- 2025 Financial Performance: Adjusted revenue rose 5.8% to $10.7B, EBITDA grew 4.7%, and adjusted EPS increased 10.2% to $5.75, alongside $1.6B free cash flow and $1.3B shareholder returns.
- 2026 Growth Projections: Revenue growth of 30-31% (adjusted) and 5.1-5.7% (pro forma), with EBITDA rising 34-35% (adjusted) and 7.2-8.4% (pro forma), while adjusted EPS targets $6.22-$6.32 (8-10% growth).
- Free Cash Flow Expansion: Projects $2B+ free cash flow in 2026 (27-33% YoY growth) and $3B by 2028 (25% CAGR), driven by reduced capital intensity and AI/operational efficiencies.
- Margin Expansion: Anticipates 155-175 bps EBITDA margin growth in 2026, exceeding 2025’s 90 bps, with pro forma margin expansion of 95-100 bps and FIS core margins surpassing prior projections.
- AI and Data Leadership: Quadrupled AI/Data investment, deploying agents for client outcomes, enhancing fraud models with Total Issuing Solutions data, and pioneering Agentic Commerce to drive 40%+ banking revenue growth in 2026.
Segment Performance and Growth Drivers
The Banking segment is growing faster than its medium-term range, with organic growth outpacing by 150 bps, driven by demand across all products, particularly core and payments, digital, and lending. Worldpay revenue also grew significantly, driven by the use of FIS' loyalty and premium payback products, network routing capabilities, and strong payment growth.
AI Adoption and Agentic Commerce
FIS is seeing significant engagement from bank clients as they rapidly adopt AI to tackle costs and redeploy savings into growth areas. The company is focused on Agentic commerce, ensuring that banks can identify and authorize Agentic transactions and protect against Agentic fraud, and is working with financial institutions to update fraud models for new ways of fraud using Agentic commerce.
Outlook and Guidance
FIS expects to deliver strong growth across revenue, margins, and free cash flow in 2026, with projected revenue growth of 30-31% on an adjusted basis and 5.1-5.7% on a pro forma basis. The company guides for organic growth consistent with 2025, around 4.5%, with legacy FIS business growing faster. FIS targets free cash flow of over $2 billion in 2026, growing 27-33% year-on-year.
Valuation and Metrics
With a P/E Ratio of 114.62 and EV/EBITDA of 174.86, FIS' valuation suggests a premium for its growth prospects. The company's ROE of 1.52% and ROIC of 3.04% indicate room for improvement in returns. FIS' Net Debt / EBITDA ratio of 21.07 may raise concerns about leverage, but the company's focus on repaying debt before considering buybacks is a positive sign.