Key Highlights

● Revenue was $3,377 million, up 29%, reflecting the Issuer Solutions acquisition.

● Pro forma revenue grew 5.3%.

● Free cash flow was $237 million on the standard definition.

● Pro forma revenue growth guidance was lowered to 4.5% to 5.0%.

Fidelity National Information Services, Inc. (NYSE:FIS) reported second-quarter 2026 results on 4 August 2026. Revenue was $3,377 million, up 29% on the prior year, with the increase reflecting the acquisition of the Issuer Solutions business, now branded FIS Total Issuing Solutions. On a pro forma basis, which adjusts for portfolio changes, revenue grew 5.3%. The company also raised its free cash flow target while trimming pro forma growth guidance.

Business and Sector

FIS provides technology and processing services to banks, capital markets firms and other financial institutions. It reports two main segments. Banking Solutions covers core processing, digital banking, payments and, since the acquisition, card issuing services. Capital Market Solutions supplies software for investment, trading and asset management firms.

The sector is characterised by long contracts and high switching costs, but also by pressure from cloud-native competitors and banks consolidating technology vendors. On 9 January 2026, FIS completed the sale of its 45% non-controlling stake in Worldpay, which produced a large equity-method gain in the first half and left the company with a simpler profile.

Latest Results

Banking Solutions revenue rose 44% to $2,483 million, with a pro forma increase of 6.1%, and its adjusted EBITDA margin was 45.8%. Capital Market Solutions revenue grew 3.5% to $810 million, and its margin of 51.9% was 32 basis points lower, which FIS attributed to higher labour costs and the timing of customer-related expenses. Corporate and Other revenue fell 26% to $84 million.

Adjusted EBITDA was $1,409 million, up 35%, at a margin of 41.7%. Adjusted earnings per share were $1.48, compared with $1.36, while GAAP diluted earnings per share were $0.45 against a loss of $0.90 a year earlier. The company said integration of Total Issuing Solutions is ahead of plan.

Financial Performance and Industry Context

Operating cash flow was $493 million. Free cash flow was $237 million on the standard definition, while the headline figure of $525 million excludes $288 million of cash transaction taxes linked to the Worldpay sale. Total debt stood at $21.2 billion at 30 June 2026.

FIS returned $270 million to shareholders in the quarter, comprising $42 million of buybacks and $228 million of dividends. It has temporarily curtailed repurchases and paused tuck-in acquisitions to accelerate deleveraging, expecting meaningful buybacks to resume at a gross leverage of about 2.8 times, while dividends also continue.

For 2026, FIS now guides to revenue of $13.63 billion to $13.70 billion and adjusted EPS of $6.15 to $6.24. Free cash flow is targeted at $2.15 billion to $2.25 billion, up $100 million. Pro forma revenue growth guidance was lowered to 4.5% to 5.0% from 5.1% to 5.7%.

Risks and Uncertainties

Leverage is the central balance sheet consideration. With debt above $21 billion, the pace of deleveraging influences interest costs and the timing of capital returns. The lowered pro forma growth outlook indicates that underlying expansion is slower than previously planned, and the Capital Market Solutions margin showed cost pressure.

Integration risk remains, even though management reports progress. Combining card issuing platforms involves client migrations and system consolidation, where delays or attrition could affect revenue and costs. The company depends on the health of its bank clients, whose technology budgets respond to interest rates and regulation.

Reported free cash flow differs from the headline measure because of transaction taxes.

Leverage target and the revised growth range

FIS has moved from portfolio reshaping to execution. Developments worth watching include third-quarter results against guidance of $3,415 million to $3,445 million in revenue and adjusted EPS of $1.58 to $1.62, progress on leverage towards the 2.8 times target, any resumption of buybacks, and evidence that pro forma growth reaches the revised range for the full year.