Fidelity National Information Services, Inc.
For the period ended Sep 30, 2026. Filed Nov 4, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Nov 4, 2026
FIS$28.73-2.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-08-04.
0001136893-26-000050
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-04.
0001136893-26-000063
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 126 previous paragraphs and 133 current paragraphs.
93 unchanged; 33 reworded; 6 added; 0 removed; 0 previous and 1 current paragraphs rearranged.
Tables are not compared: 7 previous and 7 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (6)
Current report
Goodwill Impairment
Current report
Goodwill is assessed for impairment annually in the fourth quarter and on an interim basis if events or changes in circumstances indicate that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. Determining the fair value of a reporting unit requires significant management judgment regarding the valuation methodologies and assumptions used to estimate fair value, including assumptions about future operating performance, discount rates, market conditions and other factors.
Current report
As discussed in Note 5 to the consolidated financial statements, we evaluated whether events or changes in circumstances indicated that the fair value of either our Banking or Capital Markets reporting unit as of September 30, 2026, may be less than its carrying value. Our assessment identified events and changes in circumstances that occurred during the quarter that could affect the estimated fair value of our reporting units, including primarily a continued decline in our share price and market capitalization, as well as a reduction in management's projections of Banking's operating and financial performance based on developments in the quarter. In light of these developments, we performed quantitative goodwill impairment tests of both reporting units as of September 30, 2026.
Current report
Fair value was estimated using an equal weighting of the income approach and market approach. The income approach used discounted cash flow analyses based on management's most recent forecasts, including assumptions regarding projected revenue growth, operating margins, capital expenditures, working capital requirements and terminal growth rates. The discount rate applied in the analysis was also a significant valuation assumption. The market approach used EBITDA multiples derived from comparable publicly traded companies and other relevant market data, which were applied to projected financial results. Management believes that consideration of both approaches provides an appropriate estimate of fair value because each approach incorporates different valuation attributes and market participant perspectives. We also assessed the reasonableness of the aggregate estimated fair value of the reporting units by comparison to our market capitalization over a reasonable period of time, considering expected acquirer expense synergies and control premiums observed in historical transactions involving payments and financial technology companies.
Current report
Based on these tests, we concluded that the estimated fair value of the Banking reporting unit, which had goodwill of $19.9 billion as of September 30, 2026, exceeded its carrying amount by approximately 7%, while the estimated fair value of the Capital Markets reporting unit, which had goodwill of $5.1 billion as of that date, exceeded its carrying amount by more than 50%. Accordingly, no goodwill impairment charge was recognized.
Current report
Determining the fair value of a reporting unit is subject to uncertainty as it is reliant on estimates of cash flows that extend far into the future, and, by their nature, are difficult to estimate over such an extended time frame. The estimated fair values of the reporting units are sensitive to changes in management's judgments and estimates, including projected revenue growth, operating margins, capital expenditures, working capital requirements, discount rates and market valuation multiples. In applying the income approach for the Banking reporting unit, we used a discount rate of 11.5%, based on the reporting unit's weighted average cost of capital, which incorporated a company-specific risk premium based on management's judgement as informed by market-based evidence and other relevant factors. Holding all other assumptions constant, an increase of approximately 75 basis points in the discount rate would have reduced the estimated fair value of the Banking reporting unit below its carrying amount under the income approach. In applying the market approach, a key assumption used is the EBITDA multiple. Holding all other assumptions constant, a decrease in the EBITDA multiple of greater than approximately 5% would have reduced the estimated fair value of the Banking reporting unit below its carrying amount under the market approach. Given that the estimated fair value of the Banking reporting unit exceeded its carrying amount by approximately 7% as of September 30, 2026, relatively modest adverse changes in management's judgments and estimates, including projected revenue growth, operating margins, discount rates, and market valuation multiples, as well as further declines in our share price or market capitalization, further deterioration in Banking's operating performance, or unfavorable changes in macroeconomic or industry conditions would negatively affect the estimated fair value of the Banking reporting unit and could result in a future goodwill impairment charge, which could be material.
