Fidelity National Information Services, Inc. Q3 2026 Earnings Recap

FIS shares fell 23.7% after earnings, with the likely catalyst being a more cautious outlook: management said client conversion delays, large-bank consolidation timing, and higher investment in security and implementations will weigh on results in Q4 and 2027. Those pressures overshadowed Q3 revenue growth and margin expansion.

Key Takeaways

• Q3 pro forma revenue grew 3.7%; recurring revenue grew 2.5%.
• Adjusted EBIT margin expanded 94 basis points to 42.9%, and adjusted EPS rose 6.6% to $1.61.
• Year-to-date free cash flow increased 57% to $1.9 billion.
• Management cited client-directed conversion delays, primarily among larger clients, and timing around large-bank consolidation as reasons for revising its outlook.
• The company expects these factors, alongside increased security and implementation investment, to weigh on Q4 and 2027 results, and largely fade in 2028.