Fidelity National Information Services (NYSE:FIS), a global leader in financial technology, reported fourth-quarter and full-year 2025 results that largely met expectations, though a strong forward outlook appears to be driving a positive market response. The company's earnings release, which also detailed a major acquisition and a new segment reporting structure, shows a business in transition but one projecting significant growth for the year ahead.
Earnings Versus Estimates
For the critical fourth quarter, FIS delivered results that were closely aligned with analyst forecasts. The company reported adjusted earnings per share (EPS) of $1.68, coming in just shy of the consensus estimate of $1.70. Revenue for the quarter was $2.81 billion, slightly above the estimated $2.77 billion.
- Q4 2025 Adjusted EPS: Reported $1.68 vs. Estimate $1.70
- Q4 2025 Revenue: Reported $2.81B vs. Estimate $2.77B
This pattern of meeting expectations continued for the full year 2025, with adjusted EPS of $5.75 and revenue of $10.68 billion. The initial market reaction, reflected in pre-market trading, has been positive, with shares rising over 2%. This suggests investors are looking beyond the slight EPS miss and focusing on the company's strategic repositioning and future guidance.
A Transformed Business and Strong Forward Outlook
The earnings report was framed by two significant corporate actions completed in early January 2026: the acquisition of the Issuer Solutions business, rebranded as FIS Total Issuing™ Solutions, and the sale of its remaining 45% minority stake in Worldpay. To reflect this new structure, FIS has recast its segments into Banking Solutions (with Payments and Banking divisions) and Capital Market Solutions.
Management's outlook for 2026, which includes nearly a full year of contribution from the Total Issuing acquisition, is notably robust. The company projects full-year adjusted revenue growth of 30-31% and adjusted EBITDA growth of 34-35%. More tellingly, on a pro forma basis that compares the new combined entity to its prior-year performance, FIS expects revenue growth of 5.1-5.7% and adjusted EBITDA growth of 7.2-8.4%.
The provided outlook for Q1 2026 revenue ($3.27 - $3.29 billion) and full-year 2026 revenue ($13.77 - $13.85 billion) substantially exceeds the analyst estimates available in the provided data ($2.71 billion for Q1 and $11.53 billion for the full year), indicating management's confidence is higher than the current street consensus.
Segment Performance and Capital Allocation
Digging into the quarterly segment performance reveals solid underlying execution:
- Banking Solutions: Revenue grew 8% on an adjusted basis to $1.87 billion, with adjusted EBITDA margin expanding 132 basis points to 43.9%.
- Capital Market Solutions: Revenue grew 6% to $883 million, with a more pronounced adjusted EBITDA margin expansion of 227 basis points to 57.4%.
The company also demonstrated strong cash generation, with adjusted free cash flow up 18% for the year to $2.2 billion. FIS returned $2.1 billion to shareholders through dividends and buybacks in 2025 and announced a 10% increase in its quarterly dividend. However, management stated it will temporarily pause share repurchases to focus on reducing leverage following the acquisition, targeting a gross leverage ratio of 2.8x.
Conclusion
FIS's fourth-quarter earnings presented a company that is successfully navigating a major strategic pivot. While the bottom-line result slightly missed expectations, the market's positive reaction is likely fueled by the strength and clarity of the 2026 guidance, which promises accelerated growth on a pro forma basis. The completion of the Total Issuing acquisition positions FIS with a more comprehensive suite of services across the money lifecycle, a point emphasized by CEO Stephanie Ferris. The path forward now hinges on integrating this acquisition smoothly and delivering on the promised margin expansion and cash flow growth.
For a detailed look at historical earnings and future analyst estimates for FIS, you can review the data here.
Disclaimer: This article is for informational purposes only and does not constitute investment advice, financial analysis, or a recommendation to buy or sell any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
