Core Insights - Fidelity National Information Services, Inc. (FIS) reported Q3 2025 adjusted EPS of $1.51, exceeding estimates by 2% and up 8% year over year [1][10] - Revenues reached $2.7 billion, a 6% year-over-year increase, surpassing management's expectations and consensus estimates by 2.2% [1][10] Financial Performance - The cost of revenues rose 6% year over year to $1.7 billion, while SG&A expenses increased by 12.1% to $584 million, exceeding estimates [3] - Adjusted EBITDA was $1.1 billion, up 7% year over year, with an adjusted EBITDA margin of 41.8%, improving by 53 basis points [4] Segment Performance - Banking Solutions revenues totaled $1.9 billion, growing 6% year over year and surpassing estimates by 2.8% [5] - Capital Market Solutions revenues increased 7% year over year to $783 million, also beating estimates [6] - The Corporate and Other segment saw revenues drop 34% year over year to $40 million, aligning with estimates [6] Cash Flow and Debt - FIS generated net cash from operations of $1 billion, a 57.9% increase year over year, with adjusted free cash flows rising 75.3% to $929 million [9] - Long-term debt decreased to $8.9 billion from $9.7 billion at the end of 2024, while total equity fell to $14 billion from $15.7 billion [8] Guidance and Outlook - FIS raised its 2025 revenue outlook to $10.595-$10.625 billion, projecting annual growth of up to 5.7% [10][12] - Adjusted EBITDA is projected between $4.330 billion and $4.345 billion, with an adjusted EBITDA margin around 40.9% [13] Shareholder Returns - The company returned $509 million to shareholders through share buybacks of $301 million and dividends of $208 million in Q3 [11] - Management plans to increase share buybacks to approximately $1.3 billion in 2025 [11]

Group 1 - Fidelity National Information Services, Inc. (FIS) has experienced a significant decline in share value, losing 30% over the past year [1] - Concerns regarding long-term growth in the payments sector are prevalent, particularly due to competition from fintech companies [1] - The sentiment around FIS has been negatively impacted by these ongoing growth concerns [1]

Core Insights - Fidelity National Information Services (FIS) reported a revenue of $2.72 billion for Q3 2025, marking a year-over-year increase of 5.7% and an EPS of $1.51, up from $1.40 a year ago, exceeding Zacks Consensus Estimates for both revenue and EPS [1] Financial Performance - Revenue from Banking Solutions was $1.89 billion, surpassing the estimated $1.84 billion, reflecting a year-over-year increase of 6.5% [4] - Revenue from Capital Market Solutions reached $783 million, exceeding the average estimate of $775.37 million, with a year-over-year growth of 7.3% [4] - Revenue from Corporate and Other was $40 million, slightly below the estimated $40.02 million, showing a significant decline of 34.4% compared to the previous year [4] - Total Recurring Revenue was reported at $2.19 billion, above the estimated $2.15 billion, indicating a year-over-year increase of 6% [4] Stock Performance - Shares of Fidelity National have decreased by 7.8% over the past month, contrasting with a 1% increase in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Financial Data and Key Metrics Changes - Adjusted revenue grew by 6.3% to $2.7 billion, driven by strong performance in the banking business and recurring revenue growth across both segments [19][22] - Adjusted EBITDA increased by 7.1%, with margins expanding by more than 50 basis points [19] - Adjusted EPS rose by 7.9% to $1.51, reflecting strong operating growth [19] - Free cash flow was $800 million for the quarter, more than doubling year over year, with adjusted free cash flow at approximately $930 million and cash conversion exceeding 140% [20][21] Business Line Data and Key Metrics Changes - Banking segment revenue grew by 6.2%, exceeding expectations, with recurring revenue growth of 6% and strong transaction growth in payments [22] - Capital markets adjusted revenue growth was 6.4%, with recurring revenue growing by 7.6% due to a rebound in lending activity [23] - Non-recurring revenue in banking increased by 8%, primarily due to card personalization and deconversion fee timing [22] Market Data and Key Metrics Changes - Bank technology spending remains strong, with clients prioritizing investments in digital solutions, payments innovation, and lending modernization [7][8] - More than three out of four banks have launched or are piloting GenAI and Agentic solutions, indicating a significant increase in AI adoption [8] - Consumer spending patterns are resilient, with strong debit and credit card spending year to date [8] Company Strategy and Development Direction - The company is positioning itself as a technology leader in financial services, focusing on operational excellence, core and digital banking, and payments [11][12] - Strategic investments in AI are transforming operations, enhancing client support, risk management, and product development [12][66] - The acquisition of credit issuer solutions is expected to close in Q1 2026, enhancing the company's credit processing capabilities [17][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year 2025 financial goals and raised outlook for revenue, EBITDA, and cash conversion [7][27] - The operating environment for banks is improving, leading to increased investments and a favorable regulatory backdrop for M&A activity [9][10] - Management noted that the pricing environment remains stable, with net pricing contributing positively to growth [10][56] Other Important Information - The company returned $509 million to shareholders through share repurchases and dividends [7] - The sales pipeline annual contract value (ACV) has expanded by 13% annually since 2023, indicating strong sales performance [10] - The company is focused on enhancing its digital and payment solutions, with significant growth in user adoption across digital platforms [13][15] Q&A Session Summary Question: Insights on banking segment growth - Management noted strong technology spending in banking and expressed confidence in organic growth, although not ready to raise midterm guidance yet [30][32] Question: Revenue modeling for 2026 - Management indicated that banking is outperforming capital markets and expressed comfort with the revenue trajectory, highlighting a shift towards higher-margin recurring products [34][36] Question: Growth drivers in banking - Management emphasized the importance of net new sales and investments in digital capabilities, which are expected to support organic growth [40][42] Question: Free cash flow quality for next year - Management projected strong free cash flow growth, with expectations of 90% conversion driven by lower capital intensity and improved working capital [46][47] Question: Margin expansion dynamics - Management discussed the expected margin expansion due to improved revenue mix and cost-saving programs, with a focus on high-margin recurring revenue [50][54] Question: Competitive dynamics in core processing - Management acknowledged the bank modernization trend and expressed confidence in retaining clients while competing for new business [58][59] Question: EBT revenue pool impact - Management indicated that EBT revenue is not material to the company and does not expect significant impact from federal changes [60][61] Question: Confidence in investment strategy and AI integration - Management expressed satisfaction with the future forward strategy and highlighted AI's role in enhancing client experiences and operational efficiency [64][66]

