Key Highlights

● Revenue rose 29% to $3,377 million, while underlying pro forma growth was 5.3%.

● Adjusted EBITDA rose 35% to $1,409 million, a Margin of 41.7%.

● Debt outstanding stood at $21.2 billion, and Buybacks are temporarily curtailed.

● The 2026 free Cash Flow target was raised to $2.15 billion to $2.25 billion.

Fidelity National Information Services, Inc. (NYSE:FIS), known as FIS, published second-quarter 2026 results on 4 August 2026. Reported revenue rose 29%, but the company also gave pro forma figures showing underlying growth of 5.3%, and it trimmed its pro forma outlook while raising its free cash flow target. The gap between those numbers is the main reason the report deserves a careful reading.

FIS describes itself as a financial technology company serving financial institutions, businesses and developers. It is headquartered in Jacksonville, Florida.

Business and sector

FIS supplies software, processing and related services to banks and other financial institutions. Its results are reported in three groups. Banking Solutions covers core banking and related technology for banks. Capital Market Solutions serves institutions in Investment and capital markets. Corporate and Other holds the remaining activities.

The sector is shaped by long customer contracts, regulatory requirements and the cost of replacing legacy systems. In its release, FIS said banks are investing in modernisation and artificial intelligence and are choosing FIS as their partner, a statement that reflects management's view rather than an independently verified trend.

Reported results

Revenue for the quarter was $3,377 million, compared with $2,616 million a year earlier. GAAP Diluted Earnings per Share were $0.45, against a loss of $0.90 per share in the prior-year quarter. Adjusted earnings per share, a non-GAAP measure, were $1.48, up 8.8% from $1.36. Adjusted EBITDA rose 35% to $1,409 million, a margin of 41.7%.

Banking Solutions revenue was $2,483 million, up 44%, and its adjusted EBITDA margin was 45.8%. Capital Market Solutions revenue was $810 million, up 3.5%, with a margin of 51.9%. Corporate and Other revenue fell 26% to $84 million. Operating Cash Flow was $493 million, and free cash flow, excluding cash transaction taxes on the Worldpay sale, was $525 million.

FIS stated that the Total Issuing Solutions acquisition, formerly the Issuer Solutions business, closed ahead of plan. That transaction and the Worldpay sale help to explain why reported and pro forma growth differ so widely.

Outlook and capital allocation

For 2026, FIS now expects adjusted revenue growth of 29% to 30%, adjusted EBITDA growth of 32% to 34% and adjusted earnings per share growth of 7.0% to 8.5%. Its free cash flow target is $2.15 billion to $2.25 billion, raised by $100 million. Pro forma revenue growth guidance was lowered to 4.5% to 5.0% from 5.1% to 5.7%, and pro forma adjusted EBITDA growth guidance to 5.9% to 6.9% from 7.2% to 8.4%.

Debt outstanding was $21.2 billion at 30 June 2026. The company said it has temporarily curtailed share repurchases and paused tuck-in acquisitions to accelerate deleveraging, expecting buybacks to resume meaningfully at about 2.8 times gross leverage. In the quarter it returned $270 million to shareholders, comprising $42 million of buybacks and $228 million of dividends.

Risks and uncertainties

The lowered pro forma guidance suggests that underlying growth is slower than the headline figures imply. Integration of a large Acquisition carries execution risk, and the company's debt load limits its flexibility until Leverage falls. Forecasts of leverage, cash flow and buyback timing are management expectations and could change.

Customers in banking can also delay technology projects, and competition from other core banking and payments providers remains a factor.

FIS's Deleveraging Timeline

The third-quarter guidance provides a near-term test: FIS expects revenue of $3,415 million to $3,445 million, adjusted EBITDA of $1,460 million to $1,480 million and adjusted earnings per share of $1.58 to $1.62. Readers can also follow the pace of debt reduction, the timing of any return to meaningful buybacks and whether pro forma growth moves closer to the reported rate.