FIS — Third Quarter 2026 Earnings Summary

Financial Performance:

• GAAP revenue increased 27% year-over-year to $3.5 billion; adjusted revenue increased 29% year-over-year.
• GAAP net earnings attributable to common stockholders were $356 million ($0.69 per diluted share), compared to $264 million ($0.50 per diluted share) in the prior year.
• Adjusted net earnings were $831 million, and adjusted EPS increased 6.6% year-over-year to $1.61 per diluted share.
• Adjusted EBITDA increased 31% year-over-year to approximately $1.5 billion, with an adjusted EBITDA margin of 42.9% (an expansion of 111 basis points).
• Pro Forma revenue increased 3.7% year-over-year, including recurring revenue growth of 2.5%.
• Pro Forma adjusted EBITDA increased 5.2% year-over-year, with a margin of 42.9% (an expansion of 94 basis points).
• Net cash provided by operating activities was $976 million; Free cash flow was $862 million, up 8.0% year-over-year.
• Debt outstanding totaled $20.8 billion as of September 30, 2026.
• Deferred revenue was $939 million as of September 30, 2026, down from $957 million as of December 31, 2025.

Guidance and Future Outlook:

• Updated full-year 2026 outlook for Adjusted revenue growth to 28-29% and Adjusted EBITDA growth to 29-30%.
• Updated full-year 2026 outlook for Adjusted EPS growth to 1.2-2.4%.
• Updated full-year 2026 outlook for Free Cash Flow growth to 33-39%, targeting $2.15-$2.25 billion.
• Updated full-year 2026 Pro Forma revenue growth outlook to 3.1-3.6% and Pro Forma Adjusted EBITDA growth to 2.9-3.6%.
• Management targets a gross leverage ratio of approximately 2.8x before resuming meaningful share repurchases.

Business Segments and Product Lines:

• Banking Solutions revenue increased 41% year-over-year to $2.5 billion on both GAAP and adjusted bases; Adjusted EBITDA increased 44% to $1.2 billion with a margin of 47.4%.
• Capital Market Solutions revenue increased 3% year-over-year to $823 million; Adjusted EBITDA increased 6.5% to $444 million with a margin of 54.0%.
• Corporate and Other revenue decreased 22% year-over-year to $83 million, primarily due to the decline of non-strategic businesses.
• The acquisition of the high-margin Total Issuing Solutions™ business contributed to revenue mix and margin expansion in Banking Solutions.
• Recurring revenue growth was 2.5% on a Pro Forma basis for the quarter.

Market and Competitive Landscape:

• Management stated client demand remains strong.
• The company is investing in security and innovation to build a more recurring, predictable revenue base.
• FIS is a global leader in financial technology providing solutions to financial institutions, businesses, and developers.

Risks and Challenges:

• Risks include potential failure to successfully integrate acquired businesses (including Total Issuing Solutions™) or realize anticipated synergies and cost savings.
• Risks related to cybersecurity, data privacy, AI regulations, and potential system outages or data corruption.
• Risks associated with competitive pressures from new disruptive technologies, international competitors, and global banks entering specific solution markets.
• Risks include changes in general economic conditions, interest rates, inflation, and regulatory changes affecting the banking and financial services industries.

Management Commentary and Tone:

• CEO Stephanie Ferris stated, "Client demand remains strong, and we are continuing to invest in what our clients care about most, security and innovation."
• Management expressed confidence that investments will lead to significantly deeper client relationships, a stronger competitive position, and a business built for durable growth.
• The tone reflects a focus on deleveraging and portfolio simplification following the acquisition of Total Issuing Solutions™.

Other Key Points:

• FIS closed the divestiture of a non-core prepaid business within the Banking Solutions segment on October 20, 2026, generating gross sale proceeds of over $100 million.
• Share repurchases have been temporarily curtailed and tuck-in M&A activity paused to accelerate deleveraging.
• The company returned $248 million of capital to shareholders in the quarter, consisting of $21 million in share repurchases and $227 million in dividends paid.
• The company will continue paying quarterly dividends, targeting dividend per share growth in line with Adjusted EPS growth.
• The Issuer Solutions Business has been rebranded as FIS Total Issuing™ Solutions.
• The company reassessed its reportable segments in the first quarter of 2026, including the Issuer Solutions Business within the Banking Solutions segment.