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FIS Q2 Earnings Meet Estimates on Strong Banking Solutions Unit
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Key Takeaways
FIS reported Q2 EPS of $1.36, matching estimates and staying within its projected range of $1.34-$1.38.
Revenues rose 5.2% to $2.6B, beating estimates, driven by Banking and Capital Market Solutions' strength.
Adjusted EBITDA grew 4.7% to $1B, with margin flat at 39.8% amid higher cost of revenues and lower SG&A.
Fidelity National Information Services, Inc. (FIS - Free Report) reported second-quarter 2025 adjusted earnings per share (EPS) of $1.36, which was in line with the Zacks Consensus Estimate and came within the management’s expected range of $1.34-$1.38. The bottom line remained consistent year over year.
Revenues amounted to $2.6 billion, which improved 5.2% year over year and surpassed management’s projected range of $2.560-$2.585 billion. The top line surpassed the consensus mark by 1.6%.
The quarterly results were aided by strong performances in the Banking Solutions and Capital Market Solutions segments, supported by robust recurring revenues. A decline in selling, general and administrative (SG&A) expenses also contributed to the upside. However, the upside was partly offset by the rising cost of revenues.
Fidelity National Information Services, Inc. Price, Consensus and EPS Surprise
The cost of revenues increased 7.6% year over year to $1.7 billion in the quarter under review. SG&A expenses of $572 million declined 6.1% year over year but came higher than our estimate of $559 million. Net interest expenses of $110 million increased significantly from the prior-year quarter’s figure of $43 million, higher than our estimate of $90 million.
Adjusted EBITDA was $1 billion, which rose 4.7% year over year and was in line with our estimate. Adjusted EBITDA margin remained flat year over year at 39.8%.
Segmental Update
Revenues from the Banking Solutions unit totaled $1.8 billion, which grew 6% year over year in the second quarter. The metric surpassed the Zacks Consensus Estimate by 1.8% and our estimate by 2%. The segment’s results were aided by higher recurring revenues, partially offset by increased bad debt expenses. Adjusted EBITDA margin deteriorated 70 bps year over year to 43.6%.
The Capital Market Solutions segment’s revenues advanced 6% year over year to $765 million, higher than our estimate of $764.5 million. Strong recurring revenue growth benefited the metric. Adjusted EBITDA margin of 50.3% deteriorated 53 bps year over year.
The Corporate and Other segment recorded revenues of $43 million in the quarter under review, which dropped 25% year over year. The metric beat the Zacks Consensus Estimate of $36.8 million and our estimate of $37 million. Adjusted EBITDA loss was $133 million.
Financial Update (As of June 30, 2025)
Fidelity National exited the second quarter with cash and cash equivalents of $581 million, which declined 30.3% from the 2024-end level. Total assets of $33.4 billion decreased from the figure at 2024-end of $33.8 billion.
Long-term debt, excluding the current portion, amounted to $8.9 billion. The figure dropped from the figure of $9.7 billion as of Dec. 31, 2024. The current portion of long-term debt totaled $2.3 billion. Short-term borrowings amounted to $1.7 billion at the second-quarter end.
Total equity of $14.2 billion dropped from the 2024-end level of $15.7 billion.
Fidelity National generated net cash from operations of $382 million in the second quarter, which declined 30% year over year. Adjusted free cash flows of $292 million decreased 42.1% year over year.
Share Repurchase & Dividend Update
Fidelity National rewarded its shareholders $459 million, to the tune of share buybacks worth $246 million and dividends of $212 million in the second quarter.
Management reaffirmed its target of conducting share buybacks of around $1.2 billion in 2025. It intends to maintain quarterly dividend payments such that dividend per share growth stays in line with the growth in adjusted EPS.
Q3 2025 View
Management forecasts revenues to be between $2.650 billion and $2.665 billion. Adjusted EBITDA is projected to be in the range of $1.105-$1.120 billion. Adjusted EPS is estimated to be between $1.46 and $1.50. Adjusted EBITDA margin is projected within 41.7-42.0%.
