FIS Reports Second Quarter 2026 Results

• Second quarter GAAP Diluted EPS of $0.45
• Adjusted EPS of $1.48 increased 8.8% over the prior year period
• Revenue increased 29% on a GAAP basis to $3.4 billion, increasing 31% on an adjusted basis and 5.3% on a Pro Forma basis
• Net cash provided by operating activities was $493 million and Free cash flow1 was $525 million, increasing 220%
• Updated full-year 2026 outlook, including Adjusted revenue growth of 29 - 30%, Adjusted EBITDA growth of 32 - 34%, Adjusted EPS growth of 7.0 - 8.5% and Free Cash Flow1 growth of 33 - 39%, to $2,150 - $2,250 million2
• Updated 2026 outlook for Pro Forma revenue growth to 4.5 - 5.0%, as compared to 5.1 - 5.7% and Pro Forma Adjusted EBITDA growth to 5.9 - 6.9%, as compared to 7.2 - 8.4%2

JACKSONVILLE, Fla.--(BUSINESS WIRE)-- FIS® (NYSE: FIS), a global leader in financial technology, today reported its second quarter 2026 results.

“Our first half reflects the strength of the business we have built defined by durable recurring growth, expanding margins, and accelerating cash generation,” said FIS CEO and President Stephanie Ferris. “Banks are investing decisively behind modernization and AI, and they are choosing FIS as their partner. With the Total Issuing Solutions acquisition ahead of plan, we are uniquely positioned to leverage our global scale and end-to-end solutions to serve financial institutions of all sizes.”

Second Quarter 2026 Financial Results

On a GAAP basis, revenue increased 29% as compared to the prior-year period to approximately $3.4 billion. GAAP net earnings attributable to common stockholders were $231 million or $0.45 per diluted share.

On an adjusted basis, revenue increased 31% as compared to the prior-year period. Adjusted EBITDA increased 35% to approximately $1.4 billion and Adjusted EBITDA margin expanded by 193 basis points (bps) compared to the prior-year period to 41.7%, reflecting the acquisition of the high margin Total Issuing Solutions™ business, favorable mix and cost savings. Adjusted net earnings were $763 million, and Adjusted EPS increased by 9% as compared to the prior-year period to $1.48 per diluted share.

On a Pro Forma basis, revenue increased 5.3% as compared to the prior-year period, including recurring revenue growth of 5.1%. Pro Forma adjusted EBITDA increased 7.4% and Pro Forma adjusted EBITDA margin expanded by 113 basis points (bps) compared to the prior-year period to 41.7%, reflecting favorable mix and cost savings.

Segment Information

• Banking Solutions:
  Second quarter revenue increased 44% on a GAAP basis and adjusted basis as compared to the prior-year period to $2.5 billion. Adjusted EBITDA increased 50% to $1.1 billion and Adjusted EBITDA margin expanded by 179 basis points as compared to the prior-year period to 45.8%, reflecting the acquisition of the high margin Total Issuing Solutions™ business, favorable revenue mix, and the impact of continued cost management.
  
  On a Pro Forma basis, revenue increased 6.1% as compared to the prior-year period, including recurring revenue growth of 5.0%. Pro Forma adjusted EBITDA increased 11% and Pro Forma adjusted EBITDA margin expanded by 178 basis points (bps) compared to the prior-year period to 45.8%, reflecting favorable revenue mix, and the impact of continued cost management.
  
  
• Capital Market Solutions:
  Second quarter revenue increased by 3.5% on a GAAP basis and 3.2% on an adjusted basis as compared to the prior-year period to $810 million, reflecting recurring revenue growth of 5.3%. Adjusted EBITDA increased 2.8% to $420 million and Adjusted EBITDA margin contracted by (32) basis points as compared to the prior-year period to 51.9%, reflecting higher labor costs and the timing of certain customer-related expenses.
  
  
• Corporate and Other:
  Second quarter revenue decreased by 26% as compared to the prior-year period to $84 million, primarily due to the decline of our non-strategic businesses. Adjusted EBITDA loss was $147 million, including $148 million of corporate expenses.

Balance Sheet and Cash Flows

Second quarter net cash provided by operating activities was $493 million and Free cash flow1 was $525 million, up 220% as compared to the prior-year period. The Company returned $270 million of capital to shareholders through $42 million of share repurchases and $228 million of dividends paid. As of June 30, 2026, debt outstanding totaled $21.2 billion.

