Fidelity National Information Services, Inc. stock research
FY2025 Q3
Fidelity National Information Services (FIS) Gross Margin — Quarter Ended Sep 30, 2025
Revenue increased compared to both the prior quarter and the same quarter last year. Gross profit rose as well, but the change in cost of revenue relative to revenue caused gross margin to improve sequentially while weakening year-over-year.
Gross margin takeaway
Quarter ended Sep 30, 2025 · FY2025 Q3
Revenue increased compared to both the prior quarter and the same quarter last year. Gross profit rose as well, but the change in cost of revenue relative to revenue caused gross margin to improve sequentially while weakening year-over-year.
- The strongest margin driver was the stable cost of revenue compared to the prior quarter, which allowed revenue growth to directly increase gross profit. Year-over-year, the cost of revenue grew more than revenue, compressing the margin.
- Compared to the immediately preceding quarter, gross margin improved as revenue grew while cost of revenue stayed flat. Compared to the same quarter one year earlier, gross margin weakened slightly as cost of revenue increased at a faster rate than revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
37.8%
Gross profit
$1.0B
Revenue
$2.7B
Cost of revenue
$1.7B
Quarter-over-quarter change
+1.4 pts
Year-over-year change
-0.1 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Sep 30, 2024 | $2.6B | $976.0M | $1.6B | 38.0% |
| Mar 31, 2025 | $2.5B | $879.0M | $1.7B | 34.7% |
| Jun 30, 2025 | $2.6B | $952.0M | $1.7B | 36.4% |
| Sep 30, 2025 | $2.7B | $1.0B | $1.7B | 37.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2025
+1.4 pts
Year-over-year change
Sep 30, 2024
-0.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest margin driver was the stable cost of revenue compared to the prior quarter, which allowed revenue growth to directly increase gross profit. Year-over-year, the cost of revenue grew more than revenue, compressing the margin.
Compared to the immediately preceding quarter, gross margin improved as revenue grew while cost of revenue stayed flat. Compared to the same quarter one year earlier, gross margin weakened slightly as cost of revenue increased at a faster rate than revenue.
Monitor the relationship between revenue growth and cost of revenue growth, as it directly influences gross margin trends.