Fidelity National Information Services Reports 3% Revenue Growth in Q1 2025

Fidelity National Information Services, Inc. (FIS) reported a revenue increase of 3% for the first quarter of 2025, totaling $2.532 billion, compared to $2.468 billion in the same period last year. The growth was primarily driven by recurring revenue from the Banking and Capital Markets segments, which benefited from higher transaction volumes and onboarding of prior-year sales. However, the Corporate and Other segment experienced a decline due to reduced non-recurring revenue and the divestiture of a non-strategic business. The company's operating income for the quarter was $347 million, slightly down from $355 million in the previous year, maintaining an operating margin of 14%.

In terms of profitability, FIS reported net earnings of $77 million, or $0.15 per diluted share, compared to $706 million, or $1.22 per diluted share, in the prior year. The previous year's figures included significant earnings from discontinued operations related to the sale of the Worldpay Merchant Solutions business. The company recorded a tax provision of $81 million for the quarter, resulting in an effective tax rate of 35%, up from 19% in the same quarter last year, primarily due to one-time discrete costs and adjustments related to stock compensation.

FIS has undergone significant strategic changes, including the completion of the 2024 Worldpay Sale, where it sold a 55% equity interest in its Worldpay Merchant Solutions business. The company retained a 45% stake in a new joint venture, Worldpay Holdco, LLC. Looking ahead, FIS announced plans to acquire the Issuer Solutions business from Global Payments for an enterprise value of $13.5 billion, which will be funded through new debt and proceeds from the sale of its remaining equity interest in Worldpay. This acquisition is expected to close in the first half of 2026, subject to regulatory approvals.

Operationally, FIS reported a total of 525,395,053 shares of common stock outstanding as of May 2, 2025. The company continues to focus on enhancing its product offerings and expanding its market presence, particularly in the digital banking and payments sectors. The company’s liquidity position remains strong, with $4 billion available, including $805 million in cash and cash equivalents and $3.2 billion in capacity under its revolving credit facility. FIS plans to maintain its quarterly dividend of $0.40 per share, reflecting its commitment to returning value to shareholders while pursuing growth opportunities.

Looking forward, FIS anticipates continued revenue growth driven by its strategic initiatives and investments in technology. The company is focused on managing its debt levels while navigating the challenges posed by market conditions, including inflation and interest rate fluctuations. FIS remains committed to leveraging its integrated solutions to meet the evolving needs of its clients in the financial services industry.