Reworded paragraphs (33)
Previous wording
•the amount, declaration and payment of future dividends is at the discretion of our Board of Directors and depends on, among other things, our investment opportunities, results of operations, financial condition, cash requirements, future prospects, and other factors that may be considered relevant by our Board of Directors, including legal and contractual restrictions;
Current wording
•the amount, declaration and payment of future dividends, which is at the discretion of our Board of Directors and depends on, among other things, our investment opportunities, results of operations, financial condition, cash requirements, future prospects, and other factors that may be considered relevant by our Board of Directors, including legal and contractual restrictions;
Previous wording
•the amount and timing of any future share repurchases is subject to, among other things, our share price, our other investment opportunities and cash requirements, our results of operations and financial condition, our future prospects and other factors that may be considered relevant by our Board of Directors and management;
Current wording
•the amount and timing of any future share repurchases, which is subject to, among other things, our share price, our other investment opportunities and cash requirements, our results of operations and financial condition, our future prospects and other factors that may be considered relevant by our Board of Directors and management;
Previous wording
Our revenue from continuing operations is primarily derived from a combination of technology and processing solutions, transaction processing fees, professional services and software license fees. While we are a global company and do business around the world, the majority of our revenue is generated by clients in the U.S. The majority of our international revenue is generated by clients in the United Kingdom, Canada, Germany, Australia, India, and Ireland. In addition, the majority of our revenue has historically been recurring under multi-year Banking and Capital Markets contracts that contribute relative stability to our revenue stream. These solutions, in general, are considered critical to our clients' operations. Professional services revenue is typically non-recurring, though recognition often occurs over time rather than at a point in time. Sales of software licenses are typically non-recurring with point-in-time recognition and are less predictable.
Current wording
Our revenue from continuing operations is primarily derived from a combination of technology and processing solutions, transaction processing fees, professional services and software license fees. While we are a global company and do business around the world, the majority of our revenue is generated by clients in the U.S. The majority of our international revenue is generated by clients in the United Kingdom, Canada, Germany, Australia, India, and Ireland. In addition, the majority of our revenue is recurring under multi-year Banking and Capital Markets contracts that contribute relative stability to our revenue stream. These solutions, in general, are considered critical to our clients' operations. Professional services revenue is typically non-recurring, though recognition often occurs over time rather than at a point in time. Sales of software licenses are typically non-recurring with point-in-time recognition and are less predictable.
Previous wording
We continue to experience relatively stable sales cycles and levels of client activity across our businesses. While inflation remains elevated on a multi-year basis, recent inflation levels in our primary markets have moderated compared to the peak levels observed over the past several years. However, we have experienced, and continue to experience, significant cost increases from vendors, and market conditions limit our ability to fully offset these increases through pricing actions. Relatively high interest rates have had, and may continue to have, a negative impact on our interest expense. During 2024, we used a portion of the net proceeds from the 2024 Worldpay Sale to repay our borrowings under our commercial paper programs and reduce our long-term debt, which decreased our interest expense from previous levels. However, we incurred approximately $7.7 billion of new debt upon closing of the Issuer Solutions Acquisition in the first quarter of 2026, as further discussed in Note 7 to the consolidated financial statements, which will increase our interest expense in 2026. Given the volatility of exchange rates and the mix of currencies involved in both revenues and expenses, the direction and magnitude of future effects of currency fluctuations are uncertain. We continue to monitor the potential impacts of recently enacted and potential future tariff regimes in the U.S. and internationally. As of June 30, 2026, tariffs have not had a significant impact on our financial condition or results of operations.
Current wording
We continue to experience relatively stable sales cycles and levels of client activity across our businesses. Inflation remains elevated on a multi-year basis, although recent inflation levels in our primary markets have moderated compared to the peak levels observed over the past several years. Despite this moderation, we have experienced, and continue to experience, significant cost increases from vendors, and market conditions limit our ability to fully offset these increases through pricing actions. Relatively high interest rates have had, and may continue to have, a negative impact on our interest expense. During 2024, we used a portion of the net proceeds from the 2024 Worldpay Sale to repay our borrowings under our commercial paper programs and reduce our long-term debt, which decreased our interest expense from previous levels. However, we incurred approximately $7.7 billion of new debt upon closing of the Issuer Solutions Acquisition in the first quarter of 2026, as further discussed in Note 7 to the consolidated financial statements, which will increase our interest expense in 2026. Given the volatility of exchange rates and the mix of currencies involved in both revenues and expenses, the direction and magnitude of future effects of currency fluctuations are uncertain. We continue to monitor the potential impacts of recently enacted and potential future tariff regimes in the U.S. and internationally. As of September 30, 2026, tariffs have not had a significant impact on our financial condition or results of operations.
