Dave Koning

Julie tied balanced consulting and managed-services growth to transformation-led demand spanning both delivery models. Direct.

Julie affirmed AI demand is building every quarter, citing rising $100M+ booking counts and larger AI programs.

Angie deferred specifics to the FY2027 outlook but reiterated the goal of gross margin and SG&A improvement.

Julie said smaller companies are also spending significantly on AI, which is why they're focusing more on mid-market with acquisitions. Large deal volume reflects how much reinvention big enterprises need. Sees large funnel of work ahead.

Angie deferred FY27 Federal outlook to September but confirmed they feel good about anniversaring the headwind and returning to Federal growth in Q4.

Angie confirmed Federal came in better than expected plus strong EMEA and Asia Pacific health and public service. Investments including acquisitions over last few years paying off.

Angie said FY26 guidance has both consulting and managed services in low to mid-single digit range. Julie explained managed services have become strategic, not just cost plays.

Angie confirmed the Federal headwind will anniversary at Q3 end, implying normalization in Q4.

Julie said GenAI demand remains very strong. As it gets bigger, quarterly fluctuation is natural. AI is increasingly embedded in everything they do.

Angie confirmed strategy unchanged, targeting ~2% annual inorganic contribution. This year lighter due to market conditions and valuation discipline. About 3% inorganic expected for full year.

Julie dismissed concerns, saying no material Federal impact in H&PS this quarter. Normal quarterly variability.

Julie confirmed pricing was relatively stable this quarter, a change from prior quarters of decline, though the market remains very competitive.

Angie confirmed higher interest expense from the $5B debt offering but noted it is already factored into the guidance provided.

Angie said Q2 guide of 5-9% is solid with nothing unusual; Q1 overdelivery came from larger deals ramping faster than expected.

Ron said Brazil was only a touch slower, the Google search issue is unresolved but not counted on, and Free Flow toll adoption is a tailwind.

Ron characterized both payables and cross-border as volume growth businesses, not rate businesses. Enterprise accounts at sub-10 bps skew averages. Internally strips out 10 giant trades per period; remaining book shows yield at consistent levels. Long answer: sans big enterprise deals, not much yield movement expected.

Ron said Brazil still rocking despite 1-point nick from Google keyword issue in vehicle debt business. Forecast shows high teens rest of year. Europe steady at around 10% for 8-10 quarters running. Combined three geographies yield 9-10% for full year.

Peter deferred to offline modeling conversation. Minority interest line became material with Avid investment and Mastercard stake. Adjusted basis showed approximately $27 million in Q4.

Ron confirmed unequivocally that deal profits fully cover borrowing costs, freeing all cash flow for capital return. Interest expense for Q4 expected around $115-120M per quarter, ticking up slightly next year for full quarter of Alpha borrowing.

Ron distinguished accounting cash flow (boosted by working capital) from operating cash income targeting $1.5B full year, up 10-12% YoY. Peter confirmed Q2 accounting presentation was favorable but not the right measurement.

Ron revealed pre-existing commercial agreement with Avid to cross-monetize supplier networks. Third-party analysis completed. Full combination would double spend through merchant network.

Ron identified two one-time Q4 factors: deal-related synergy revenue and channel business comp turning positive. Both non-recurring, bringing normalized rate back to high-teens.

Tom explained yield compression from FEMA activation business (low spread). Expected normalization back to $13-$15 range as hurricane support declines, though California wildfire support adds near-term mix pressure.

Mimi acknowledged hardware is lumpy with some wins this year offsetting last year's headwind. Corporate segment managed tightly but has different operating characteristics than core segments. More ancillary services than key revenue areas.

Mimi suggested looking at combined Q3-Q4 impact holistically rather than quarter-by-quarter and focusing on card volume as the forward indicator. Greg added network incentives depend on aggregate card association relationships and average spend dollars, not just transaction counts.

