Revenue during the quarter surged 30.38 percent to $941.82 million from $722.35 million in the previous year period. Gross margin for the quarter contracted 1228 basis points over the previous year period to 50.27 percent. Total expenses were 88.82 percent of quarterly revenues, up from 82.95 percent for the same period last year. That has resulted in a contraction of 587 basis points in operating margin to 11.18 percent.

Operating income for the quarter was $105.27 million, compared with $123.16 million in the previous year period.

However, the adjusted operating income for the quarter stood at $240.82 million compared to $153.21 million in the prior year period. At the same time, adjusted operating margin improved 436 basis points in the quarter to 25.57 percent from 21.21 percent in the last year period.

"The strong momentum from our first quarter accelerated in the second quarter of fiscal 2017. We delivered double digit organic growth across our key markets, including in our U.S. direct business and across most of Europe and Asia Pacific," said Jeff Sloan, chief executive officer. "Our technology enabled businesses continue to spearhead our growth, with particularly strong performance from our integrated payments businesses, OpenEdge and Ezidebit, and from our software led solutions at Heartland Commerce and Campus Solutions. We achieved these results while also making significant progress integrating Heartland. We have raised our expectations for synergies from the merger, highlighting ongoing strength in execution."

For fiscal year 2017, Global Payments Inc. forecasts revenue to be in the range of $3,760 million to $3,860 million. It forecasts adjusted revenue to be in the range of $3,350 million to $3,450 million . The company expects diluted earnings per share to be in the range of $2.20 to $2.40. The company expects diluted earnings per share to be in the range of $3.70 to $3.90 on adjusted basis.

The company has spent $80.81 million cash to meet investing activities during the first six months as against cash outgo of $278.18 million in the last year period.

The company has spent $130.65 million cash to carry out financing activities during the first six months as against cash inflow of $185.73 million in the last year period.

Cash and cash equivalents stood at $995.82 million as on Nov. 30, 2016, up 0.74 percent or $7.36 million from $988.46 million on Nov. 30, 2015.

Working capital declines
Global Payments Inc. has witnessed a decline in the working capital over the last year. It stood at $365.11 million as at Nov. 30, 2016, down 5.94 percent or $23.07 million from $388.18 million on Nov. 30, 2015. Current ratio was at 1.17 as on Nov. 30, 2016, down from 1.17 on Nov. 30, 2015.

Days sales outstanding went down to 24 days for the quarter compared with 27 days for the same period last year.

Debt increases substantially
Global Payments Inc. has witnessed an increase in total debt over the last one year. It stood at $4,961.44 million as on Nov. 30, 2016, up 90.75 percent or $2,360.46 million from $2,600.98 million on Nov. 30, 2015. Total debt was 49.06 percent of total assets as on Nov. 30, 2016, compared with 48.82 percent on Nov. 30, 2015. Debt to equity ratio was at 1.77 as on Nov. 30, 2016, down from 2.81 as on Nov. 30, 2015. Interest coverage ratio deteriorated to 2.01 for the quarter from 8.72 for the same period last year.