Fidelity National Information Services, Inc. Q3 FY2025 earnings call

Key Metrics: Delivered strong third quarter results with adjusted revenue growth of 6.3%, adjusted EBITDA margins of 41.8% and adjusted EPS of $1.51, up 8% year-over-year. ### Market Trends: Bank technology spending remains strong, AI adoption in banks has exceeded expectations with over 3 out of 4 banks actively launching or piloting Gen AI and Agentic solutions. FIS holds a foundational advantage with over 200 petabytes of data. Bank M&A activity is high with the third quarter having the highest level of quarterly bank consolidation in 4 years. ### Banking Segment: Strategic priorities include operational excellence, core and digital, and payments. Digital business is performing well with growing traction, including acquisition of Amount. Payments is a major growth driver with strong sales performance and traction in instant payments and digital currencies. ### AI Impact: Using AI to transform operations, improve client support, risk management, product development, and drive sales growth through lead generation in the marketing sales cycle.

Banking segment: Adjusted revenue grew 6.2%, recurring revenue grew 6%, EBITDA margin expanded by 68 basis points. Capital Markets segment: Adjusted revenue grew 6.4%, recurring revenue grew 7.6%, EBITDA margin expanded 60 basis points. Both segments saw strong recurring revenue growth and margin expansion.

Revenue and EBITDA: Raising ranges for revenue and adjusted EBITDA. Revenue range raised by $65 million at the midpoint, adjusted revenue growth 5.4% - 5.7%. For Banking, revenue growth range increased. For Capital Markets, updated outlook to approximately 6.5%. ### EPS: Tightening EPS range by $0.02 and reiterating double-digit growth of 10% - 11%. ### Acquisition: Credit issuing acquisition expected to close in the first quarter of 2026, expected to be accretive in the first year and add $500 million of free cash flow in 2026 rising to $700 million post integration.

Forward-looking 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 except as required by law.

Q: Tien-Tsin Huang asked about AI in digital assets.

A: Stephanie Ferris said they are enabling money motion through partnerships, tokenizing assets, and working on tokenized deposits, focusing on enablement for clients without taking competitive positions.

Q: Bryan Bergin asked about cap markets and credit issuing acquisition.

A: Stephanie Ferris said cap markets are back on track, excited about the credit issuing acquisition and potential cross-sell opportunities with the acquired team and product