularly scheduled meetings, with each of the Company’s Chief Legal Officer, the independent registered public accounting firm, and the head of Internal Audit, at which candid discussions regarding financial management, legal, accounting, auditing and internal control matters took place;"},{"id":"e34","sourceId":"filing-12","location":"Annual meeting results: written-consent proposal rejected","excerpt":"a shareholder proposal regarding a shareholder right to act by written consent."},{"id":"e35","sourceId":"filing-12","location":"Annual meeting results: actual advisory compensation vote","excerpt":"For\n \n Against\n \n Abstain\n \n Broker Non-Votes\n 146,640,626\n \n 79,718,672\n \n 459,030\n \n 22,191,119\n \n Proposal\n3."},{"id":"e36","sourceId":"filing-1","location":"Business competition: named US provider","excerpt":"In the United States, we compete with a large number of providers, including but not limited to Fiserv, Inc."},{"id":"e37","sourceId":"filing-1","location":"Business competition: named US providers","excerpt":"Bancorp, Bank of America Merchant Services, Wells Fargo Merchant Services, Toast, Inc., Stripe, Inc."},{"id":"e38","sourceId":"filing-7","location":"Non-GAAP reconciliation: second-quarter acquired intangible amortization","excerpt":"Adjustments to COS include amortization of acquired intangibles of $757.6 million, acquisition, integration and separation expenses of $0.3 million, and other items of $6.7 million."},{"id":"e39","sourceId":"filing-1","location":"Accounting policies: assumptions underlying customer relationship benefit periods","excerpt":"In order to determine the appropriate amortization period for capitalized contract costs, we consider a combination of factors, including customer attrition rates, estimated terms of customer relationships, the useful lives of technology we use to provide goods and services to our customers, whether future contract renewals are expected and if there is any incremental commission expected to be paid associated with a contract renewal."}],"changes":["Retained the uncertain moat verdict: current scale and operating achievements still do not establish durable relative cost advantages or strong merchant switching costs.","Added explicit named competitor coverage and a bounded comparison with Fiserv's overlapping product capabilities; no Fiserv financial results or customer outcomes are attributed to Global Payments.","Revalidated all eight pricing and management grades against the current catalog. Removed reliance on prior analysis as evidence and distinguished assumed relationship lives from measured retention.","Updated governance context with the actual April 2026 rejection of written consent and the advisory compensation voting results."],"limitations":["The supplied sources retain dateKind=filed. No retrieval date is treated as a publication date, and operating periods are distinguished from filing dates.","Scale, strategic differentiation and synergy statements are issuer disclosures. Reported operating results support ordinary grades, but do not demonstrate exceptional durability.","Named competitors are established by e36 and e37. Detailed comparative evidence is limited to Fiserv's disclosed product scope; competitor unit costs, merchant migration outcomes and pricing are absent.","Merchant retention rates, realized net fee changes, migration costs and unilateral repricing rights are not disclosed. Retention is assessed indirectly from contract obligations, assumed relationship lives, operating growth and experienced attrition.","Issuer Solutions was divested in January 2026. Its long-term contracts, annual minimums and early termination penalties are excluded from the current merchant moat assessment.","Worldpay purchase-accounting values and expected synergies do not demonstrate customer loyalty, acquisition returns or completed integration benefits.","Ownership policies and reported compliance are supplied, but detailed current executive beneficial ownership is not established here. Advisory compensation approval does not prove effective incentive alignment."],"qualityAssessments":[{"category":"moat","checks":[{"criterion":"structural_advantage","grade":null,"rationale":"Processing scale, operating leverage and realized efficiencies establish capabilities, but their competitive superiority is unresolved. Fiserv also discloses overlapping payments and POS capabilities.","evidenceIds":["e1","e2","e3","e5"]},{"criterion":"durability","grade":null,"rationale":"Multiyear relationship assumptions and future processing obligations support continuity, but do not establish durable switching costs or relative cost leadership. Worldpay synergies remain expectations.","evidenceIds":["e7","e9","e10","e39"]},{"criterion":"customer_dependency","grade":null,"rationale":"Integrated business services could increase dependency, but migration costs and customer reliance on Global Payments specifically are unquantified. Actual competitor losses and failed renewals prevent treating payment acceptance necessity as issuer lock-in.","evidenceIds":["e8","e12"]},{"criterion":"erosion_resilience","grade":null,"rationale":"Normalized growth and adjusted margin expansion show current operating resilience. They cannot resolve long-term resistance to falling entry barriers, partner departures or competing platforms.","evidenceIds":["e4","e13","e17","e18"]}]},{"category":"pricing_power","checks":[{"criterion":"realized_pricing","grade":2,"rationale":"Reported preservation of network-fee and other cost pass-through supports a limited observed pricing outcome. Negotiated merchant rates do not establish premium pricing or sustained increases in Global Payments' own net fees.","evidenceIds":["e15","e16"]},{"criterion":"retention","grade":2,"rationale":"Remaining processing obligations, three-to-seven-year contract-cost benefit periods and normalized revenue growth support repeat demand indirectly. Experienced merchant losses to competitors and failed renewals temper this evidence. Neither a retention rate nor exceptional loyalty is established.","evidenceIds":["e9","e10","e11","e12","e17","e19","e39"]},{"criterion":"margin_resilience","grade":2,"rationale":"Realized merchant cost reductions and 70 basis points of normalized adjusted margin expansion support resilience. Second-quarter GAAP operating margin fell to 10.2% from 20.0%; substantial acquired intangible amortization and transaction expenses complicate comparison. Efficiency gains and adjusted margins alone do not demonstrate pricing power.","evidenceIds":["e3","e6","e18","e19","e20","e21","e38"]},{"criterion":"contractual_freedom","grade":2,"rationale":"Negotiated merchant discounts, interchange-plus fees and bundled rates establish discretion over pricing structures, supported by reported cost pass-through. Customer negotiation constrains that freedom; unilateral repricing rights are not established.","evidenceIds":["e15","e16"]}]},{"category":"strong_management","checks":[{"criterion":"capital_discipline","grade":2,"rationale":"2025 operating cash of $2.66 billion exceeded $617.8 million of capital expenditure. First-half 2026 operating cash of $373.8 million fell below $497.0 million of capital expenditure while cash repurchases reached $1.10 billion. Disposal proceeds and debt repayments provide balance; transaction payments affected cash generation. Worldpay required stock issuance as well as cash and business consideration, and acquisition returns remain unproven.","evidenceIds":["e22","e23","e24","e25","e26"]},{"criterion":"incentive_alignment","grade":2,"rationale":"Existing ownership thresholds, reported NEO compliance, clawbacks, hedging restrictions and actually granted three-year PSUs with a relative TSR modifier support alignment. Adjusted EPS exclusions weaken the connection to full economic costs. The April advisory vote also recorded substantial opposition. Grant terms do not establish that the 2025 PSUs were earned or vested.","evidenceIds":["e27","e28","e29","e30","e31","e35"]},{"criterion":"execution","grade":2,"rationale":"Completed transactions, realized merchant cost reductions, normalized growth and adjusted margin expansion support execution. Higher transaction expenses, weaker GAAP profitability and reduced operating cash make the record mixed. These operating results provide indirect integration evidence; completed Worldpay synergies are not established.","evidenceIds":["e3","e6","e7","e14","e17","e18","e19","e20","e24","e25"]},{"criterion":"governance","grade":3,"rationale":"Existing annual elections, independent board leadership and standing committees, proxy access and special-meeting rights support strong governance practices. Private audit sessions demonstrate actual oversight activity. Shareholders rejected written consent in April 2026, leaving that limitation in place. 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