Shift4 Payments Inc. (Shift4 Payments (FOUR)) shares jumped more than 9% Thursday after the payments processor delivered first-quarter results that beat Wall Street estimates and reaffirmed its full-year outlook. The stock's surge was turbocharged by heavy short interest—over 19% of the float—which created a classic squeeze scenario as buyers rushed in.

Strong Q1 Revenue and Earnings Growth

Quarterly gross revenue rose 32% year over year to $1.121 billion, ahead of the $1.089 billion analysts were expecting. Adjusted earnings came in at $0.97 per share, just above the consensus estimate of $0.96.

Payments-based revenue climbed to $917 million from $756 million a year earlier, while subscription and other revenue increased to $102 million from $92 million. Gross revenue less network fees jumped 49% to $549 million, and end-to-end payment volume grew 24% to $56 billion. Adjusted EBITDA rose 39% to $234 million, though margin contracted 300 basis points to 43%.

CEO Highlights Market Resilience and Expansion

CEO Taylor Lauber said the company delivered results that met or exceeded guidance despite a laundry list of headwinds: macroeconomic volatility, Middle East-related disruptions, weaker travel demand, shifting consumer sentiment, evolving AI technologies, and weather-related challenges.

Lauber noted that Shift4 continued expanding geographically and deepening product penetration, strengthening its ability to generate sustainable, profitable growth. The company now operates in more than 75 additional countries compared with just a few years ago.

Restaurant, Hospitality, and Luxury Retail Momentum

Shift4 reported strong momentum across restaurants, hotels, sports and entertainment, and luxury retail. Its Shift4 Dine platform saw active merchants increase by more than 40% year over year, and international expansion accelerated across Europe despite global travel disruptions.

The company also launched its Shift4 One platform—which combines payments, currency conversion, and tax-free shopping—in multiple countries. Early traction is showing up in luxury retail categories like watches, fashion, and cosmetics.

Full-Year 2026 Outlook Reaffirmed

For fiscal 2026, Shift4 reaffirmed its guidance for gross revenue less network fees of $2.5 billion to $2.6 billion. The company also reiterated adjusted EPS guidance of $5.50 to $5.70, right in line with analysts' estimate of $5.57. End-to-end payment volume is expected to land between $240 billion and $260 billion, and adjusted EBITDA is forecast at $1.165 billion to $1.215 billion.

Price Action

Shift4 Payments shares were up 9.12% at $46.79 at the time of publication Thursday, according to market data.