FIS shares drop 23.6% despite in-line Q3 profit
Adjusted EPS of $1.61 was in line with the $1.62 consensus estimate. The company cut its 2026 adjusted EPS growth outlook to 1.2% to 2.4%, from 7.0% to 8.5%.
Key takeaways
- Fidelity National Information Services (FIS) said on Nov. 4 that third-quarter adjusted EPS was $1.61, in line with the $1.62 consensus estimate. Revenue was $3.45 billion. The company lowered its 2026 adjusted EPS forecast to $5.82 to $5.89 per share, from $6.15 to $6.24 given in August.
Fidelity National Information Services (FIS) said on Nov. 4 that third-quarter adjusted earnings were $1.61 per share, in line with the $1.62 consensus estimate. The company also lowered its full-year forecast.
FIS shares fell 23.6% in regular trading as of 3:59 p.m. ET, from a regular-session close of $38.99.
Here's how the company did:
- Adjusted EPS: $1.61 vs. $1.51 a year earlier, against the $1.62 consensus estimate
- GAAP diluted EPS: $0.69 vs. $0.50 a year earlier
- Revenue: $3.45 billion vs. $2.72 billion a year earlier, in line with the $3.47 billion consensus estimate
Revenue rose 27% on a GAAP basis and 29% on an adjusted basis, the company said.
Adjusted EBITDA rose 31% to $1.48 billion. The company said the adjusted EBITDA margin widened 111 basis points to 42.9%, reflecting the Total Issuing Solutions acquisition, favorable revenue mix and cost savings.
Revenue has risen in each of the last three quarters, from $2.72 billion to $3.38 billion, according to its SEC filings.
2026 guidance
The company now expects 2026 revenue of $13.45 billion to $13.51 billion. Its previous range, given on Aug. 4, was $13.63 billion to $13.70 billion.
Adjusted EBITDA is now projected at $5.57 billion to $5.61 billion, against $5.73 billion to $5.79 billion previously.
Adjusted EPS is now projected at $5.82 to $5.89 per share, down from $6.15 to $6.24 in the August range. The company said its adjusted EPS growth outlook is 1.2% to 2.4%, from 7.0% to 8.5%.
The company maintained its free cash flow target of $2.15 billion to $2.25 billion.
“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,” said FIS CEO and President Stephanie Ferris.
Segment results
Banking Solutions revenue rose 41% to $2.55 billion. On a pro forma basis, the segment's revenue grew 3.9%.
Capital Market Solutions revenue rose 3% to $823 million, with recurring revenue growth of 3.0%.
Corporate and Other revenue fell 22% to $83 million, which the company attributed to its non-strategic businesses.
On Oct. 20, FIS divested a non-core prepaid business within Banking Solutions. The company said the sale generated gross proceeds of over $100 million.
Cash and capital returns
Free cash flow excluding cash transaction taxes on dispositions was $862 million, up 8.0%. Operating cash flow was $976 million.
The company returned $248 million to shareholders, including $21 million of share repurchases and $227 million of dividends. Debt outstanding totaled $20.8 billion as of Sept. 30.
The company said it has temporarily curtailed share repurchases and paused tuck-in acquisitions to speed up deleveraging. It expects to resume meaningful buybacks once gross leverage reaches about 2.8 times.
The company will keep paying quarterly dividends, with dividend growth targeted in line with adjusted EPS growth.