FIS · 10-Q · 2026Q2 · Full report
Interest Rate Pressure
Fidelity National Information Services, Inc. · 2026-08-04 · Importance 96 · Surprise 100 · In source text
Relatively high interest rates increased FIS’s interest expense and are expected to continue pressuring financing costs. FIS incurred approximately $7.7 billion of new debt in the first quarter of 2026 to fund the Issuer Solutions Acquisition, which is expected to increase 2026 interest expense. Six-month interest expense increased $207 million, or 109%, year over year, primarily because of the acquisition-related borrowings.
Key facts
- Interest expense (net) for the six months ended June 30, 2026 was $(397) million compared to $(190) million for the six months ended June 30, 2025, an increase of $207 million (109%). source
- FIS expects its future cash paid for interest to increase from historic levels as a result of increased debt used to finance the Issuer Solutions Acquisition. source
- Interest expense (net) for the three months ended June 30, 2026 was $(200) million compared to $(110) million for the three months ended June 30, 2025, an increase of $90 million. source
- The Company held fixed-to-variable interest rate swaps with aggregate notional amounts of $1,854 million and £0 million at both June 30, 2026, and December 31, 2025. source
- The Company held variable-to-fixed interest rate swaps with aggregate notional amounts of $1,854 million and £0 million at both June 30, 2026, and December 31, 2025. source
- Weighted average interest rate of the Company's outstanding debt as of June 30, 2026 was 4.2% excluding net investment hedges impact. source
- Including the impact of the net investment hedge cross-currency interest rate swaps on interest expense, the weighted average interest rate of the Company's outstanding debt was 3.8%. source
- During the quarter ended March 31, 2026, the Company entered into interest rate swaps with an aggregate notional amount of $0 million and designated the swaps as cash flow hedges of forecasted interest payments on its Senior USD Floating Rate Notes (text shows '$million' placeholder). source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| net_income | negative | realized | -6.1% | Interest expense (net) for the six months ended June 30, 2026 was $(397) million compared to $(190) million for the six months ended June… |
| cash | negative | probable | — | FIS expects its future cash paid for interest to increase from historic levels as a result of increased debt used to finance the Issuer… |
| net_income | negative | probable | — | FIS expects its future cash paid for interest to increase from historic levels as a result of increased debt used to finance the Issuer… |