FIS reported third‑quarter 2025 results that surpassed consensus estimates, with revenue rising 6% year‑over‑year to $2.70 billion and adjusted earnings per share reaching $1.51, an 8% increase over the same quarter last year. Adjusted EBITDA climbed 7% to $1.135 billion, lifting the margin to 41.8%—a 53‑basis‑point improvement from the prior year. The earnings beat of $0.03 per share and revenue beat of roughly $0.05 billion reflect disciplined cost management and a favorable mix shift toward higher‑margin banking and capital‑markets services.
Banking Solutions revenue grew 6% to $1.894 billion, driven by strong demand for core banking platforms and digital‑banking solutions. Capital Market Solutions revenue increased 7% to $783 million, supported by robust trading‑technology sales and fee‑based market‑data services. Corporate and Other revenue fell 34% to $40 million as the company divested legacy non‑core offerings, reinforcing its focus on core business activities. The segment mix shift contributed to the overall margin expansion, as higher‑margin banking and capital‑markets services offset lower‑margin legacy revenue.
Margin expansion was largely attributable to pricing power in the banking and capital‑markets segments and effective cost control. FIS maintained a strong operating leverage, with incremental revenue growth outpacing incremental costs. The company’s investment in AI and data‑analytics capabilities has enabled higher pricing in digital‑banking products, while disciplined spending on legacy systems has kept operating expenses in check. The 41.8% adjusted EBITDA margin reflects these combined effects.
Management raised its full‑year 2025 outlook, projecting revenue growth of 5.4% to 5.7% and adjusted EPS growth of 10% to 11%. The adjusted EBITDA margin guidance was increased by 40 to 45 basis points, signaling confidence in continued margin expansion. Capital allocation plans for the quarter included $301 million in share repurchases and $208 million in dividends, totaling $509 million returned to shareholders. The company also confirmed that the acquisition of Global Payments’ Issuer Solutions business and the sale of its remaining Worldpay stake will close in the first quarter of 2026, positioning FIS to strengthen cash flow and deepen cross‑sell opportunities in its core banking and capital‑markets businesses.
CEO Stephanie Ferris highlighted the company’s focus on AI adoption and data advantage, noting that the Issuer Solutions acquisition will add almost one billion additional accounts to FIS’s platform. CFO James Kehoe emphasized that revenue growth was driven by strong recurring revenue in both segments and that margin expansion was achieved through operational leverage and cost discipline. Management also underscored that bank technology spending remains robust and that clients are prioritizing digital solutions, payments innovation, and lending modernization, providing a solid tailwind for future growth.
Analysts noted the earnings beat and the raised full‑year guidance as key drivers of a positive market reaction. The combination of a strong earnings performance, margin expansion, and a confident outlook reinforced investor confidence in FIS’s strategic direction and operational execution.
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