$FIS · Fidelity National Information Services, Inc.
FIS filed its Q3 2026 10-Q. Revenue grew 27.1% year-over-year to $3.454B, with net earnings attributable to FIS of $356M ($0.69 diluted EPS) versus $264M ($0.50) a year earlier. Gross margin was 37.0% and operating margin 19.1%. The balance sheet shows a major acquisition-driven expansion: goodwill jumped to $25.0B from $17.8B, intangibles to $4.1B from $959M, and total debt rose sharply, with long-term debt at $15.1B versus $9.1B at year-end 2025.
- Revenue rose 27.1% YoY to $3.454B in Q3 2026.
- Net earnings attributable to FIS were $356M, or $0.69 diluted EPS, up from $264M ($0.50).
- Goodwill surged to $25.0B from $17.8B at year-end 2025.
- Long-term debt climbed to $15.1B from $9.1B at year-end 2025.
- Nine-month acquisitions totaled $7.9B net of cash acquired.
Shares closed at $29.76, down 23.67% on the day, with extended-hours trading at $29.80 (+0.13% vs close). The sharp selloff despite a revenue and EPS beat suggests investors are reacting to the debt-funded acquisition spree and leverage increase.
A 27% revenue jump and EPS beat were overshadowed by a debt-funded acquisition spree that sent shares down nearly 24%.
FIS's acquisition-driven growth and rising leverage contrast with peers focused on organic growth and deleveraging in the payments/fintech infrastructure space.
Debt load expanded materially, with long-term debt up to $15.1B from $9.1B and interest expense more than doubling to $199M in Q3 from $90M a year earlier. The $7.9B in acquisitions also carries integration and goodwill impairment risk.