Fidelity National Information Services (FIS) Q1 2026 earnings summary

Executive summary

• Achieved 6.5% pro forma revenue growth year-over-year in Q1 2026, with strong performance across all financial metrics and segments, including Banking and Capital Markets.

• Adjusted EBITDA margin expanded to 39.6%, up 87 basis points year-over-year, driven by favorable mix and cost savings.

• Adjusted EPS grew 12.4% to $1.36, and free cash flow more than doubled to $474 million.

• Commercial momentum was highlighted by 24% year-over-year recurring ACV growth, with significant wins in digital, lending, and money movement.

• Announced strategic partnership with Anthropic to co-develop AI agents for financial services, and launched new digital asset and AI platforms.

Financial highlights

• Q1 2026 total revenue was $3.3 billion, with adjusted EBITDA of $1.3 billion and margin at 39.6%.

• Adjusted EPS increased 12.4% to $1.36; free cash flow reached $474 million, up 111% year-over-year.

• Banking Solutions revenue grew 7.7% pro forma and 45% GAAP to $2.4 billion, with 43.7% EBITDA margin.

• Capital Markets revenue grew 2.9% pro forma and 5% GAAP to $823 million, with 51.6% EBITDA margin.

• Total debt stood at $21.1 billion with a leverage ratio of 3.6x; $262 million returned to shareholders, mainly via dividends.

Outlook and guidance

• Reiterated full-year 2026 pro forma revenue growth guidance of 5.1%-5.7% and adjusted EBITDA growth of 7.2%-8.4%.

• Adjusted EPS guidance of $6.22–$6.32, up 8%-10% year-over-year.

• Free cash flow target of $2.1 billion for 2026, with a goal to exceed $3 billion by 2028.

• Q2 2026 revenue projected at $3.375–$3.395 billion, adjusted EPS at $1.45–$1.49, and margin expansion of ~170 basis points.

• Banking expected at 5%-5.5% growth, Capital Markets at 5.5%-6.5%.