Fidelity National Information Services (FIS) Q2 2024 earnings summary

Executive summary

• Achieved sixth consecutive quarter of outperformance, with strong execution across all growth vectors and segments, including core banking, digital banking, payments, treasury, and commercial lending.

• Completed sale of 55% equity interest in Worldpay Merchant Solutions for over $12B in net cash proceeds, retaining a 45% stake now accounted for as an equity method investment.

• Returned $1.3B to shareholders in Q2 2024, on track for $4B share repurchase for FY 2024.

• Net earnings from continuing operations were $242M, up from $84M in Q2 2023, reflecting the impact of discontinued operations and the Worldpay Sale.

• Continued sales momentum, innovative SaaS-based solutions, and disciplined capital allocation drove profitable growth.

Financial highlights

• Q2 2024 adjusted revenue grew 4% year-over-year to $2.5B; GAAP revenue up 3%.

• Adjusted EBITDA margin expanded by 110bps to 40.1%; adjusted EBITDA was $998M, up from $945M in Q2 2023.

• Adjusted EPS was $1.36, up 79% reported and 31% normalized year-over-year.

• Free cash flow was $504M in Q2, with a cash conversion rate of 85%.

• Returned $1.3B to shareholders in Q2 via $1.1B in share repurchases and $200M in dividends.

Outlook and guidance

• Full-year 2024 revenue outlook raised to $10.12–$10.17B, with adjusted revenue growth of 4.0%–4.5%.

• Adjusted EPS guidance increased to $5.03–$5.11, reflecting 13%–15% normalized growth.

• Q3 2024 guidance: revenue $2.555–$2.57B, adjusted EBITDA $1.035–$1.045B, adjusted EPS $1.27–$1.31.

• Plans to repurchase approximately $4B in shares during 2024, with $2.5B already repurchased in the first half.

• Quarterly dividend of $0.36 per share declared, with intent to maintain payout ratio consistent with capital allocation strategy.