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Based in Jacksonville, Fla., the financial technology company has more than 55,000 employees. In 2019, Fidelity National Information Services acquired ecommerce and payments company Wordplay for about $35 billion, making Fidelity National one of the world's largest payments and processing businesses. The purchase was part of a trend of increasing consolidation in the financial technology sector. In 2020, Fidelity National's sales rose 22% to $12.6 billion.

This year's Fortune 500 marks the 66th running of the list.

F500-2020_303_Fidelity-National-Information-Services

Better known by the acronym FIS, this Jacksonville, Fla. company provides financial software, services, and business solutions to a global clientele.

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This year's Fortune 500 marks the 65th running of the list.

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This year's Fortune 500 marks the 64th running of the list.

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This year's Fortune 500 marks the 62nd running of the list.

This year's Fortune 500 marks the 61st running of the list. Wal-Mart claims the top spot again. See who made the list.

Wal-Mart stayed on top as its sales crept closer to half-a-trillion dollars. Apple moved into the top five. And UnitedHealth Group continued its steady climb. 

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Fintech giant FIS is best known for its payments processing technology, widely used by banks, insurers, and other major financial institutions. The company also offers a broad suite of products for investing, trading, and capital storage. Its two main business segments are banking and capital markets, with the banking division generating nearly 70% of total revenue in 2024.

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Fidelity National Information (FIS) (FIS): Company Profile, Stock Price, News, Rankings

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Fidelity National Information (FIS)

fidelity national information (fis)

Thank you for standing by, and welcome to the FIS First Quarter twenty twenty five Earnings Call.

All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. Thank you. I would now like to turn the call over to George Michalos, Head of Investor Relations. You may begin your conference.

Thank you, John. Good morning, everyone. Thank you for joining us today for the FIS First Quarter twenty twenty five Earnings Conference Call. Call is being webcasted. Today's earnings release, corresponding presentation and webcast are all available on our website, fisglobal.com.

On the call with me this morning are Stephanie Farris, our CEO and President and James Kho, our CFO. Stephanie will lead the call with a strategic and operational update, and James will review our financial results. Turning to Slide three. Today's remarks will contain forward looking statements. These statements are subject to risks and uncertainties as described in the press release and other filings with the SEC.

The company undertakes no obligation to update any forward looking statements, whether as a result of new information, future events or otherwise, except as required by law. Please refer to the Safe Harbor language. Also, throughout today's call, we will be presenting non GAAP information, including adjusted EBITDA, adjusted net earnings, adjusted net earnings per share and adjusted free cash flow. These are important financial performance measures for the company, but are not financial measures as defined by GAAP. Reconciliation of our non GAAP information to the GAAP financial information is presented in our earnings release.

And with that, I'll turn the call over to Stephanie.

Thank you, George, and thank you everyone for joining us. I'm pleased to report that 2025 is off to a strong start. Our laser focus on driving commercial excellence across the enterprise while simplifying and strengthening our portfolio is delivering results for our shareholders. Our durable business model is underpinned by high levels of recurring revenue, and this allows us to deliver consistent financial results across all economic cycles. And the recently announced strategic acquisition of Global Payments Issuer Business and the sale of our Minority Worldpay stake will strengthen our value proposition to clients while further strengthening our financial profile.

In the first quarter, we delivered adjusted revenue growth of 4%, ahead of expectations. Recurring revenue growth accelerated meaningfully from 2% last quarter to 4%. And we expect to see continued strength over the course of the year as signed deals continue to be implemented on schedule. The three client requested delays that we mentioned on our last quarter call are all live and we have not seen any negative impacts from macro factors. First quarter adjusted EBITDA was at the high end of our outlook while free cash flow conversion exceeded 70%, a very strong start, giving us confidence in delivering on our full year outlook.

Adjusted EPS grew 11% to $1.21 at the upper end of our outlook. And we returned $670,000,000 to shareholders across share repurchases and dividends. Our solid start to the year and strong execution leaves us confident in reaffirming our full year outlook. Now let's turn to slide six for a discussion on new wins and our leading position in the markets we serve. During the first quarter we signed several new marquee engagements across the money lifecycle and we are seeing momentum building in the second quarter.

