Summary of Fidelity National Information Services (FIS) Conference Call Company Overview - **Company**: Fidelity National Information Services (NYSE: FIS) - **Date**: December 02, 2025 - **Key Speakers**: Stephanie Ferris (President and CEO), James Kehoe (CFO), George Mihalos (Head of Investor Relations) Industry Insights - **Segments Discussed**: Banking and Capital Markets - **Growth Projections**: - Banking segment expected to grow adjusted revenue organically by just north of 3% - Capital markets segment expected to grow adjusted revenue organically by just north of 6% [4][5][6] Key Points and Arguments Banking Segment - **Performance**: Banking growth is better than expected due to a focus on commercial excellence, existing clients, new sales, and cross-sells [5][6] - **Recurring Revenue**: Significant organic growth in recurring revenue is anticipated as 2025 concludes and into 2026 [6] - **Core Banking**: - Core banking conversions are sticky, with limited switching among banks [7][9] - FIS serves larger banks (assets over $5 billion), benefiting from market consolidation [9][10] - Core products include Horizon for smaller banks and IBS for larger commercial banks [12][13][14] Capital Markets Segment - **Impact of Tariffs**: Loan syndication market was impacted by tariffs in Q2 but has since recovered in Q3 and Q4 [6][22] - **Revenue Growth**: Anticipation of capital markets segment revenue growth returning to 6-7% organic range in the next year [22][23] Financial Metrics - **Margin Expansion**: Expected margin expansion of 60 basis points for the next year, with a reversal of M&A headwinds from the current year [26][31] - **Free Cash Flow**: Projected free cash flow conversion greater than 90% for the next year, driven by lower capital intensity and working capital benefits [37][40] TSYS Acquisition - **Strategic Importance**: The acquisition of TSYS is expected to enhance credit card processing capabilities, filling a significant product gap for FIS [18][45] - **EPS Impact**: TSYS acquisition expected to be slightly accretive to EPS in the first year [45][48] Tax Rate - **Current Rate**: Estimated tax rate of 13.5% for the next eight years, with current operations at 12% [50][52] Additional Insights - **Government Shutdown**: No impact observed on banking or capital markets businesses due to the recent government shutdown [25] - **Market Positioning**: FIS is focused on enhancing capabilities for smaller financial institutions to compete against larger banks and fintechs [21] Conclusion Fidelity National Information Services is positioned for growth in both its banking and capital markets segments, with a strong focus on recurring revenue and strategic acquisitions. The company is optimistic about its financial metrics, including margin expansion and free cash flow conversion, while maintaining a sustainable tax rate.

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].