The quarter beat modestly, led by EPS. Fourth-quarter GAAP revenue was $644.0 million versus a published consensus near $642 million, while GAAP EPS was $1.57 versus roughly $1.47 expected. The revenue beat was small, but the EPS upside was more meaningful. (Financial Highlights)
| Metric | FY26 Q4 | FY25 Q4 | Market expectation / read |
|---|---|---|---|
| GAAP revenue | $644.0M | $615.4M | ~$642M consensus; slight beat |
| GAAP EPS | $1.57 | $1.75 | ~$1.47 consensus; beat |
| Adjusted revenue | $633.1M | $593.7M | Up 6.6% year over year |
| Adjusted operating income | $133.3M | $137.6M | Down 3.1% year over year |
| Adjusted operating margin | 21.1% | 23.2% | Down 210 basis points |
| FY27 GAAP revenue guide | $2.684B-$2.709B | — | Roughly in line with ~$2.68B consensus |
| FY27 GAAP EPS guide | $7.33-$7.38 | — | Above published estimate near $7.10 |
Underlying growth was healthy, but profitability did not keep pace. Adjusted revenue increased 6.6% in the quarter, with adjusted growth above 5% across the Core, Payments, and Complementary segments. However, adjusted operating income fell 3.1% and margin dropped to 21.1%, as cost of revenue, research and development, and selling, general, and administrative expenses grew faster than revenue. (Non-GAAP reconciliation; Operating Expenses and Operating Income) 〔0〕
The FY27 outlook is better than feared on earnings, not a major growth reset. The company guided to FY27 GAAP revenue of $2.684 billion to $2.709 billion, broadly consistent with the roughly $2.68 billion published consensus. The more important upside is the $7.33 to $7.38 GAAP EPS range, which sits above the published estimate near $7.10. The guide therefore represents an earnings-level beat, although revenue expectations are largely being confirmed rather than materially raised. (FY27 GAAP to Non-GAAP Guidance)
The margin message is the main restraint on the beat. FY27 GAAP operating margin is guided to 24.5%-24.7%, below FY26's reported 25.0%, while adjusted operating margin is guided to 24.1%-24.3% versus 24.1% in FY26. Management explicitly warned that first-half comparisons will face difficult prior-year margins, so the outlook supports steady growth but not immediate acceleration in operating leverage. (FY27 GAAP to Non-GAAP Guidance) 〔1〕
Cash generation and buybacks strengthen the full-year picture, but are secondary to the earnings read. Operating cash flow rose to $762.0 million from $641.5 million, free cash flow reached $539.3 million, and the company repurchased $448.2 million of stock versus $35.1 million the prior year. Those figures support the quality of full-year earnings, though fourth-quarter adjusted profit contraction and the lower cash balance leave the net result as a narrow beat rather than a broad operating reacceleration. (Cash Flow statement; Financing Activities)
Read the original 8-K on SEC EDGAR ↗