Previous wording
There have been no significant changes to our critical accounting policies and estimates as disclosed in our Annual Report on Form 10-K for the year ended December 31, 2025.
Current wording
There have been no significant changes to our critical accounting policies and estimates as disclosed in our Annual Report on Form 10-K for the year ended December 31, 2025, except as follows.
Previous wording
Consolidated Results of Operations - Comparisons of three-month and six-month periods ended June 30, 2026 and 2025
Current wording
Consolidated Results of Operations - Comparisons of three- and nine-month periods ended September 30, 2026 and 2025
Previous wording
Revenue for the three and six months ended June 30, 2026, increased primarily due to the revenue generated by the Issuer Solutions Business, which was acquired on January 9, 2026. See "Segment Results of Operations" below for a more detailed explanation.
Current wording
Revenue for the three and nine months ended September 30, 2026, increased primarily due to the revenue generated by the Issuer Solutions Business, which was acquired on January 9, 2026. See "Segment Results of Operations" below for a more detailed explanation.
Previous wording
Cost of revenue for the three and six months ended June 30, 2026, increased primarily due to expenses associated with the acquisition of the Issuer Solutions Business. Gross profit for the three and six months ended June 30, 2026, increased primarily driven by the revenue increases noted above. Gross profit margin for the three and six months ended June 30, 2026, decreased due to the dilutive impact of the Issuer Solutions Business, including the amortization of acquired intangible assets.
Current wording
Cost of revenue for the three and nine months ended September 30, 2026, increased primarily due to expenses associated with the acquisition of the Issuer Solutions Business. Gross profit for the three and nine months ended September 30, 2026, increased primarily driven by the revenue increases noted above. Gross profit margin for the three and nine months ended September 30, 2026, decreased due to the dilutive impact of the Issuer Solutions Business, including the amortization of acquired intangible assets.
Previous wording
Selling, general and administrative expenses for the three and six months ended June 30, 2026, increased primarily due to the expenses of the Issuer Solutions Business, which was acquired on January 9, 2026, partially offset by the benefits of continued cost management.
Current wording
Selling, general and administrative expenses for the three and nine months ended September 30, 2026, increased primarily due to the expenses of the Issuer Solutions Business, partially offset by the benefits of continued cost management.
Previous wording
There were no asset impairments during the three months ended June 30, 2026. Asset impairments for the six months ended June 30, 2026, were primarily related to software impairment charges, which were driven by the rationalization of certain software assets following a strategic realignment.
Current wording
There were no asset impairments during the three months ended September 30, 2026. Asset impairments for the nine months ended September 30, 2026, were primarily related to software impairment charges, which were driven by the rationalization of certain software assets following a strategic realignment.
Previous wording
Under the terms of the TSA and the Global Payments rTSA, during the three- and six-month periods ended June 30, 2026 and 2025, the Company provided technology and other support services to Worldpay and Global Payments. The income received for these services is recorded in Other operating (income) expense, net, and the corresponding expenses are recognized in Cost of revenue and Selling, general and administrative expense in the consolidated statements of earnings (loss). Net TSA income decreased from 2025 to 2026 primarily as a result of winding down certain of the TSA services, partially offset by the commencement of the Global Payments rTSA services.
Current wording
Under the terms of the TSA with Worldpay and, for the period following the Issuer Solutions Acquisition, the Global Payments rTSA, during the three and nine-month periods ended September 30, 2026 and 2025, the Company provided technology and other support services to Worldpay and Global Payments. The income received for these services is recorded in Other operating (income) expense, net, and the corresponding expenses are recognized in Cost of revenue and Selling, general and administrative expenses in the consolidated statements of earnings (loss). Net TSA income decreased from 2025 to 2026 primarily as a result of winding down certain of the TSA services, partially offset by the commencement of the Global Payments rTSA services in January 2026.
