Cantor Fitzgerald raised its price target on Global Payments Inc. (GPN) to $88 from $80 on Monday, while keeping a Neutral rating in place following the company's fourth-quarter earnings release. At the time of the note the stock was trading at $79.58, implying some upside to the newly issued target. Separately, InvestingPro analysis cited in the release indicates that the shares appear undervalued at current levels with a Fair Value above analyst targets.
The brokerage updated its financial model after Global Payments provided fiscal 2026 guidance that lays out a multi-point operational outlook. Management is targeting approximately 5% adjusted net revenue growth excluding dispositions, and expects adjusted operating margin expansion of roughly 150 basis points. The company also guided to adjusted earnings per share in a range of $13.80 to $14.00 and said it anticipates adjusted free cash flow conversion above 90% for the fiscal year.
Global Payments disclosed a program of shareholder returns for fiscal 2026 totaling approximately $2.5 billion, which includes a $550 million accelerated share repurchase. The company further noted that the Worldpay transaction has closed and is now being integrated into operations. Additional company details highlighted in the update include a record of paying dividends for 26 consecutive years, a point cited in InvestingPro Tips as evidence of a long-standing commitment to returning capital to shareholders.
The stock has responded materially to the earnings and guidance, posting roughly a 20% gain over the prior week following the report. Cantor Fitzgerald characterized the fourth-quarter results as resolving months of investor uncertainty about the pro-forma growth profile of the combined business. The firm said that the guidance for top-line growth and margin expansion arrived ahead of Street expectations.
The new $88 price target is constructed from a blend of valuation approaches: Cantor applied a 5-times multiple to its calendar year 2027 earnings per share estimate of $16.00 - a revision from the prior $15.09 - and combined that multiple-based valuation with an equally weighted discounted cash flow analysis.
In related company reporting, Global Payments posted fourth-quarter 2025 earnings per share of $3.18, modestly above the consensus forecast of $3.16. Quarterly revenue came in at $2.32 billion, in line with projections. The fiscal 2026 adjusted EPS guidance of $13.80 to $14.00 represents growth of 13% to 15% versus the 2025 base of $12.20, according to the figures presented by the company.
Market analysts beyond Cantor Fitzgerald reacted as well: UBS raised its price target for Global Payments to $87 from $80 while retaining a Neutral rating. Collectively, the analyst moves and company guidance signal increased confidence among some sell-side firms in the company’s near-term financial trajectory.
Key points
- Cantor Fitzgerald raised its target to $88 from $80 and maintained a Neutral rating; the stock was trading at $79.58 at the time of the update.
- Fiscal 2026 guidance calls for roughly 5% adjusted net revenue growth (ex-dispositions), about 150 basis points of adjusted operating margin expansion, adjusted EPS of $13.80 to $14.00, and adjusted free cash flow conversion above 90%.
- Global Payments announced approximately $2.5 billion in shareholder returns for fiscal 2026, including a $550 million accelerated share repurchase; Worldpay has closed and is in integration.
Sectors impacted
- Payments and financial services - results and guidance directly affect payment processing valuations and competitive positioning.
- Equity markets and sell-side coverage - analyst target changes and improved guidance influence investor sentiment and sector comparables.
Risks and uncertainties
- Integration risk - the Worldpay transaction has closed and is being integrated; successful consolidation is necessary for the company to realize projected synergies and growth assumptions. This affects the payments and financial technology sectors.
- Execution vs. expectations - guidance drove analyst revisions and was described as ahead of Street expectations; future quarters will need to sustain the projected revenue and margin trajectory to validate those revisions, which impacts investor confidence in financial markets.
- Valuation sensitivity - Cantor Fitzgerald’s new target relies on a 5x multiple of calendar 2027 EPS and a discounted cash flow model; deviations in realized earnings or cash flow conversion could alter implied valuation, influencing market perception in the financial sector.
The series of analyst target raises, coupled with the company's explicit fiscal 2026 targets and sizable shareholder return plan, frame the current narrative around Global Payments' near-term financial profile. UBS' parallel target increase to $87 reinforces the analytical response from multiple sell-side desks. Investors will watch whether management’s guidance - notably the 5% adjusted net revenue growth metric, the approximately 150 basis points of margin expansion, and the targeted greater-than-90% free cash flow conversion - materializes across the fiscal year.