Fidelity National Info (FIS) Q3 2026 Earnings Report

The call presented strong third-quarter execution, expanding margins, robust free cash flow, improving renewals, and broad commercial momentum. However, management materially reduced 2026 guidance and provided a weak preliminary 2027 outlook, citing implementation delays, lower traditional-license demand, lower nonrecurring revenue, bank consolidation effects, and ongoing cyber investment. The positive operating and cash-flow performance was balanced by significant near-term revenue, margin, EPS, and leverage-timing pressures.

For 2026, FIS expects banking revenue growth of 3.5 to 4%, capital markets revenue growth of 2% to 2.5%, full year margin expansion of 20 to 30 basis points, adjusted EPS growth of 1.2% to 2.4%, and free cash flow of approximately $2.2 billion. For preliminary 2027, organic growth is expected to contribute approximately 2.5 to 3.5 percentage points, with the adjusted growth rate range at down 50 basis points to up 100 basis points; banking revenue growth is expected at flat to 1.5%, including recurring revenue growth of approximately 3%, while capital markets is expected at down 1.5% to up 0.5%, with recurring growth in the mid single digits. The reduction in nonrecurring revenue is expected to impact margins by 75 to 145 basis points, resulting in margins that are flat to down 100 basis points, while core margins are expected to expand by roughly 45 to 75 basis points; adjusted EPS is expected to decline in the high single to low double digit range, and free cash flow growth is expected to continue to outpace earnings.