Third quarter 2026
Filed Nov 4, 2026FIS Reports Third Quarter 2026 Results
Third-quarter revenue increased 27% on a GAAP basis, adjusted EBITDA increased 31%, adjusted EPS increased 6.6%, and free cash flow excluding cash transaction taxes on dispositions increased 8%. Pro Forma revenue growth was 3.7%, while the company is curtailing repurchases and tuck-in M&A to accelerate deleveraging following the Total Issuing Solutions acquisition.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenue, three months ended September 30, 2026GAAP | $3.45B | – | 27% |
| Operating segment total revenue, three months ended September 30, 2026other | $3.37B | – | 29% |
| Corporate and Other revenue, three months ended September 30, 2026other | $83M | – | (22)% |
| Cost of revenue, three months ended September 30, 2026GAAP | $2.17B | – | – |
| Gross profit, three months ended September 30, 2026GAAP | $1.28B | – | – |
| Selling, general, and administrative expenses, three months ended September 30, 2026GAAP | $627M | – | – |
| Operating income, three months ended September 30, 2026GAAP | $660M | – | – |
| Net earnings attributable to FIS, three months ended September 30, 2026GAAP | $356M | – | – |
| Diluted earnings per share attributable to FIS, three months ended September 30, 2026GAAP | $0.69 | – | – |
| Adjusted EBITDA, three months ended September 30, 2026non-GAAP | $1.48B | – | 31% |
| Adjusted EBITDA margin, three months ended September 30, 2026non-GAAP | 42.9% | – | 111 bps |
| Adjusted net earnings attributable to FIS, three months ended September 30, 2026non-GAAP | $831M | – | 5.3% |
| Adjusted EPS, three months ended September 30, 2026non-GAAP | $1.61 | – | 6.6% |
| Pro Forma revenue growth, three months ended September 30, 2026non-GAAP | 3.7% | – | 3.7% |
| Pro Forma recurring revenue growth, three months ended September 30, 2026non-GAAP | 2.5% | – | 2.5% |
| Pro Forma adjusted EBITDA growth, three months ended September 30, 2026non-GAAP | 5.2% | – | 5.2% |
| Pro Forma adjusted EBITDA margin, three months ended September 30, 2026non-GAAP | 42.9% | – | 94 bps |
| Net cash provided by operating activities, three months ended September 30, 2026GAAP | $976M | – | – |
| Free cash flow, three months ended September 30, 2026non-GAAP | $695M | – | – |
| Free cash flow excluding cash transaction taxes on dispositions, three months ended September 30, 2026non-GAAP | $862M | – | 8% |
| Revenue, nine months ended September 30, 2026GAAP | $10.13B | – | – |
| Gross profit, nine months ended September 30, 2026GAAP | $3.56B | – | – |
| Operating income, nine months ended September 30, 2026GAAP | $1.59B | – | – |
| Net earnings attributable to FIS, nine months ended September 30, 2026GAAP | $2.95B | – | – |
| Diluted earnings per share attributable to FIS, nine months ended September 30, 2026GAAP | $5.71 | – | – |
| Adjusted EBITDA, nine months ended September 30, 2026non-GAAP | $4.20B | – | – |
| Adjusted net earnings attributable to FIS, nine months ended September 30, 2026non-GAAP | $2.30B | – | – |
| Adjusted EPS, nine months ended September 30, 2026non-GAAP | $4.44 | – | – |
| Net cash provided by operating activities, nine months ended September 30, 2026GAAP | $2.18B | – | – |
| Free cash flow excluding cash transaction taxes on dispositions, nine months ended September 30, 2026non-GAAP | $1.86B | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Banking SolutionsRevenue growth reflected the acquisition of the high margin Total Issuing Solutions™ business. Pro Forma revenue increased 3.9%, including recurring revenue growth of 2.4%. | $2.55B | – | 41% |
| Capital Market SolutionsRevenue growth reflected recurring revenue growth of 3.0%. | $823M | – | 3% |
| Corporate and OtherRevenue declined primarily due to the decline of non-strategic businesses. Adjusted EBITDA loss was $169 million, including $163 million of corporate expenses. | $83M | – | (22)% |
FY 2026 outlook
- Revenue$13,445 - $13,505 million
- NoteAdjusted revenue growth of 28 - 29%
- NoteAdjusted EBITDA (Non-GAAP) of $5,565 - $5,605 million
- NoteAdjusted EBITDA growth of 29 - 30%
- NoteAdjusted EPS (Non-GAAP) of $5.82 - $5.89
- NoteAdjusted EPS growth of 1.2 - 2.4%
- NotePro Forma revenue growth of 3.1 - 3.6%
- NotePro Forma Adjusted EBITDA growth of 2.9 - 3.6%
- NoteFree Cash Flow of $2.15 - $2.25 billion
- NoteFree Cash Flow growth of 33 - 39%
Capital returns
- $248 million of capital returned to shareholders through $21 million of share repurchases and $227 million of dividends paid.