Beginning with money at rest. On the heels of a record year for core wins in 2024, we continue to see strong demand for our core solutions and are expecting another year of solid sales. I'm pleased to announce that our IBS core was selected by a leading East Coast commercial bank with over $15,000,000,000 in assets as part of an evaluation following an acquisition. After a highly competitive process, the bank's management team selected FIS for their complex needs as a growing financial institution. This win demonstrates how we are well positioned to capitalize on consolidation given our skew towards larger banks and stronger product sets.

This is a positive proof point of our strong competitive positioning and much improved retention rates. We anticipate momentum in core wins to continue in the second quarter with an active pipeline of opportunities we expect to close. Our digital solutions continue to gain traction in the market. During the first quarter, a Midwest community bank with over $15,000,000,000 in assets selected our Digital One product to help the bank transform its branch teller technology. The win represents another competitive takeaway for our digital capabilities, which were also recognized by Celent for market momentum and support in their recent reports.

Moving to Money in Motion, where our Office of the CFO capabilities are resonating with a broad range of clients. During the quarter we expanded our relationship with a leading multinational engineering and technology firm. The company selected FIS's award winning treasury management solution to assist it with its cash and risk management needs. The company also selected several of our payment solutions, including our Payments Hub, a connectivity solution that helps corporates centralize, standardize, and process payments quickly and at scale. This is a prime example of how Office of the CFO is expanding our addressable market beyond traditional financial institutions to corporates.

We are encouraged by the market reception to our Office of the CFO offerings and are well on track to meet our sales goal for the year. Moving to money at work. We continue to expand our presence in adjacent growth vectors such as private equity and private capital. In the first quarter Atlas SP, a global investment firm specializing in private credit, selected our commercial lending solution to help manage its servicing needs on complex loans and investor reporting requirements. The win is a competitive takeaway and represents our first direct lender client for our commercial lending solution.

Turning to more traditional capital markets activity, our derivatives processing solution was selected by a premier buy side firm looking to expand its self clearing capabilities. We continue to see a trend of buy side firms adopting self clearing capabilities and are encouraged for the prospects of our derivatives clearing solution. Now turning to slide seven for a quick review of our recent milestone transaction. On April 17 we announced two transactions that accelerate the strategic repositioning of our portfolio. First, we entered into an agreement to sell our 45% stake in Worldpay to Global Payments for $6,600,000,000 in pretax value.

The sale price represents a premium to the valuation FIS received when it sold its majority stake in 2024 and accelerates the monetization of Worldpay versus pursuing an IPO. Second, we announced the acquisition of the Issuer Solutions business for a net enterprise value of $12,000,000,000 including a $1,500,000,000 tax benefit. As a reminder, the transactions are expected to close simultaneously in the first half of twenty twenty six. The acquisition of the Issuer Solutions business and the sale of our Worldpay stake strengthens our strategic and financial position. Issuer Solutions complements our existing banking solutions product suite with best in class credit capabilities at scale and enhances our value proposition to large banks and corporates, unlocking greater cross sell potential across existing clients.

The acquisition is also financially attractive. The transaction is accretive in the first twelve months to adjusted EPS, EBITDA margins, and adjusted free cash flow, with greater benefits longer term as synergy targets are achieved. It strengthens our financial profile and provides us with greater recurring revenue. And lastly, the transaction allows us to monetize a non strategic asset and replace it with a growing stream of durable revenue and strong free cash flow. We look forward to closing the transactions and are excited to be partnering with Global Payments going forward.

We're confident the transactions will represent a significant win for all companies involved. And with that, I'll turn it over to James for a review of our first quarter financials. James?

Thank you, Stephanie, and good morning. I'll begin on slide nine with an overview of our first quarter results, which we previewed on April 17. We had a great start to the year, with adjusted revenue growth of 4%, exceeding the high end of our outlook. We delivered upside from both operating segments, further increasing our confidence in meeting our full year outlook. Adjusted EBITDA came in close to the high end of our outlook at $958,000,000 leading to an EBITDA margin of 37.8% in the quarter.

