Access comprehensive financial analyses and make smarter investments - get the Manual of Investments on Amazon!

FIS

FIS Reports 30% Revenue Increase in Q1 2026

FIS reported a sharp jump in first-quarter 2026 profit and cash generation, with revenue rising 30% from a year earlier to $3.295 billion and adjusted revenue up 31% to $3.3 billion.

Adjusted diluted earnings per share increased 12% to $1.36 from $1.21. Adjusted net earnings rose 10% to $705 million from $643 million.

Adjusted EBITDA climbed 36% to $1.304 billion from $958 million, while adjusted EBITDA margin widened to 39.6% from 37.8%, a gain of 176 basis points.

On a pro forma basis, revenue increased 6.5% to $3.197 billion from $2.420 billion, including recurring revenue growth of 4.8%. Pro forma adjusted EBITDA rose 9.4%, and pro forma adjusted EBITDA margin improved to 39.6% from 38.7%, up 87 basis points.

By segment, banking solutions revenue increased 45% to $2.374 billion, while capital market solutions revenue rose 5% to $823 million. Banking solutions adjusted EBITDA jumped 56% to $1.0 billion, with margin expanding 299 basis points to 43.7%. Capital market solutions adjusted EBITDA increased 8% to $424 million, and margin improved 162 basis points to 51.6%. Corporate and other revenue fell 12% to $98 million.

Cash generation strengthened as net cash provided by operating activities rose to $713 million from $548 million, and free cash flow more than doubled to $474 million from $224 million, up 111%.

FIS returned $262 million to shareholders in the quarter, including $30 million in share repurchases and $232 million in dividends. Debt outstanding at March 31 totaled $21.1 billion.

For 2026, FIS reiterated its outlook for adjusted revenue growth of 30% to 31%, adjusted EBITDA growth of 34% to 35%, adjusted EPS growth of 8% to 10%, and free cash flow of $2.05 billion to $2.15 billion, up 27% to 33%. On a pro forma basis, it reaffirmed revenue growth of 5.1% to 5.7% and adjusted EBITDA growth of 7.2% to 8.4%. Today the company's shares have moved -6.14% to a price of $44.35. For more information, read the company's full 8-K submission here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

IN FOCUS