Summary
Fidelity National Information Services, Inc. (FIS) has reported its first-quarter 2026 results, marked by significant strategic transactions. The company completed the acquisition of the Issuer Solutions Business on January 9, 2026, funded by approximately $7.7 billion in new debt, which has increased its interest expense. Concurrently, FIS completed the sale of its remaining equity interest in Worldpay, realizing an estimated pre-tax gain of $2.2 billion in the first quarter of 2026. This strategic repositioning aims to streamline operations and focus on core platform capabilities, including embedding artificial intelligence across its solutions. While the company experienced a 30% overall revenue increase driven by the Issuer Solutions acquisition, it's important for investors to note that excluding this acquisition, revenue grew a more modest 7%. The increased debt load is a key consideration, impacting interest expenses, although management believes current liquidity and operating cash flows are sufficient for the next 12 months. The company also repurchased approximately $30 million in shares during the quarter, though repurchases have been temporarily curtailed to focus on deleveraging.
Financial Highlights
53 data points| Revenue | $3.29B |
| Cost of Revenue | $2.19B |
| Gross Profit | $1.11B |
| SG&A Expenses | $605.00M |
| Operating Income | $423.00M |
| Net Income | $2.37B |
| EPS (Basic) | $4.59 |
| EPS (Diluted) | $4.58 |
| Shares Outstanding (Basic) | 515.00M |
| Shares Outstanding (Diluted) | 517.00M |
Key Highlights
- 1Revenue increased by 30% to $3.3 billion in Q1 2026, largely due to the January 9, 2026 acquisition of the Issuer Solutions Business. Excluding this acquisition, revenue grew 7%.
- 2The company realized an estimated pre-tax gain of $2.2 billion in Q1 2026 from the sale of its remaining equity interest in Worldpay.
- 3Interest expense significantly increased by 146% to $197 million in Q1 2026, primarily driven by $7.7 billion in new debt incurred to fund the Issuer Solutions Acquisition.
- 4Adjusted EBITDA for the Banking Solutions segment increased 56% year-over-year, benefiting from the Issuer Solutions acquisition and organic growth.
- 5Cash flow from operations improved by $256 million to $713 million in Q1 2026 compared to the prior year, attributed to better operating performance.
- 6The company has $3.5 billion in available liquidity as of March 31, 2026, comprising cash and equivalents and revolving credit facility capacity.
- 7Share repurchases were temporarily curtailed following the acquisition to prioritize deleveraging, with approximately $1.8 billion remaining under the authorized program.