Feb 24 (Reuters) - Banking and payments processing firm Fidelity National Information Services FIS.N on Tuesday posted a higher profit for the fourth quarter on strong demand for its financial products and services, sending the company's shares up 3% before the bell.

Consumer spending has largely held up despite economic uncertainty, with high earners sustaining discretionary demand while middle and lower income households focus on essentials, supporting steady transaction volumes.

Higher spending volumes benefit payments tech providers that charge merchants and banks a fee for processing transactions.

The Jacksonville, Florida-based company's banking solutions unit reported a 9% rise in revenue to $1.9 billion in the October-to-December quarter, while revenue in its capital markets segment grew 8% to $883 million.

Analysts have said the bank IT spending backdrop remains healthy, and a more accommodative regulatory environment continues to drive bank M&A activity, an area where FIS is well-positioned given its focus on larger institutions versus peers targeting smaller markets.

On an adjusted basis, FIS posted net income of $874 million, or $1.68 per share, for the three months ended December 31, up from $754 million, or $1.40 per share, a year ago.

Last April, Global Payments agreed to buy rival Worldpay from FIS and private equity firm GTCR for $24.25 billion in a three-way deal. As part of the transaction, Global Payments sold its issuer solutions unit, formerly known as TSYS to FIS for $13.5 billion.

Analysts have said that the TSYS acquisition will raise FIS's interest costs and curb share buybacks.

The company also said on Tuesday that it expects to temporarily pause share repurchases and tuck-in M&A.

For the full-year 2026, FIS forecast revenue between $13.77 billion and $13.85 billion.

(Reporting by Pragyan Kalita in Bengaluru; Editing by Shailesh Kuber)

((Pragyan.Kalita@thomsonreuters.com;))