Fidelity National Information Services

Fidelity National Information Services achieved its financial targets for the fourth quarter and delivered an all-around beat. The company had an excellent quarter on the capital markets side, with organic revenue growing by 10% and the margin expanding by 220 basis points. A 4-point gain related to the timing of license renewals contributed to a 22% rise in nonrecurring revenue during the fourth quarter’s revenue growth. In the fourth quarter, merchants increased by 2% on a constant currency basis. Revenue from e-commerce continued to rise quickly. Also, they observed economic weakness in the UK and expected it to worsen this year. In the quarter, they announced the launch of an enterprise transformation program, Future Forward, to enhance the business’ operational performance by promoting efficiency, effectiveness, and profitable growth throughout the organization. The management anticipates that their Future Forward projects will pay off in 2024 as they ramp up with more and more benefits. We give Fidelity National Information Services a ‘Buy’ rating with a revised target price.