FI

Fidelity National Information Services, Inc. stock research

Mar 31, 2025

FY2025 Q1

Fidelity National Information Services (FIS) Gross Margin — Quarter Ended Mar 31, 2025

In the current quarter, revenue was lower than the immediately preceding quarter but comparable to the same quarter one year earlier. Gross profit decreased relative to both periods, leading to a lower gross margin.

Gross margin takeaway

Quarter ended Mar 31, 2025 · FY2025 Q1

In the current quarter, revenue was lower than the immediately preceding quarter but comparable to the same quarter one year earlier. Gross profit decreased relative to both periods, leading to a lower gross margin.

  • The most observable driver was the rise in cost of revenue compared to revenue, which compressed the gross margin.
  • Compared to the preceding quarter, gross margin weakened as cost of revenue increased while revenue declined. Compared to the same quarter last year, gross margin also weakened, with cost of revenue higher and gross profit lower.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

34.7%

Gross profit

$879.0M

Revenue

$2.5B

Cost of revenue

$1.7B

Quarter-over-quarter change

-3.3 pts

Year-over-year change

-2.1 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Mar 31, 2024$2.5B$909.0M$1.6B36.8%
Jun 30, 2024$2.5B$943.0M$1.5B37.9%
Sep 30, 2024$2.6B$976.0M$1.6B38.0%
Mar 31, 2025$2.5B$879.0M$1.7B34.7%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Sep 30, 2024

-3.3 pts

Year-over-year change

Mar 31, 2024

-2.1 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The most observable driver was the rise in cost of revenue compared to revenue, which compressed the gross margin.

Compared to the preceding quarter, gross margin weakened as cost of revenue increased while revenue declined. Compared to the same quarter last year, gross margin also weakened, with cost of revenue higher and gross profit lower.

Monitor cost of revenue trends, as it was the primary factor behind the margin decline.