Fidelity National Information Services, Inc.
Financials · Transaction & Payment Processing Services
Structural: pure-play fintech infrastructure post-Worldpay separation (2024). Two-segment model - Banking Solutions (~65% rev, core processing for ~3000 US banks/CUs) + Capital Markets (~35% rev, treasury/lending/post-trade for buy-side and sell-side).
Revenue ~85% recurring, multi-year contracts, mid-single-digit organic growth target.
- Core banking modernization cycle - regional banks forced to upgrade legacy mainframe stacks; FIS + $FISV + $JKHY are the only three at scale
- Capital Markets segment growing high-single-digits; treasury + post-trade tailwinds from rate vol and T+1 settlement
- Buyback aggressive - $4B+ authorization, share count down materially post-spin
- Worldpay stake monetization (43% retained) provides optional cash unlock
- Mid-teens FCF margin, ~5% FCF yield at current cap
- Banking segment growth stuck at low-single-digits; share losses to $JKHY in mid-tier core wins
- Capital Markets exposure to buy-side fee compression
- Cloud-native challengers (nCino, Q2, Temenos) eating new-logo wins even if migration is slow
- Worldpay separation left FIS sub-scale in payments - no organic merchant acquiring lever
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