FIS revenue rose 29% to $3.38B on the acquired Issuer Solutions card-processing business (about 5% pro forma), GAAP EPS was $0.45 vs a $0.90 loss, and FIS trimmed its full-year pro forma growth outlook while raising its free-cash-flow target.
Revenue
$3.4B
+29.1% YoY
Net income
$231M
Diluted EPS
$0.45
Operating margin
15.0%
Overview
FIS makes the software and processing systems that banks and investment firms run on: core banking ledgers, card processing, digital banking apps and trading back-office tools. Q2 2026 (the quarter ended June 30, 2026) was its second quarter after closing a major swap on January 9, 2026. FIS bought the Issuer Solutions business from Global Payments (it processes credit and debit cards for card-issuing banks; FIS now brands it Total Issuing Solutions). It paid with its remaining 45% stake in Worldpay plus about $7.7 billion of new debt.
That swap drives almost every headline number. GAAP revenue (the official accounting figure) rose 29% to $3.38 billion, but $666 million of that came from the acquired business. On a like-for-like basis (as if FIS had owned Issuer Solutions a year ago too), revenue grew about 5%. GAAP net earnings were $231 million ($0.45 per diluted share), compared with a $470 million loss (−$0.90) a year earlier. The prior-year loss came almost entirely from Worldpay-related tax charges, not from FIS's own operations.
Continuing vs. discontinued operations: FIS reports no discontinued-operations earnings in either period. The original Worldpay merchant business was sold in January 2024, and its only remaining trace is a small cash-flow line in 2025. All earnings figures below are therefore continuing operations, and net earnings equal total net earnings attributable to FIS.
Key metrics
Metric
Q2 2026
Q2 2025
YoY Change
Revenue (GAAP)
$3,377M
$2,616M
+29.1%
Operating income
$507M
$408M
+24%
Read 0 community reports on Fidelity National Information Services, or write your own.Write a report
Pro forma revenue growth (company non-GAAP, constant currency)
+5.3%
—
—
Recurring revenue (share of total)
$2,809M (83%)
$2,120M (81%)
+32%
Net earnings and EPS are continuing operations, which is also the total, since there is no discontinued-operations result. Operating margin is the share of revenue left after running the business, before interest and tax. Adjusted EPS, adjusted EBITDA (profit before interest, tax, depreciation and amortization, excluding items FIS treats as one-offs), pro forma growth and the recurring-revenue split come from FIS's Q2 earnings release (8-K Exhibit 99.1, August 4, 2026). The GAAP figures come from the 10-Q.
Six months (year to date): revenue was $6,671M, up 30% from $5,148M. Operating income was $929M, compared with $755M. GAAP net earnings were $2,598M ($5.03 per share), compared with a $393M loss (−$0.75). That first-half profit includes an estimated $2.2 billion pre-tax gain on selling the Worldpay stake, booked in Q1. Excluding Worldpay results, the release shows first-half earnings of $384M, compared with $276M.
What drove the quarter
Banking Solutions: revenue $2,483M, +44%. Issuer Solutions now sits inside this segment. The 10-Q says that excluding it, Banking revenue grew 6%, "driven by increases in recurring revenue and software license revenue." On the release's pro forma basis, Banking grew 6.1% with recurring revenue up 5.0%. Segment adjusted EBITDA rose 50% to $1,136M, and its margin widened from 44.0% to 45.8%. Management attributes that to the "accretive impact of the Issuer Solutions Business" (the acquired business earns higher margins than the segment average), plus operating leverage and cost control. On a pro forma basis (both years including Issuer Solutions), the margin still rose 178 bps, so the improvement is not only an acquisition mix effect.
Capital Market Solutions: revenue $810M, +3.5% (3.2% in constant currency). This is the slower part of the business. Recurring revenue grew about 5%, adding 4 points to segment growth, from "the implementation of new sales, favorable pricing, and acquisitions." Higher software-license sales added about 1 point. Lower professional-services (consulting and implementation) revenue took away about 2 points. Segment margin narrowed 32 bps to 51.9%, which management puts down to "higher labor costs and the timing of certain customer-related expenses." In the first half as a whole, the margin widened 65 bps, so Q2 alone may reflect timing.
Corporate and Other: revenue $84M, −26%, as FIS runs off small non-strategic businesses. This segment's adjusted EBITDA loss widened to $147M, compared with $124M.
