FIS changes

Pick any two versions below to diff them.

FromTo

View the full Nov 4, 2026 version

Price: $36.01 → $38.99(+8.3%)
Next earnings: Nov 3, 2026 → Feb 4, 2027
Next earnings is estimate: No → Yes
About: FIS sells software and processing services to banks, capital markets firms and other businesses. Banking Solutions runs core banking systems, digital banking, payments and card processing for banks of all sizes. On January 9, 2026, FIS bought the Issuer Solutions business (TSYS) from Global Payments for an enterprise value of $13.5 billion, paid with its 45% stake in Worldpay and about $7.7 billion in cash. TSYS provides card issuing technology and processing to banks and is now part of Banking Solutions under the name Total Issuing Solutions. Capital Market Solutions sells software for trading, investment operations and fund administration. Most revenue is recurring. FIS expects 2026 revenue of removed: $13.63 added: $13.445 billion to removed: $13.70 added: $13.505 billion. added: In October 2026, it sold a small prepaid business as part of a review of its portfolio.
Thesis: FIS trades at a discount because the market doubts that it can grow faster with a much larger debt load after the TSYS purchase. Debt removed: rose to $21.2 added: was $20.8 billion at removed: June added: September 30, 2026, removed: from added: against about $13.1 billion at the end of 2025, and FIS stopped most share buybacks and small acquisitions until gross leverage falls to about 2.8 times. removed: On August 4, added: Growth keeps slowing: pro forma revenue grew 3.7% in Q3 2026, added: after 5.3% in Q2. FIS cut its 2026 pro forma revenue growth outlook added: twice, to 4.5% to 5.0% removed: from 5.1% to 5.7%, added: in August 2026 and added: to 3.1% to 3.6% on November 4, 2026. It also cut its removed: pro forma added: 2026 adjusted removed: EBITDA growth added: EPS outlook to removed: 5.9% added: $5.82 to removed: 6.9% added: $5.89 from removed: 7.2% added: $6.15 to removed: 8.4%. The stock fell about 5% at the open that day added: $6.24, because it spends more on security and added: new products. Cash flow holds up: FIS kept removed: falling in September. added: its free cash flow target of $2.15 billion to $2.25 billion for 2026. For the gap to close, pro forma revenue added: growth must removed: keep growing at about 5% or faster, added: stop slowing and return toward 5%, the new spending must bring more recurring revenue, TSYS must keep its higher margins, free cash flow must reach the removed: $2.15 billion to $2.25 billion target for 2026, added: 2026 target, and debt must fall so that buybacks can start again. The removed: first test is the Q3 2026 added: full-year report removed: on November 3, 2026, against added: and the removed: outlook of adjusted EPS of $1.58 to $1.62. The 2027 removed: outlook added: outlook, expected in added: early February removed: 2027 will show whether growth holds after added: 2027, are the removed: first year with TSYS. added: next test. If FIS meets these targets and reaches its leverage goal, the gap can close over the next four to removed: six added: eight quarters. The main risk is that banks delay technology spending or that TSYS loses large card clients.
Risks: Debt was removed: $21.2 added: $20.8 billion at removed: June added: September 30, 2026, after the TSYS purchase. About removed: $4.1 added: $3.9 billion is removed: US commercial paper added: short-term borrowings that FIS must refinance at removed: variable added: current rates, so higher short-term rates raise interest cost. FIS paused most buybacks and small acquisitions until gross leverage falls to about 2.8 times. Growth slowed. FIS cut its 2026 pro forma revenue growth outlook to 4.5% to 5.0% in August added: 2026 and to 3.1% to 3.6% in November 2026. If banks delay projects or if card volumes slow, revenue can grow more slowly again. FIS must combine TSYS with its own business. Global Payments still provides some services to FIS under transition agreements. Problems in the move of systems, or the loss of large card issuers, can lower revenue and margins. Bank technology is competitive, and new software and AI tools can change how banks buy core and card systems. Bank mergers also reduce the number of clients and can move contracts to competitors. FIS still guarantees some obligations of Worldpay, its former business, including a liability of $378 million due on October 12, 2027.
