01—Abstract
Summary
Summary of the 10-Q filed November 5, 2025. Cited figures are marked; the original filing is the authoritative source.
Fidelity National Information Services, Inc. (FIS) reported solid revenue growth in the third quarter of fiscal year 2025, with a 6% increase year-over-year to $2.7 billiona.
This growth was primarily driven by recurring revenue from its Banking and Capital Markets segments, underscoring the resilience of its core business operations. The company continues to navigate a dynamic financial technology landscape, marked by ongoing investments in innovation and strategic acquisitions/divestitures. Significant strategic moves are underway, including the pending acquisition of Global Payments' Issuer Solutions business, expected to close in Q1 2026, and the sale of FIS's remaining equity interest in Worldpay.
These transactions are poised to reshape the company's operational and financial profile. Despite increased interest expenses due to new debt financing for the acquisition, FIS maintains sufficient liquidity and is focused on deleveraging post-acquisition, while continuing its regular dividend payouts and active share repurchase program.
02—Key points
Key Highlights
- Revenue increased by 6% to $2.7 billion for the three months ended September 30, 2025, driven by recurring revenue growth in Banking and Capital Markets.
- The company is progressing with the acquisition of Global Payments' Issuer Solutions business for $13.5 billion, expected to close in Q1 2026, which will be funded by a combination of cash and approximately $8.0 billion in new debt.
- FIS is also selling its remaining equity interest in Worldpay as part of the Issuer Solutions acquisition transaction.
- Interest expense increased significantly (52% for nine months) due to bridge facility fees for the acquisition and higher interest rates, though mitigated partially by the 2024 Worldpay Sale proceeds.
- The company repurchased approximately 4.2 million shares for $301 million during the quarter, with $2.1 billion remaining under its share repurchase program.
- Operating income saw a slight decrease of 7% for the three months ended September 30, 2025, to $457 million, impacted by revenue and cost variances.
- FIS reported $2.9 billion in available liquidity as of September 30, 2025, including $571 million in cash and cash equivalents.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2025, Fidelity National Information Services, Inc. kept $0.10.
- Revenue$2.72B100.0%
- Cost of revenue−$1.69B62.2%
- Gross profit$1.03B37.8%
- Operating costs−$571.0M21.0%
- Operating income$457.0M16.8%
- Interest, other & tax−$193.0M7.1%
- Net income$264.0M9.7%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2025filed November 5, 2025Financial Statements
Q3 FY2025 against Q3 FY2024
| Line item | Q3 FY2025Q3 FY2024 | Change |
|---|---|---|
| Revenue | $2.72B$2.57B | +5.7% |
| Cost of Revenue | $1.69B$1.59B | +6.0% |
| Gross Profit | $1.03B$977.00M | +5.2% |
| SG&A Expenses | $584.00M$521.00M | +12.1% |
| Operating Income | $457.00M$490.00M | −6.7% |
| Net Income | $264.00M$224.00M | +17.9% |
| EPS (Basic) | $0.51$0.41 | +24.4% |
| EPS (Diluted) | $0.50$0.41 | +22.0% |
| Shares Outstanding (Basic) | 521.00M545.00M | −4.4% |
| Shares Outstanding (Diluted) | 523.00M548.00M | −4.6% |
05—Questions
Frequently Asked Questions
What are the key strategic transactions FIS is currently undertaking?
FIS is undertaking two major strategic transactions: the acquisition of Global Payments' Issuer Solutions business for $13.5 billion, expected to close in the first quarter of 2026, and the simultaneous sale of its remaining equity interest in Worldpay. These moves are expected to significantly reshape the company's business and financial structure.
How are the new debt obligations for the Issuer Solutions acquisition impacting FIS's financial performance?
The planned acquisition of Issuer Solutions involves approximately $8.0 billion in new debt. This has led to an increase in interest expenses, particularly due to bridge facility fees incurred in anticipation of the closing. While this impacts profitability, FIS is focused on deleveraging post-acquisition.
What is the status of FIS's share repurchase program and dividend payments?
FIS continues to actively engage in its share repurchase program, repurchasing approximately $301 million in shares during the quarter, with $2.1 billion remaining available. The company also confirmed a regular quarterly dividend of $0.40 per common share, payable in December 2025, and expects to continue targeting dividend-per-share growth aligned with adjusted earnings-per-share growth.
How did the divestiture of non-strategic businesses affect the Corporate and Other segment?
The divestiture of a non-strategic business in the first quarter of 2025, along with a decrease in non-recurring revenue from remaining non-strategic businesses, led to a 34% decrease in revenue for the Corporate and Other segment during the three months ended September 30, 2025. This segment also experienced higher corporate costs, impacting its Adjusted EBITDA.
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