Adjusted EPS was 1.21 and it was also near the high end of our outlook, with year over year growth of 11%. Cash conversion improved significantly as we rolled out working capital initiatives and lapped the weak prior year. Free cash flow was $368,000,000 in the quarter compared to $95,000,000 last year, with a cash conversion rate of 71% compared to 18% in the prior year. As a reminder, the first quarter is historically a lower conversion quarter, so we are off to a strong start on our full year target of 82% to 85%. Capital expenditures were $233,000,000 in the quarter, or 9% of revenue, consistent with our full year expectation.

And we exited the quarter at our target leverage of 2.8 times. Lastly, we returned $670,000,000 to shareholders, including $450,000,000 of share repurchases, putting us well on track to meeting our $1,200,000,000 annual target for share repurchases. In summary, a great start to the year with strong execution across all key metrics. Turning now to our segment results on Slide 10. Adjusted and recurring revenue growth was 4%, with recurring revenue at 81% of total revenue.

We continue to emphasize growth in this durable, high margin revenue stream. Banking grew 2% in the quarter, coming in ahead of the high end of our outlook. Recurring revenue growth outpaced adjusted revenue growth at 3% in the quarter. Non recurring revenue increased 3% as the anticipated two percentage point headwind from termination and license fees was offset by stronger performance from our card production business. Professional services declined 5% as we successfully concluded some large projects at year end.

As Stephanie discussed, client implementations are on track, and we expect accelerating professional services growth over the course of the year. Banking EBITDA margin contracted to 40.1%, reflecting high license and termination fees last year and the timing of operating expenses. Turning now to capital markets, where we had another strong quarter. Adjusted revenue growth came in ahead of the high end of our outlook, at 9%, with recurring revenue growth of 6%. Non recurring revenue advanced 47% as the team delivered a strong license quarter, including outsized renewal timing.

Professional services declined 5% year over year, reflecting the completion of some project work and is expected to return to growth in the second quarter. Adjusted EBITDA margin expanded 90 basis points, reflecting strong growth in high margin license revenue and continued favorable operating leverage. Moving now to our outlook on slide 11. As messaged on our April 17 call, we are reaffirming our outlook for the full year, and we are not changing any of our key assumptions. Implementations are ramping on schedule, and we have good line of sight into the 150 basis points of incremental banking growth that is tied to commercial excellence.

For the second quarter, we anticipate adjusted revenue growth of 4.2 to 5%. We are targeting banking revenue growth of 3.7 to 4.4%, consistent with our commentary on the fourth quarter call, and in line with our full year outlook. This acceleration will be underpinned by strong and accelerating recurring revenue growth. For Capital Markets, we expect adjusted revenue growth of 6% to 6.7%. And combined with a strong first quarter, this puts our first half growth modestly ahead of our full year outlook.

We are projecting sequential margin improvement of approximately 200 basis points to around 39.8% to 40% in the second quarter. For the year, we anticipate continued sequential margin improvement over the remaining quarters as we progress to our full year target of 41.3%. We are projecting adjusted EPS of $1.34 to $1.38 with EPS growth ranging from zero to 3%. The result is held back by two items, with a combined negative impact of approximately five points of growth. Firstly, we are lapping a sizable one time rollover in interest income, as we opportunistically invested Worldpay proceeds last year.

Secondly, we are facing a tough year on year comparison on EMI. Worldpay had a very strong performance last year, including a slower than planned buildup of standalone operating expenses. Consistent with prior quarters, we have provided our detailed assumptions in the appendix. Let's now wrap up on slide 12. In summary, our first quarter results were above expectations, with strong starts on both revenue growth and cash conversion.

We are on track for accelerating growth from our Banking segment beginning in the second quarter. And we are reaffirming our full year outlook with total shareholder return of 11% to 13%. Capital returns were $670,000,000 in the quarter, putting us on schedule for our $2,000,000,000 annual capital return target. And lastly, we announced a significant transformation of our financial profile, replacing our non cash minority interest in Worldpay with a durable cash generating asset in Issuer Solutions. With that, operator, could you please open the line for questions?