Previous wording
The change in operating income and operating margin for the three and six months ended June 30, 2026, resulted from the revenue and cost variances noted above.
Current wording
The change in operating income and operating margin for the three and nine months ended September 30, 2026, resulted from the revenue and cost variances noted above.
Previous wording
Interest expense (net) for the three and six months ended June 30, 2026, increased primarily due to a $7.7 billion increase in borrowings used to fund the Issuer Solutions Acquisition.
Current wording
Interest expense, net, for the three and nine months ended September 30, 2026, increased primarily due to a $7.7 billion increase in borrowings used to fund the Issuer Solutions Acquisition.
Previous wording
The three-month period ended June 30, 2026, included the impact of changes in the fair value of interest rate swaps accounted for as economic hedges, foreign currency transaction remeasurement gains and losses, offset by a gain related to a change in the estimated fair value of acquisition related contingent consideration. The six-month period ended June 30, 2026, primarily included gains related to changes in the estimated fair value of acquisition-related contingent consideration. The three- and six-month periods ended June 30, 2025, included primarily the impact of a $(108) million write-off of the contingent consideration included as part of the 2024 Worldpay Sale, which write-off was triggered by the Transaction Agreement, and a change in the fair value of interest rate swaps accounted for as economic hedges, as well as foreign currency transaction remeasurement losses.
Current wording
The three-month period ended September 30, 2026, included the impact of a loss related to a change in the estimated fair value of acquisition-related contingent consideration, foreign currency transaction remeasurement gains and losses and changes in the fair value of interest rate swaps accounted for as economic hedges. The nine-month period ended September 30, 2026, included gains and losses related to changes in the estimated fair values of acquisition-related contingent consideration, foreign currency transaction remeasurement gains and losses and changes in the fair value of interest rate swaps accounted for as economic hedges. The three-month period ended September 30, 2025, included primarily changes in the fair value of interest rate swaps accounted for as economic hedges, as well as foreign currency transaction remeasurement losses. The nine-month period ended September 30, 2025, included primarily the impact of a $(108) million write-off of the contingent consideration included as part of the 2024 Worldpay Sale, which write-off was triggered by the Transaction Agreement, and a change in the fair value of interest rate swaps accounted for as economic hedges, as well as foreign currency transaction remeasurement losses.
Previous wording
The increase in the effective tax rate for the three months ended June 30, 2026, was primarily driven by one-time discrete items in the comparative period that had a disproportionately large impact on the effective tax rate due to lower pre-tax earnings in the period ended June 30, 2025. For the six months ended June 30, 2026, the increase in the effective tax rate is primarily due to one-time discrete costs relating to a recent tax law development in one of our foreign jurisdictions. As described in Note 2 to the consolidated financial statements, the Company reflects its investor-level tax impact relating to equity method investments as a component of Equity method investment earnings (loss), net of tax in the consolidated statements of earnings (loss). Therefore, equity method investment earnings (loss) and the related investor-level tax are excluded from the calculation of FIS' annual effective tax rate.
Current wording
The decrease in the effective tax rate for the three months ended September 30, 2026, was primarily driven by one-time discrete items related to one of our foreign jurisdictions in the comparative period. For the nine months ended September 30, 2026, the increase in the effective tax rate is primarily due to one-time discrete costs relating to a recent tax law development in one of our foreign jurisdictions. As described in Note 2 to the consolidated financial statements, the Company reflects its investor-level tax impact relating to equity method investments as a component of Equity method investment earnings (loss), net of tax in the consolidated statements of earnings (loss). Therefore, equity method investment earnings (loss) and the related investor-level tax are excluded from the calculation of FIS' annual effective tax rate.
Previous wording
Segment Results of Operations - Comparisons of three- and six-month periods ended June 30, 2026 and 2025
Current wording
Segment Results of Operations - Comparisons of three- and nine-month periods ended September 30, 2026 and 2025
Previous wording
Revenue in our Banking segment increased 44% for the three months ended June 30, 2026, primarily due to the revenue generated by the Issuer Solutions Business, which was acquired on January 9, 2026. Excluding the impact of the Issuer Solutions Business, Banking revenue grew 6%, driven by increases in recurring revenue and software license revenue.
