Key Highlights

  • Adjusted Earnings Per Share rose 6.6% to USD 1.61 in the third quarter of 2026, while GAAP Diluted Earnings per Share were USD 0.69 against USD 0.50 a year earlier.
  • Reported Revenue was USD 3,454 million versus USD 2,717 million, and pro forma revenue grew 3.7%, with Recurring Revenue up 2.5%, according to management.
  • Banking revenue growth guidance for 2026 fell to 3.5% to 4.0% from 5.0% to 5.5%, and Capital Markets guidance fell to 2.0% to 2.5% from 3.0% to 3.5%.
  • Year-to-date free Cash Flow reached USD 1.9 billion, up 57%, and full-year free cash flow guidance of about USD 2.2 billion was reaffirmed.

Third-Quarter Earnings Rise but Guidance Comes Down

Fidelity National Information Services (NYSE:FIS) filed its Quarterly Report and held its Earnings Call on November 4, 2026. Net earnings attributable to the company were USD 356 million, or USD 0.69 per diluted share, against USD 264 million, or USD 0.50. Reported revenue rose to USD 3,454 million, reflecting the acquired issuer solutions business, now called FIS Total Issuing Solutions. On a pro forma basis, growth was 3.7%, and the adjusted EBIT Margin was 42.9%, up 94 basis points. Operating Income rose to USD 660 million from USD 457 million. Even so, the chief executive said client conversion delays in larger accounts and large bank consolidation led the company to take a more prudent approach to the outlook.

Nonrecurring Revenue Drives the Revised Outlook

Management cut 2026 adjusted earnings per share growth to 1.2% to 2.4% and now expects margin expansion of 20 to 30 basis points. It lowered nonrecurring revenue assumptions by over USD 100 million, worth roughly 50 basis points of margin, as Demand shifts from licenses toward subscription products. For 2027, the preliminary view is adjusted revenue growth of negative 0.5% to positive 1.0%, margins flat to down 100 basis points, and adjusted earnings per share declining by a high single to low double digit rate. The company expects USD 140 million of strategic Partnership revenue not to repeat, and says these headwinds largely fade in 2028.

Cash Flow Holds While the CFO Departs

Cash generation stayed firm. Year-to-date free cash flow was USD 1.9 billion versus USD 1.2 billion, and net cash from Operating Activities for nine months was USD 2,183 million against USD 1,850 million. Leverage held at 3.5 times, and total Debt declined to USD 20.8 billion. The company returned USD 248 million to shareholders in the quarter, mostly dividends. Separately, chief financial officer James Kehoe said he will leave after three years, with Alexandra serving as interim. The company also said its review of strategic alternatives continues, with a fuller update expected in early 2027. Nine-month GAAP net earnings of USD 2,954 million are not explained in the extract.

Where Things Stand

The cut reflects slower license demand and implementation delays, not weaker current-quarter earnings. Fidelity National Information Services (NYSE:FIS) grew adjusted earnings per share 6.6% yet lowered banking and capital markets revenue guidance, and its preliminary 2027 view points to lower adjusted earnings per share. Free cash flow is the offset, with USD 2.2 billion still targeted. Watch the fourth-quarter nonrecurring revenue, a permanent CFO appointment and the early 2027 update on strategic alternatives. No share price reaction appears in the filing.