Shift4 Payments (NYSE:FOUR) Issues Quarterly Earnings Results, Beats Estimates By $0.07 EPS

Shift4 Payments (NYSE:FOUR) released its earnings results on Thursday. The company reported $1.32 earnings per share for the quarter, beating analysts’ consensus estimates of $1.25 by $0.07, Briefing.com reports. Shift4 Payments had a net margin of 2.20% and a return on equity of 28.40%. 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 firm earned $1.10 earnings per share. The firm’s revenue for the quarter was up 50.9% compared to the same quarter last year. 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 FOUR traded down $2.23 during midday trading on Friday, reaching $41.13. The stock had a trading volume of 4,690,769 shares, compared to its average volume of 1,237,726. Shift4 Payments has a one year low of $34.56 and a one year high of $92.79. The firm has a market cap of $3.26 billion, a PE ratio of 9.94, a P/E/G ratio of 0.48 and a beta of 1.40. The firm has a 50 day simple moving average of $46.47 and a 200-day simple moving average of $48.27. The company has a current ratio of 1.21, a quick ratio of 1.22 and a debt-to-equity ratio of 2.59.

Key Headlines Impacting Shift4 Payments

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

• Positive Sentiment: Shift4 reported second-quarter adjusted earnings of $1.32 per share, exceeding analysts’ estimates of approximately $1.19–$1.25. Revenue rose 50.9% year over year to roughly $1.29 billion–$1.30 billion, far above the reported consensus estimate of $615.18 million. Shift4 Payments Q2 Earnings and Revenues Beat Estimates
• Positive Sentiment: BTIG Research reduced its price target to $60 from $70 but maintained a Buy rating, implying substantial potential upside from recent trading levels. Benzinga

Insider Buying and Selling

In other Shift4 Payments news, major shareholder Jared Isaacman purchased 195,500 shares of the stock in a transaction on Monday, May 11th. The shares were purchased at an average price of $41.41 per share, with a total value of $8,095,655.00. Following the completion of the transaction, the insider directly owned 1,594,455 shares in the company, valued at $66,026,381.55. This represents a 13.97% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 1.54% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in FOUR. Advisors Asset Management Inc. raised its stake in Shift4 Payments by 100.0% in the 1st quarter. Advisors Asset Management Inc. now owns 434 shares of the company’s stock valued at $35,000 after acquiring an additional 217 shares during the period. Vestcor Inc acquired a new stake in Shift4 Payments during the 3rd quarter valued at $45,000. Johnson Financial Group Inc. boosted its position in Shift4 Payments by 282.2% during the third quarter. Johnson Financial Group Inc. now owns 646 shares of the company’s stock worth $50,000 after purchasing an additional 477 shares during the period. Empowered Funds LLC bought a new position in Shift4 Payments during the fourth quarter worth $43,000. Finally, Caitong International Asset Management Co. Ltd increased its holdings in shares of Shift4 Payments by 747.4% in the third quarter. Caitong International Asset Management Co. Ltd now owns 822 shares of the company’s stock valued at $64,000 after purchasing an additional 725 shares during the last quarter. 98.87% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently commented on FOUR shares. Zacks Research upgraded shares of Shift4 Payments from a “strong sell” rating to a “hold” rating in a research note on Monday, June 1st. Keefe, Bruyette & Woods lifted their target price on Shift4 Payments from $50.00 to $52.00 and gave the company a “market perform” rating in a research report on Friday, May 8th. DA Davidson dropped their target price on Shift4 Payments from $82.00 to $74.00 and set a “buy” rating on the stock in a report on Tuesday, May 12th. Raymond James Financial set a $51.00 price target on Shift4 Payments in a research report on Friday. Finally, BTIG Research decreased their price target on Shift4 Payments from $70.00 to $60.00 and set a “buy” rating for the company in a research note on Thursday. Nine investment analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the company has an average rating of “Hold” and a consensus price target of $60.15.

Shift4 Payments Company Profile

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.