Capital Allocation

Following the close of the Total Issuing Solutions™ business, the Company has temporarily curtailed share repurchases and paused tuck-in M&A activity to accelerate deleveraging. The Company will continue to pay quarterly dividends targeting dividend per share growth in line with Adjusted EPS growth. The Company expects to resume meaningful share repurchases once it has achieved its target gross leverage of approximately 2.8x.

Third Quarter and Full-Year 2026 Outlook

For the full-year, the Company is updating its outlook, projecting Adjusted revenue growth of 29 - 30%, Adjusted EBITDA growth of 32 - 34% and Adjusted EPS growth of 7.0 - 8.5%. On a Pro Forma basis, revenue is projected to grow 4.5 - 5.0%, as compared to 5.1 - 5.7%, and Adjusted EBITDA is projected to grow 5.9 - 6.9%, as compared to 7.2 - 8.4%2. Additionally, the Company is increasing its target for Free Cash Flow1 by $100 million to $2.15 - $2.25 billion, or growth of 33 - 39% as compared to the prior year.

Webcast

FIS will host a live webcast of its earnings conference call with the investment community beginning at 8:30 a.m. (EDT) on Tuesday, August 4, 2026. To access the webcast, go to the Investor Relations section of FIS’ homepage, www.investor.fisglobal.com. A replay will be available after the conclusion of the live webcast.

About FIS

FIS is a financial technology company providing solutions to financial institutions, businesses and developers. We unlock financial technology to the world across the money lifecycle underpinning the world's financial system. Our people are dedicated to advancing the way the world pays, banks and invests, by helping our clients to confidently run, grow and protect their businesses. Our expertise comes from decades of experience helping financial institutions and businesses of all sizes adapt to meet the needs of their customers by harnessing where reliability meets innovation in financial technology. Headquartered in Jacksonville, Florida, FIS is a member of the Fortune 500® and the Standard & Poor’s 500® Index. To learn more, visit FISglobal.com. Follow FIS on LinkedIn, Facebook and X.

FIS Use of Non-GAAP Financial Information

Generally Accepted Accounting Principles (GAAP) is the term used to refer to the standard framework of guidelines for financial accounting in the United States. GAAP includes the standards, conventions, and rules accountants follow in recording and summarizing transactions and in the preparation of financial statements. In addition to reporting financial results in accordance with GAAP, we have provided certain non-GAAP financial measures.

These non-GAAP measures include constant currency revenue, Adjusted revenue growth, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted net earnings, Adjusted EPS, Free cash flow and Free cash flow excluding cash transaction taxes on the Worldpay sale.

Due to the financial impact of the acquisition of the Issuer Solutions Business, FIS is also providing additional information to improve the understanding of the Company’s operating performance and has recalculated certain non-GAAP measures of the Company’s historical financial performance on an adjusted combined company basis for the periods shown herein. This information includes Pro forma combined revenue, Pro forma combined revenue growth, Adjusted pro forma combined EBITDA and Adjusted pro forma combined EBITDA margin. The Company has derived certain pro forma measures from the unaudited pro forma condensed combined financial information of FIS and the Issuer Solutions Business and notes thereto prepared in accordance with Article 11 of Regulation S-X for the year ended December 31, 2025, in Exhibit 99.2 to the Company’s Form 8-K/A filed on February 24, 2026.

We believe these non-GAAP measures help investors better understand the underlying fundamentals of our business. As further described below, the non-GAAP revenue and earnings measures presented eliminate items management believes are not indicative of FIS’ operating performance. The constant currency revenue and Adjusted revenue growth measures adjust for the effects of exchange rate fluctuations and exclude discontinued operations, while Adjusted revenue growth also excludes revenue from Corporate and Other, giving investors further insight into our performance. Finally, Free cash flow and Free cash flow excluding cash transaction taxes on the Worldpay sale provide further information about the ability of our business to generate cash. For these reasons, management also uses these non-GAAP measures in its assessment and management of FIS’ performance.

Constant currency revenue represents reported segment revenue excluding the impact of fluctuations in foreign currency exchange rates in the current period.

