Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
FIS second quarter of fiscal 2026 was shaped by the January 2026 acquisition of the Issuer Solutions Business, which lifted revenue sharply but compressed margins as higher costs and amortization were absorbed. Net income swung to a $231 million profit from a year-ago loss of $470 million, aided by the absence of a $108 million write‑off on Worldpay contingent consideration that burdened the prior period. However, interest expense nearly doubled to $200 million as the company took on $7.7 billion of debt to finance the deal, and the resulting higher leverage remains a key tension alongside integration execution.
Revenue
$3.38B
+29.09% YoY
EPS (Diluted)
$0.45
+150.00% YoY
Gross Margin
34.8%
-1.6 pts YoY
Operating Income
$507M
+24.26% YoY
Source: SEC XBRL
FIS reported Q2 FY2026 revenue of $3.38B, up 29.1% year over year. Operating margin was 15.0%, down 0.6 points from 15.6% a year earlier. FIS's fiscal Q2 FY2026 corresponds to calendar Q2 2026.
Last 4 quarters: 2 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026This filing | 1.48 | 1.49 | Miss -0.5% |
| Mar 2026 | 1.36 | 1.30 | Beat +4.6% |
| Dec 2025 | 1.68 | 1.70 | Miss -1.3% |
| Sep 2025 | 1.51 | 1.50 | Beat +0.6% |
Adjusted (non-GAAP) EPS of $1.48 versus the $1.49 analyst consensus — a -0.5% miss for Jun 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $0.45.
3 reported segments · SEC XBRL
Segment revenue totals $3.38B, which is the $3.38B of consolidated revenue on the income statement.
Compiled by AI from 10-Q Item 2 of this filing
Total revenue increased 29% year over year, driven primarily by the acquired Issuer Solutions Business; excluding it, Banking Solutions organic revenue grew 6% on higher recurring and software license fees.
Source: 10-Q Item 2 MD&A
Net interest expense rose 82% to $200 million for the quarter, reflecting the $7.7 billion incremental borrowings used to fund the Issuer Solutions Acquisition.
Source: 10-Q Item 2 MD&A
Capital Market Solutions revenue grew 3%, with recurring revenue up 5% from new client implementations and favorable pricing, though professional services revenue declined.
Source: 10-Q Item 2 MD&A
The sale of the remaining 45% stake in Worldpay generated a $2.2 billion pre‑tax gain in the first quarter of fiscal 2026; no such gain affected the second quarter.
Source: 10-Q Item 2 MD&A
Banking Solutions’ Adjusted EBITDA margin expanded 179 basis points to 45.8%, benefiting from the acquisition’s accretive profile and cost management, while Capital Markets’ margin slipped 32 basis points to 51.9% due to higher labor and customer-related costs.
Source: 10-Q Item 2 MD&A
Compiled by AI from this SEC filing · 2 high, 3 medium, 0 low
The large-scale integration of the Issuer Solutions Business may prove more costly or time‑consuming than anticipated, and expected cost savings and revenue synergies may not materialize, potentially disrupting operations and financial results.
Source: 10-Q Item 2 MD&A
Long‑term debt increased to $16.9 billion following the acquisition‑related borrowing, lifting the debt‑to‑equity ratio to 1.75. Higher interest rates or refinancing needs could further raise interest costs and restrict financial flexibility.
Source: 10-Q Balance Sheet (XBRL)
The Banking Solutions segment accounts for over 70% of segment revenue; consolidation among financial institutions or loss of key relationships could reduce demand and pressure pricing, as the company itself notes the risk of clients in‑sourcing services.
Source: 10-Q Item 2 MD&A
Traditional and emerging competitors, including large global banks and technology‑focused entrants, are unbundling services and offering disruptive digital‑first solutions, which could erode FIS’s market share if its innovation pipeline lags.
Source: 10-Q Item 2 MD&A
Evolving data protection, AI, and cyber‑resilience regulations, coupled with increasingly sophisticated cyber threats, raise compliance costs and the risk of breaches that could damage reputation and client trust.
Source: 10-Q Item 2 MD&A
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 3.38 $B | 2.62 $B | +29.09% |
Cost of Revenue $B | 2.20 $B | 1.66 $B | +32.39% |
Gross Profit $B | 1.17 $B | 0.95 $B | +23.32% |
Operating Income $M | 507.00 $M | 408.00 $M | +24.26% |
Net Income $M | 231.00 $M | -470.00 $M | +149.15% |
EPS (Basic) $ | 0.45 $ | -0.90 $ | +150.00% |
EPS (Diluted) $ | 0.45 $ | -0.90 $ | +150.00% |
SG&A Expense $M | 684.00 $M | 572.00 $M | +19.58% |
Answers draw on this SEC filing and the data on this page
Expected release date, analyst estimates & what to watch
FIS delivered strong Q1 FY2026 revenue growth of 30.1% to $3.30B, while net income surged to $2.37B—a near 30x increase year-over-year—driven largely by a non-recurring gain, even as margins compressed slightly and long-term debt jumped 54.8% following a major acquisition.
FIS grew FY2025 revenue 5.4% to $10.68B but net income collapsed 73.7% to $382M, driven by higher costs and significant non-operating charges, while liquidity tightened with a current ratio below 1.0.
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