FIS reported its fourth-quarter and full-year 2025 financial results.

FIS® (NYSE:FIS), a global leader in financial technology, today reported its fourth quarter and full-year 2025 results.

"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," said FIS CEO and President Stephanie Ferris. "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."

Financial Reporting Considerations for Closed Total Issuing™ Solutions Acquisition and Worldpay Minority Stake Sale

On January 9, 2026, the Company completed its planned acquisition of the Issuer Solutions Business, which has been rebranded as FIS Total Issuing™ Solutions, and simultaneous sale of its remaining 45% Worldpay minority stake. Accordingly, the Company has furnished unaudited historical pro forma financials for the combined company which can be found in our SEC filings.

Additionally, the Company is expanding its Banking Solutions segment revenue reporting to align with a new operating structure and to enhance financial disclosures. The Company's reportable operating segments consist of Banking Solutions, inclusive of two divisions: "Payments" and "Banking," and Capital Market Solutions. Historical segment results have been recast to reflect the segment realignment and supplemental data can be found in our SEC filings.

Fourth Quarter 2025 Financial Results

On a GAAP basis, revenue increased 8% as compared to the prior-year period to approximately $2.8 billion. GAAP net earnings attributable to common stockholders from continuing operations were $511 million or $0.98 per diluted share.

On an adjusted basis, revenue increased 7% as compared to the prior-year period, reflecting recurring revenue growth of 8%. Adjusted EBITDA increased 7% to approximately $1.2 billion, and Adjusted EBITDA margin contracted by 36 basis points (bps) compared to the prior-year period to 42.5%, reflecting a more normalized level of corporate expense as compared to the prior-year period. Adjusted net earnings from continuing operations were $874 million, and Adjusted EPS increased by 20% as compared to the prior-year period to $1.68 per diluted share.

Full-Year 2025 Financial Results

On a GAAP basis, revenue increased 5% as compared to the prior year to approximately $10.7 billion. GAAP net earnings attributable to common stockholders from continuing operations were $382 million or $0.73 per diluted share, including $(539) million of non-cash expense to reflect an increase in our deferred tax liability arising from our agreement to sell our remaining interest in Worldpay that was recognized in the second quarter.

On an adjusted basis, revenue increased 6% as compared to the prior year, reflecting recurring revenue growth of 6%. Adjusted EBITDA increased 5% to approximately $4.3 billion, and Adjusted EBITDA margin contracted by 28 basis points (bps) compared to the prior year to 40.6%, primarily reflecting the short-term dilutive impact from strategic acquisitions and lower TSA income. Adjusted net earnings from continuing operations were $3.0 billion, and Adjusted EPS increased by 10% as compared to the prior year to $5.75 per diluted share.

Segment Information

Banking Solutions:

Fourth quarter revenue increased 9% on a GAAP basis and 8% on an adjusted basis as compared to the prior-year period to $1.9 billion, including recurring revenue growth of 9%. Adjusted EBITDA increased 12% to $819 million and Adjusted EBITDA margin expanded by 132 basis points as compared to the prior-year period to 43.9%, primarily driven by continued cost management and favorable revenue mix.

Full-year revenue increased 6% on a GAAP basis and 6% on an adjusted basis as compared to the prior year to $7.3 billion, including recurring revenue growth of 6%. Adjusted EBITDA increased 4% to $3.2 billion and Adjusted EBITDA margin contracted by 56 basis points as compared to the prior year to 43.4%, primarily driven by the short-term dilutive impact from strategic M&A and revenue mix, partially offset by continued cost management.

Capital Market Solutions:

Fourth quarter revenue increased by 8% on a GAAP basis and 6% on an adjusted basis as compared to the prior-year period to $883 million, reflecting recurring revenue growth of 5%. Adjusted EBITDA increased 12% to $507 million and Adjusted EBITDA margin expanded by 227 basis points as compared to the prior-year period to 57.4%, reflecting favorable revenue mix, operating leverage and cost management.

Full-year revenue increased 7% on a GAAP basis and 6% on an adjusted basis as compared to the prior year to $3.2 billion, including recurring revenue growth of 6%. Adjusted EBITDA increased 9% to $1.7 billion and Adjusted EBITDA margin expanded by 86 basis points as compared to the prior year to 51.8%, reflecting an increase in higher-margin license revenue, operating leverage and cost management.

Corporate and Other:

Fourth quarter revenue increased by 3% as compared to the prior-year period to $63 million. Adjusted EBITDA loss was $130 million, including $144 million of corporate expenses.

Full-year revenue decreased by 23% as compared to the prior year to $196 million, primarily due to the divestiture of a non-strategic business. Adjusted EBITDA loss was $491 million, including $553 million of corporate expenses.

Balance Sheet and Cash Flows

As of December 31, 2025, debt outstanding totaled $13.1 billion. For the year, net cash provided by operating activities was $2.6 billion. Free cash flow was $1.6 billion, up 19%, and Adjusted free cash flow was $2.2 billion, an increase of 18% as compared to the prior year. For the year, the Company returned $2.1 billion of capital to shareholders through $1.3 billion of share repurchases and $847 million of dividends paid.

Capital Allocation

The Company repurchased $291 million of shares in the fourth quarter of 2025, resulting in total share repurchases of $1.3 billion for full-year 2025. Additionally, the Company will continue to pay quarterly dividends targeting dividend per share growth in line with Adjusted EPS growth. On January 29, 2026, FIS' Board of Directors approved a 10% increase in the quarterly dividend to $0.44 per share.

Consistent with prior communications, the Company expects to temporarily pause share repurchases and tuck-in M&A to accelerate deleveraging. The Company expects to resume its existing capital allocation priorities once it has achieved its target gross leverage of 2.8x.

First Quarter and Full-Year 2026 Outlook

The Company is introducing its first quarter and full-year 2026 outlook, inclusive of 8 days of contribution from Worldpay equity method investment earnings (loss) (EMI) and 357 days of contribution from the Total Issuing™ Solutions acquisition. For the full-year, the Company is projecting Adjusted revenue growth of 30-31%, Adjusted EBITDA growth of 34-35% and Adjusted EPS growth of 8-10%. On a pro forma basis, revenue and Adjusted EBITDA are projected to grow by 5.1-5.7% and 7.2-8.4% respectively2. Additionally, the Company is targeting Free Cash Flow1 of $2.05 - $2.15 billion, or growth of 27-33% as compared to the prior year.

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