Current wording
Revenue in our Banking segment increased 41% for the three months ended September 30, 2026, primarily due to the revenue generated by the Issuer Solutions Business. Excluding the impact of the Issuer Solutions Business, Banking revenue grew 4%, driven by increases in recurring revenue and software license revenue.
Previous wording
Revenue in our Banking segment increased 45% for the six months ended June 30, 2026, primarily due to the revenue generated by the Issuer Solutions Business, which was acquired on January 9, 2026. Excluding the impact of the Issuer Solutions Business, Banking revenue grew 7%, driven by increases in recurring revenue and software license revenue, which were partially offset by a decline in professional services revenue.
Current wording
Revenue in our Banking segment increased 43% for the nine months ended September 30, 2026, primarily due to the revenue generated by the Issuer Solutions Business. Excluding the impact of the Issuer Solutions Business, Banking revenue grew 6%, driven by increases in recurring revenue and software license revenue, which were partially offset by a decline in professional services revenue.
Previous wording
Adjusted EBITDA increased year over year due to the acquisition of the Issuer Solutions Business. Excluding the impact of the Issuer Solutions Business, Adjusted EBITDA increased year over year primarily due to the revenue increases noted above, favorable revenue mix, and the impact of continued cost management. Adjusted EBITDA margin increased year over year due to the accretive impact of the Issuer Solutions Business, operating leverage on increased revenues, and cost management.
Current wording
Adjusted EBITDA increased year over year due to the acquisition of the Issuer Solutions Business. Excluding the impact of the Issuer Solutions Business, Adjusted EBITDA increased year over year primarily due to the revenue increases noted above, favorable mix, and the impact of continued cost management. Adjusted EBITDA margin increased year over year due to the accretive impact of the Issuer Solutions Business, favorable mix and cost management.
Previous wording
Revenue in our Capital Markets segment increased 3% for the three months ended June 30, 2026, driven primarily by recurring revenue which grew 5%, contributing 4% to the total segment revenue growth rate, largely from the implementation of new sales, favorable pricing, and acquisitions. Non-recurring revenue contributed 1% to the total segment growth rate, primarily due to higher software license revenue compared to the prior year, and was offset by lower professional services revenue, which contributed (2%) to segment growth.
Current wording
Revenue in our Capital Markets segment increased 3% for the three months ended September 30, 2026, driven primarily by recurring revenue which grew 3%, contributing 2% to the total segment revenue growth rate, largely from the implementation of new sales, favorable pricing, and acquisitions. Non-recurring revenue contributed 3% to the total segment growth rate, primarily due to higher software license revenue compared to the prior year, and was partially offset by lower professional services revenue, which contributed (2%) to segment growth.
Previous wording
Adjusted EBITDA increased year over year primarily due to the revenue impacts noted above. Adjusted EBITDA margin decreased year over year primarily due to higher labor costs and the timing of certain customer-related expenses in the quarter.
Current wording
Adjusted EBITDA increased year over year primarily due to the revenue impacts noted above. Adjusted EBITDA margin increased year over year primarily due to operating leverage on increased revenues, favorable revenue mix, and the impact of continued cost management.
Previous wording
Revenue in our Capital Markets segment increased 4% for the six months ended June 30, 2026, driven primarily by recurring revenue which grew 4%, contributing 3% to the total segment revenue growth rate, largely from the implementation of new sales, favorable pricing, and acquisitions. Non-recurring revenue contributed 1% to the total segment growth rate, primarily due to higher software license revenue compared to the prior year, and was offset by lower professional services revenue, which contributed (1%) to segment growth. Foreign currency movements contributed 1% to the segment revenue growth rate, primarily driven by the movement of the Pound Sterling and Swedish Krona.
Current wording
Revenue in our Capital Markets segment increased 4% for the nine months ended September 30, 2026, driven primarily by recurring revenue which grew 4%, contributing 3% to the total segment revenue growth rate, largely from the implementation of new sales, favorable pricing, and acquisitions. Non-recurring revenue contributed 2% to the total segment growth rate, primarily due to higher software license revenue compared to the prior year, and was partially offset by lower professional services revenue, which contributed (2%) to segment growth. Foreign currency movements contributed 1% to the segment revenue growth rate, primarily driven by the movement of the Pound Sterling and Swedish Krona.
