FIS sinks 23.62% after cutting its 2026 outlook and flagging client conversion delays

Shares of Fidelity National Information Services (FIS) were down $9.21, or 23.62%, at $29.78 as of 11:15 a.m. ET on Wednesday, compared with Tuesday's regular-session price of $38.99, after the company trimmed its full-year outlook alongside third-quarter results.

Follow live markets on X @therealapdult.

The quarter itself came in ahead of last year. Adjusted earnings rose 6.6% to $1.61 a share, and revenue grew 27% on a reported basis to about $3.5 billion, helped by the Total Issuing Solutions business FIS acquired. On a pro forma basis, which strips out deals, revenue grew 3.7%.

The outlook is what weighed on the stock. FIS now expects adjusted earnings per share to grow just 1.2% to 2.4% this year, with full-year adjusted earnings of $5.82 to $5.89 a share. On the earnings call, management pointed to client-directed conversion delays at larger banks, the timing of large bank consolidation, and a shift away from one-time license sales toward subscription contracts. Executives said those factors will weigh on the fourth quarter and 2027 and are expected to largely fade in 2028. The company also said it is reducing its assumptions for non-recurring revenue by more than $100 million.

FIS kept its free cash flow target of $2.15 billion to $2.25 billion and said share buybacks remain curtailed while it pays down debt, with meaningful repurchases expected to resume once gross leverage reaches about 2.8 times. Investing.com reported that the shares fell 17.2% in early premarket trading toward a 52-week low of $32.09, a level they have since dropped well below.