Financial institutions continue to modernize core operations, deepen investments in payments and issuing, and seek greater value from their data, FIS executives said on the Tuesday conference call with analysts.
Fourth-quarter adjusted revenue grew 7.4%, supported by recurring revenue growth of 7.8%. Within Banking Solutions, adjusted revenue increased 8.3%, while recurring revenue rose 8.8%.
Banking Solutions Growth Anchors Performance
Banking Solutions once again served as the primary engine of expansion. The segment’s revenue gains were accompanied by EBITDA (a rough measure of cash flow) margin improvement. Management attributed the results to product mix, cost discipline and persistent client demand.
Chief Financial Officer James Kehoe pointed to demand dynamics that extended beyond software alone and into services and equipment.
CEO Stephanie Ferris framed the broader environment in terms of bank strategy. “I’ve never been more confident in the growth prospect of the financial services industry,” Ferris told analysts, emphasizing that banks with excess capital and stable credit profiles are pursuing modernization agendas.
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“Our strategy is partnering with banks that are growing faster than the market,” she said, linking segment performance to consolidation trends and technology spending priorities in payments, digital channels and lending.
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Data and AI Move to the Center of Client Conversations
Artificial intelligence and data utilization featured prominently in management commentary, as Ferris described AI as an enhancement layer built atop established platforms.
“We operate mission-critical systems of record,” she said. “These provide accurate, authoritative data sources. They have to be audited, they have to be regulated.” In this framing, AI becomes a tool for decisioning, fraud prevention and workflow optimization.
Ferris also highlighted the strategic implications of the company’s expanding datasets following the Issuing Solutions acquisition. “There’s not a bank that I talk to that isn’t talking about and exploring what AI can do for them,” she said. “With all the data we have and now have with Total Issuing, our fraud models become even more valuable to them.”
The emphasis on data assets aligns with figures presented in the earnings deck, which show approximately 1.1 billion accounts on file and roughly 73 billion annual transactions across the combined platform.
Ferris noted that “we have expanded our relationship with 14 of the top 25 U.S. LFIs,” while the earnings deck indicates that approximately 30% of issuing revenue was renewed or extended during 2025.
Guidance Points to Durable Expansion
For 2026, FIS projects adjusted revenue between $13.77 billion and $13.85 billion. Kehoe emphasized margin drivers rooted in cost actions and efficiency gains. “We’re very bullish on the margin side,” he said, citing cost reductions, AI-related leverage and product mix improvements. The company’s stock was up 1.6% in early trading on Tuesday.
“As we move into 2026, the market transformation persists, and the technology changes continue to accelerate,” Ferris noted on the call.
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