Financial Data and Key Metrics Changes - The company reported adjusted revenue growth of 6.3%, reaching $2.7 billion, with adjusted EBITDA margins at 41.8% and adjusted EPS of $1.51, up 8% year-over-year [5][18] - Adjusted free cash flow conversion was 142%, with free cash flow at $800 million, more than doubling year-over-year [5][19] - The company returned $509 million to shareholders through share repurchases and dividends [6] Business Line Data and Key Metrics Changes - Banking segment revenue grew by 6.2%, driven by strong core growth and M&A contributions [21] - Capital markets adjusted revenue growth was 6.4%, with recurring revenue growth of 7.6% [22] - Non-recurring revenue in banking increased by 8%, primarily due to card personalization and deconversion fee timing [21] Market Data and Key Metrics Changes - Bank technology spending remains strong, with clients prioritizing investments in digital solutions, payments innovation, and lending modernization [6][7] - The U.S. total addressable market (TAM) for digital solutions is projected to grow at approximately 12% annually through 2028 [13] - The payments market is valued at $53 billion, growing at 5% annually, with strong performance in instant payments and digital currencies [15] Company Strategy and Development Direction - The company is focused on operational excellence, core and digital banking, and payments as strategic priorities for sustainable growth [10] - The acquisition of credit issuer solutions is expected to close in Q1 2026, enhancing the company's credit processing capabilities [17][27] - The company is leveraging AI to enhance client experiences and operational efficiencies, driving growth in high-margin products [66] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the banking segment's growth, driven by strong technology spending and M&A activity [30][31] - The company raised its full-year outlook for revenue, EBITDA, and cash conversion based on strong performance and market visibility [6][24] - Management noted that the pricing environment remains stable, with net pricing contributing positively to growth [9] Other Important Information - The company is experiencing a significant increase in bank M&A activity, with the highest level of quarterly bank consolidation in four years [8] - The company is focused on enhancing its digital capabilities and has seen over 30% growth in users across its digital platforms [13][14] Q&A Session Summary Question: Outlook on banking segment growth - Management is optimistic about technology spending in banking and is currently outperforming previous organic growth targets, but is not ready to raise mid-term guidance yet [30][31] Question: Revenue modeling for 2026 - Management indicated that banking is outperforming capital markets, and while there may be some headwinds from acquisitions, overall revenue trajectory remains strong [33][34] Question: Organic banking revenue drivers - Management highlighted that net new sales are contributing significantly to organic growth, particularly in digital and payments [39][40] Question: Free cash flow quality for next year - Management expects strong free cash flow growth, driven by lower capital intensity and improved working capital management [41][45] Question: Margin expansion drivers - Management noted that margin expansion will benefit from improved revenue mix and cost-saving programs, with a focus on high-margin recurring revenue [47][50] Question: Competitive dynamics in core processing - Management acknowledged the bank modernization trend and the potential opportunities arising from competitors consolidating their core offerings [56][58] Question: EBT revenue pool impact - Management stated that EBT revenue is not material to the company and does not expect significant impacts from federal changes [60][61] Question: Confidence in investment strategy and AI integration - Management expressed confidence in the future forward strategy and highlighted the role of AI in enhancing client experiences and operational efficiencies [64][66]

