FIS Posts 29% Q2 Revenue Increase, Shares Tumble on Cut Guidance

Fidelity National Information Services reported a 29% year-over-year increase in Q2 2026 revenue, however, shares declined due to reduced guidance. Despite strong revenue growth, FIS's stock price dropped following a cautious outlook for future performance.

Fidelity National Information Services (FIS) reported Q2 2026 revenue of roughly $3.4 billion, up 29% year over year on a GAAP basis, with shares falling after the company trimmed its full-year outlook.

The headline growth rate is largely inorganic: FIS closed its acquisition of Global Payments' former Issuer Solutions (TSYS) business in January 2026, and on a pro forma basis combining both companies' prior-year results, revenue growth was a far more modest 5.3%. That gap between the reported and underlying growth rate, not a contradiction, is what the market is now pricing in.

Profitability metrics were stronger: adjusted EBITDA rose 35% to about $1.4 billion, with margin expanding 193 basis points to 41.7%, and free cash flow more than tripled to $525 million. GAAP net earnings were $231 million, or $0.45 per diluted share, while adjusted EPS grew 9% to $1.48.

Despite the quarter's headline strength, FIS lowered its FY2026 guidance to EPS of $6.15-$6.24, below the $6.28 consensus, and revenue of $13.6-$13.7 billion, below the $13.8 billion estimate. Shares fell in response, trading down over $2 intraday .

Going forward, watch how quickly pro forma growth accelerates as the Issuer Solutions integration progresses, and whether FIS's next guidance update narrows the gap between headline and organic growth that unsettled investors this quarter.

FIS Posts 29% Q2 Revenue Increase, Shares Tumble on Cut Guidance

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