FIS · Earnings call · 2026Q2T · Full report

Operating Margin Drivers

Fidelity National Information Services, Inc. · 2026-08-04 · Importance 43 · Surprise 32 · No source text

Second-quarter adjusted EBITDA increased 7.4%, while adjusted EBITDA margin expanded 113 basis points, exceeding the company’s 75-to-110-basis-point outlook. Margin expansion was driven by favorable product mix and cost savings, with Banking contributing especially strong performance. Banking Solutions adjusted EBITDA rose 10.6% and its margin expanded 178 basis points because of product mix, cost savings and integration synergies. Capital Markets margins were slightly below the prior year because the timing of operating expenses more than offset favorable mix, although management expects expansion in the second half.

Key facts

• Reduced company EBITDA full year margin expansion outlook to 85 to 105 basis points (previously 95 to 110 bps)
• Company projected EBITDA margin expansion in Q3: 80 to 100 basis points and adjusted EPS growth of 4.6% to 7.3%
• Pro forma EBITDA grew 7.4% with margins up 113 basis points, ahead of outlook of 75 to 110 basis points
• Adjusted EBITDA growth in the quarter: 7.4% and margins expanded 113 basis points
• Banking adjusted EBITDA advanced 10.6% with margins expanding 178 basis points
• FIS has expanded margins on a year-over-year basis.
• Margin expansion was led by favorable product mix and cost savings
• Captured favorable product mix, cost savings and integration synergies as drivers of margin expansion across segments and company

Impact estimates