Fidelity National Information Services (FIS) Q3 2024 earnings summary

Executive summary

• Q3 2024 delivered strong results with adjusted revenue up 4%, adjusted EBITDA margin at 41.3%, and adjusted EPS of $1.40, up 49% year-over-year and 13% normalized.

• Completed sale of 55% of Worldpay Merchant Solutions for over $12B net cash, retaining a 45% stake; Worldpay now an equity method investment.

• Returned $700 million to shareholders in Q3 and $3 billion year-to-date via buybacks and dividends.

• Raised full-year 2024 outlook for revenue, adjusted EBITDA, and adjusted EPS.

• Achieved strong recurring revenue growth, cross-sell momentum, and completed a strategic digital acquisition.

Financial highlights

• Q3 2024 adjusted revenue grew 4% year-over-year to $2.6B; GAAP revenue up 3%.

• Adjusted EBITDA margin was 41.3%, with margin expansion in both Banking and Capital Markets.

• Adjusted EPS was $1.40, up 49% year-over-year and 13% normalized.

• Free cash flow was $530 million with an 85% conversion rate; CapEx at 9% of revenue.

• Debt outstanding at quarter-end was $10.9 billion; leverage ratio at 2.6x.

Outlook and guidance

• Raised full-year 2024 adjusted EPS outlook to $5.15–$5.20, reflecting 16%–17% normalized growth.

• Full-year revenue expected at $10.14–$10.17 billion; adjusted EBITDA at $4.125–$4.14 billion.

• Share repurchase target for 2024 is $4 billion, with $3 billion already repurchased.

• Free cash flow conversion expected at ~85% for the year due to higher CapEx.

• Capital Markets expected to achieve high end of 6.5%–7% revenue growth; Banking to be at lower to midpoint of range.