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…
Earnings analysis · 10-Q
FIS earnings analysis
Filed August 4, 2026 · Our reading of the company's report
The latest report
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…
Read full summary
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 gross and operating margins fell to 35% and 15%, respectively, due to acquired-business dilution and amortization. Cash generation improved substantially, although the acquisition-funded balance sheet now carries $21.2 billion of debt and drove an 82% increase in quarterly net interest expense to $200 million.
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.
What stood out
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Revenue expanded 29% year over year
Q2 revenue rose $761 million, or 29%, year over year to $3.377 billion. Revenue also increased $77 million from $3.300 billion in Q1 2026.
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Operating profit rose despite margin dilution
Operating income increased $99 million, or 24%, to $507 million. Operating margin was 15%, down 100 basis points from 16% a year ago but up 220 basis points from 12.8% in Q1 2026.
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Banking delivered strong acquired and organic growth
Banking Solutions revenue increased $763 million, or 44%, to $2.483 billion, while adjusted EBITDA margin expanded 179 basis points to 45.8%. Excluding the acquired Issuer Solutions Business, Banking revenue grew 6%.
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Capital Markets recurring revenue grew 5%
Capital Market Solutions revenue grew $27 million, or 3%, to $810 million, led by 5% recurring-revenue growth. Its adjusted EBITDA increased $11 million to $420 million.
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Operating cash generation improved materially
Six-month operating cash flow rose $368 million to $1.207 billion. Capital expenditures were $517 million, or about 7.7% of $6.671 billion in six-month revenue, implying approximately $690 million of cash flow after capex.
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Liquidity supports near-term obligations
Liquidity totaled $3.4 billion at June 30, including $744 million of cash and $2.6 billion of unused revolver capacity. Management believes available cash and operating cash flow can fund requirements for the next 12 months.
What to watch
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Acquisition debt sharply increased interest burden
Debt outstanding was $21.2 billion at June 30, 2026 following approximately $7.7 billion of new debt for the Issuer Solutions acquisition; Q2 net interest expense rose $90 million, or 82%, to $200 million.
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Acquisition is dilutive and integration-heavy
Gross margin declined to 35% from 36% a year earlier, which management attributes to Issuer Solutions dilution and acquired-intangible amortization. The acquisition contributed approximately 19% of Q2 gross revenue and 33% of total assets.
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Variable-rate exposure increases rate sensitivity
A 100-basis-point increase in rates on variable-rate debt would raise annual interest expense by $50 million, versus $17 million using the June 2025 debt balance. Variable-rate debt represented 24% of debt at June 30, 2026.
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Non-strategic business runoff pressures corporate results
Corporate and Other revenue fell $29 million, or 26%, to $84 million and adjusted EBITDA loss widened $23 million to $147 million, driven principally by run-off of non-strategic businesses.
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No formal risk-factor updates; capital returns curtailed
The filing reports no material changes to risk factors versus the 2025 10-K. Nevertheless, management says it has curtailed repurchases after the acquisition, with $1.7 billion remaining under the authorization at June 30, 2026.
Management's outlook
The 10-Q contains no explicit quantitative revenue or EPS outlook; management states it expects to limit further acquisitions to accelerate deleveraging until it returns to its target leverage ratio.
Earlier filings 4
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…
10-Q · August 5, 2025
FIS reported Q2 revenue of $2.62 billion, exceeding estimates, with a growth of 5% year-over-year. Although gross margin dropped to 36% and operating income rose by 10% to $408 million, the company faced significant…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.