Financial Data and Key Metrics Changes - The company reported adjusted revenue growth of 6.3%, reaching $2.7 billion, with adjusted EBITDA growing 7.1% and adjusted EPS increasing 8% year-over-year to $1.51 [4][18] - Adjusted free cash flow conversion was 142%, with free cash flow at $800 million, more than doubling year-over-year [4][18] - The company returned $509 million to shareholders through share repurchases and dividends, increasing the share repurchase target to $1.3 billion for the year [5][18] Business Line Data and Key Metrics Changes - The banking segment saw revenue growth of 6.2%, driven by strong core growth and M&A contributions, with recurring revenue growth of 6% [20] - Capital markets adjusted revenue grew 6.4%, with recurring revenue increasing 7.6% due to a rebound in lending activity [22] - Non-recurring revenue in banking increased 8%, primarily from card personalization and deconversion fee timing [21] Market Data and Key Metrics Changes - Bank technology spending remains strong, with clients prioritizing investments in digital solutions, payments innovation, and lending modernization [5][6] - The third quarter experienced the highest level of bank consolidation in four years, indicating a favorable regulatory backdrop for M&A activity [8] - Consumer spending patterns are resilient, with strong debit and credit card spending year-to-date [7] Company Strategy and Development Direction - The company is positioning itself as a technology leader in financial services, focusing on operational excellence, core and digital solutions, and payments [10][11] - Strategic investments in AI are transforming operations, enhancing client support, risk management, and product development [11][58] - The acquisition of credit issuer solutions is expected to close in Q1 2026, enhancing the company's credit processing capabilities [17][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year 2025 financial goals and raised the outlook for revenue, EBITDA, and cash conversion [5][24] - The company anticipates continued strong performance in the banking segment, with organic growth expected to exceed previous targets [29][30] - Management highlighted a stable pricing environment and the ability to price for value, supported by product enhancements [9][49] Other Important Information - The company is experiencing a significant increase in AI adoption among clients, with over 75% of banks piloting or launching GenAI solutions [6] - The digital solutions market is projected to grow at approximately 12% annually through 2028, with the company capitalizing on this trend [12] - The NICE network has seen sales more than double, indicating strong demand for alternative payment solutions [16] Q&A Session Summary Question: Health of end markets for banking - Management noted positive demand and pricing trends in banking, with technology spending focused on digital and payments [29][30] Question: Revenue modeling for 2026 - Management indicated confidence in revenue trajectory, with banking outperforming capital markets, and emphasized the importance of recurring revenue [31][32] Question: Organic banking trends - Management confirmed organic banking revenue growth in the mid to high-4% range, supported by net new sales and investments in digital capabilities [34][35] Question: EBT exposure and revenue pool - Management stated that EBT revenue is not material to the company and does not expect significant impact from federal changes [54][55] Question: Competitive dynamics in core processing - Management acknowledged the bank modernization trend and expressed confidence in retaining existing clients while pursuing new opportunities [50][51]

Fidelity National Information Services (FIS) came out with quarterly earnings of $1.51 per share, beating the Zacks Consensus Estimate of $1.48 per share. This compares to earnings of $1.4 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +2.03%. A quarter ago, it was expected that this banking and payment technologies company would post earnings of $1.36 per share when it actually produced earnings of $1.36, delivering no surpr ...

Third Quarter 2025 Earnings Call November 5, 2025 Confidential and Proprietary Speakers Third Quarter Highlights 1 Stephanie Ferris Chief Executive Officer and President Financial Results & Outlook 2 James Kehoe Chief Financial Officer 2 Disclosures Forward-looking Statements Our discussions today, including this presentation and any comments made by management, contain "forward-looking statements" within the meaning of the U.S. federal securities laws. Any statements that refer to future events or circumst ...

Core Insights - The London Company reported a 6.0% gross (5.8% net) appreciation in its portfolio for Q3 2025, outperforming the Russell 1000 Value Index which increased by 5.3% [1] - The positive stock selection contributed to the portfolio's outperformance, although sector exposure presented some headwinds [1] Company Analysis: Fidelity National Information Services, Inc. (NYSE:FIS) - Fidelity National Information Services, Inc. experienced a one-month return of -7.31% and a 52-week loss of 26.94%, closing at $63.15 per share with a market capitalization of $32.988 billion on November 4, 2025 [2] - The London Company highlighted that FIS underperformed in Q3 2025 due to inconsistent execution and a weaker outlook, leading to a decision to sell the position to invest in higher conviction ideas [3] - Despite its strong market position and recurring revenue base, FIS faces additional execution risks, prompting a reevaluation of its investment potential [3] Hedge Fund Interest - Fidelity National Information Services, Inc. was held by 49 hedge fund portfolios at the end of Q2 2025, a decrease from 56 in the previous quarter [4] - While FIS is recognized for its potential, the company is not among the 30 most popular stocks among hedge funds, with certain AI stocks being viewed as offering greater upside potential and less downside risk [4]

News Release FIS Reports Strong Third Quarter 2025 Results and Raises Full-Year Outlook JACKSONVILLE, Fla., November 5, 2025 - FIS (NYSE:FIS), a global leader in financial technology, today reported its third quarter 2025 results. ® "We delivered strong results this quarter with disciplined execution driving outperformance against all of our financial commitments," said FIS CEO and President Stephanie Ferris. "Our differentiated positioning within a favorable market environment is translating into strong sa ...