Earnings · $FIS
FIS Falls as Much as 24% After Pausing Buybacks and Small Deals to Cut Debt as Quarterly Profit Rises
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The fintech provider updated its 2026 outlook but said repurchases stay on hold until leverage reaches about 2.8 times.
By Noris Ortiz ·
Shares of Fidelity National Information Services dropped as much as 24% during Wednesday's session in New York, their steepest fall since November 2022, after the financial technology provider said it would suspend stock buybacks and pause small acquisitions to pay down debt, Bloomberg News reported [1]. The stock had already declined 41% year to date through Tuesday, according to Bloomberg [1]. TheStreet also listed FIS among the day's biggest earnings-related decliners, down about 23% in premarket trading [2].
The reaction came despite results that topped last year's figures. In its third-quarter release on November 4, FIS reported adjusted earnings per share of $1.61, up 6.6% from $1.51, on GAAP revenue of $3.45 billion, up 27%. The release said the Total Issuing Solutions business drove much of the growth in Banking Solutions. On a pro forma basis, revenue rose 3.7%, including 2.5% growth in recurring revenue [3]. Adjusted EBITDA was about $1.48 billion with a margin of 42.9%, and free cash flow excluding Worldpay-related cash transaction taxes was $862 million, up 8% [3].
Banking Solutions revenue reached $2.55 billion, up 41% as reported and 3.9% on a pro forma basis, while Capital Market Solutions revenue was $823 million, up 3% [3]. Chief Executive Stephanie Ferris said in the release that "Client demand remains strong" [3].
The focus for investors was the balance sheet. FIS reported $20.8 billion of debt outstanding and said share repurchases are temporarily curtailed and tuck-in acquisitions paused so the company can reduce leverage faster. Dividends will continue [3]. Bloomberg reported that FIS plans to resume what it called "meaningful" repurchases once gross leverage falls to about 2.8 times [1]. The company also said a broader strategic portfolio review is under way and noted that on October 20 it sold a non-core prepaid business within Banking Solutions for more than $100 million in gross proceeds [3].
The updated 2026 outlook is mixed. FIS now expects adjusted revenue growth of 28% to 29% and adjusted EBITDA growth of 29% to 30%. Adjusted earnings per share are forecast to grow 1.2% to 2.4%, or about $5.82 to $5.89, and free cash flow is expected between $2.15 billion and $2.25 billion, a target the company said it is maintaining. On a pro forma basis, it expects revenue growth of 3.1% to 3.6% [3].
The episode shows how much weight the market gives to capital returns for companies carrying acquisition debt. Buybacks had supported per-share earnings, so pausing them removes a lever just as organic growth runs in the low single digits. Because Wednesday's moves were reported intraday and premarket, final closing changes may differ. What to watch next is how quickly cash flow reduces leverage toward the 2.8 times threshold, whether the portfolio review produces further divestitures, and whether analysts adjust earnings estimates in the coming days.
Sources:
[1] Bloomberg News (via Bloomberg Law), "FIS Slumps as Fintech Halts Buybacks, Some M&A to Deleverage", November 4, 2026. https://news.bloomberglaw.com/ip-law/fis-plunges-as-fintech-halts-buybacks-some-m-a-to-deleverage
[2] TheStreet, "Stock Market Today (Nov. 4, 2026): Stocks rise, oil collapses after Dems sweep midterm elections", November 4, 2026. https://www.thestreet.com/stock-market-today/stock-market-today-dow-jones-sp-500-nasdaq-updates-nov-04-2026
[3] FIS, "FIS Reports Third Quarter 2026 Results" (SEC Form 8-K, Exhibit 99.1), November 4, 2026. https://www.sec.gov/Archives/edgar/data/0001136893/000113689326000061/q32026ex991.htm
This article was produced with AI assistance. It is for informational purposes only and is not financial advice. StockVolt and its authors may hold positions in securities mentioned.