8-K: FIS Reports Strong 2025 Adjusted Growth, Positive 2026 Outlook

Fidelity National Information Services (FIS) announced robust full-year 2025 adjusted financial results, strategic acquisitions, and an optimistic 2026 outlook, signaling strong momentum.

Summary

• Full-year 2025 GAAP Diluted EPS was $0.73, while Adjusted EPS increased 10% to $5.75.
• Full-year 2025 revenue increased 5% on a GAAP basis and 6% on an adjusted basis to $10.7 billion.
• Net cash provided by operating activities was $2.6 billion; Free cash flow increased 19% and Adjusted free cash flow increased 18% over the prior year.
• Returned $2.1 billion of capital to shareholders in 2025, including $1.3 billion of share repurchases.
• Closed the acquisition of Total Issuing Solutions and simultaneous sale of its remaining 45% Worldpay minority stake on January 9, 2026.
• Introduced 2026 outlook, projecting Adjusted revenue growth of 30-31%, Adjusted EBITDA growth of 34-35%, Adjusted EPS growth of 8-10%, and Free Cash Flow growth of 27-33%.
• Projecting 2026 Pro Forma revenue growth of 5.1-5.7% and Pro Forma Adjusted EBITDA growth of 7.2-8.4%.

Sentiment

Score: 8

Explanation: StockSavvy.ai views this as a strong report, driven by robust adjusted financial performance, strategic clarity from the acquisition and divestiture, and a positive outlook for 2026, despite a temporary pause on share repurchases.

Positives

• Full-year 2025 Adjusted EPS increased 10% to $5.75.
• Full-year 2025 Adjusted revenue increased 6% to $10.7 billion.
• Free cash flow increased 19% to $1.6 billion, and Adjusted free cash flow increased 18% to $2.2 billion.
• Returned $2.1 billion of capital to shareholders in 2025, including $1.3 billion in share repurchases.
• Successful completion of the Total Issuing Solutions acquisition and Worldpay stake sale on January 9, 2026, enhancing strategic focus.
• Board approved a 10% increase in the quarterly dividend to $0.44 per share on January 29, 2026.
• Strong 2026 outlook with projected Adjusted revenue growth of 30-31%, Adjusted EBITDA growth of 34-35%, and Adjusted EPS growth of 8-10%.
• Banking Solutions segment showed strong Adjusted EBITDA margin expansion of 132 bps in Q4 2025 to 43.9%.
• Capital Market Solutions segment showed strong Adjusted EBITDA margin expansion of 227 bps in Q4 2025 to 57.4%.

Negatives

• Full-year 2025 GAAP Diluted EPS decreased 49% to $0.73, primarily due to a $539 million non-cash expense related to an increase in deferred tax liability from the Worldpay sale agreement.
• Full-year 2025 Adjusted EBITDA margin contracted by 28 basis points to 40.6%, primarily due to the short-term dilutive impact from strategic acquisitions and lower TSA income.
• Temporary pause on share repurchases and tuck-in M&A to accelerate deleveraging until target gross leverage of 2.8x is achieved.
• Corporate and Other revenue decreased by 23% for the full year 2025, primarily due to the divestiture of a non-strategic business.

Risks

• Changes in general economic, business, and political conditions, including recession, intensified or expanded international hostilities, acts of terrorism, fluctuation in rates of inflation or interest, effects of announced or future tariff increases, and changes in consumer or business confidence.
• Changes in either or both the United States and international lending, capital and financial markets or currency fluctuations.
• The risk that acquired businesses, including FIS Total Issuing Solutions, will not be integrated successfully, will not provide the expected benefits, or that the integration will be more costly or more time-consuming and complex than anticipated.
• The risk that cost savings and synergies anticipated to be realized from acquisitions, including the Issuer Solutions Acquisition, may not be fully realized or may take longer to realize than expected or that costs may be greater than anticipated.
• The risks of doing business internationally.
• The effect of legislative initiatives or proposals, statutory changes, governmental or applicable regulations and/or changes in industry requirements, including privacy, data protection, cybersecurity, cyber resilience and AI laws and regulations.
• Our ability to comply with climate change legal and regulatory requirements and to maintain practices that meet our stakeholders' evolving expectations.
• The risks of reduction in revenue from the elimination of existing and potential customers due to consolidation in, or new laws or regulations affecting, the banking, retail and financial services industries or due to financial failures or other setbacks suffered by firms in those industries.
• Changes in the growth rates of the markets for our solutions.
• The amount, declaration and payment of future dividends is at the discretion of our Board of Directors and depends on, among other things, our investment opportunities, results of operations, financial condition, cash requirements, future prospects, and other factors.
• The amount and timing of any future share repurchases is subject to, among other things, our share price, our other investment opportunities and cash requirements, our results of operations and financial condition, our future prospects and other factors.
• Failures to adapt our solutions to changes in technology or in the marketplace.
• Internal or external security or privacy breaches of our systems, including those relating to unauthorized access, theft, corruption or loss of personal information and computer viruses and other malware affecting our software or platforms, and the reactions of customers, card associations, government regulators and others to any such events.
• The risk that implementation of software, including software updates, for customers or at customer locations or employee error in monitoring our software and platforms may result in the corruption or loss of data or customer information, interruption of business operations, outages, exposure to liability claims or loss of customers.
• The risk that partners and third parties may fail to satisfy their legal obligations to us.
• The risks associated with managing pension cost, cybersecurity issues and IT outages experienced.
• Our ability to navigate the opportunities and risks associated with using and/or incorporating AI technologies into our business.
• The reaction of current and potential customers to communications from us or regulators regarding information security, risk management, internal audit or other matters.
• Competitive pressures on pricing related to the decreasing number of community banks in the U.S., the development of new disruptive technologies, increasing presence of international competitors, and entry into the market by global banks and global companies.
• The failure to innovate in order to keep up with new emerging technologies, which could impact our solutions and our ability to attract new, or retain existing, customers.
• An operational or natural disaster at one of our major operations centers.
• Failure to comply with applicable requirements of payment networks or changes in those requirements.
• Fraud by bad actors.

