10-QPeriod: Q2 FY2026

Fidelity National Information Services, Inc. Quarterly Report for Q2 Ended Jun 30, 2026

Filed August 4, 2026For Securities:FIS

Summary

Fidelity National Information Services, Inc. (FIS) reported significant revenue growth for the three and six months ended June 30, 2026, primarily driven by the acquisition of the Issuer Solutions Business on January 9, 2026. Total revenue increased by 29% and 30% respectively, though gross profit margin saw a slight decrease due to the dilutive impact of the acquired business, including amortization of intangible assets. The company is actively managing its capital structure, having funded the acquisition with approximately $7.7 billion in new debt, which has increased interest expenses. Despite this, FIS generated substantial operating income and continues to focus on strategic initiatives like integrating AI across its solutions and modernizing its technology infrastructure to strengthen its competitive position. Operationally, the Banking Solutions segment experienced robust growth, largely attributed to the Issuer Solutions acquisition, with revenue up 44% and 45% for the respective periods. The Capital Markets segment showed more modest growth of 3% and 4%, with recurring revenue being the primary driver. The company maintained strong liquidity with $3.4 billion available as of June 30, 2026, and expects sufficient cash flow to meet its operating and debt obligations. Dividends are planned to continue, aligned with adjusted earnings per share growth, and share repurchases are temporarily curtailed to focus on deleveraging post-acquisition.

Key Highlights

  • 1Revenue for Q2 2026 surged 29% YoY to $3,377 million, and 30% YoY for H1 2026 to $6,671 million, largely due to the acquisition of the Issuer Solutions Business.
  • 2Gross profit margin decreased slightly to 35% in Q2 2026 and remained at 34% for H1 2026, down from 36% in the prior year periods, primarily due to the dilutive impact of the acquired Issuer Solutions Business.
  • 3Operating income grew significantly, up 24% in Q2 2026 to $507 million and 23% in H1 2026 to $929 million, driven by increased revenue from the acquisition.
  • 4Interest expense more than doubled in Q2 2026 to $200 million and H1 2026 to $397 million due to $7.7 billion in new debt raised to fund the Issuer Solutions Acquisition.
  • 5The Banking Solutions segment revenue increased by 44% in Q2 2026 and 45% in H1 2026, substantially driven by the Issuer Solutions Business, with adjusted EBITDA margins showing healthy expansion.
  • 6The company had $3.4 billion in available liquidity as of June 30, 2026, comprising $744 million in cash and cash equivalents and $2.6 billion in revolving credit facility capacity.
  • 7FIS repurchased approximately 1.0 million shares for $42 million in Q2 2026, with $1.7 billion remaining under its share repurchase program, though further repurchases are temporarily curtailed to focus on deleveraging.

Frequently Asked Questions

The primary driver of the substantial revenue increase was the acquisition of the Issuer Solutions Business, which closed on January 9, 2026. This acquisition contributed significantly to the reported revenue growth across both the three-month and six-month periods ended June 30, 2026.

While the acquisition boosted revenue and operating income, it also led to an increase in cost of revenue and selling, general, and administrative expenses due to the integration of the new business. This has resulted in a slight decrease in gross profit margin and a significant increase in interest expense due to the $7.7 billion in new debt incurred to finance the acquisition. The company is actively managing its capital structure to deleverage.

FIS plans to continue paying a regular quarterly dividend, targeting growth aligned with adjusted earnings-per-share. However, future dividends are subject to Board discretion. Share repurchases have been temporarily curtailed following the acquisition to prioritize deleveraging and returning to the target leverage ratio. Approximately $1.7 billion remains available under the existing repurchase authorization.

The company has taken on significant new debt to fund the Issuer Solutions Acquisition, leading to higher interest expenses. To manage this, FIS intends to maintain investment-grade debt ratings and is prioritizing deleveraging. They expect current cash flow from operations to be sufficient to fund operating needs, capital expenditures, and debt service payments in the near to medium term.