Previous wording
Adjusted EBITDA increased year over year primarily due to the revenue impacts noted above and cost management. Adjusted EBITDA margin increased year over year primarily due to operating leverage on increased revenues and cost management.
Current wording
Adjusted EBITDA increased year over year primarily due to the revenue impacts noted above and cost management. Adjusted EBITDA margin increased year over year primarily due to favorable revenue mix, operating leverage and cost management.
Previous wording
Revenue in our Corporate and Other segment decreased 26% for the three months ended June 30, 2026, primarily due to the run-off of certain non-strategic businesses.
Current wording
Revenue in our Corporate and Other segment decreased 22% for the three months ended September 30, 2026, primarily due to the run-off of certain non-strategic businesses.
Previous wording
Revenue in our Corporate and Other segment decreased 20% for the six months ended June 30, 2026, primarily due to the run-off of certain non-strategic businesses.
Current wording
Revenue in our Corporate and Other segment decreased 20% for the nine months ended September 30, 2026, primarily due to the run-off of certain non-strategic businesses.
Previous wording
As of June 30, 2026, the Company had $3.4 billion of available liquidity, including $744 million of cash and cash equivalents and $2.6 billion of capacity available under its revolving credit facilities. Approximately $447 million of cash and cash equivalents is held by our foreign entities. A portion of our domestic cash and cash equivalents relates to net deposits-in- transit, which are typically settled within a few business days. Debt outstanding totaled $21.2 billion, with an effective weighted average interest rate of 3.8%. We intend to continue to maintain investment-grade debt ratings.
Current wording
As of September 30, 2026, the Company had $3.8 billion of available liquidity, including $740 million of cash and cash equivalents and $3.0 billion of capacity available under its revolving credit facilities. Approximately $392 million of cash and cash equivalents is held by our foreign entities. A portion of our domestic cash and cash equivalents relates to net deposits-in-transit, which are typically settled within a few business days. Debt outstanding totaled $20.8 billion, with an effective weighted average interest rate of 3.9%. We intend to continue to maintain investment-grade debt ratings.
Previous wording
In August 2024, the Company's Board of Directors approved a share repurchase program authorizing the repurchase of up to $3.0 billion in aggregate value of shares of our common stock. Repurchases under the program may be made from time to time at management's discretion through open market purchases, privately negotiated transactions, or pursuant to Rule 10b5-1 plans. The program does not have an expiration date and may be suspended, amended or discontinued at any time. During the quarter ended June 30, 2026, the Company repurchased approximately 1.0 million shares for approximately $42 million. As of June 30, 2026, approximately $1.7 billion remained available for repurchase under the program. Following the closing of the Issuer Solutions Acquisition, the Company has temporarily curtailed repurchases under this program and may resume at management's discretion, taking into account our target leverage ratio.
Current wording
In August 2024, the Company's Board of Directors approved a share repurchase program authorizing the repurchase of up to $3.0 billion in aggregate value of shares of our common stock. Repurchases under the program may be made from time to time at management's discretion through open market purchases, privately negotiated transactions, or pursuant to Rule 10b5-1 plans. The program does not have an expiration date and may be suspended, amended or discontinued at any time. During the quarter ended September 30, 2026, the Company repurchased approximately 0.5 million shares for approximately $21 million. As of September 30, 2026, approximately $1.7 billion remained available for repurchase under the program. Following the closing of the Issuer Solutions Acquisition, the Company has temporarily curtailed repurchases under this program and may resume at management's discretion, taking into account our target leverage ratio.
Previous wording
Our net cash provided by operating activities consists primarily of net earnings, adjusted to add back depreciation and amortization and other non-cash items, including asset impairments. Cash flows from operations were $1,207 million and $839 million for the six-month periods ended June 30, 2026 and 2025, respectively. Cash flows from operations increased $368 million during the six months ended June 30, 2026, primarily due to improved operating performance.
