- Company name
- FIS
- Sector
- Financial technology
- About
- FIS sells software and processing services to banks, capital markets firms and other businesses. Banking Solutions runs core banking systems, digital banking, payments and card processing for banks of all sizes. On January 9, 2026, FIS bought the Issuer Solutions business (TSYS) from Global Payments for an enterprise value of $13.5 billion, paid with its 45% stake in Worldpay and about $7.7 billion in cash. TSYS provides card issuing technology and processing to banks and is now part of Banking Solutions under the name Total Issuing Solutions. Capital Market Solutions sells software for trading, investment operations and fund administration. Most revenue is recurring. FIS expects 2026 revenue of $13.445 billion to $13.505 billion. In October 2026, it sold a small prepaid business as part of a review of its portfolio.
- Thesis
- FIS trades at a discount because the market doubts that it can grow faster with a much larger debt load after the TSYS purchase. Debt was $20.8 billion at September 30, 2026, against about $13.1 billion at the end of 2025, and FIS stopped most share buybacks and small acquisitions until gross leverage falls to about 2.8 times. Growth keeps slowing: pro forma revenue grew 3.7% in Q3 2026, after 5.3% in Q2. FIS cut its 2026 pro forma revenue growth outlook twice, to 4.5% to 5.0% in August 2026 and to 3.1% to 3.6% on November 4, 2026. It also cut its 2026 adjusted EPS outlook to $5.82 to $5.89 from $6.15 to $6.24, because it spends more on security and new products. Cash flow holds up: FIS kept its free cash flow target of $2.15 billion to $2.25 billion for 2026. For the gap to close, pro forma revenue growth must stop slowing and return toward 5%, the new spending must bring more recurring revenue, TSYS must keep its higher margins, free cash flow must reach the 2026 target, and debt must fall so that buybacks can start again. The full-year report and the 2027 outlook, expected in early February 2027, are the next test. If FIS meets these targets and reaches its leverage goal, the gap can close over the next four to eight quarters. The main risk is that banks delay technology spending or that TSYS loses large card clients.
- Risks
- Debt was $20.8 billion at September 30, 2026, after the TSYS purchase. About $3.9 billion is short-term borrowings that FIS must refinance at current rates, so higher short-term rates raise interest cost. FIS paused most buybacks and small acquisitions until gross leverage falls to about 2.8 times.
Growth slowed. FIS cut its 2026 pro forma revenue growth outlook to 4.5% to 5.0% in August 2026 and to 3.1% to 3.6% in November 2026. If banks delay projects or if card volumes slow, revenue can grow more slowly again.
FIS must combine TSYS with its own business. Global Payments still provides some services to FIS under transition agreements. Problems in the move of systems, or the loss of large card issuers, can lower revenue and margins.
Bank technology is competitive, and new software and AI tools can change how banks buy core and card systems. Bank mergers also reduce the number of clients and can move contracts to competitors.
FIS still guarantees some obligations of Worldpay, its former business, including a liability of $378 million due on October 12, 2027.
- Balance sheet
- Cash: $740M
Debt: $20.8B
Net debt: $20.0B
Interest cover: 2.7×
Debt due within 12 months: $5.6B
At September 30, 2026, FIS had $740 million of cash and $20.8 billion of debt: $15.1 billion of long-term debt, $1.7 billion of long-term debt due within one year and $3.9 billion of short-term borrowings. Debt was $21.2 billion at June 30, 2026, and about $13.1 billion at December 31, 2025. In March 2026, FIS sold about $6.3 billion of new USD senior notes due 2028, 2029 and 2031 and $500 million of floating rate notes due 2029 to fund the TSYS purchase. Interest cover is operating income divided by net interest expense for the first nine months of 2026: $1,590 million against $596 million. At June 30, 2026, FIS had $2.6 billion of revolving credit capacity; the main revolving facility runs to September 2029, and a $1.0 billion incremental facility runs to June 2027. FIS targets gross leverage of about 2.8 times before it starts large buybacks again. In Q3 2026, it made $862 million of free cash flow, paid $227 million of dividends and bought back $21 million of shares.
As of Sep 30, 2026.
- Checkpoints
- Nov 4, 2026: Q3 2026 results: pro forma growth and cash flow. Failed. Watch: Adjusted EPS inside the $1.58 to $1.62 outlook, pro forma revenue growth near 5% and the free cash flow target kept pass; another cut to the growth outlook fails. Outcome: Adjusted EPS of $1.61 was inside the outlook and FIS kept its free cash flow target, but pro forma revenue grew only 3.7% and FIS cut its 2026 growth outlook to 3.1% to 3.6%.
Feb 4, 2027 (estimate): Full-year 2026 results and 2027 outlook. Pending. Watch: A 2027 outlook with organic revenue growth of 5% or more, lower debt and a date to restart buybacks passes; slower growth or leverage that does not fall fails.
- Recent events
- Nov 4, 2026: FIS reported Q3 2026 results. Revenue rose 27% to $3.45 billion with TSYS, and pro forma revenue grew 3.7%. GAAP EPS was $0.69, and adjusted EPS rose 6.6% to $1.61, inside its outlook of $1.58 to $1.62. Free cash flow was $862 million. FIS cut its 2026 outlook to pro forma revenue growth of 3.1% to 3.6%, revenue of $13,445 million to $13,505 million and adjusted EPS of $5.82 to $5.89. It kept its free cash flow target of $2.15 billion to $2.25 billion. Debt was $20.8 billion at September 30, 2026.
Oct 20, 2026: FIS sold a non-core prepaid business in Banking Solutions for gross proceeds of more than $100 million, as part of a review of its portfolio.
Aug 4, 2026: FIS reported Q2 2026 results. Revenue rose 29% to $3.4 billion with TSYS, and pro forma revenue grew 5.3%. GAAP EPS was $0.45, and adjusted EPS rose 8.8% to $1.48. Free cash flow was $525 million. FIS cut its 2026 pro forma revenue growth outlook to 4.5% to 5.0% and raised its free cash flow target by $100 million to $2.15 billion to $2.25 billion. The stock opened about 5% lower.
Jun 16, 2026: The Chief Legal and Corporate Affairs Officer, Caroline Tsai, agreed to step down on July 1, 2026. Chip Keller, the Chief Compliance Officer, became Chief Legal Officer.
May 8, 2026: FIS reported Q1 2026 results. GAAP EPS was $4.58, mostly from the $2.2 billion gain on the sale of its Worldpay stake. Adjusted EPS rose 12% to $1.36, and pro forma revenue grew 6.5%. FIS kept its 2026 outlook.