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Fidelity National Information Services (NYSE:FIS) reported solid first-quarter results for 2025, achieving 4% adjusted revenue growth and 11% adjusted EPS growth, according to the company’s earnings presentation delivered on May 6, 2025. The financial technology provider also announced a milestone transaction aimed at strengthening its market position while reaffirming its full-year outlook.
Executive Summary
FIS delivered adjusted revenue growth of 4% in the first quarter, with adjusted earnings per share of $1.21, representing an 11% increase year-over-year. The company’s adjusted EBITDA margin stood at 37.8%, down 142 basis points compared to the same period last year. Free cash flow conversion remained strong at 71%, with the company returning $670 million to shareholders, including $450 million in share repurchases.
"We had a solid start to the year with implementations on track and strong free cash flow conversion," said Stephanie Ferris, Chief Executive Officer and President, who presented the first quarter highlights during the earnings call.
The company’s performance was driven by divergent results across its business segments. Capital Markets led growth with 9% adjusted revenue expansion and margin improvement, while Banking Solutions delivered more modest 2% revenue growth with margin compression.
Quarterly Performance Highlights
FIS reported total revenue of $2.5 billion for the first quarter of 2025. The company’s recurring revenue, which accounts for 81% of total revenue, grew by 4% year-over-year, highlighting the stability of its business model.
The Capital Markets segment was the standout performer, delivering 9% adjusted revenue growth and a 48.3% adjusted EBITDA margin, an improvement of 90 basis points. This segment saw 6% growth in recurring revenue and an impressive 47% increase in other non-recurring revenue, partially offset by a 5% decline in professional services.
In contrast, the Banking Solutions segment posted more modest results with 2% adjusted revenue growth and a 40.1% adjusted EBITDA margin, representing a decline of 379 basis points. Within this segment, recurring revenue grew by 3%, other non-recurring revenue increased by 3%, while professional services declined by 5%.
"Our first quarter results were above expectations, giving us a strong start on free cash flow conversion," James Kehoe, Chief Financial Officer, noted during the presentation of the financial results.
Strategic Initiatives
FIS highlighted several marquee wins across its business segments during the quarter. In the "Money at Rest" category, the company secured a consolidation win with a leading East Coast commercial bank for its IBS Core solution. For "Money in Motion," FIS won a multinational engineering and technology firm with its Treasury solutions, while in the "Money at Work" category, the company added Atlas SP as a client for its Commercial Lending solutions.
A significant focus of the presentation was a milestone transaction that FIS described as reinforcing its long-term strategy. According to the company, this transaction creates a $12 billion+ revenue, more diversified global financial technology leader, adding critical credit processing capabilities at scale to its payments and banking product suite.
"This transaction advances FIS’ position as a scaled fintech leader," the company stated, noting that it is expected to be accretive to adjusted EBITDA margins, adjusted EPS, and free cash flow. The deal also "replaces non-cash EMI with growing stream of recurring revenue and cash flows," strengthening the company’s financial profile.
Forward-Looking Statements
FIS reaffirmed its full-year 2025 outlook, projecting revenue between $10,435 million and $10,495 million, representing adjusted growth of 4.6% to 5.2%. The company expects adjusted EBITDA of $4,305 million to $4,335 million, with margin expansion of 40 to 45 basis points to approximately 41.3%. Adjusted EPS is forecast to be between $5.70 and $5.80, reflecting growth of 9% to 11%.
For the second quarter of 2025, FIS projects revenue of $2,560 million to $2,585 million, representing adjusted growth of 4.2% to 5.0%. The company expects Q2 adjusted EBITDA of $1,020 million to $1,035 million, with margins of 39.8% to 40.0% and adjusted EPS of $1.34 to $1.38.
"We are confirming 2Q 2025 revenue growth acceleration," the company noted, adding that "margins are building over the course of the year." However, FIS cautioned that second-quarter EPS growth would be impacted by interest income (one-time) and EMI (tough comparison).
The company expressed confidence in its full-year capital return target of approximately $2 billion, having already returned $670 million to shareholders in the first quarter.
Competitive Industry Position
FIS emphasized its position as a durable operating model capable of performing across all economic cycles. The company highlighted three key strengths: being a scaled technology leader, having global distribution and a marquee set of clients, and delivering a broad suite of best-of-breed solutions.
"We are a beneficiary of banking industry consolidation," the company stated in its presentation, pointing to its ability to leverage its strong foundation, execute to deliver profitable growth, and allocate capital with discipline.
Looking ahead, FIS appears well-positioned to capitalize on its strategic initiatives while maintaining its focus on shareholder returns. The company’s reaffirmation of its full-year guidance, coupled with the expected benefits from its milestone transaction, suggests confidence in its ability to navigate the competitive fintech landscape while delivering sustainable growth.
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