01—Abstract
Summary
Summary of the 10-Q filed May 8, 2026. Cited figures are marked; the original filing is the authoritative source.
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 billiona 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 millionb in shares during the quarter, though repurchases have been temporarily curtailed to focus on deleveraging.
02—Key points
Key Highlights
- Revenue 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%.
- The company realized an estimated pre-tax gain of $2.2 billion in Q1 2026 from the sale of its remaining equity interest in Worldpay.
- Interest 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.
- Adjusted EBITDA for the Banking Solutions segment increased 56% year-over-year, benefiting from the Issuer Solutions acquisition and organic growth.
- Cash flow from operations improved by $256 million to $713 million in Q1 2026 compared to the prior year, attributed to better operating performance.
- The company has $3.5 billion in available liquidity as of March 31, 2026, comprising cash and equivalents and revolving credit facility capacity.
- Share repurchases were temporarily curtailed following the acquisition to prioritize deleveraging, with approximately $1.8 billion remaining under the authorized program.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2026, Fidelity National Information Services, Inc. kept $0.72.
- Revenue$3.29B100.0%
- Cost of revenue−$2.19B66.4%
- Gross profit$1.11B33.6%
- Operating costs−$685.0M20.8%
- Operating income$423.0M12.8%
- Interest, other & tax$1.94B59.0%
- Net income$2.37B71.8%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed May 8, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $3.29B$2.53B | +30.1% |
| Cost of Revenue | $2.19B$1.65B | +32.3% |
| Gross Profit | $1.11B$879.00M | +26.1% |
| SG&A Expenses | $605.00M$558.00M | +8.4% |
| Operating Income | $423.00M$347.00M | +21.9% |
| Net Income | $2.37B$77.00M | +2972.7% |
| EPS (Basic) | $4.59$0.15 | +2960.0% |
| EPS (Diluted) | $4.58$0.15 | +2953.3% |
| Shares Outstanding (Basic) | 515.00M528.00M | −2.5% |
| Shares Outstanding (Diluted) | 517.00M531.00M | −2.6% |
05—Questions
Frequently Asked Questions
What was the primary driver of the significant revenue increase in the first quarter of 2026?
The primary driver of the 30% revenue increase was the acquisition of the Issuer Solutions Business, which closed on January 9, 2026. Excluding the contribution from this acquisition, FIS's revenue grew by 7% year-over-year.
How has the recent acquisition impacted the company's debt and interest expenses?
The acquisition of the Issuer Solutions Business was financed with approximately $7.7 billion in new debt, leading to a substantial increase in interest expense. Interest expense for the first quarter of 2026 rose by 146% to $197 million compared to the same period in the prior year.
What is the financial impact of the Worldpay sale on the company?
FIS completed the sale of its remaining equity interest in Worldpay in the first quarter of 2026, realizing an estimated pre-tax gain of $2.2 billion. This transaction is part of the company's strategic repositioning.
What is the company's liquidity position and outlook for funding its operations?
As of March 31, 2026, FIS reported $3.5 billion in available liquidity, including $755 million in cash and cash equivalents and $2.7 billion in revolving credit facility capacity. Management believes its current liquidity and cash flow from operations are sufficient to meet its operating requirements, capital expenditures, and debt service obligations for the next 12 months and beyond.
06—Continue