Fidelity National Information Services (FIS) 2026 Wells Fargo Payments FinTech Symposium summary

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 favorable, supporting higher bank spending and M&A activity.

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

• Pipeline generation is robust, with AI-driven lead generation significantly increasing opportunities.

• Minimal exposure to geopolitical risks and consumer dynamics; business remains resilient in uncertain macro environments.

Strategic initiatives and operational changes

• Shifted to a functional model with a Chief Client Officer to enhance client relationships, starting in 2025.

• New Chief Commercial Officer appointed in Q1 2025, emphasizing commercial excellence and quality pipeline building.

• Sales compensation restructured to prioritize recurring revenue over professional services, boosting recurring ACV growth to 20% in Q4.

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

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

Financial outlook and guidance

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

• Payments business is now the largest segment, growing faster and with higher margins than core banking.

• EPS guidance for 2024 is 8%-10% growth, with expectations for higher growth post-2028 as buybacks resume.

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

• Integration and transformation costs expected to decline by 2028, freeing up significant cash flow.