FIS Q1 2026 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Mon, June 1, 2026 astatine 12:33 PM CDT 47 min read

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Date

Friday, May 8, 2026 astatine 8:30 a.m. ET

Call participants

• Chief Executive Officer — Stephanie Ferris

• Chief Financial Officer — James Kehoe

Full Conference Call Transcript

Stephanie Ferris: Good greeting and convey you for joining us. Q1 was a beardown 4th for FIS, not conscionable successful presumption of our fiscal performance, but successful presumption of what the show signals astir the trajectory of our business. We outperformed crossed each fiscal metric. Revenue is strong, margins expanded, escaped currency travel much than doubled, and our commercialized momentum, peculiarly connected caller ACV, reached caller levels. Earlier this week, we hosted our yearly lawsuit league focused connected assemblage and determination banks with implicit 4,000 attendees. There, we announced an industry-shaping statement with Anthropic, a archetypal of its benignant successful fiscal services, which volition usher successful an wholly caller epoch of modern banking.

We besides unveiled a fig of caller solutions, including our caller information and AI platform, our caller integer plus platform, Lyriq, and Project Keystone, our caller tokenized deposit bank-owned web that includes 5 U.S. banks. The communal thread crossed each this advancement is that today's innovation runs done FIS, not astir us. From the world's starring fiscal institutions to the astir precocious AI firms and the aboriginal of integer currency, they are each moving done FIS. I told you past 4th that FIS is amended positioned contiguous than it has ever been before, and we are excited to beryllium starring the adjacent epoch of modern banking.

Now fto maine locomotion you done the strategical highlights of the quarter, and past James volition instrumentality you done the financials successful detail. Turning to Slide 5. I'll commencement with the headline. We delivered 6.5% pro forma gross maturation supra expectations. Adjusted EBITDA borderline came successful astatine 39.6%, with borderline enlargement of 87 ground points driven by favorable premix and outgo savings. Adjusted EPS of $1.36 represents 12.4% maturation year-over-year. And the metric that stands retired most, escaped currency travel of $474 million, up 111% versus the anterior year. Turning to Slide 6. Equally impressive, our recurring ACV maturation of 24% year-over-year is signaling beardown commercialized momentum. The pipeline is converting and the marketplace is validating our strategy.

Banking recurring ACV accrued 13%, with superior markets up 45%. Across immoderate of our cardinal maturation vectors, Money Movement Hub ACV tripled arsenic we proceed to spot beardown request from determination assemblage banks. Lending grew 63% and integer ACV was up 25%. ACV is simply a starring indicator of our aboriginal revenue. We started 2025 focusing connected our commercialized excellence successful high-growth verticals similar digital. And by the extremity of the year, we had scaled that momentum crossed the full enterprise. And what you're seeing successful our archetypal 4th of 2026 volition construe into durable, predictable gross maturation and borderline enlargement successful the quarters ahead. Turning adjacent to Slide 7.