Payments processor FIS forecasts third-quarter profit below estimates

(Reuters) -Banking and payments processing firm Fidelity National Information Services forecast third-quarter profit below Wall Street estimates on Tuesday, amid concerns of dampened consumer spending.

Consumers continue to spend on essentials while cutting back on discretionary items, as economic uncertainty from geopolitical tensions and President Donald Trump's trade policies persists.

Lower spending volumes could hurt payment processors such as FIS that collect transaction fees from financial institutions and businesses.

The company now expects adjusted earnings for the third quarter between $1.46 and $1.50 per share, below analysts' estimate of $1.55, according to data compiled by LSEG.

However, FIS forecast 2025 adjusted EPS between $5.72 and $5.80, the mid-point of which is a cent ahead of analysts' expectation of $5.75.

For the second quarter, revenue from the company's banking solutions business rose 6% to $1.81 billion, while its capital markets segment revenue grew 6%.

On an adjusted basis, its net income was $716 million, or $1.36 per share, for the three months ended June 30, compared with $748 million, or $1.34 per share, a year ago.

The Jacksonville, Florida-based company's revenue rose 5% to $2.6 billion in the second quarter.

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

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