FIS · 10-Q · 2026Q3 · Full report

Interest Expense Increase

Fidelity National Information Services, Inc. · 2026-11-04 · Importance 75 · Surprise 64 · In source text

Net interest expense increased 121% to $199 million in the third quarter of 2026 from $90 million and 114% to $596 million for the first nine months from $279 million. The increases were primarily due to the $7.7 billion of additional borrowings used to fund the Issuer Solutions acquisition. The acquisition financing was refinanced with senior notes in March 2026, resulting in higher expected future cash interest payments.

Key facts

• FIS incurred approximately $7.7 billion of new debt when the Issuer Solutions Acquisition closed in the first quarter of 2026, which will increase interest expense in 2026. source
• FIS refinanced the Issuer Solutions Acquisition cash consideration with senior notes in March 2026, resulting in higher expected future cash interest payments. source
• FIS’s interest expense, net, increased in the three and nine months ended September 30, 2026, primarily due to $7.7 billion of additional borrowings used to fund the Issuer Solutions Acquisition. source
• Cash paid for interest increased from historic levels as a result of debt used to finance the Issuer Solutions Acquisition. source
• As of September 30, 2026, the weighted average interest rate on FIS's outstanding debt was 4.3%, or 3.9% including the impact of net investment hedge cross-currency interest rate swaps on interest expense. source

Impact estimates