FIS · 10-Q · 2026Q2 · Full report

Gross Margin Drivers

Fidelity National Information Services, Inc. · 2026-08-04 · Importance 44 · Surprise 24 · No source text

Cost of revenue increased by $539 million year over year in the second quarter of 2026 and by $1.073 billion for the six-month period, primarily because of Issuer Solutions expenses. Gross profit increased to $1.174 billion in the second quarter and $2.281 billion for the six-month period, reflecting higher revenue. Gross profit margin decreased in both periods because the Issuer Solutions Business was dilutive, including the amortization of acquired intangible assets. The margin impact contrasts with Banking Solutions, where Adjusted EBITDA margin increased to 45.8% from 44.0% in the second quarter and to 44.8% from 42.4% for the six-month period.

Key facts

• Three months ended June 30, 2026 cost of revenue: $2,203 million; Three months ended June 30, 2025 cost of revenue: $1,664 million source
• Three months ended June 30, 2026 gross profit: $1,174 million; Three months ended June 30, 2025 gross profit: $2,281 million source
• Six months ended June 30, 2026 cost of revenue: $4,390 million; Six months ended June 30, 2025 cost of revenue: $3,317 million source
• Six months ended June 30, 2026 gross profit: $1,831 million source
• Gross profit margin for the three and six months ended June 30, 2026 decreased due to the dilutive impact of the Issuer Solutions Business, including the amortization of acquired intangible assets. source
• Cost of revenue for the three months ended June 30, 2026 was $2,203 million compared to $1,664 million for the three months ended June 30, 2025. source
• Gross profit for the three months ended June 30, 2026 was $1,174 million (implied by revenue minus cost of revenue in the table). source

Impact estimates