Fidelity National Information Services (NYSE:FIS) 2025 Conference December 02, 2025 12:15 PM ET Speaker3All right, great. Welcome, everyone. We're getting through the day here. This is our third presentation of the day. We're very fortunate to have with us today the management team from FIS. Joining us here in Arizona, we have Stephanie Ferris, President and CEO. James Kehoe, who is CFO. And of course, we want to say a special thanks to George Mihalos, the Head of Investor Relations, who also made the trip ...

Core Viewpoint - Visa's recent earnings report shows strong performance with a year-over-year increase in earnings per share and net revenues, despite facing rising operating expenses and a slight decline in cash flows [2][3][10]. Financial Performance - Visa reported Q4 fiscal 2025 earnings per share (EPS) of $2.98, beating the Zacks Consensus Estimate of $2.97, marking a 10% increase year over year [2]. - Net revenues reached $10.7 billion, reflecting a 12% year-over-year improvement and surpassing the consensus mark by 1% [2]. - Processed transactions grew 10% year over year to 67.7 billion, exceeding estimates [4]. Business Drivers - Payments volume increased by 9% year over year on a constant-dollar basis, driven by growth in the U.S., Europe, CEMEA, and LAC regions [4]. - Cross-border volume rose 12% year over year on a constant-dollar basis, with an 11% increase excluding transactions within Europe [5]. Revenue Breakdown - Service revenues increased 10% year over year to $4.6 billion, driven by expanding payment volumes [6]. - Data processing revenues grew 17% year over year to $5.4 billion, beating estimates [6]. - International transaction revenues rose 10% year over year to $3.8 billion, driven by higher cross-border volumes [7]. Operating Expenses - Adjusted operating expenses increased 13% year over year to $3.6 billion, primarily due to higher personnel costs and professional fees [8]. - Interest expenses rose 19.3% year over year to $210 million [8]. Balance Sheet - As of September 30, 2025, Visa had cash and cash equivalents of $17.2 billion, up from $12 billion at the end of fiscal 2024 [9]. - Total assets increased to $99.6 billion from $94.5 billion at the end of fiscal 2024 [9]. - Long-term debt decreased to $19.6 billion from $20.8 billion [9]. Cash Flow and Capital Deployment - Visa generated net cash from operations of $6.2 billion in Q4, a decline of 6.4% year over year [10]. - The company returned $6.1 billion to shareholders through share buybacks and dividends, with $24.9 billion remaining under its repurchase program [11]. Fiscal Year Updates - For fiscal 2025, Visa achieved net revenues of $40 billion, an 11% year-over-year increase, with adjusted EPS rising 14% to $11.47 [12]. - The company anticipates low double-digit growth in net revenues and operating expenses for fiscal 2026 [14]. Market Outlook - Estimates for Visa have trended upward, indicating a promising outlook, with a Zacks Rank of 3 (Hold) suggesting an in-line return in the coming months [15][18].