FIDELITY NATIONAL INFO SERV (NYSE:FIS) reported financial results for the third quarter of 2025 that surpassed analyst expectations, demonstrating robust performance across its core business segments. The financial technology leader posted strong revenue growth and improved profitability, leading management to raise its full-year outlook.
Earnings and Revenue Performance
FIS delivered a solid beat on both top and bottom-line estimates for the quarter. The company reported adjusted earnings per share of $1.51, exceeding the analyst consensus estimate of $1.50. Revenue performance was equally impressive, with the company generating $2.717 billion against expectations of $2.684 billion.
Key financial highlights from the quarter include:
- Adjusted EPS of $1.51 vs. $1.50 estimate
- Revenue of $2.717B vs. $2.684B estimate
- Adjusted EBITDA increased 7% to $1.135 billion
- Adjusted EBITDA margin expanded by 53 basis points to 41.8%
Market Reaction and Price Action
The market responded positively to the earnings beat and raised guidance. In pre-market trading, FIS shares advanced approximately 0.95%, indicating investor approval of the company's quarterly performance and future prospects. This positive movement contrasts with recent weakness in the stock, which had declined over the past month.
Recent stock performance shows:
- Pre-market: +0.95%
- Past week: -4.22%
- Past month: -7.82%
The immediate positive reaction suggests investors are focusing on the earnings beat and improved outlook rather than the recent downward trend.
Segment Performance and Operational Highlights
The company's strong results were driven by balanced growth across its primary business units. Banking Solutions revenue increased 6% to $1.9 billion, while Capital Market Solutions saw a 7% increase to $783 million. Both segments demonstrated significant margin expansion, with Banking Solutions' adjusted EBITDA margin reaching 45.8% and Capital Market Solutions achieving a 50.5% margin.
Operational excellence was evident in the company's cash flow generation, with free cash flow surging 101% to $798 million. The company also returned $509 million to shareholders through share repurchases and dividends during the quarter.
Updated Financial Outlook
Citing continued strong performance, FIS raised its full-year 2025 guidance. The company now expects revenue growth between 5.4% and 5.7%, up from previous projections. The adjusted EPS growth outlook of 10-11% was reaffirmed, and the company increased its target for adjusted free cash flow conversion to greater than 85%.
The company's revenue guidance range of $10.595-$10.625 billion compares favorably to analyst sales estimates of $10.641 billion for the full year. For the upcoming fourth quarter, analysts project revenue of $2.761 billion and EPS of $1.71.
Strategic Initiatives and Capital Allocation
FIS continues to execute on its strategic priorities, including the pending acquisition of Global Payments' Issuer Solutions business, which is now expected to close in the first quarter of 2026. The company also increased its share repurchase goal to approximately $1.3 billion for 2025, reflecting confidence in its financial position and commitment to returning capital to shareholders.
Management emphasized disciplined execution and operational improvements as key drivers of the quarter's success, with CEO Stephanie Ferris noting "differentiated positioning within a favorable market environment" translated into strong sales performance across all business segments.
For more detailed earnings information and future estimates, view the complete earnings and estimates data for FIS.
Disclaimer: This article is for informational purposes only and does not constitute investment advice, financial advice, or trading advice. It should not be used as the basis for any investment decision.
