Q1 2026 Fidelity National Information Services Inc Earnings Call Transcript
Key Points
- Fidelity National Information Services Inc (FIS) reported a strong Q1 2026 with 6.5% pro forma revenue growth, exceeding expectations.
- The company achieved an adjusted EBITDA margin of 39.6%, with an expansion of 87 basis points driven by favorable mix and cost savings.
- Free cash flow more than doubled to $474 million, marking a 111% increase compared to the previous year.
- FIS announced a groundbreaking agreement with Anthropic, a first in financial services, to enhance modern banking through AI.
- Recurring Annual Contract Value (ACV) growth was impressive at 24% year-over-year, indicating strong commercial momentum.
- Capital Markets revenue was impacted by macro volatility and lending softness, with a 5-percentage-point license renewal headwind.
- The lending segment faced challenges due to macroeconomic conditions, negatively impacting recurring growth by approximately 130 basis points.
- Despite strong overall performance, the company anticipates continued softness in lending, which has been factored into their outlook.
- The competitive environment remains intense, with no significant changes in the number of competitors, but ongoing pressure in the market.
- Nonrecurring revenue growth, while strong, may create a challenging comparison for the next year, potentially impacting future growth rates.
Good day and thank you for standing by. Welcome to the FIS first quarter 2026 earnings call. Please be advised that today's conference is being recorded. (Operator Instructions) I would now like to hand the conference over to your speaker today, George Mihalos, Head of Investor Relations.
Good morning, everyone. Thank you for joining us today for the FIS first quarter 2026 earnings conference call. This call is being webcasted. Today's news release, corresponding presentation and webcast are all available on our website at fisglobal.com.
With me on the call this morning are CEO and President, Stephanie Ferris; and our CFO, James Kehoe. Stephanie will begin the call with a strategic and operational update, followed by James, who will review our financials.
Turning to slide 3. Today's remarks will contain forward-looking statements. These statements are subject to risks and uncertainties as described in the press release and other
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