Greg said complementary wins tied to core deals take 15-18 months but independent digital and financial crimes wins implement in 6-9 months. Exploring selling digital offerings before core conversion as part of outside-the-base strategy. Moving toward modular, incremental approach rather than all-at-once conversions.

Mimi attributed outperformance to healthy consumer spending, growth in ancillary card services, EPS business stabilization, and faster payments volume growth off a small base. Greg added that Payrailz/iPay Bill Pay acquisition is now producing results with less compression and fewer deconversions in that business.

Mimi clarified JKHY is the reseller of a bundled product set. Net economic impact unchanged, just the gross revenue recognition changes. $12M of the $16M headwind falls in Q1, within the core segment.

Mimi indicated the gain is primarily in Q1 with some spread across the year, related to larger asset sales.

Greg clarified card patterns unchanged; acceleration driven by PayCentre growth becoming meaningful and large send transaction volumes with a few banks.

Mimi said transaction volumes were in line, faster payments ramping positively but bill pay EPS business growing more slowly than prior year.

Mimi attributed the later ramp to bank counterparty negotiations. Q2 expected stable; H2 will correlate with Fed actions.

Cameron agreed 2027 should accelerate once the Middle East headwind laps in Q2 2027, with Genius momentum and strong front-book bookings supporting acceleration off the 2026 ~4-5% cc ex-disposition base, while noting moving revenue a point on a business this size is a meaningful increment. On the follow-up, he said SMB's 4% was hard to disaggregate between heritage Worldpay and heritage GPN but was probably slightly more weighted to Global, with UK softness (macro-driven) coming more from Worldpay's SMB presence.

Josh provided clear split: GPN merchant 6%+ organic, Worldpay ~4%, blending to ~5%. Revenue composition: SMB ~50%, enterprise + integrated/platforms ~50% (roughly 25/25). Cameron added medium-term outlook unchanged from April, prudent H1 guide given businesses just combining, exiting above 5% to build momentum into 2027.

Bob confirmed back-book migration neutral-to-positive on yield with no meaningful price compression, describing migrations as capability unlocks rather than full data conversions. Front-book focus maintained aggressively.

Josh clearly outlined H2 merchant growth slightly above 6% with Genius contributing post May/June launch, and payroll at approximately $65 million per quarter closing end of Q3.

Josh confirmed the math. Cameron added flexibility from One Big Beautiful Bill Act for additional buybacks or leverage paydown.

Cameron attributed stable performance to international pockets of strength and general momentum, noting results relatively consistent with peers in the rounding but declined to explicitly claim share gains.

Paul Todd cited two Q4 tailwinds: pricing rollback comps and November 2025 volume weakness creating favorable compare. Clover fundamentally in mid-teens growth rate. Non-Clover expected net positive for full year despite Q1 decline.

Mike Lyons expects flat to slight growth in non-Clover SMB for 2026. Argentina no longer a growth factor. Non-Clover grew ex-Argentina in 2025.

Paul Todd outlined margin trough in Q1 2026 (~33-35% range for 2026), building back to 2025 exit-rate levels by end of 2026, then normalizing expansion beyond.

Bob Hau explained H2 acceleration from easier Argentina comps, Clover becoming larger share, Brazil ramp, Commerce Hub expansion, and enterprise client onboarding.

Bob Hau attributed Q4 issuing slowdown to timing of print/plastic volumes tied to the credit environment. Target goes live late March, Verizon in September, Desjardins in 2026.

McInerney tied the share gains to product investment domestic schemes struggle to match and pointed to roughly 30 million credentials expected from European wins.

Suh explained data processing revenue 17% vs 10% underlying transaction growth was driven by pricing and mix. FY25 pricing implemented in second half benefited Q3 and Q4 and will benefit into Q1. Mix reflects different products/services/clients/regions with varying yields, and faster growth in higher-yielding cross-border regions drove the acceleration in Q4 between transactions and revenue in data processing.

Chris attributed the volume-to-revenue gap to lower FX volatility and lapping stronger year-ago cross-border volume growth.