FIS · 10-Q · 2026Q3 · Full report

Banking Goodwill Impairment Sensitivity

Fidelity National Information Services, Inc. · 2026-11-04 · Importance 50 · Surprise 24 · In source text

Following a continued decline in FIS’s share price and market capitalization and reduced projections for Banking, the company tested both reporting units for goodwill impairment as of September 30, 2026; no charge was recorded. Banking goodwill was $19.9 billion, and its estimated fair value exceeded carrying value by approximately 7%, compared with more than 50% headroom for Capital Markets, which had $5.1 billion of goodwill. For Banking, an approximately 75-basis-point increase in the income-approach discount rate or a greater-than-approximately 5% decrease in the market-approach EBITDA multiple would, holding other assumptions constant, reduce estimated fair value below carrying value. FIS warned that further deterioration in Banking performance or unfavorable macroeconomic or industry conditions could lead to a future material impairment charge.

Key facts

• As of September 30, 2026, Banking goodwill was $19.9 billion and its estimated fair value exceeded carrying amount by approximately 7%; Capital Markets goodwill was $5.1 billion and fair value exceeded carrying amount by more than 50%; no impairment charge was recognized. source
• Relatively modest adverse changes in projected revenue growth, operating margins, discount rates, market valuation multiples, the share price or market capitalization, Banking operating performance, or macroeconomic or industry conditions could result in a future Banking goodwill impairment charge that could be material. source
• During the quarter, FIS identified a continued decline in its share price and market capitalization and reduced management projections of Banking operating and financial performance as circumstances potentially affecting reporting-unit fair values. source
• FIS evaluated Banking and Capital Markets goodwill as of September 30, 2026, after a continued decline in share price and market capitalization and reduced Banking performance projections; it performed quantitative impairment tests of both reporting units. source
• For Banking’s income-approach valuation, a 11.5% discount rate was used; an approximately 75-basis-point increase, holding other assumptions constant, would have reduced estimated fair value below carrying amount under that approach. source
• For Banking’s market-approach valuation, a decrease of more than approximately 5% in the EBITDA multiple, holding other assumptions constant, would have reduced estimated fair value below carrying amount. source
• Further adverse changes in assumptions, share price or market capitalization, Banking performance, or macroeconomic or industry conditions could cause a future Banking goodwill impairment charge that could be material. source
• FIS performed quantitative goodwill impairment tests for Banking and Capital Markets as of September 30, 2026, and recognized no goodwill impairment charge. source

Impact estimates