AI, Payments and Core Banking Modernization Lift FIS Results

Banking momentum and payments innovation drove another quarter for Fidelity National Information Services (FIS), as artificial intelligence, core modernization and digital expansion continued to reshape its business mix.

FIS said in a third-quarter earnings presentation Wednesday (Nov. 5) that adjusted revenue was $2.7 billion, up 6.3%.

“Banking exceeded our expectations in the quarter,” Chief Financial Officer James Kehoe said during a conference call with analysts, adding that revenue growth was “well above the high end of our range,” driven by strong transaction volume and digital banking activity.

Payments and Card Issuer Expansion

Payments remained one of FIS’ most important growth engines. CEO Stephanie Ferris said during the call that the company operates in a $53 billion United States market that is growing 5% annually, with debit transactions up 6%. The acceleration is coming from instant payments and digital currencies, both priority areas for FIS.

“Our payment sales have been outstanding, with 50% recurring sales growth year to date and a 5% improvement in win rates,” she said.

“We’re using machine learning and behavioral analytics to detect and prevent fraud in real time across billions of payment transactions daily,” she added later.

The company’s Money Movement Hub, launched in the previous quarter, has signed 40 new clients, she said. The NYCE Network has seen sales more than double, and pipeline growth is three times higher than a year ago. The pending acquisition of Global Payments’ Issuer Solutions business, expected to close in early 2026, will add nearly 1 billion additional accounts to the platform.

Shares were down 0.6% in early trading Wednesday.

Digital Growth and AI Enablement

Digital banking continues to be another growth driver. FIS’ Digital One platform has seen user growth of more than 30% as banks increase spending on digital integration and open banking capabilities, Ferris said during the call. The September acquisition of Amount, an AI-based account opening platform, is accelerating that trend. The company has signed seven new deals.

“Banks are spending money on technology in the places that are important to them, and we’ve been very focused on ensuring that our product sets and solutions are in those right places,” Ferris said.

AI is now embedded throughout the company, improving operations, client service, risk management and product development, she said.

“We’re helping clients run their business through intelligent automation, predictive insights and operational efficiencies of the back office that reduce costs and improve service delivery,” she said during the call. “We’re helping them grow through AI-powered personalization and intelligent decisioning that drives revenue and deepens customer relationships. And we’re helping clients protect their business through advanced fraud detection, real-time risk scoring and behavioral analytics that stop threats before they impact customers.

Core Modernization and Client Retention

Banking technology spending remains strong, particularly in digital solutions, payments innovation and lending modernization, Ferris said during the call. FIS has seen higher renewal rates and expanding sales pipelines as banks upgrade their systems. Annual contract value has grown 13% since 2023, while renewal retention has improved 3% over two years.

AI and the Next Phase of Growth

FIS is using AI across its entire operation, from commercial excellence to client service and innovation, Ferris said during the call.

“We anticipated that AI would transform financial services, but the pace and depth of adoption have exceeded our expectations,” she said. “In fact, industry surveys indicate that more than 3 out of 4 banks have actively launched or [are] piloting gen AI and agentic solutions, a marked increase from just a year ago.”

The company is also investing in digital asset enablement through its partnership with Circle, which connects stablecoin payments to the FIS Money Movement Hub, Ferris said.

“You’re not going to see us take a position in terms of FIS issuing a stablecoin,” she said. “We’re not going to compete with our banks in that way. We want to make sure that we’re creating and providing the technology, whether we partner for it, buy it or build it to make sure that we have the capabilities we can deliver out to our financial services clients to enable it.”