Fidelity National Information Services (FIS) investor relations material

Industry and business environment

• Banking segment performance exceeded expectations, driven by strong industry conditions and increased technology and AI investment by banks.

• Regulatory environment is more favorable, supporting higher bank spending on M&A and technology.

• Focus remains on serving large financial institutions, especially those with assets above $10 billion.

• Pipeline generation is robust, aided by AI-driven lead generation, with higher quality and volume than previous years.

• Minimal business exposure to geopolitical events and consumer dynamics; revenue is resilient to macroeconomic uncertainty.

Strategic initiatives and operational changes

• Shifted sales incentives to prioritize recurring revenue over professional services, resulting in 20% recurring ACV growth in Q4 and similar full-year growth.

• Payments, Digital, and Lending businesses saw ACV growth of 70%, 60%, and 70% respectively, all with margins above company average.

• Commercial excellence initiatives include appointing a Chief Client Officer and Chief Commercial Officer, with a focus on client relationships and quality pipeline.

• Cross-selling is a major focus, leveraging expanded product offerings and targeting large banks for bundled solutions.

• Integration of TSYS enhances credit processing capabilities and international expansion, with $125 million midterm cross-sell synergy target.

Financial outlook and performance

• Confident in achieving 5%-5.5% banking segment growth in 2026, with organic growth accelerating.

• EPS guidance for the year is 8%-10% growth, with higher growth expected once share buybacks resume in 2028-2029.

• Margins are expected to improve by 100 basis points, exceeding previous long-term guidance.

• Cash flow per share projected to grow at twice the rate of adjusted earnings, with $3 billion+ GAAP free cash flow targeted for 2028.

• One-time transformation and integration expenses will decrease significantly by 2028, supporting higher cash flow.