FIS Filings — Fidelity National Information Services, Inc. - FilingSpy
FIS
Fidelity National Information Services, Inc.
A global financial technology company that builds banking, payments, and trading software used by banks and financial firms worldwide. Its roots go back to 1968, when a former IBM engineer founded Systematics, Inc. in Little Rock, Arkansas to run data centers for mid-sized banks. The FIS name arrived in 2003 after title-insurance giant Fidelity National Financial bought that business. Fun fact: FIS bought the payments processor Worldpay in 2019 and sold most of it in 2024.
Q2 revenue rose 29.1% to $3,377M after the Issuer Solutions acquisition closed in January
The Issuer Solutions acquisition reshaped FIS's quarterly results. rose 29.1% to $3,377M and rose 24.3% to $507M in Q2, with at 34.8% down 1.6 points on of acquired , while stood at $15.4B after the deal's new borrowings. The company is now prioritizing deleveraging with share repurchases still curtailed.
Key takeaways
rose 29.1% to $3,377M in Q2 FY2026, up 2.5% from Q1, primarily from the January 2026 acquisition of the . was 34.8%, down 1.6 points and up 1.1 points sequentially, pressured by the impact of Issuer Solutions and of acquired . rose 24.3% to $507M and was 15.0%, down 0.6 points year over year but up 2.2 points from Q1, as revenue gains outpaced cost growth. was $0.2B and was $0.45, down from $2.4B and $4.58 in Q1 when a $2.2B pre-tax gain on the remaining stake sale was recorded; the Q2 figure reflects no such one-off gain. , net rose with approximately $7.7B of new debt for the acquisition, with H1 2026 interest expense, net nearly doubling to $397M; was $15.4B, up 74.0% year over year. Liquidity stood at $3.4B as of June 30, 2026, and share repurchases remain temporarily curtailed to prioritize deleveraging toward a target . revenue rose 4% in H1 2026 with margin expanding 65 to 51.7%.
Section summaries
Management's Discussion and Analysis
Revenue rose 30% to $6.7B in H1 2026, driven by the Issuer Solutions acquisition; gross margin dipped on amortization, and interest expense climbed on new debt.
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Consolidated grew 30% to $6.7B in H1 2026, primarily from the January 2026 acquisition of the ; Banking revenue rose 45% including the acquisition and 7% organically.
What changed
The Q1 FY2026 watch on Q2 was met: gross margin was 34.8%, down 1.6 points , with Issuer Solutions and TSA costs persisting as flagged. The Q1 watch on debt paydown from $16.8B was not met; fell to $15.4B in Q2, down 8.1% sequentially but still up 74.0% from a year ago after the acquisition borrowings. The Q1 watch on resuming share repurchases was not met; repurchases remain curtailed as of June 30, 2026, with liquidity at $3.4B. The Q1 watch on as $7.7B debt accrues was met: H1 interest expense, net nearly doubled to $397M. The FY2025 watch on the Issuer Solutions close and M&A pause was settled: the deal closed in January 2026 and the temporary pause for deleveraging is in effect. The FY2025 watch on Q1 2026 gross margin was met; the year-open figure of 33.6% rose to 34.8% by Q2. Risk factors in this 10-Q restate the 2025 10-K with no material changes, so no new company-specific risk was added.
What to watch
Q3 FY2026 as Issuer Solutions and TSA costs persist without Merchant diversification. Pace of debt reduction from the $15.4B level as FIS executes its deleveraging plan. Resumption of share repurchases after the curtailment, against $744M cash at quarter-end. trajectory as the $7.7B acquisition debt accrues at its weighted-average cost.
declined to 34% in H1 2026 from 36% a year ago, pressured by the impact of the including of acquired intangibles.
, net, nearly doubled to $397M in H1 2026 due to approximately $7.7B of new debt issued to fund the Issuer Solutions Acquisition.
H1 2026 included a $2.2B estimated pre-tax gain from the sale of the remaining 45% stake, recorded in earnings.
rose 4% in H1 2026 on growth from new sales and favorable pricing; expanded 65 to 51.7%.
Liquidity stood at $3.4B as of June 30, 2026; the company temporarily curtailed share repurchases to prioritize toward its target .
Quantitative and Qualitative Disclosures About Market Risk
Market risk arises from interest rates and foreign exchange; the company uses derivatives only to hedge, not to trade.
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76% of debt is fixed-rate; a 100 rise in variable rates would increase annual by $50 million as of June 30, 2026.
Fixed-rate senior notes had a of $16.9 billion and fair value of $16.1 billion; a 10% rate increase would not materially affect fair value.
Non-USD was $490 million in Q2 and $971 million in H1 FY2026; a simultaneous 10% adverse currency move would reduce reported revenue by $44 million and $87 million, respectively.
The major currency exposures are GBP, EUR, AUD, SEK, BRL, CHF, and CAD, with GBP representing the largest sensitivity.
The company uses interest rate swaps, cross-currency swaps, and foreign currency forwards as cash flow, fair value, and net investment hedges.
International and expenses are generally local-currency denominated, naturally reducing economic foreign exchange exposure.
See Item 1A. Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2025, for a detailed discussion of risk factors affecting the Company. There have been no material changes in the risk factors described therein.
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See Item 1A. Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2025, for a detailed discussion of risk factors affecting the Company. There have been no material changes in the risk factors described therein.