Ladies and gentlemen, we will now begin the question and answer session. We also ask that you limit yourself to one question and one follow-up only. If you are called upon to ask your question and are listening via loud speaker on your device, please pick up your handset and ensure that your phone is not on mute when asking your question. Your first question comes from the line of Tien Tsin Huang with JPMorgan. Please go ahead.

Hey. Good morning, everyone. Thanks for the update. Just want to drill in, I think Stephanie talked about timely conversions. I know the three delayed deals did go live.

It sounds like you're not hearing any client decision delays. I'm just curious what other feedback you're giving in terms of decision making pipeline rebuild, and of course, any client feedback that's worth sharing with respect to bringing the Issuer Solutions business on? Thanks.

Yeah. Thanks, Tien Tsin. So a couple of things. Yeah, as we had indicated, those client conversions were going live in first quarter and second quarter. They're all live.

So really happy about that. And you're seeing that show up in the banking revenue guide in second quarter and full year. So very good, everything went well, progressing exactly as expected and maybe even slightly positive. In terms of overall pipeline from clients, I mean that's the benefit of FIS is regardless of the economic cycle, we have very highly recurring and we're required spend. So not seeing any impact from clients in terms of slowing spend down.

In fact, our pipeline is actually increasing very significantly even as we compare it to year over year. So feeling really good about pipeline. We're obviously keeping a very tight watch on it in terms of tariff and economic activity, but I'd say that's the benefit of FIS. It's very durable, highly recurring and required spend. It's not really discretionary.

And then with the last piece on TSYS, I have to say from a client standpoint, it's been really, really positive. So we did obviously a lot of diligence on the TSYS business. We know them. We know the team there just from being in the market for a long time. We didn't compete against them but they have such a great brand.

And from their clients that are also clients of ours, people were we're hearing very strong commitments to them in terms of best in class product suite as well as client service.

then consistent with didn't really see a value of having merchant acquiring and TSYS together. So like the focus with the ultimate acquisition by us in terms of continuing to focus on financial institutions and on that solution set because that customer base is typically not looking at merchant acquiring. Very positive all around.

Great. And just my quick follow-up. I know I've asked it before on this call before, Stephanie, but just any updated thoughts on Capital One Discover, now that that's moving a little bit more forward?

No, I mean, I think they had some really positive news. Sounds like it's moving forward. We have a great partnership with them. We had a great partnership with Discover, so we see nothing but positives with them and continue to support them in everything they want to do. It's nice to see them obviously get through their hurdles and get to the other side of it.

We think it's going to be a great combination.

Your next question comes from the line of John Davies with Raymond James. Please go ahead.

Hey, good morning guys. Just wanted to drill in a little bit to 2Q guide for Capital Markets, a little bit of a decel. You do have a little bit of a tougher comp. Anything else to call out recurring, non recurring, anything else there would be helpful.

Yes. So I think when you think about second quarter, it really is first quarter, second quarter. If you look at our first quarter results for Capital Markets, they had a very high nonrecurring benefit in the first quarter from a renewal. So that was a timing related benefit in the first quarter. We saw it there.

Their recurring revenue first quarter to second quarter is very consistent. And then the license and the renewal activity goes back to more of a normalized. So they were benefiting in the first quarter from that. And so you see our second quarter guide being very consistent with first quarter excluding that renewal timing.

Okay, great. And then just thinking about the banking segment on a pro form a basis, can you help us what percentage of that banking segment will now be the combined debit issuing business that you have plus TSYS? And just maybe a rough sense of what is kind of an account on file versus a per transaction fee, just so we can get a sense of any sort of cyclicality with the slowdown from a macro perspective.

Well, are great questions, John. I don't think I have all that at my fingertips. I think you heard this morning from the TSYS guys on their call that they are seeing consistent strong account on file growth and they had positive spend there in transaction growth and still a little bit of muted commercial. From our side of the house, debit, just like you would expect, from a consumer spend standpoint we're seeing consumer spend on debit continuing to be consistent with what you're hearing from everybody else. We don't see a slowdown.