Future Outlook

The company projects strong growth for the full year 2026, with Adjusted revenue expected to increase by 30-31%, Adjusted EBITDA by 34-35%, and Adjusted EPS by 8-10%. Free Cash Flow is targeted between $2.05 billion and $2.15 billion, representing 27-33% growth. On a pro forma basis, revenue is expected to grow 5.1-5.7% and Adjusted EBITDA 7.2-8.4%.

Management Comments

• "We are entering 2026 with continued strong momentum as our commercial excellence initiatives and investments in innovation are driving durable revenue growth and expanding margins."
• "With the Issuing acquisition, FIS now operates the most comprehensive financial data set in the industry spanning the entire money lifecycle."
• "We are executing against a differentiated strategy, driving innovation across the enterprise, and are uniquely positioned for this generational moment in financial services."

Industry Context

StockSavvy.ai notes that FIS's strategic acquisition of Total Issuing Solutions and the divestiture of its remaining Worldpay stake position the company to consolidate its focus on core financial technology services. This move aligns with broader industry trends where fintech companies are specializing and leveraging comprehensive data sets to drive innovation, particularly in the payments and banking sectors. The emphasis on deleveraging and organic growth through commercial excellence suggests a mature strategy aimed at sustainable value creation in a competitive landscape.

Comparison to Industry Standards

• The filing does not provide specific comparable companies, projects, or results for a detailed assessment against global benchmarks. However, the reported adjusted growth rates and margin performance can be evaluated against industry peers in the financial technology sector, which typically aim for mid-to-high single-digit revenue growth and strong EBITDA margins, often in the 30-50% range, depending on the specific sub-segment.

Corporate Governance

Related Party Transactions

• Receivables from related party were $39 million as of December 31, 2025, down from $84 million in 2024.
• Other operating (income) expense, net related party was $(16) million for Q4 2025 and $(86) million for full-year 2025.
• The company was reimbursed for certain indirect Worldpay business support costs during 2025 as part of Transition Services Agreements with the buyer.

Stakeholder Impact

• Shareholders: Positive impact from increased dividend, share repurchases (though temporarily paused), and strong adjusted financial performance and outlook. Potential for long-term value creation from strategic focus.
• Employees: Segment realignment may lead to organizational changes, but the focus on innovation and growth could offer new opportunities.
• Customers: The acquisition of Total Issuing Solutions and the expanded data set aim to provide more comprehensive solutions, potentially enhancing customer value.
• Creditors: Focus on deleveraging to a target gross leverage of 2.8x indicates a commitment to financial health, which is positive for creditors.

Next Steps

• Host a live webcast of the earnings conference call on February 24, 2026.
• Temporarily pause share repurchases and tuck-in M&A to accelerate deleveraging.
• Resume existing capital allocation priorities once target gross leverage of 2.8x is achieved.

Key Dates

Recommendation

FIS delivered strong adjusted financial results for 2025, demonstrating robust growth in revenue, EPS, and free cash flow. The strategic moves, including the acquisition of Total Issuing Solutions and the divestiture of the Worldpay stake, provide greater clarity and focus on core financial technology. The positive 2026 outlook, coupled with a dividend increase and a clear commitment to deleveraging, suggests a company well-positioned for sustained growth and shareholder value creation, making it an attractive investment.

Keywords

Financial Technology, Fintech, Payments, Banking Solutions, Capital Markets, Earnings Report, SEC Filing, Acquisition, Divestiture, Worldpay, Total Issuing Solutions, FIS, Financial Results, Guidance, EPS, EBITDA, Free Cash Flow, Share Repurchases, Dividends, Deleveraging