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FIS Q3 revenue beats estimates on acquisition boost

By Reuters News


Overview

  • US financial technology firm's Q3 revenue rose 27%, slightly beating analyst expectations

  • Adjusted EPS for Q3 beat consensus, rising 6.6% yr/yr to $1.61

  • Company closed divestiture of non-core prepaid business during ongoing strategic review


Outlook

  • FIS sees 2026 revenue of $13.45 bln to $13.51 bln

  • Company expects 2026 adjusted EPS of $5.82 to $5.89

  • FIS maintains 2026 free cash flow target of $2.15 bln to $2.25 bln


Result Drivers

  • ACQUISITION IMPACT - Co said acquisition of high margin Total Issuing Solutions business contributed to revenue and margin growth

  • FAVORABLE REVENUE MIX - Co attributed margin expansion to favorable revenue mix, especially in Banking and Capital Market Solutions segments

  • COST MANAGEMENT - Co said continued cost management helped expand margins in both Banking and Capital Market Solutions segments


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Slight Beat*

$3.45 bln

$3.43 bln (22 Analysts)

Q3 Adjusted EPS

Beat

$1.61

$1.60 (26 Analysts)

Q3 Adjusted Net Income

Slight Beat*

$831 mln

$826.87 mln (18 Analysts)

Q3 Adjusted EBITDA

Slight Beat*

$1.48 bln

$1.47 bln (21 Analysts)

Q3 Adjusted EBITDA Margin

42.90%

*Applies to a deviation of less than 1%; not applicable for per-share numbers.


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "strong buy" or "buy", 15 "hold" and 1 "sell" or "strong sell"

  • The average consensus recommendation for the financial technology (fintech) peer group is "buy"

  • Wall Street's median 12-month price target for Fidelity National Information Services, Inc. is $46.00, about 18% above its November 3 closing price of $38.99

  • The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 7 three months ago


Reuters Recommended Reads

  • Nov 3 - Fiserv Q3 adjusted EPS beats, revenue slightly tops estimates

  • Nov 3 - Fiserv cuts 3,000 employees and contractor jobs under new CEO

  • Nov 2 - Paymentus Q3 revenue beats on higher billers and transaction volumes


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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