Balance sheet: Cash: removed: $744M added: $740M Debt: removed: $21.2B added: $20.8B Net debt: removed: $20.4B added: $20.0B Interest cover: removed: 2.3× Undrawn credit line: $2.6B, to September 2029 added: 2.7× Debt due within 12 months: removed: $5.7B added: $5.6B At removed: June added: September 30, 2026, FIS had removed: $744 added: $740 million of cash and removed: $21.2 added: $20.8 billion of debt: removed: $16.9 added: $15.1 billion of long-term debt, removed: including the current portion, added: $1.7 billion of long-term debt due within one year and removed: $4.2 added: $3.9 billion of short-term removed: borrowings, mostly US commercial paper added: borrowings. Debt was $21.2 billion at added: June 30, 2026, and about removed: 4.0%. added: $13.1 billion at December 31, 2025. In March 2026, FIS sold about $6.3 billion of new USD senior notes due 2028, 2029 and 2031 and $500 million of floating rate notes due 2029 to fund the TSYS removed: purchase, and it repaid $1.25 billion of notes on March 1, 2026. Debt was about $13.1 billion at December 31, 2025. added: purchase. Interest cover is operating income divided by net interest expense for the first removed: half added: nine months of removed: 2026. Available liquidity was $3.4 billion, including added: 2026: $1,590 million against $596 million. At June 30, 2026, FIS had $2.6 billion of revolving credit removed: capacity. The added: capacity; the main revolving facility runs to September 2029, and a $1.0 billion incremental facility runs to June 2027. FIS targets gross leverage of about 2.8 times before it starts large buybacks again. In removed: Q2 added: Q3 2026, it added: made $862 million of free cash flow, paid removed: $228 added: $227 million of dividends and bought back removed: $42 added: $21 million of shares. As of removed: Jun added: Sep 30, 2026.
Checkpoints: Nov removed: 3, added: 4, 2026: Q3 2026 results: pro forma growth and cash flow. removed: Pending. added: Failed. Watch: Adjusted EPS inside the $1.58 to $1.62 outlook, pro forma revenue growth near 5% and the free cash flow target kept pass; another cut to the growth outlook fails. added: Outcome: Adjusted EPS of $1.61 was inside the outlook and FIS kept its free cash flow target, but pro forma revenue grew only 3.7% and FIS cut its 2026 growth outlook to 3.1% to 3.6%. Feb added: 4, 2027 (estimate): Full-year 2026 results and 2027 outlook. Pending. Watch: A 2027 outlook with organic revenue growth of 5% or more, lower debt and a date to restart buybacks passes; slower growth or leverage that does not fall fails.
Recent events: added: Nov 4, 2026: FIS reported Q3 2026 results. Revenue rose 27% to $3.45 billion with TSYS, and pro forma revenue grew 3.7%. GAAP EPS was $0.69, and adjusted EPS rose 6.6% to $1.61, inside its outlook of $1.58 to $1.62. Free cash flow was $862 million. FIS cut its 2026 outlook to pro forma revenue growth of 3.1% to 3.6%, revenue of $13,445 million to $13,505 million and adjusted EPS of $5.82 to $5.89. It kept its free cash flow target of $2.15 billion to $2.25 billion. Debt was $20.8 billion at September 30, 2026. Oct 20, 2026: FIS sold a non-core prepaid business in Banking Solutions for gross proceeds of more than $100 million, as part of a review of its portfolio. Aug 5, 2026: RBC lowered its price target on FIS to $53. Aug 4, 2026: FIS reported Q2 2026 results. Revenue rose 29% to $3.4 billion with TSYS, and pro forma revenue grew 5.3%. GAAP EPS was $0.45, and adjusted EPS rose 8.8% to $1.48. Free cash flow was $525 million. FIS cut its 2026 pro forma revenue growth outlook to 4.5% to 5.0% and raised its free cash flow target by $100 million to $2.15 billion to $2.25 billion. The stock opened about 5% lower. Jun 16, 2026: The Chief Legal and Corporate Affairs Officer, Caroline Tsai, agreed to step down on July 1, 2026. Chip Keller, the Chief Compliance Officer, became Chief Legal Officer. May 8, 2026: FIS reported Q1 2026 results. GAAP EPS was $4.58, mostly from the $2.2 billion gain on the sale of its Worldpay stake. Adjusted EPS rose 12% to $1.36, and pro forma revenue grew 6.5%. FIS kept its 2026 outlook.