FIS Q3 revenue beats estimates on acquisition boost

Fidelity National Information Services

Wed 12:40

Overview
US financial technology firm's Q3 revenue rose 27%, slightly beating analyst expectations
Adjusted EPS for Q3 beat consensus, rising 6.6% yr/yr to $1.61
Company closed divestiture of non-core prepaid business during ongoing strategic review

Outlook
FIS sees 2026 revenue of $13.45 bln to $13.51 bln
Company expects 2026 adjusted EPS of $5.82 to $5.89
FIS maintains 2026 free cash flow target of $2.15 bln to $2.25 bln

Result Drivers
ACQUISITION IMPACT - Co said acquisition of high margin Total Issuing Solutions business contributed to revenue and margin growth
FAVORABLE REVENUE MIX - Co attributed margin expansion to favorable revenue mix, especially in Banking and Capital Market Solutions segments
COST MANAGEMENT - Co said continued cost management helped expand margins in both Banking and Capital Market Solutions segments

Company press release: ID:nBw41Y0Q5a

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Slight Beat*
$3.45 bln
$3.43 bln (22 Analysts)
Q3 Adjusted EPS
Beat
$1.61
$1.60 (26 Analysts)
Q3 Adjusted Net Income
Slight Beat*
$831 mln
$826.87 mln (18 Analysts)
Q3 Adjusted EBITDA
Slight Beat*
$1.48 bln
$1.47 bln (21 Analysts)
Q3 Adjusted EBITDA Margin
 
42.90%
 
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "strong buy" or "buy", 15 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the financial technology (fintech) peer group is "buy"
Wall Street's median 12-month price target for Fidelity National Information Services, Inc. is $46.00, about 18% above its November 3 closing price of $38.99
The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 7 three months ago

Reuters Recommended Reads
Nov 3 - Fiserv Q3 adjusted EPS beats, revenue slightly tops estimates
Nov 3 - Fiserv cuts 3,000 employees and contractor jobs under new CEO
Nov 2 - Paymentus Q3 revenue beats on higher billers and transaction volumes

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)