2025 Guidance Reaffirmed
Revenues are now expected to be within $10.520-$10.570 billion, higher than the earlier estimated range of $10.435-$10.495 billion for 2025. Adjusted revenues are now estimated to witness year-over-year growth of 4.8-5.3%. The Banking Solutions unit is now expected to record a year-over-year increase of 4-4.5%, higher than the earlier expected range of 3.7-4.4%. The Capital Market Solutions unit is estimated to record a year-over-year increase of 6.5-7.0%.
Adjusted EBITDA is now projected to be between $4.315 billion and $4.335 billion in 2025. Adjusted EBITDA margin is now anticipated to be around 41%.
Adjusted EPS is now expected to be between $5.72 and $5.80, higher than the earlier anticipated band of $5.70-$5.80.
The Zacks Consensus Estimate for Virtu Financial’s current-year earnings of $4.53 per share has witnessed four upward revisions in the past 30 days against none in the opposite direction. Virtu Financial beat earnings estimates in each of the trailing four quarters, with the average surprise being 14.9%. The consensus estimate for current-year revenues is pegged at $1.9 billion, implying 18.9% year-over-year growth.
The Zacks Consensus Estimate for Marex Group’s current-year earnings of $3.52 per share has witnessed one upward revision in the past 30 days against no movement in the opposite direction. Marex Group beat earnings estimates in each of the trailing four quarters, with the average surprise being 26.3%. The consensus estimate for current-year revenues is pegged at $1.8 billion, calling for 12.4% year-over-year growth.
The Zacks Consensus Estimate for Acadian Asset Management’s current-year earnings is pegged at $3.18 per share, implying 15.2% year-over-year growth. In the past 60 days, Acadian Asset Management has witnessed one upward estimate revision against none in the opposite direction. The consensus mark for the current-year revenues is pegged at $560.8 million, calling for 10.9% year-over-year growth.
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FIS Q2 Earnings Meet Estimates on Strong Banking Solutions Unit
Key Takeaways
Fidelity National Information Services, Inc. (FIS - Free Report) reported second-quarter 2025 adjusted earnings per share (EPS) of $1.36, which was in line with the Zacks Consensus Estimate and came within the management’s expected range of $1.34-$1.38. The bottom line remained consistent year over year.
Revenues amounted to $2.6 billion, which improved 5.2% year over year and surpassed management’s projected range of $2.560-$2.585 billion. The top line surpassed the consensus mark by 1.6%.
The quarterly results were aided by strong performances in the Banking Solutions and Capital Market Solutions segments, supported by robust recurring revenues. A decline in selling, general and administrative (SG&A) expenses also contributed to the upside. However, the upside was partly offset by the rising cost of revenues.
Fidelity National Information Services, Inc. Price, Consensus and EPS Surprise
Fidelity National Information Services, Inc. price-consensus-eps-surprise-chart | Fidelity National Information Services, Inc. Quote
Q2 Performance
The cost of revenues increased 7.6% year over year to $1.7 billion in the quarter under review. SG&A expenses of $572 million declined 6.1% year over year but came higher than our estimate of $559 million. Net interest expenses of $110 million increased significantly from the prior-year quarter’s figure of $43 million, higher than our estimate of $90 million.
Adjusted EBITDA was $1 billion, which rose 4.7% year over year and was in line with our estimate. Adjusted EBITDA margin remained flat year over year at 39.8%.
Segmental Update
Revenues from the Banking Solutions unit totaled $1.8 billion, which grew 6% year over year in the second quarter. The metric surpassed the Zacks Consensus Estimate by 1.8% and our estimate by 2%. The segment’s results were aided by higher recurring revenues, partially offset by increased bad debt expenses. Adjusted EBITDA margin deteriorated 70 bps year over year to 43.6%.
