Shift4 Payments (NYSE:FOUR) Issues Quarterly Earnings Results

Key Points

• Shift4 Payments beat quarterly expectations: Adjusted EPS was $1.32 versus the $1.25 consensus, while revenue rose 50.9% year over year to approximately $1.29 billion.
• Growth remained strong across the business: Gross revenue less network fees increased 51% to $624 million, adjusted EBITDA climbed 39% to $284 million, and international payments revenue grew 53%.
• Travel disruptions pressured the outlook: Management expects about a $25 million third-quarter impact from Middle East-related travel weakness and lowered fiscal 2026 EPS guidance to $5.15–$5.35; shares fell to $43.51 following the update.

Shift4 Payments (NYSE:FOUR - Get Free Report) issued its quarterly earnings results on Thursday. The company reported $1.32 earnings per share for the quarter, topping the consensus estimate of $1.25 by $0.07, Briefing.com reports. Shift4 Payments had a return on equity of 33.55% and a net margin of 2.63%.The business had revenue of $1.29 billion during the quarter, compared to the consensus estimate of $615.18 million. During the same quarter last year, the company earned $1.10 earnings per share. The company's quarterly revenue was up 50.9% on a year-over-year basis. Shift4 Payments updated its FY 2026 guidance to 5.150-5.350 EPS.

Here are the key takeaways from Shift4 Payments' conference call:

• Strong Q2 performance exceeded guidance: Gross revenue less network fees rose 51% year over year to $624 million, adjusted EBITDA increased 39% to $284 million at a 46% margin, and adjusted free cash flow reached $21 million versus the $10 million forecast.
• International payments-based revenue less network fees grew 53%, with Shift4 One now live in 12 countries and Shift4 Dine launched in Spain and Australia. Management expects international expansion and cross-selling across Global Blue’s merchant base to become a more meaningful growth driver in 2027.
• Management characterized the underlying business as resilient, with Americas payments growth of 19% and same-store sales trends in restaurants and lodging slightly better than expected. However, the full-year outlook assumes no material recovery in same-store sales during the second half.
• Travel disruption related to the Middle East conflict remains a significant headwind, including an estimated $25 million impact to Q3 and approximately $20 million of foreign-exchange translation pressure in the full-year outlook. The company consequently expects growth near the low end of its original range, with FX-neutral GRLNF growth now forecast at 24%–27%.
• Shift4 raised $1 billion of Term Loan B primarily to pre-fund its August 2027 convertible maturity, extending funded debt maturities into 2031–2032. Pro forma net leverage was 3.7x, prompting conservative Q2 buybacks, although management expects leverage to return to the low 3x range by year-end.

Shift4 Payments Stock Performance

Shares of Shift4 Payments stock traded down $9.87 on Thursday, reaching $43.51. 4,867,840 shares of the stock were exchanged, compared to its average volume of 1,048,193. The company has a quick ratio of 1.22, a current ratio of 1.22 and a debt-to-equity ratio of 2.55. Shift4 Payments has a twelve month low of $34.56 and a twelve month high of $92.79. The firm has a market capitalization of $3.45 billion, a price-to-earnings ratio of 51.80, a PEG ratio of 0.59 and a beta of 1.40. The business has a 50 day moving average price of $46.47 and a two-hundred day moving average price of $48.27.

Shift4 Payments News Roundup

Here are the key news stories impacting Shift4 Payments this week:

• Positive Sentiment: Shift4 reported second-quarter adjusted EPS of $1.32, above the $1.19–$1.25 analyst estimates and up from $1.10 a year earlier. Revenue reached approximately $1.29 billion–$1.30 billion, increasing 50.9% year over year and substantially exceeding consensus estimates. Shift4 Payments Q2 Earnings and Revenues Beat Estimates
• Positive Sentiment: Management continues to forecast 2026 gross revenue less network fees of approximately $2.48 billion to $2.53 billion, indicating expectations for substantial growth despite near-term disruptions. Shift4 forecasts 2026 GRLNF amid travel disruption impact
• Neutral Sentiment: BTIG Research lowered its price target from $70 to $60 but maintained a Buy rating, implying substantial potential upside if Shift4 executes against its revised outlook.
• Negative Sentiment: Shift4 cut its fiscal 2026 EPS guidance to $5.15–$5.35, below the analyst consensus of $5.41. The reduction raises concerns about slower profitability growth and was the primary negative catalyst for investors. Shift4 Payments lowered 2026 EPS guidance
• Negative Sentiment: Management expects approximately $25 million of third-quarter impact from travel disruptions, including Middle East-related weakness. The hit adds uncertainty to transaction volumes and reinforces concerns about the company’s revised annual revenue and profit forecasts. Shift4 Payments shares slump after forecast cuts

Insider Buying and Selling

In other Shift4 Payments news, major shareholder Jared Isaacman purchased 193,000 shares of the business's stock in a transaction that occurred on Tuesday, May 12th. The shares were bought at an average price of $40.66 per share, for a total transaction of $7,847,380.00. Following the acquisition, the insider owned 1,787,455 shares in the company, valued at $72,677,920.30. This represents a 12.10% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which is accessible through the SEC website. 1.54% of the stock is currently owned by corporate insiders.

Institutional Trading of Shift4 Payments

Several institutional investors and hedge funds have recently bought and sold shares of FOUR. Pacer Advisors Inc. increased its stake in shares of Shift4 Payments by 37.2% in the fourth quarter. Pacer Advisors Inc. now owns 12,169 shares of the company's stock worth $766,000 after acquiring an additional 3,299 shares during the period. Alberta Investment Management Corp acquired a new position in Shift4 Payments during the fourth quarter valued at $1,285,000. Galaxy Group Investments LLC purchased a new stake in Shift4 Payments in the fourth quarter valued at $561,000. Vident Advisory LLC boosted its holdings in Shift4 Payments by 32.8% in the fourth quarter. Vident Advisory LLC now owns 5,973 shares of the company's stock valued at $376,000 after purchasing an additional 1,476 shares during the last quarter. Finally, Empowered Funds LLC acquired a new stake in Shift4 Payments during the 4th quarter worth about $43,000. 98.87% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

Several brokerages recently commented on FOUR. DA Davidson decreased their price objective on shares of Shift4 Payments from $82.00 to $74.00 and set a "buy" rating for the company in a research report on Tuesday, May 12th. Weiss Ratings reissued a "sell (d+)" rating on shares of Shift4 Payments in a research report on Thursday, June 11th. Stephens lowered shares of Shift4 Payments from an "overweight" rating to an "equal weight" rating and set a $50.00 price target on the stock. in a research note on Friday, April 17th. Capital One Financial set a $50.00 price target on shares of Shift4 Payments in a report on Tuesday, April 21st. Finally, BMO Capital Markets assumed coverage on shares of Shift4 Payments in a research note on Tuesday, April 21st. They set a "market perform" rating and a $50.00 price objective for the company. Nine research analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company currently has a consensus rating of "Hold" and an average target price of $66.00.

About Shift4 Payments

Shift4 Payments is a U.S.-based provider of integrated payment processing and technology solutions, serving merchants across the hospitality, retail, e-commerce, gaming and lodging industries. The company's platform enables businesses to accept in-store, online and mobile payments through a combination of point-of-sale hardware, payment gateway services and back-office software. By centralizing transaction processing and reporting, Shift4 aims to simplify payments, enhance security and streamline operations for its merchant customers.

The company's core offerings include encrypted point-of-sale terminals, cloud-based payment gateways, and developer-friendly APIs for online and mobile checkouts.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source