Adjusted revenue growth reflects the percentage change in constant currency revenue for the current period as compared to the prior period. Constant currency revenue is calculated by applying prior-year period foreign currency exchange rates to current-period revenue. When referring to Adjusted revenue growth, revenue from our Corporate and Other segment is excluded.

Adjusted EBITDA reflects net earnings (loss) before interest, other income (expense), taxes, equity method investment earnings (loss), and depreciation and amortization, and excludes certain costs that do not constitute normal, recurring, cash operating expenses necessary to operate our business. These excluded costs generally include acquisition, integration and certain other costs and asset impairments. Adjusted EBITDA for the respective segments excludes the foregoing items. This measure is reported to the chief operating decision maker, the Company's Chief Executive Officer and President, who utilizes the measure for purposes of making decisions about allocating resources to the segments and assessing their performance. For this reason, Adjusted EBITDA, as it relates to our segments, is presented in conformity with FASB ASC Topic 280, Segment Reporting.

Adjusted EBITDA margin reflects Adjusted EBITDA, as defined above, divided by revenue.

Adjusted net earnings excludes the effect of purchase price amortization, as well as certain costs that do not constitute normal, recurring, cash operating expenses necessary to operate our business. For purposes of calculating Adjusted net earnings, our equity method investment earnings (loss) ("EMI") from Worldpay is also adjusted to exclude certain costs and other transactions in a similar manner.

Adjusted pro forma combined EBITDA reflects net earnings (loss) before interest, other income (expense), taxes, equity method investment earnings (loss), and depreciation and amortization, and excludes certain costs that do not constitute normal, recurring, cash operating expenses for FIS and Total Issuing Solutions™ combined for pre-acquisition periods and assumes the Issuer Solutions acquisition occurred on January 1, 2025, unless otherwise indicated. These excluded costs generally include acquisition, integration and certain other costs and asset impairments.

Adjusted pro forma combined EBITDA margin reflects Adjusted pro forma combined EBITDA, as defined above, divided by Pro forma combined revenue.

Adjusted EPS reflects Adjusted net earnings, as defined above, divided by weighted average diluted shares outstanding.

Free cash flow reflects net cash provided by operating activities from continuing operations, less capital expenditures (additions to property and equipment and additions to software from the statement of cash flows).

Free cash flow excluding cash transaction taxes on the Worldpay sale reflects Free cash flow excluding cash transaction taxes on the Worldpay sale.

Pro forma combined revenue includes reported revenue for FIS and Total Issuing™ Solutions combined for pre-acquisition periods and assumes the Issuer Solutions acquisition occurred on January 1, 2025, unless otherwise indicated.

Pro forma combined revenue growth represents Pro forma combined revenue excluding the impact of fluctuations in foreign currency exchange rates in the current period as compared to the prior period Pro forma combined revenue. When referring to Pro forma combined revenue growth, revenue from our Corporate and Other segment is excluded.

Any non-GAAP measures should be considered in context with the GAAP financial presentation and should not be considered in isolation or as a substitute for GAAP measures. Further, FIS’ non-GAAP measures may be calculated differently from similarly titled measures of other companies. Reconciliations of these non-GAAP measures to related GAAP measures, including footnotes describing the adjustments, are provided in the attached schedules and in the Investor Relations section of the FIS website, www.investor.fisglobal.com.

Forward-Looking Statements

This earnings release and today’s webcast contain “forward-looking statements” within the meaning of the U.S. federal securities laws. Statements that are not historical facts, as well as other statements about our expectations, beliefs, intentions, or strategies regarding the future, or other characterizations of future events or circumstances, are forward-looking statements. Forward-looking statements include statements about anticipated financial outcomes, including any earnings outlook or projections, projected revenue or expense synergies or dis-synergies, business and market conditions, outlook, foreign currency exchange rates, deleveraging plans, expected dividends and share repurchases of the Company, the Company’s sales pipeline and anticipated profitability and growth, plans, strategies and objectives for future operations, strategic value creation, risk profile and investment strategies, any statements regarding future economic conditions or performance and any statements with respect to the future impacts of the recently completed acquisition of the Issuer Solutions Business, which has been rebranded as FIS Total Issuing™ Solutions. These statements may be identified by words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “will,” “should,” “could,” “would,” “project,” “continue,” “likely,” and similar expressions, and include statements reflecting future results or outlook, statements of outlook and various accruals and estimates. These statements relate to future events and our future results and involve a number of risks and uncertainties. Forward-looking statements are based on management’s beliefs as well as assumptions made by, and information currently available to, management.