It's also a very resilient part of the business for us. We're seeing very strong debit transaction growth. Our credit portfolio is not very big, but we aren't seeing any slowdown there. So hopefully that's helpful. I don't have the numbers in front of me in terms of accounts on file or transactions.

Yeah, the only thing we highlighted on the call was just we're adding $2,500,000,000 to a banking business that's roughly 7,000,000,000 So the scale in banking goes up by I think it's about 35%, so it's a $9,400,000,000 of revenue. Then we said that overall, it's additive to margins by about 80 basis points. We didn't give any specifics here, except that we did point out to their strong position in the market. They have I think the beauty of that business, the average tenure of the clients is twenty five years. So it's highly durable revenue, which is very consistent with our core banking business.

So 80% recurring revenue with margins in the low to mid-40s.

Yep. I think the other thing is it supports what we said at Investor Day in terms of ability to continue to grow payments in a very large scale and durable way, so debit and credit. And it also gives us an opportunity with clients to do more bundling as we think about the cross sell, whether we have debit and they have credit or they have credit and we have debit, which is pretty significant.

Your next question comes from the line of Dan Dolev with Mizuho. Please go ahead.

Hey guys, great results there. Really nice to see that. Stephanie, can you maybe give us a sense of how you're feeling about the Worldpay EMI outlook? And how's revenue growth has been tracking there relative to your expectations? Thank you.

Yeah. Thanks, Dan. So the Worldpay EMI outlook is very consistent year over year with what we've been putting in the guide. We're not seeing any softening there. In fact, we always think, as you know, that Charles has strong growth, so we're always hoping for outperformance.

But nothing negative at all in the EMI outlook, very consistent with what they've provided to us. In terms of revenue growth, and I think Cameron gave some updates as well on the call this morning, We're really pleased to see the acceleration of revenue in Worldpay last year. Separating it was clearly the right decision, bringing back Charles and having growth and focus there in investment. They've really been able to turn that business around. You're seeing the revenue growth in the fourth quarter and then into the first quarter.

They obviously have lapping of Easter and Leap Day like everybody else. But their revenue growth continues to be consistent with the market, and they're feeling really good about where they're taking it taking it from when we had it really as a low single digit grower to back up to mid to upper. So feeling really good about the performance there. They're highly focused on execution and I think it'll be a great asset for Global Payments.

Thank you. And just as a quick follow-up, can you give us a sense of the EBITDA margin cadence given the timing of the investments in the first quarter?

The EBITDA margin cadence for Worldpay? I don't externally talk about that. I think all we can show you technically is revenue in EMI. You would expect though that they are making investments in the business. They had some benefits in EMI you saw last year because the investments were a little bit slower to get started.

They're fully ramping those. So no change from what we've said historically.

Your next question comes from the line of Ramsey El Assal with Barclays. Please go ahead.

we start to think about the pro form a business, what would you consider the lowest hanging fruit from a cost synergy standpoint? And any additional color you could provide on the rate in which you expect to realize these synergies would be helpful. Thank you.

Sure. Maybe I'll take the types of cost synergies and I'll default over to James in terms of rate. But I think what we shared was we think the biggest amount of cost synergies, and just as a reminder, talked about $125,000,000 would be rationalizing duplicate vendor costs. So when you think about bringing both card businesses together, whether it's debit or credit, we use the same set of vendors. Think about vendors like technology, software, fraud vendors, etcetera.

So we think there's quite a bit there. You would expect us to pull those very quickly. We also anticipate back office optimization. So when you think about whether you're producing a debit card or credit card, we have consistent card production capabilities. We have print and mail capabilities.

Those can be optimized. You can imagine that the side is bigger than our side but we don't need all of them and so you would expect us to have back office optimization there. And then to the extent we have operational capabilities that we think we can bring together and quite frankly use the TSYS expertise because it's much larger than ours on the credit side, we think we could see opportunities there. In terms of cost synergies, you should expect to see us get out the gate very quickly with those. They're obviously the lower hanging fruit.