The Capital Market Solutions segment’s revenues advanced 6% year over year to $765 million, higher than our estimate of $764.5 million. Strong recurring revenue growth benefited the metric. Adjusted EBITDA margin of 50.3% deteriorated 53 bps year over year.
The Corporate and Other segment recorded revenues of $43 million in the quarter under review, which dropped 25% year over year. The metric beat the Zacks Consensus Estimate of $36.8 million and our estimate of $37 million. Adjusted EBITDA loss was $133 million.
Financial Update (As of June 30, 2025)
Fidelity National exited the second quarter with cash and cash equivalents of $581 million, which declined 30.3% from the 2024-end level. Total assets of $33.4 billion decreased from the figure at 2024-end of $33.8 billion.
Long-term debt, excluding the current portion, amounted to $8.9 billion. The figure dropped from the figure of $9.7 billion as of Dec. 31, 2024. The current portion of long-term debt totaled $2.3 billion. Short-term borrowings amounted to $1.7 billion at the second-quarter end.
Total equity of $14.2 billion dropped from the 2024-end level of $15.7 billion.
Fidelity National generated net cash from operations of $382 million in the second quarter, which declined 30% year over year. Adjusted free cash flows of $292 million decreased 42.1% year over year.
Share Repurchase & Dividend Update
Fidelity National rewarded its shareholders $459 million, to the tune of share buybacks worth $246 million and dividends of $212 million in the second quarter.
Management reaffirmed its target of conducting share buybacks of around $1.2 billion in 2025. It intends to maintain quarterly dividend payments such that dividend per share growth stays in line with the growth in adjusted EPS.
Q3 2025 View
Management forecasts revenues to be between $2.650 billion and $2.665 billion. Adjusted EBITDA is projected to be in the range of $1.105-$1.120 billion. Adjusted EPS is estimated to be between $1.46 and $1.50. Adjusted EBITDA margin is projected within 41.7-42.0%.
2025 Guidance Reaffirmed
Revenues are now expected to be within $10.520-$10.570 billion, higher than the earlier estimated range of $10.435-$10.495 billion for 2025. Adjusted revenues are now estimated to witness year-over-year growth of 4.8-5.3%. The Banking Solutions unit is now expected to record a year-over-year increase of 4-4.5%, higher than the earlier expected range of 3.7-4.4%. The Capital Market Solutions unit is estimated to record a year-over-year increase of 6.5-7.0%.
Adjusted EBITDA is now projected to be between $4.315 billion and $4.335 billion in 2025. Adjusted EBITDA margin is now anticipated to be around 41%.
Adjusted EPS is now expected to be between $5.72 and $5.80, higher than the earlier anticipated band of $5.70-$5.80.
FIS’ Zacks Rank & Other Key Picks
FIS currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader finance space are Virtu Financial Inc (VIRT - Free Report) , Marex Group PLC (MRX - Free Report) and Acadian Asset Management Inc. (AAMI - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Virtu Financial’s current-year earnings of $4.53 per share has witnessed four upward revisions in the past 30 days against none in the opposite direction. Virtu Financial beat earnings estimates in each of the trailing four quarters, with the average surprise being 14.9%. The consensus estimate for current-year revenues is pegged at $1.9 billion, implying 18.9% year-over-year growth.
The Zacks Consensus Estimate for Marex Group’s current-year earnings of $3.52 per share has witnessed one upward revision in the past 30 days against no movement in the opposite direction. Marex Group beat earnings estimates in each of the trailing four quarters, with the average surprise being 26.3%. The consensus estimate for current-year revenues is pegged at $1.8 billion, calling for 12.4% year-over-year growth.
The Zacks Consensus Estimate for Acadian Asset Management’s current-year earnings is pegged at $3.18 per share, implying 15.2% year-over-year growth. In the past 60 days, Acadian Asset Management has witnessed one upward estimate revision against none in the opposite direction. The consensus mark for the current-year revenues is pegged at $560.8 million, calling for 10.9% year-over-year growth.