10-Q · August 4, 2026
FIS posted Q2 revenue of $3.377 billion, up 29% year over year, led by the January 2026 Issuer Solutions acquisition; Banking rose 44% while Capital Markets grew 3%. Operating income increased 24% to $507 million, but…
Earnings analysis · 10-Q
FIS earnings analysis
Filed November 4, 2026 · Our reading of the company's report
The latest report
FIS delivered strong reported growth, with revenue up 27% to $3.454 billion and operating margin expanding to 19%, but the increase was primarily acquisition-driven. Banking Solutions performed particularly well, while…
Read full summary
FIS delivered strong reported growth, with revenue up 27% to $3.454 billion and operating margin expanding to 19%, but the increase was primarily acquisition-driven. Banking Solutions performed particularly well, while Capital Markets grew modestly and Corporate and Other contracted. Cash generation improved, yet the $20.8 billion debt balance, sharply higher interest expense, goodwill sensitivity and CFO transition remain material constraints. The 10-Q provides no new quantitative EPS or revenue guidance.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.61
What stood out
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Revenue grew 27% on acquisition contribution
Revenue was $3.454 billion, up $737 million or 27% year over year. Growth was primarily attributable to the Issuer Solutions Business acquired on January 9, 2026.
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Operating leverage offset gross-margin dilution
Operating income increased 44% to $660 million from $457 million, and operating margin expanded to 19% from 17%. Gross margin declined to 37% from 38% because of the dilutive impact of Issuer Solutions amortization and costs.
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Banking was the primary growth engine
Banking Solutions revenue increased 41% to $2.548 billion, while adjusted EBITDA rose 44% to $1.207 billion and its margin expanded to 47.4% from 46.2%. Excluding Issuer Solutions, Banking revenue still grew 4%.
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Capital Markets delivered steady growth
Capital Market Solutions revenue increased 3% to $823 million, with adjusted EBITDA up 6% to $444 million and margin expanding to 54.0% from 52.2%, supported by recurring revenue, pricing, operating leverage and cost management.
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Cash generation increased despite higher capex
Operating cash flow for the first nine months was $2.183 billion, up from $1.850 billion. Capital expenditures were $799 million versus $665 million, implying approximately $1.384 billion of nine-month operating cash flow less capex.
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Liquidity supports near-term obligations
Liquidity was $3.8 billion at September 30, including $740 million of cash and $3.0 billion of revolver capacity. Management stated that cash and operating cash flow should be sufficient for operating needs, capex and debt service for the next 12 months.
What to watch
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Higher debt is pressuring interest expense
Debt outstanding was $20.8 billion with a 3.9% effective weighted-average interest rate. Net interest expense increased 121% year over year to $199 million in the quarter, primarily because of the $7.7 billion of debt used to fund Issuer Solutions.
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Banking goodwill has limited valuation cushion
Banking goodwill was $19.9 billion and its estimated fair value exceeded carrying value by only approximately 7%. A roughly 75-basis-point increase in the discount rate or a greater than approximately 5% decline in the EBITDA multiple could reduce fair value below carrying value and trigger a material impairment.
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Leverage constrains capital returns
The company temporarily curtailed share repurchases after the acquisition; only 0.5 million shares costing $21 million were repurchased during the quarter, while $1.7 billion remained authorized. Capital returns may remain constrained by leverage and debt covenants.
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Unexpected CFO transition adds execution risk
James Kehoe will step down as CFO effective November 5, 2026, and Alexandra Brooks will become interim CFO. Brooks's base salary increases from $517,500 to $575,000, with a one-time equity award valued at $1.25 million.
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Large acquired business remains in integration
The Issuer Solutions Business represented approximately 19% of gross revenue and 33% of total consolidated assets at September 30, 2026, while its internal controls remain outside management's assessment for the acquisition-period exclusion.
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Cost inflation and rates remain headwinds
Management reported that vendor cost increases remain significant and cannot be fully offset through pricing. The company also noted that a 100-basis-point increase in variable-rate debt costs would raise annual interest expense by $46 million.
Management's outlook
The 10-Q does not provide quantitative revenue or EPS guidance. Management expects cash and operating cash flow to fund operating requirements, capital expenditures and debt service for the next 12 months, and expects to limit further acquisitions until it returns to its target leverage ratio.
Earlier filings 4
10-Q · May 8, 2026
Fidelity National Information Services (FIS) reported Q1 2026 results with significant revenue growth fueled by the recent acquisition of the Issuer Solutions Business. Total revenue increased by 30% year-over-year to…
10-K · February 24, 2026
FIS reported a revenue increase of 5% year-on-year, to $10.68 billion in 2025, driven by strong performance in its Banking Solutions and Capital Markets segments. Despite challenges, including increased costs and debt,…
10-Q · November 5, 2025
Fidelity National Information Services (FIS) reported strong performance in Q3 2025, achieving revenues of $2.72B, a 6% increase from the prior year, and EPS of 1.51, surpassing estimates. While the gross margin…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.