Second quarter 2026
Filed Aug 4, 2026FIS Reports Second Quarter 2026 Results
FIS reported 29% GAAP revenue growth, 35% Adjusted EBITDA growth, 8.8% Adjusted EPS growth and 220% Free Cash Flow growth, while lowering its Pro Forma revenue and Adjusted EBITDA growth outlook ranges.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Consolidated FIS RevenueGAAP | $3,377 million | – | 29% |
| Operating Segment Total Revenueother | $3,293 million | – | 32% |
| Adjusted revenue growthnon-GAAP | 31% | – | 31% |
| Pro Forma revenue growthnon-GAAP | 5.3% | – | 5.3% |
| Pro Forma recurring revenue growthnon-GAAP | 5.1% | – | 5.1% |
| Adjusted EBITDAnon-GAAP | $1,409 million | – | 35% |
| Adjusted EBITDA Marginnon-GAAP | 41.7% | – | 193 bps |
| Pro Forma Adjusted EBITDA growthnon-GAAP | 7.4% | – | 7.4% |
| Pro Forma Adjusted EBITDA Marginnon-GAAP | 41.7% | – | 113 bps |
| Net Earnings (Loss)GAAP | $231 million | – | – |
| Diluted Earnings (Loss) Per Common ShareGAAP | $0.45 | – | – |
| Adjusted Net Earningsnon-GAAP | $763 million | – | 6.6% |
| Adjusted EPSnon-GAAP | $1.48 | – | 8.8% |
| Net cash provided by operating activitiesGAAP | $493 million | – | – |
| Free Cash Flownon-GAAP | $525 million | – | 220% |
| Debt outstandingGAAP | $21.2 billion | – | – |
| Banking Solutions Adjusted EBITDAnon-GAAP | $1.1 billion | – | 50% |
| Banking Solutions Adjusted EBITDA marginnon-GAAP | 45.8% | – | 179 basis points |
| Banking Solutions Pro Forma Adjusted EBITDA growthnon-GAAP | 11% | – | 11% |
| Banking Solutions Pro Forma Adjusted EBITDA marginnon-GAAP | 45.8% | – | 178 basis points (bps) |
| Capital Market Solutions Adjusted EBITDAnon-GAAP | $420 million | – | 2.8% |
| Capital Market Solutions Adjusted EBITDA marginnon-GAAP | 51.9% | – | (32) basis points |
| Corporate and Other Adjusted EBITDA lossnon-GAAP | $147 million | – | – |
| Corporate expensesother | $148 million | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Banking SolutionsRevenue increased 44% on a GAAP basis and adjusted basis. Pro Forma revenue increased 6.1%, including recurring revenue growth of 5.0%. Adjusted EBITDA increased 50% to $1.1 billion and Adjusted EBITDA margin expanded by 179 basis points to 45.8%, reflecting the acquisition of the high margin Total Issuing Solutions™ business, favorable revenue mix, and the impact of continued cost management. | $2,483 million | – | 44% |
| Capital Market SolutionsRevenue increased 3.5% on a GAAP basis and 3.2% on an adjusted basis, reflecting recurring revenue growth of 5.3%. Adjusted EBITDA increased 2.8% to $420 million, while Adjusted EBITDA margin contracted by (32) basis points to 51.9%, reflecting higher labor costs and the timing of certain customer-related expenses. | $810 million | – | 3.5% |
| Corporate and OtherRevenue decreased primarily due to the decline of non-strategic businesses. Adjusted EBITDA loss was $147 million, including $148 million of corporate expenses. | $84 million | – | (26)% |
Third Quarter and Full-Year 2026 outlook
- Revenue3Q 2026 Revenue $3,415 - $3,445; FY 2026 Revenue $13,630 - $13,695
- Note3Q 2026 Adjusted EBITDA (Non-GAAP) $1,460 - $1,480
- NoteFY 2026 Adjusted EBITDA (Non-GAAP) $5,730 - $5,785
- Note3Q 2026 Adjusted EPS (Non-GAAP) $1.58 - $1.62
- NoteFY 2026 Adjusted EPS (Non-GAAP) $6.15 - $6.24
- NoteFY 2026 Adjusted revenue growth of 29 - 30%
- NoteFY 2026 Adjusted EBITDA growth of 32 - 34%
- NoteFY 2026 Adjusted EPS growth of 7.0 - 8.5%
- NoteFY 2026 Pro Forma revenue growth of 4.5 - 5.0%, as compared to 5.1 - 5.7%
- NoteFY 2026 Pro Forma Adjusted EBITDA growth of 5.9 - 6.9%, as compared to 7.2 - 8.4%
- NoteFY 2026 Free Cash Flow $2.15 - $2.25 billion, or growth of 33 - 39%
Capital returns
- The Company returned $270 million of capital to shareholders through $42 million of share repurchases and $228 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
- The acquisition of the high margin Total Issuing Solutions™ business contributed to Banking Solutions growth and margins.
- Favorable mix and cost savings supported consolidated Adjusted EBITDA margin expansion of 193 basis points and Pro Forma Adjusted EBITDA margin expansion of 113 basis points.