Why GAAP profit grew less than revenue. Gross margin slipped from 36% to 35%. The 10-Q attributes this to "the dilutive impact of the Issuer Solutions Business, including the amortization of acquired intangible assets." Amortization here is the non-cash write-down of customer contracts and technology bought in the deal. Purchase-accounting amortization jumped to $321M, compared with $172M. Net interest expense almost doubled to $200M from $110M, which the 10-Q attributes to "a $7.7 billion increase in borrowings used to fund the Issuer Solutions Acquisition." By FIS's own disclosure, the acquired business contributed $666M of revenue but only $37M of pre-tax income in the quarter, after that amortization.
Reading GAAP vs. adjusted EPS
The gap between $0.45 GAAP and $1.48 adjusted EPS is large, and it helps to know what fills it. Per the release reconciliation, FIS added back $0.62 per share of purchase amortization and $0.46 of "acquisition, integration and other costs", net of tax effects. Of those $237M of costs, only $63M were M&A and integration expenses. The rest were mostly $172M of "enterprise transformation initiatives," up from $64M a year earlier. These are real operating costs that FIS excludes as non-recurring. Because they nearly tripled, how recurring they turn out to be is worth watching.
The +8.8% adjusted-EPS growth rate also understates what changed. The prior-year $1.36 included $0.29 of adjusted Worldpay equity earnings (FIS's share of Worldpay's profit), and that income is gone for good. Excluding Worldpay, adjusted EPS rose from $1.07 to $1.48. In effect, FIS replaced a passive minority stake with an operating business it controls, and it is paying for that with higher interest and amortization.
Takeaway: Behind the 29% headline, FIS's organic engine grew about 5% (Banking about 6%, Capital Markets about 3%), with recurring revenue up about 5%. The deal swapped Worldpay's earnings for a higher-margin card-processing business funded with debt. Adjusted margins are clearly better (41.7% vs. 39.8%), but GAAP operating margin actually dipped, and the company cut its full-year pro forma growth outlook. The quarter's evidence is on profitability and cash, not on faster growth.
Balance sheet, leverage and buybacks
Debt: total debt was $21.2 billion at June 30, 2026, at a weighted-average rate of 3.8%. Of that, 76% was fixed-rate and 24% variable. The company says a 1-point rise in rates on the variable portion would add about $50M of annual interest. In March, FIS refinanced the acquisition loan with about $6.3 billion of USD senior notes (4.45%–4.80%), a $500M USD floating-rate note and €1.0 billion of euro notes.
Leverage: FIS targets gross leverage (debt divided by annual adjusted EBITDA) of about 2.8x. The release does not state the current ratio. As a rough cross-check, $21.2B of debt against the midpoint of full-year adjusted EBITDA guidance ($5.73–5.79B) is about 3.7x. That is our arithmetic, not a company figure.
Buybacks paused: FIS bought back only about 1.0 million shares ($42M) in the quarter and says it has "temporarily curtailed" repurchases and paused small acquisitions until leverage reaches target. About $1.7B remains under the buyback authorization. Dividends continue at $0.44 per quarter, and $228M was paid in Q2.
Liquidity and cash flow: FIS had $744M of cash and $2.6B of undrawn revolving credit. First-half operating cash flow was $1,207M, compared with $839M. Q2 free cash flow was $525M, compared with $164M, per the release.
Guidance and outlook
FIS updated its full-year 2026 outlook in the August 4 release:
Q3 2026
FY 2026
Revenue
$3,415–3,445M
$13,630–13,695M
Adjusted EBITDA
$1,460–1,480M
$5,730–5,785M
Adjusted EPS
$1.58–1.62
$6.15–6.24
The key change was a cut to pro forma (like-for-like) growth. Revenue growth is now 4.5–5.0% (previously 5.1–5.7%), and adjusted EBITDA growth is now 5.9–6.9% (previously 7.2–8.4%). Reported adjusted revenue growth is 29–30% and adjusted EPS growth is 7.0–8.5%. At the same time, FIS raised its free-cash-flow target by $100M to $2.15–2.25B. That figure excludes cash taxes on the Worldpay sale.
Our read: the first-half adjusted EPS of $2.84 implies $3.31–3.40 in the second half to hit the full-year range. That requires a step-up from Q2's $1.48 to $1.58–1.62 in Q3, and an implied $1.73–1.78 in Q4. Organic growth is guided a bit lower, so most of that step-up must come from margins, cost savings from integrating the acquired business, and falling interest costs as debt is repaid. The things to watch are whether the "enterprise transformation" add-backs shrink, whether Capital Markets margins recover from Q2's timing hit, and how quickly debt falls toward the 2.8x target that would restart buybacks. The raised cash-flow target supports the deleveraging plan. The lower pro forma growth range means organic growth is not speeding up.