Current wording
Our net cash provided by operating activities consists primarily of net earnings, adjusted to add back depreciation and amortization and other non-cash items, including asset impairments. Cash flows from operations were $2,183 million and $1,850 million for the nine-month periods ended September 30, 2026 and 2025, respectively. Cash flows from operations increased $333 million during the nine months ended September 30, 2026, primarily attributable to improved operating performance, partially offset by changes in working capital, primarily reflecting higher receivables associated with business growth and certain customer payment terms and increased prepaid balances.
Previous wording
Our principal investing activity relates to capital expenditures for software (purchased and internally developed) and property and equipment. We invested approximately $517 million and $451 million in capital expenditures (excluding purchases of certain hardware and software subject to financing or other long-term payment arrangements) during the six-month periods ended June 30, 2026 and 2025, respectively. We expect to continue investing in software and in property and equipment to support our business.
Current wording
Our principal investing activity relates to capital expenditures for software (purchased and internally developed) and property and equipment. We invested approximately $799 million and $665 million in capital expenditures (excluding purchases of certain hardware and software subject to financing or other long-term payment arrangements) during the nine-month periods ended September 30, 2026 and 2025, respectively. We expect to continue investing in software and in property and equipment to support our business.
Previous wording
We also invest in acquisitions that complement and extend our existing solutions and capabilities and provide additional solutions to our portfolio, and we dispose of assets that are no longer considered strategic. We used approximately $7,859 million and $197 million of cash (net of cash acquired) for new acquisitions during the six-month periods ended June 30, 2026 and 2025, respectively. In the first half of 2025, in connection with the conveyance of RealNet to Buyer as part of the 2024 Worldpay Sale, we divested approximately $1.4 billion in cash, cash equivalents and restricted cash included in current assets held for sale at the date of transfer. While we expect to continue to invest in acquisitions as part of our strategy to add solutions to help win new clients and cross-sell to existing clients, the Company expects to limit further investment in acquisitions to accelerate deleveraging until it returns to its target leverage ratio.
Current wording
We also invest in acquisitions that complement and extend our existing solutions and capabilities and provide additional solutions to our portfolio, and we dispose of assets that are no longer considered strategic. We used approximately $7,859 million and $574 million of cash (net of cash acquired) for new acquisitions during the nine-month periods ended September 30, 2026 and 2025, respectively. In the first nine months of 2025, in connection with the conveyance of RealNet to Buyer as part of the 2024 Worldpay Sale, we divested approximately $1.4 billion in cash, cash equivalents and restricted cash included in current assets held for sale at the date of transfer. While we expect to continue to invest in acquisitions as part of our strategy to add solutions to help win new clients and cross-sell to existing clients, the Company expects to limit further investment in acquisitions to accelerate deleveraging until it returns to its target leverage ratio.
Previous wording
We received regular cash distributions from Worldpay pursuant to the terms of a Limited Liability Company Operating Agreement until the completion of the 2026 Worldpay Minority Interest Sale. During the six months ended June 30, 2026 and 2025, we received distributions of $32 million and $66 million, respectively, from Worldpay recorded as investing cash flows.
Current wording
We received regular cash distributions from Worldpay pursuant to the terms of a Limited Liability Company Operating Agreement until the completion of the 2026 Worldpay Minority Interest Sale. During the nine months ended September 30,
Previous wording
Cash flows from investing also occasionally include cash received or paid relative to other activities that are not regularly recurring in nature.
Current wording
Cash flows from investing also occasionally include cash received or paid in relation to other activities that are not regularly recurring in nature.
Previous wording
There were no material changes in our contractual obligations through the six months ended June 30, 2026, in comparison to the table included in our Annual Report on Form 10-K for the year ended December 31, 2025, except as disclosed in Notes 7 and 8 to the consolidated financial statements.
Current wording
There were no material changes in our contractual obligations through the nine months ended September 30, 2026, in comparison to the table included in our Annual Report on Form 10-K for the year ended December 31, 2025, except as disclosed in Notes 7 and 8 to the consolidated financial statements.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
2026 and 2025, we received distributions of $32 million and $107 million, respectively, from Worldpay recorded as investing cash flows.