FIS FY2026 Q4 IMPROVING

Fidelity National Information Services, Inc. earnings call

Feb 24, 2026 · 08:30 ET George MihalosJames KeoghStephanie Farris

Buzzberg read

2026 pro forma revenue growth raised to 5.1-5.7% from prior 4.5-5.5%

FIS reported strong Q4/FY2025 results, beating on revenue growth, and provided a bullish 2026 outlook with significant margin expansion and a transformative free cash flow guide. The strategic narrative centered on the completion of the Total Issuing acquisition, creating a unique data moat across the money lifecycle, and positioning FIS to capitalize on strong bank spending and AI adoption. Management emphasized commercial momentum with strong recurring ACV growth and effective cross-selling into the large financial institution segment. FY2025 adjusted revenue grew 5.8% to $10.7bn, with EBITDA at high-end of expectations and adjusted EPS up 10.2% to $5.75, exceeding outlook.

Buzzberg read 2026 pro forma revenue growth raised to 5.1-5.7% from prior 4.5-5.5% FIS reported strong Q4/FY2025 results, beating on revenue growth, and provided a bullish 2026 outlook with significant margin expansion and a transformative free cash flow guide. The strategic narrative centered on the completion of the Total Issuing acquisition, creating a unique data moat across the money lifecycle, and positioning FIS to capitalize on strong bank spending and AI adoption. Management emphasized commercial momentum with strong recurring ACV growth and effective cross-selling into the large financial institution segment. FY2025 adjusted revenue grew 5.8% to $10.7bn, with EBITDA at high-end of expectations and adjusted EPS up 10.2% to $5.75, exceeding outlook. Read full analysisCollapse analysis

Q4 recurring ACV sales grew 20% YoY, led by 34% growth in capital markets and 13% in banking, signaling strong forward revenue momentum.
Completed the acquisition of Total Issuing (TSIS), providing FIS with a comprehensive data platform processing 73 billion transactions annually and a clear path to $3bn+ free cash flow by 2028.
2026 guidance raised on pro forma revenue growth (5.1%-5.7% vs. 4.5%-5.5% at Investor Day) and initiated a free cash flow outlook of over $2 billion.

EPS $5.75 reported

Free cash flow $1.6B reported

What changed this quarter

Guidance

2026 pro forma revenue growth raised to 5.1-5.7% from prior 4.5-5.5%

Guidance · revenue to 30.5%

Cash Flow

Free cash flow expected to double to over $3 billion by 2028

FY2025 adjusted revenue grew 5.8% to $10.7bn, with EBITDA at high-end of expectations and adjusted EPS up 10.2% to $5.75, exceeding outlook.

Demand

No large renewal pending in 2026 for total issuing solutions

Management emphasized strong execution, raised guidance, and repeatedly expressed confidence in growth prospects and the company's strategic positioning.

Demand

Bank M&A up ~30% with FIS on winning side of most deals

No large renewal pending in 2026 for total issuing solutions. Management emphasized strong execution, raised guidance, and repeatedly expressed confidence in growth prospects and the company's strategic positioning.

AI, capex & demand read

Platform & monetization

Management views AI as a strategic accelerant that enhances their platforms rather than a disruption, with a durable advantage from proprietary data across the money lifecycle. They are investing heavily in data and AI, focusing on fraud prevention, deposit/lending growth, and operational efficiency, and are already monetizing through products like agentic commerce and AI-enabled data models.

Demand

Bookings & conversion

Capex

Investment and capacity

Capital expenditures came in at 9.3% of revenue in 2025 and are projected to decline to 8.5% in 2026, with a natural trend level around 8% longer term. The reduction supports free cash flow growth.

Tone · Upbeat

Management emphasized strong execution, raised guidance, and repeatedly expressed confidence in growth prospects and the company's strategic positioning.

Supply-chain alpha

FIS has already started a POC with a large regional bank combining core data and credit issuing data to dynamically increase consumer credit limits, demonstrating the near-term value of the data assets from the Total Issuing acquisition.

“we started working with a large regional bank to grow their credit card portfolio, combining core data from FIS and credit transaction data from total issuing solutions together into a model. enabling the bank to increase their consumer's…”

Stephanie Farris

FIS views itself as a share gainer in bank M&A consolidations, explicitly stating they have been on the winning side of most transactions as super-regional banks form.

“we view ourselves to be share gainers there. We won't win them all, obviously, but we've been on the winning side of most.”

Stephanie Farris

Forward guidance

ImprovingGuidance · revenue to 30.5%

Forward guidance
Metric	Period	Range	Midpoint	Status
EPS	FY2026	$6.22–$6.32	$6.27	GUIDED
Free cash flow	FY2026	$2B	$2B	INITIATED
Op margin	FY2026	155%–175%	165%	GUIDED
Revenue	FY2026	30%–31%	30.5%	GUIDED
RevenuePRO_FORMA	FY2026	5.1%–5.7%	5.4%	RAISED
RevenueBANKING	FY2026	5%–5.5%	5.25%	GUIDED
RevenueCAPITAL_MARKETS	FY2026	5.5%–6.5%	6%	GUIDED

Company read-throughs

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since call

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Customers

FIS continues to derive growing revenue from WorldPay through commercial agreements post-separation, indicating strong demand for FIS's payment products.

“WorldPay's use of our loyalty and premium payback product, use of our network routing capabilities on NICE, These are really, really strong products that they use in cross-sell.”

Stephanie Farris

Q&A context

WP· Customers

Question

Dan DollaAnalyst, Mizuho

Hey, Stephanie. Great results. Really, really nice. Just maybe a strategic question here on the portfolio. Obviously, you've got a really good portfolio right now and your shares are definitely trading below what they're worth. As you think about your portfolio today in terms of the assets that you have, is everything from now on considered core? Is there anything you're thinking of in terms of what could be done to enhance buybacks? Just to get the sense of how you're thinking about the portfolio. Thank you.

Management answer

Stephanie FarrisCEO and President

Yeah, thanks, Tim. So if you recall, when we separated WorldPay from FIS, we talked about commercial revenues because we serve each other. And so some of the things that are in there and that are driving growth are WorldPay's use of our loyalty and premium payback product, use of our network routing capabilities on NICE, These are really, really strong products that they use in cross-sell. So the continued growth of them is natural growth, just like they are now a completely separate customer. You can continue to see strong demand, and you'll see strong demand because those are some of our best payment products. So I think that's really what's been driving them, strong payment growth, like I said, broadly across the market. And then they're obviously great products that we, always have had, as we work together and then as we've now separated, become natural third-party agreements. So I'm not sure that we're going to give a 2026 guide. I don't think that makes any sense anymore, given that it's global payments. But I do think this ends up showing and expressing the value of the commercial agreements and really excited for global to continue to consume these products.