FIS · Earnings call · 2026Q2T · Full report
Capital Markets Demand Trends
Fidelity National Information Services, Inc. · 2026-08-04 · Importance 26 · Surprise 24 · No source text
Capital Markets entered 2026 with a strong backlog and pipeline, and management said underlying demand, client relationships and market position remain strong. However, professional-services sales were below plan in the first half, and the conversion of existing backlog and pipeline was slower than targeted. The segment also faced approximately a one-percentage-point revenue-growth headwind from UBS’s acquisition of Credit Suisse and weaker lending volumes caused by interest-rate pressure. Management expects recurring revenue to improve as attrition normalizes and delayed backlog conversion returns, while license and professional-services activity is expected to be flat to down as the business shifts toward recurring revenue.
Key facts
- Professional services and license in Capital Markets are expected to be flat to down next year as the business transitions to recurring revenue
- Capital Markets first half revenue: $1.6 billion, 74% recurring, and delivered a 51.7% adjusted EBITDA margin
- Company projects Capital Markets recurring revenue to accelerate modestly in 2027 with recurring expected to accelerate from 2026 levels and license/professional services in aggregate expected to decline
- UBS acquisition of Credit Suisse resulted in client attrition impacting 2026 Capital Markets revenue growth by approximately one percentage point
- Capital Markets professional services declined by 17% and fell short of expectations due to lower sales and slower-than-anticipated conversion of backlog
- Capital Markets: recurring revenue growth in Q2 accelerated to 5.3% from 3.6% in Q1; overall Capital Markets revenue increased 3.2%
- Capital Markets nonrecurring revenue grew 12% in the quarter
- Management said the Capital Markets backlog and pipeline are strong and demand is strong despite execution misses
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| revenue | positive | realized | +47.4% | Capital Markets first half revenue: $1.6 billion, 74% recurring, and delivered a 51.7% adjusted EBITDA margin |
| revenue | negative | probable | — | Professional services and license in Capital Markets are expected to be flat to down next year as the business transitions to recurring… |
| margin | positive | realized | — | Capital Markets first half revenue: $1.6 billion, 74% recurring, and delivered a 51.7% adjusted EBITDA margin |
| revenue | positive | probable | — | Company projects Capital Markets recurring revenue to accelerate modestly in 2027 with recurring expected to accelerate from 2026 levels… |
| revenue | negative | probable | — | Company projects Capital Markets recurring revenue to accelerate modestly in 2027 with recurring expected to accelerate from 2026 levels… |