Fidelity National Information Services Stock Earnings Reports

FIS reported a stronger-than-expected Q3 2025: adjusted revenue grew ~6.3% to $2.7B, adjusted EBITDA margin expanded to ~41.8%, and adjusted EPS rose to $1.51 (+~8% YoY). Recurring revenue and sales momentum remain healthy (ACV growth, improved renewal retention), driven by strength in Banking (digital, core modernization, payments) and solid Capital Markets performance. Free cash flow was a standout at ~$800M (adjusted FCF ~ $930M) with cash conversion >140% in the quarter; management raised full‑year guidance for revenue, EBITDA and cash conversion (now expecting >85% for 2025) and increased share‑repurchase plans to $1.3B (returned $509M this quarter). Strategic M&A: closed Amount (digital account opening) and reiterated that the Credit Issuer Solutions acquisition is expected to close in Q1 2026 and to be accretive, adding scale (nearly 1B accounts referenced) and substantial free cash flow (management estimated +$500M FCF in 2026, rising to ~$700M post-integration). Management emphasized accelerating AI adoption across sales, client operations and product (fraud, risk, personalization), an improving pricing environment, and a shift toward higher-quality recurring revenue. Guidance/near-term outlook: raised FY revenue and EBITDA ranges, tighter EPS range with double-digit growth reiterated, expect >60 bps margin expansion in 2026 and steady leverage (~2.9x ex-currency). Key risks/considerations: short‑term M&A dilution and TSA-related margin effects this year, integration and one‑time costs associated with acquisitions, and continued sensitivity to macro/regulatory developments (e.g., bank consolidation, EBT/benefit program dynamics).