Vasu Govil

Mimi cited medical cost normalization, commission timing shift from earlier quarters, and lower-margin revenue mix from work orders and implementation. Q4 not indicative of full-year performance. Full-year margin expansion guide raised to 75-95bp.

Greg said it's a combination of innovation momentum and competitor dynamics. 13 of 17 Q3 wins came from one competitor. Most were already in motion before consolidation announcements since core deals take 9-12 months. Wins came from really all competitors.

Greg argued AI impact concerns are misinformed for core banking, complexity of building cores, payment network integrations, and regulatory compliance can't be replicated by AI alone. No seat license model means less vulnerability. AI being used internally for efficiency and embedded in platform products. Headcount growing less than 1% reflects AI-driven productivity.

Greg confirmed M&A remains net neutral to positive. Even when clients are acquired, Jack Henry gets invited to discuss complementary/payment products with acquiring institution. Winning core deals pre-conversion and having post-conversion product conversations. Platform strategy creating more touchpoints than years ago.

Greg attributed slowdown to neobank competition, SMBs moving to alternative providers, dormant account purging, and deposit strategy changes. Only 16% of retail customers have their business account at the same institution, reinforcing SMB strategy importance.

Greg emphasized no single client is substantial. The large bank merger client is in-house (lower revenue impact). Conversations with both parties show no indication of termination. If changes occur, it would be FY27 not FY26. Renewals at $223B in assets vs $94B last year contributing more to headwind than deconversions.

Mimi sized the hardware headwind at $11M for the year (80% in corporate segment) and noted customers delaying capital purchases due to economic uncertainty and cloud evaluation. Card softness emerged more in April.

Greg noted single-platform debit/credit processing remains a differentiator. Competitor historically wasn't a major challenge on debit processing. Too early to assess competitive impact from the deal.

Greg attributed it to timing and core-tied deals, noted plans to sunset NetTeller platform which will accelerate migrations. Taking different approach for outside-the-base sales.

Mimi confirmed 65-75% guide intact, explained Q1 timing shift from annual maintenance collections that benefited Q4 last year.

Ferris said no incremental spend is needed; cyber is already a top priority and scale plus AI tooling strengthen FIS's position.

Ferris declined to size the review or give a timeline, saying only that a deeper dive is underway.

Stephanie said AI adoption is faster than any prior technology wave. Large banks deploying AI themselves but coming to FIS for real-time data. Mid-sized banks want FIS to build models. Small banks want embedded Agentic workflows for back-office cost reduction. James noted Q4 margin surprise came from higher-than-expected customer demand for output services/equipment (lower margin) and negative currency at 35bps.

Stephanie said FIS pricing is consistent with no impact from competitive pressure. Scale advantage allows price competitiveness. James added both businesses had positive net pricing in the quarter, Banking up slightly and Capital Markets at historic 1-2% range.

Stephanie said completed bank M&A is reflected but no incremental M&A is baked into guide. New announcements would be upside. Reiterated FIS serves the consolidators and has strong product positioning to win these deals.

Stephanie didn't provide a specific Q1 ACV number, noting they typically only share full-year figures. Said sales, retention, and pipeline all feel strong with high renewal rates.

Stephanie confirmed FIS is on both sides of the transaction. The deal closing is important to FIS as a partner; doesn't materially move the needle but is a very active relationship.

James noted Worldpay had strong Q4 with revenue up ~7%. The 7.5% EMI growth guide was agreed with Worldpay management. Upside came from EBITDA, and a debt refinancing is built in.

Stephanie noted bank M&A is generally net positive since FIS serves larger institutions that tend to be consolidators. Normal M&A baked into outlook.

Cameron explained cloud modernization expands TAM by enabling down-market FIs, new geographies, and fintech consumption, but positioned as longer-term growth driver.

Cameron acknowledged guidance is slightly better than IC, attributing improvement to early transformation success and better visibility on managing change without excessive disruption.

Mark framed big banks as the real competition and said smaller fintechs are not impacting primary-account acquisition.

Paul Todd attributed nonrecurring comp mainly to hardware revenue. Clover Capital strategy to be detailed at Investor Day. Saw good underlying volume growth with no change in trajectory. Mike Lyons highlighted both domestic and international opportunity.