Fidelity National Information Services Reports Strong Q1 Adjusted Results and Reiterates Full-Year Outlook
FIS is trading near its 52-week low of $43.295 (10% above the low).
Summary
FIS reported strong first-quarter adjusted financial results, including a 12% increase in adjusted EPS and a 111% surge in free cash flow, while reiterating its full-year 2026 guidance.
Key Events · Earnings and Guidance · FIS
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Strong Q1 Adjusted Financial Performance
First quarter adjusted EPS increased 12% to $1.36, adjusted revenue grew 31%, and adjusted EBITDA rose 36% to $1.3 billion year-over-year.
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Reiterated Full-Year 2026 Outlook
The company reaffirmed its full-year 2026 guidance, projecting adjusted revenue growth of 30-31%, adjusted EBITDA growth of 34-35%, and adjusted EPS growth of 8-10%.
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Significant Free Cash Flow Growth
Net cash provided by operating activities was $713 million, and free cash flow increased 111% over the prior-year period to $474 million.
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Capital Allocation Update
FIS has temporarily paused share repurchases and tuck-in M&A to accelerate deleveraging, aiming to resume these activities once a target gross leverage of 2.8x is achieved.
Analysis · FIS · Trade & Services
Fidelity National Information Services (FIS) delivered robust first-quarter results, with significant growth in adjusted earnings, EBITDA, and free cash flow. The company's adjusted EPS increased by 12% and adjusted EBITDA by 36% year-over-year, demonstrating strong operational performance. The full-year 2026 outlook for adjusted revenue, EBITDA, and EPS growth was reiterated, signaling management's confidence in continued performance. While GAAP diluted EPS was substantially boosted by a one-time $2.2 billion gain from the Worldpay sale, the underlying adjusted metrics provide a clearer picture of the core business health. Additionally, the company announced a temporary pause on share repurchases and tuck-in M&A to prioritize deleveraging, indicating a strategic focus on balance sheet strength.
At the time of this filing, FIS was trading at $47.80 on NYSE in the Trade & Services sector, with a market capitalization of approximately $24.3B. The 52-week trading range was $43.30 to $82.74. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.