And so we will use the timeframe between now and signing to get very organized around that. I don't know that what cadence, James, we gave a view towards revenue and EBITDA synergies.

What we said was if you look at total synergies of 150, we said split it evenly over year two and year three. While we will get some cost synergies in the first year, we will have some TSAs from Global in the first period. So we'll get our arms around it. But as Stephanie said, we'll go really quickly on cost synergies. I think the upside is bigger than the 150,000,000 longer term.

What we did say on the call was that only included $45,000,000 of revenue synergies in the first three years, but we did highlight a long term potential on revenue synergies of 125,000,000 So that 150,000,000 will build as you look further out in the period. But take it fiftyfifty over year two and year three, and you won't be too far along.

Great. Thanks. That's all for me. Congrats on the quarter.

Your next question comes from the line of Andrew Schmidt with Citi. Please go ahead.

Hi Stephanie. Hi James. Thanks for taking my questions this morning. I know you mentioned that the Issuer Solutions transaction will be accretive in the first twelve months. But I'm wondering if you could just comment on the level of accretion that you expect, we get to low single digit twelve months and then higher maybe mid single by in twenty four months.

Obviously, there's probably some upside to that depending on timing and favorability and things like that. But any comments there would be helpful. Thank you so much.

I think we're going to go any further than what we said on the transaction call. We're very happy that it's immediately accretive. And as I said, what will happen is it's immediately accretive, but it's transformational at the same time. So EPS accretion, I think, is the least important number because we're losing a fairly a very accretive role pay stake that also gave us tax benefits. But we're replacing it with a boost to our banking revenue at 35%.

More importantly, our cash flow will go up 35. So the construction of the company is completely different. The scale is flowing through to cash as opposed to EPS. That's the part I would point to more than anything else. The margins are boosted as well, which strengthens our banking business.

The specific EPS accretion is not the most attractive part of the deal. It is solidifying the strength of the banking business and call it fortifying our banking business going forward, driving enhanced scale on the total company. But where it really plays out for me is on the line, which is adding $700,000,000 when the reality is our current cash flow is in the region of $2,000,000,000 on an adjusted basis. So that's an incredible boost. And I think you look at the revenue synergies longer term, and that can only be additive to the attractive financial profile of the company.

Thank you. Well said on the cash flow and strategic benefits. I appreciate that. If you could just talk about a little more detail the sales motion with cross selling credit issuance processing. I assume often with large FIs, you're talking at enterprise level, that part of the business can be pulled in.

But just curious just maybe a process question and how you go about the cross sell motion? Thanks a

So the reason why this transaction makes just so much sense is the amount of clients that we both support. So on our side, we could be doing core and network and debit, as well as trading and lending when you think about these large financial institutions. So we already have that cross sell motion going between the banking and capital markets business and offer out a bundled solution set there. The opportunity has always been not having the credit capabilities upmarket.

So when you think about an ability and an opportunity to add credit now to credit and debit as well as core network lending and trading. We think we're uniquely positioned because we think we're the only player that has that cross section of product sets. And we already have the motion in play. We also think just relationship wise, if you think about where we play typically with the banking and capital market solution sets, typically back office. So when you think about who we're interacting with, chief technology officers, CIOs, when you start to talk about credit issuing, we're now in the front part of the bank because of how much revenue generating capabilities it is.

So for us, we really think about this as a big unlock of incremental market for us in a large financial institution space whereby we already have existing relationships, have cross sell motion and now we're adding a product set and a team that has significant relationships. So win win win there and very excited about it. And then as I mentioned to Tien Tsin in the very beginning of the call, hearing from clients just really positives around both the TSYS product set and teams over there in terms of customer service, but also that they like the benefits of dealing with FIS altogether as you think about one provider serving them across their ecosystem makes it easier for them from a regulatory standpoint and overall from getting the best optimized metric for them. So that's been very positive as well.

Next question comes from the line of Jason Kupferberg with Bank of America. Please go ahead.

Good morning, guys. Thank you. I wanted to start on the banking side. It looks like based on the Q2 guide, we'll need maybe 200 basis points of acceleration in the second half to get to the midpoint of the full year. And I know that's pretty consistent with what you originally anticipated.

