Fidelity National Information Services(US:FIS) ZACKS·2025-11-05 17:41Core Insights - Fidelity National Information Services, Inc. (FIS) reported Q3 2025 adjusted EPS of $1.51, exceeding estimates by 2% and up 8% year over year [1][10] - Revenues reached $2.7 billion, a 6% year-over-year increase, surpassing management's expectations and consensus estimates by 2.2% [1][10] Financial Performance - The cost of revenues rose 6% year over year to $1.7 billion, while SG&A expenses increased by 12.1% to $584 million, exceeding estimates [3] - Adjusted EBITDA was $1.1 billion, up 7% year over year, with an adjusted EBITDA margin of 41.8%, improving by 53 basis points [4] Segment Performance - Banking Solutions revenues totaled $1.9 billion, growing 6% year over year and surpassing estimates by 2.8% [5] - Capital Market Solutions revenues increased 7% year over year to $783 million, also beating estimates [6] - The Corporate and Other segment saw revenues drop 34% year over year to $40 million, aligning with estimates [6] Cash Flow and Debt - FIS generated net cash from operations of $1 billion, a 57.9% increase year over year, with adjusted free cash flows rising 75.3% to $929 million [9] - Long-term debt decreased to $8.9 billion from $9.7 billion at the end of 2024, while total equity fell to $14 billion from $15.7 billion [8] Guidance and Outlook - FIS raised its 2025 revenue outlook to $10.595-$10.625 billion, projecting annual growth of up to 5.7% [10][12] - Adjusted EBITDA is projected between $4.330 billion and $4.345 billion, with an adjusted EBITDA margin around 40.9% [13] Shareholder Returns - The company returned $509 million to shareholders through share buybacks of $301 million and dividends of $208 million in Q3 [11] - Management plans to increase share buybacks to approximately $1.3 billion in 2025 [11]