Core Insights - The company's performance has exceeded its 2025 commitments, driven by successful divestitures and strategic acquisitions [1] - Management identifies a 'generational moment' in the banking sector, characterized by excess capital and aggressive M&A and technology modernization efforts [1] - The strategy emphasizes partnerships with Large Financial Institutions (LFIs) that are outpacing market growth, as they represent a significant portion of industry transaction growth and technology spending [1] Financial Performance - The acquisition of Total Issuing Solutions is expected to create a unique data moat by integrating core banking, payments, and lending/investing [1] - There has been a 20% year-over-year growth in recurring Annual Contract Value (ACV) sales, particularly strong in high-growth areas such as digital, payments, and lending [1] Technological Integration - Management views AI as a strategic accelerant, enhancing the value of the company's regulated, mission-critical systems rather than posing a threat [1]

Financial Data and Key Metrics Changes - Adjusted revenue grew 5.8% to $10.7 billion for the full year, with Q4 revenue growth accelerating to 7.4% [22][24] - EBITDA for the full year grew 4.7%, with Q4 EBITDA growth at 7.3% [22][21] - Adjusted EPS increased 20% in Q4 and 10.2% for the full year, reaching $5.75 [22][8] - Free cash flow grew 19% to $1.6 billion, with a cash conversion rate of 88% [22][30] Business Line Data and Key Metrics Changes - Banking solutions revenue grew 8.3% in Q4, with recurring revenue growth of 8.8% [24][21] - Capital markets adjusted revenue growth was 5.6%, with recurring revenue growth of 5.3% [24][25] - Digital solutions saw a 123% increase in recurring sales ACV, payments grew 70%, and lending grew 62% [18][19] Market Data and Key Metrics Changes - The banking industry is experiencing exceptional strength, with approximately $50 billion in announced M&A in 2025 [9][11] - Analysts project financial services tech spending will increase roughly 30% by 2029 [9] - The number of large financial institutions (LFIs) has grown by 56% over the past 10 years, with tech spending increasing to 11% of their revenue [11] Company Strategy and Development Direction - The company is focused on transforming and simplifying its portfolio, including divesting its merchant-focused business and acquiring a market leader in credit issuing [6][7] - The strategy emphasizes partnering with banks that are growing faster than the market, particularly in payments, digital, and lending [10][11] - The company aims to double its cash flow to over $3 billion in three years [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth prospects of the financial services industry and FIS's ability to grow alongside it [6][9] - The integration of Total Issuing Solutions is expected to enhance the company's financial profile and recurring revenue growth [21][30] - The company anticipates free cash flow of over $2 billion in 2026, growing 27%-33% year-on-year [30][36] Other Important Information - The company returned $2.1 billion to shareholders through buybacks and increased the annual dividend by 10% [22][21] - The acquisition of Total Issuing Solutions is expected to generate significant synergies, with targets of $45 million in revenue and $125 million in expense synergies over three years [13][29] Q&A Session Summary Question: AI's impact on FIS's core functions - Management views AI as a strategic accelerant and believes their systems of record provide a durable advantage due to proprietary datasets and regulatory integration [41][42][44] Question: Shift in capital markets to recurring revenue - Management expects the shift to higher quality recurring revenue to continue, with mid to high single-digit growth anticipated in 2026 [48][50] Question: Competitive dynamics in issuer processing - Management highlighted the strength of their product capabilities and relationships with large financial institutions as key competitive advantages [53][54][56] Question: Growth drivers in the banking segment - Management noted broad-based demand across products, particularly in core capabilities, payments, and digital solutions, contributing to above-trend performance [70][72]

Financial Data and Key Metrics Changes - Adjusted revenue grew 5.8% to $10.7 billion for the full year, with Q4 revenue growth accelerating to 7.4% [21][20] - EBITDA for the full year grew 4.7%, with Q4 EBITDA growth at 7.3% [21][20] - Adjusted EPS increased 10.2% for the year, reaching $5.75, and grew 20% in Q4 [21][20] - Free cash flow increased 19% to $1.6 billion, with a cash conversion rate of 88% [21][20] Business Line Data and Key Metrics Changes - Banking solutions revenue grew 8.3% in Q4, with recurring revenue growth of 8.8% [23][20] - Capital markets adjusted revenue growth was 5.6%, with recurring revenue growth of 5.3% [24][20] - Digital solutions saw a 123% increase in recurring sales ACV, payments grew 70%, and lending grew 62% [18] Market Data and Key Metrics Changes - The banking industry is experiencing exceptional strength, with approximately $50 billion in announced M&A in 2025 [7] - Analysts project financial services tech spending will increase roughly 30% by 2029 [7] - The number of large financial institutions (LFIs) has grown by 56% over the past 10 years, with tech spending increasing to 11% of their revenue [10] Company Strategy and Development Direction - The company is focused on transforming and simplifying its portfolio by divesting its merchant-focused business and acquiring a market leader in credit issuing [5] - The strategy emphasizes partnering with banks that are growing faster than the market, particularly in payments, digital, and lending [9] - The company aims to double its cash flow to over $3 billion in three years [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth prospects of the financial services industry and FIS's ability to grow alongside it [5] - The company is well-positioned to capitalize on the convergence of banking strength, aggressive growth agendas, and the mainstream adoption of AI [7] - Management highlighted the importance of proprietary datasets and deep client relationships as competitive advantages [9] Other Important Information - The company returned $2.1 billion to shareholders, exceeding capital allocation commitments, and increased the annual dividend by 10% [22][20] - The integration of the Total Issuing Solutions business is tracking well, with expected revenue and expense synergies of $45 million and $125 million in three years, respectively [12] Q&A Session Summary Question: AI's impact on FIS's core functions - Management views AI as a strategic accelerant rather than a risk, emphasizing the durability of their systems of record and proprietary data advantages [39][40][41] Question: Shift to higher quality recurring revenue in capital markets - Management expects to see a continued increase in recurring revenue, with capital markets projected to grow mid to high single digits in 2026 [47][49] Question: Competitive dynamics in issuer processing - Management highlighted the strength of their product capabilities and relationships with large financial institutions as key competitive advantages [52][54][56] Question: Growth drivers in the banking segment - Management noted broad-based demand across products, particularly in core capabilities, payments, digital, and lending, contributing to above-trend performance [69][72]

Fourth Quarter 2025 Earnings Call February 24, 2026 Confidential and Proprietary 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 circumstances, including our future strategies or results, or that are not historical facts, are forward-looking statements. Actual results could differ materially f ...