Payments processor FIS beats profit estimates on boost from banking solutions unit

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(Reuters) -Banking and payments processing firm Fidelity National Information Services beat Wall Street estimates for third-quarter profit on Wednesday, helped by strong demand in its banking solutions unit.

U.S. consumer spending remains resilient, even as worries grow over the Trump administration’s trade policies, signs of labor market strain and persistent inflation.

The stronger spending volumes have benefited payments tech providers that charge merchants and banks a fee for processing transactions.

The Jacksonville, Florida-based company reported a 6% rise in revenue from its banking solutions unit to $1.89 billion in the reported quarter, while revenue in its capital markets segment grew 7% to $783 million.

On an adjusted basis, FIS posted net income of $789 million, or $1.51 per share, for the three months ended September 30, up from $765 million, or $1.40 per share, a year ago.

Analysts had expected a profit of $1.49 per share, according to data compiled by LSEG.

Its revenue rose 5.7% to $2.72 billion.

The company expects 2025 adjusted earnings per share in the range of $5.74 to $5.78, compared with analysts’ estimates of $5.75, according to data compiled by LSEG.

Shares of the company rose about 0.6% in premarket trading.

(Reporting by Prakhar Srivastava in Bengaluru; Editing by Shailesh Kuber)