Now that we're a third of the way through the year, can you hone in on the specific drivers there? I don't know if it's mostly just the ramp of the three delayed implementations and just your overall visibility and confidence level on that acceleration.

More numeric. I think as you think about margins for us, it's really two things going into second quarter and the back half of the year. The first one is just overall mix. So as we talked about the sales and high levels of revenue retention when we did our guide in the fourth quarter into 2025, we talked about the mix of less lower margin and more higher margin and not really taking hold in the back half of 2025. So we think from a margin standpoint we would expect and as you can see we now have really strong visibility to a positive mix driver for that in the back half of this year.

In addition to that we, as you know, have been executing against all of our future forward cost programs and continue to significantly ramp those. And so as we sit here today in May, feel very confident about the activities we've already done and what are yet to be done as we think about going into the rest of the year. We have a lot of muscle around this. We have a lot of programmatic focus on this and have been doing it since the end of twenty twenty three. And then probably the last thing I would say is we just have an easier comp as we go into the second half if you look at the year over year.

So really focusing on mix, continued of our operating expense programs, which we think we're really good at this point, and an easier comp makes it where we feel really confident around the margin expansion. I don't know, James, if you want to talk about anything else?

No, I would the way it's playing out is very much as we predicted when we put our plans in place at the end of last year. You'll recall back as far as Investor Day, we said we would do roughly annually 175 bps of cost reduction. We're actually running ahead of that. The only thing is, last year, the first half had the highest proportion of cost reduction relative to the total year. And this year, the back half has a higher proportion of the total cost reduction.

I would say our visibility to the cost reduction initiatives is excellent. I don't think it could be any higher. All of the initiatives are in full swing. We actually are probably in the first half doing slightly better. So we're actually very, very comfortable in the first half, second half split.

Maybe we didn't telegraph it well enough to the market. But as Stephanie said, there's two things happening, and I'll double down on this. One is mix. And the mix is basically a first quarter story, is that we're lapping these exceptionally high margins in the first quarter of last year. That's done.

It's behind us. There's none of this on a go forward basis. So the revenue mix contribution improves in the latter three quarters. And then, as I said on the cost side, we could not I just want to be clear on this we could not have better visibility to the cost programs. These are just managed extremely tightly.

And we got no surprises in the first quarter whatsoever. So fully, fully on track.

Okay. So comps mix and costs, very clear there. Maybe just on the revenue side of banking, that expectation was to be kind of second half loaded. How are you feeling about the visibility there when you've got the three implementations that are now live? But I don't know to what extent you're depending on kind of new sales kind of formulating and ramping in the latter part of the year.

Just kind of give us some color on the drivers there, because I think we need maybe a couple of points of second half versus first half acceleration to get to the midpoint on the full year. Thanks.

Think, though, I think I'd point out first that the comfort at which we're confirming the second quarter should not be lost on you. We called this out three months ago when we gave the full year guide on the second quarter. And we still have just as strong conviction, if not even higher. So we have great visibility into the second quarter. What we said on the full year guide is there's one big driver in the banking acceleration.

It's 150 basis points that's coming from commercial excellence. And this is, as you said correctly on the call, you said essentially it's new sales. But any new sales you have in the second half is not going to impact your second half performance. What I mean, any new ACV you get in the second half has no impact on the second half. This is all stuff that's already been sold, and most of it was sold in 2024, which was a very strong year for the banking business.

And I think we said the total was up 12%. I think it was 11%, twelve % on banking. So all of that, you see it flowing in. The other part that we called out was the incredibly high retention rates that we're seeing, particularly on the banking business. It's actually across the entire business.

But banking, compared to the past, is a very, very strong number in the high 90s. So when you've got this retention and you had a strong sales year in the prior year, that's what's driving the step up of the 150 basis points. So actually, funnily enough, conviction is extremely high just because it's work that's already done and dusted. And I'll just add on, last year was a record year for core wins as well. So we had almost and then digital was up 50%.

Fidelity National Information (FIS) (FIS) Q1 2025 Earnings Call Transcript

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