Fidelity National Information Services (FIS): Is The Sales Pipeline & Recurring Revenue Growth Here To Stay?

The first quarter of 2025 results for Fidelity National Information Services, Inc. (FIS) demonstrated both operational progress and strategic initiatives that position the company robustly for future growth. The revenue growth for the quarter was 4%, with a significant acceleration in recurring revenues, indicative of a resilient business model that thrives across different economic conditions. The quarter was marked by strategic structural changes, notably the announced acquisition of Global Payments’ issuer business and the sale of a minority stake in Worldpay. These transactions are expected to bolster FIS’s service offerings, especially with the complementary nature of the issuer business to FIS’s existing solutions, enhancing cross-selling opportunities across its customer base. The strategic movements are anticipated to be accretive financially, promising improved EPS, EBITDA margins, and free cash flow due to synergies and operational efficiencies, although they were pointedly framed as a transformative rather than purely profit-driven maneuver.