- The Company has temporarily curtailed share repurchases and paused tuck-in M&A activity to accelerate deleveraging.
- The Company will continue to pay quarterly dividends targeting dividend per share growth in line with Adjusted EPS growth.
- The Company expects to resume meaningful share repurchases once it has achieved its target gross leverage of approximately 2.8x.
What drove it
- Adjusted EBITDA margin expanded by 111 bps to 42.9%, reflecting the acquisition of the high margin Total Issuing Solutions™ business, favorable revenue mix, and cost savings.
- Banking Solutions adjusted EBITDA increased 44% to $1.2 billion and adjusted EBITDA margin expanded by 119 bps to 47.4%.
- Capital Market Solutions adjusted EBITDA increased 6.5% to $444 million and adjusted EBITDA margin expanded by 180 bps to 54.0%.
- On a Pro Forma basis, Banking Solutions adjusted EBITDA increased 8.8% and adjusted EBITDA margin expanded by 212 bps.
- FIS divested a non-core prepaid business within Banking Solutions on October 20, 2026, generating gross sale proceeds of over $100M.
Concerns
- Pro Forma revenue growth was 3.7%, including recurring revenue growth of 2.5%, compared with 27% GAAP revenue growth.
- Corporate and Other revenue declined 22% to $83 million.
- The company has temporarily curtailed share repurchases and paused tuck-in M&A activity to accelerate deleveraging.
- Debt outstanding totaled $20.8 billion as of September 30, 2026.
- Free cash flow before cash transaction taxes on dispositions was $695 million, while $167 million of cash transaction taxes on the Worldpay Sale were excluded from the reported $862 million free cash flow measure.
What to watch
- Progress toward the target gross leverage of approximately 2.8x and the timing of meaningful share repurchase resumption.
- Delivery against FY 2026 Pro Forma revenue growth guidance of 3.1 - 3.6% and Pro Forma Adjusted EBITDA growth guidance of 2.9 - 3.6%.
- Integration of the Issuer Solutions Business and realization of anticipated cost savings and synergies.
- The effect of the October 20, 2026 divestiture of the non-core prepaid business within Banking Solutions.
- Free cash flow delivery against the $2.15 - $2.25 billion FY 2026 target, which excludes cash transaction taxes on business dispositions, primarily the Worldpay sale.
Balance sheet and cash flow
- Cash and cash equivalents were $740 million as of September 30, 2026, compared with $599 million as of December 31, 2025.
- Debt outstanding totaled $20.8 billion as of September 30, 2026.
- Short-term borrowings were $3,904 million and current portion of long-term debt was $1,732 million as of September 30, 2026.
- Long-term debt, excluding current portion, was $15,133 million as of September 30, 2026.
- Net cash provided by operating activities was $976 million for the third quarter and $2,183 million for the nine months ended September 30, 2026.
- Capital expenditures were $281 million for the third quarter and $799 million for the nine months ended September 30, 2026.
- Cash transaction taxes on the Worldpay Sale were $167 million for the third quarter and $477 million for the nine months ended September 30, 2026.
Analysis
FIS reported third-quarter GAAP revenue of $3,454 million, up 27% from $2,717 million, while operating segment total revenue increased 29% to $3,371 million. The acquisition of the Total Issuing Solutions™ business was the principal contributor to reported growth in Banking Solutions, where revenue increased 41% to $2,548 million. Under the company’s Pro Forma presentation, consolidated revenue increased 3.7% and recurring revenue growth was 2.5%, separating underlying growth from the acquisition-related uplift in reported results.
Management, verbatim
Client demand remains strong, and we are continuing to invest in what our clients care about most, security and innovation. These investments will build a more recurring, predictable revenue base for FIS.
Stephanie Ferris, FIS CEO and President
The long-term payoff is significantly deeper client relationships, a stronger competitive position, and a business built for durable growth.
Stephanie Ferris, FIS CEO and President
Not in the filing
stated, not guessed- Previous-release outlook for comparison with reported results
- Prior-quarter comparisons for reported third-quarter metrics
- GAAP gross margin
- Full-year 2026 gross margin guidance
- Full-year 2026 operating expense guidance
- Full-year 2026 tax rate guidance
- Quarterly cash and cash equivalents prior-year comparison
- Quarterly debt outstanding prior-year comparison
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.