- Banking Solutions Pro Forma revenue increased 6.1%, including recurring revenue growth of 5.0%.
- Capital Market Solutions recurring revenue growth was 5.3%.
- Corporate and Other revenue declined primarily due to the decline of non-strategic businesses.
Concerns
- FY 2026 Pro Forma revenue growth is projected at 4.5 - 5.0%, as compared to 5.1 - 5.7%.
- FY 2026 Pro Forma Adjusted EBITDA growth is projected at 5.9 - 6.9%, as compared to 7.2 - 8.4%.
- Capital Market Solutions Adjusted EBITDA margin contracted by (32) basis points to 51.9%, reflecting higher labor costs and the timing of certain customer-related expenses.
- Debt outstanding totaled $21.2 billion as of June 30, 2026.
- The Company has temporarily curtailed share repurchases and paused tuck-in M&A activity to accelerate deleveraging.
What to watch
- Execution of the Total Issuing Solutions™ integration, which management said was ahead of plan.
- Banking Solutions Pro Forma revenue growth of 6.1% and recurring revenue growth of 5.0%.
- Capital Market Solutions margin performance after the 51.9% Adjusted EBITDA margin and (32) basis point contraction.
- Delivery against FY 2026 Pro Forma revenue growth of 4.5 - 5.0% and Pro Forma Adjusted EBITDA growth of 5.9 - 6.9%.
- Free Cash Flow delivery toward the updated $2.15 - $2.25 billion target and progress toward gross leverage of approximately 2.8x.
Balance sheet and cash flow
- Second quarter net cash provided by operating activities was $493 million.
- Free Cash Flow was $525 million, up 220% as compared to the prior-year period.
- As of June 30, 2026, debt outstanding totaled $21.2 billion.
- The Company is increasing its target for Free Cash Flow by $100 million to $2.15 - $2.25 billion.
Analysis
FIS reported a strong second-quarter growth profile on reported metrics. Consolidated FIS Revenue was $3,377 million, up 29%, while Adjusted EBITDA increased 35% to $1,409 million. Adjusted EBITDA Margin expanded by 193 bps to 41.7%. GAAP net earnings attributable to common stockholders were $231 million, or $0.45 per diluted share, compared with a prior-year GAAP net loss of $(470) million, or $(0.90) per diluted share. Adjusted EPS increased 8.8% to $1.48.
Banking Solutions was the central growth contributor, with revenue of $2,483 million and 44% GAAP and adjusted revenue growth. On a Pro Forma basis, Banking Solutions revenue increased 6.1%, including recurring revenue growth of 5.0%. The segment's Adjusted EBITDA increased 50% to $1.1 billion and margin reached 45.8%, supported by the Total Issuing Solutions™ acquisition, favorable revenue mix and continued cost management. Capital Market Solutions grew more slowly, with $810 million of revenue and a 3.5% GAAP increase. Its 51.9% Adjusted EBITDA margin contracted by (32) basis points because of higher labor costs and timing of certain customer-related expenses.
Cash generation improved materially during the quarter. Net cash provided by operating activities was $493 million and Free Cash Flow was $525 million, up 220% from $164 million in the prior-year period. FIS returned $270 million to shareholders through $42 million of share repurchases and $228 million of dividends paid. At the same time, debt outstanding was $21.2 billion as of June 30, 2026, and the company has temporarily curtailed repurchases and paused tuck-in M&A activity to prioritize deleveraging toward gross leverage of approximately 2.8x.
The company updated its full-year outlook with Adjusted revenue growth of 29 - 30%, Adjusted EBITDA growth of 32 - 34%, Adjusted EPS growth of 7.0 - 8.5%, and Free Cash Flow of $2.15 - $2.25 billion. The Free Cash Flow target was increased by $100 million. However, the company projected FY 2026 Pro Forma revenue growth of 4.5 - 5.0%, compared with 5.1 - 5.7%, and Pro Forma Adjusted EBITDA growth of 5.9 - 6.9%, compared with 7.2 - 8.4%. The distinction between acquisition-supported reported growth and the lower Pro Forma growth outlook is a key feature of the release.
Management, verbatim
Our first half reflects the strength of the business we have built defined by durable recurring growth, expanding margins, and accelerating cash generation.
Stephanie Ferris, CEO and President
Banks are investing decisively behind modernization and AI, and they are choosing FIS as their partner. With the Total Issuing Solutions acquisition ahead of plan, we are uniquely positioned to leverage our global scale and end-to-end solutions to serve financial institutions of all sizes.
Stephanie Ferris, CEO and President
Not in the filing
stated, not guessed- GAAP gross profit and GAAP gross margin
- GAAP operating income or loss
- GAAP operating expenses
- GAAP tax rate
- Cash and cash equivalents balance
- Net debt
- Prior-quarter comparisons for revenue, earnings, margins, cash flow and segments
- Prior-year net cash provided by operating activities
- Third-quarter and full-year 2026 gross margin guidance
- Third-quarter and full-year 2026 operating-expense guidance
- Third-quarter and full-year 2026 tax-rate guidance
- Previous-release outlook required for a formal actual-versus-prior-guidance comparison
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.