Moving Parts Open FY26; Durable Banking Growth & Cap Returns Underappreciated

研报英文原文证据摘录

Moving Parts Open FY26; Durable Banking Growth & Cap Returns Underappreciated

unities over

time. Shares have been frustrating YTD, but we think consistent controllable execution & FCF

FY 2025A 2026E 2027E upside will ultimately come to be appreciated. We revise our model with FY26 & FY27 revenue

(Dec) estimates largely unchanged, FY26 EBITDA -1% & FY26 FY27 EPS -0.1%. At a ~10% FCF yield on

EPS FY27 & 10%+ on FY28, even excluding acquisition/integration addbacks, we see an attractive

Year $5.76 $6.29 $6.87 entry to add. We reduce PT to $62 for sector pressure (~8.5x CY27 EBITDA or ~19x CY27 FCF).

Prior Year - $6.32 $6.98

2Q Outlook Reflects Timing & Macro, Not Demand

P/E 7.5x 6.9x 6.3x

EPS Estimates include NCI Contribution in 24E and beyond. Banking remains positioned toward the higher end of its full-year range, while Capital Markets

Consensus EPS $5.75 $6.28 $6.86 is guided more conservatively given macro assumptions. Management continues to expect

Consensus source: FactSet improvement through the year as strong bookings convert into revenue over the remainder

of 2026 & into 2027, reflecting timing-related pressures rather than a change in underlying

Revenue (MM) demand.

Year $10,677.0 $13,819.4 $14,449.7

AI Strategy Evident with Anthropic; Roadmap Positions New Revenue Vector

Prior Year - $13,814.0 $14,406.0

EV/S 3.3x 2.6x 2.5x We thought FIS did well to articulate the value it brings & the moat that exists to counter

Revenues reflect continuing operations as of 23A and the market AI-displacement risk narrative. FIS' partnership with Anthropic represents a shift

beyond.

toward product development & future revenue generation, with the companies collaborating

Consensus Rev$10,677.0 $13,764.2 $14,429.9

on domain-specific agents, beginning in financial crimes.