Actual results, performance or achievement could differ materially from these forward-looking statements. The risks and uncertainties to which forward-looking statements are subject include the following, without limitation:

• changes in general economic, business and political conditions, a recession, intensified or expanded international hostilities, acts of terrorism, fluctuation in rates of inflation or interest, effects of announced or future tariff increases and any resulting regulatory changes in global trade relations and changes in consumer or business confidence;
• changes in either or both the United States and international lending, capital and financial markets or currency fluctuations;
• the risk that acquired businesses, including FIS Total Issuing™ Solutions, will not be integrated successfully, will not provide the expected benefits, or that the integration will be more costly or more time-consuming and complex than anticipated;
• the risk that cost savings and synergies anticipated to be realized from acquisitions, including the Issuer Solutions Acquisition, may not be fully realized or may take longer to realize than expected or that costs may be greater than anticipated;
• the risks of doing business internationally;
• the effect of legislative initiatives or proposals, statutory changes, governmental or applicable regulations and/or changes in industry requirements, including privacy, data protection, cybersecurity, cyber resilience and AI laws and regulations;
• our ability to comply with climate change legal and regulatory requirements and to maintain practices that meet our stakeholders' evolving expectations;
• the risks of reduction in revenue from the elimination of existing and potential customers due to consolidation in, or new laws or regulations affecting, the banking, retail and financial services industries or due to financial failures or other setbacks suffered by firms in those industries;
• changes in the growth rates of the markets for our solutions;
• the amount, declaration and payment of future dividends is at the discretion of our Board of Directors and depends on, among other things, our investment opportunities, results of operations, financial condition, cash requirements, future prospects, and other factors that may be considered relevant by our Board of Directors, including legal and contractual restrictions;
• the amount and timing of any future share repurchases is subject to, among other things, our share price, our other investment opportunities and cash requirements, our results of operations and financial condition, our future prospects and other factors that may be considered relevant by our Board of Directors and management;
• failures to adapt our solutions to changes in technology or in the marketplace;
• internal or external security or privacy breaches of our systems, including those relating to unauthorized access, theft, corruption or loss of personal information and computer viruses and other malware affecting our software or platforms, and the reactions of customers, card associations, government regulators and others to any such events;
• the risk that implementation of software, including software updates, for customers or at customer locations or employee error in monitoring our software and platforms may result in the corruption or loss of data or customer information, interruption of business operations, outages, exposure to liability claims or loss of customers;
• the risk that partners and third parties may fail to satisfy their legal obligations to us;
• the risks associated with managing pension cost, cybersecurity issues and IT outages experienced;
• our ability to navigate the opportunities and risks associated with using and/or incorporating AI technologies into our business;
• the reaction of current and potential customers to communications from us or regulators regarding information security, risk management, internal audit or other matters;
• competitive pressures on pricing related to the decreasing number of community banks in the U.S., the development of new disruptive technologies competing with one or more of our solutions, increasing presence of international competitors in the U.S. market and the entry into the market by global banks and global companies with respect to certain competitive solutions, each of which may have the impact of unbundling individual solutions from a comprehensive suite of solutions we provide to many of our customers;
• the failure to innovate in order to keep up with new emerging technologies, which could impact our solutions and our ability to attract new, or retain existing, customers;
• an operational or natural disaster at one of our major operations centers;
• failure to comply with applicable requirements of payment networks or changes in those requirements;
• fraud by bad actors; and
• other risks detailed elsewhere in the “Risk Factors” section and other sections of our Annual Report on Form 10-K for the fiscal year ended December 31, 2025, and in our other filings with the Securities and Exchange Commission.

Other unknown or unpredictable factors also could have a material adverse effect on our business, financial condition, results of operations and prospects. Accordingly, readers should not place undue reliance on these forward-looking statements. These forward-looking statements are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict. Except as required by applicable law or regulation, we do not undertake (and expressly disclaim) any obligation and do not intend to publicly update or review any of these forward-looking statements, whether as a result of new information, future events or otherwise.