Fidelity National Information Services, Inc. (NYSE: FIS) shares gained 5.5% since it reported first-quarter 2024 results on May 6, 2024. Upward revision in adjusted earnings per share guidance, along with favorable EBITDA margin expansion, might have buoyed investor confidence in the stock. The first-quarter earnings benefited from strong recurring revenue growth in both the segments and strong new sales growth. However, negative professional services revenue growth in both segments and a less favorable revenue mix in Capital Markets partially offset the results. FIS reported first-quarter 2024 adjusted EPS of $1.10, which beat the Zacks Consensus Estimate by 14.6%. However, the bottom line declined 14.7% year over year. Revenues dipped 29.6% year over year to $2.5 billion. However, the top line beat the consensus mark of $2.4 billion. Fidelity National Information Services, Inc. Price, Consensus and EPS Surprise Fidelity National Information Services, Inc. price-consensus-eps-surprise-chart | Fidelity National Information Services, Inc. Quote Q1 Performance The cost of revenues was $1.55 billion in the quarter under review, which slipped 1.2% year over year. Selling, general and administrative expenses of Fidelity National increased 10.8% year over year to $573 million and were higher than our estimate of $524.9 million. Net interest expenses declined 45.8% year over year to $77 million and was lower than our estimate of $95 million. Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) rose 8% year over year to $975 million and beat our estimate of $966.2 million. Adjusted EBITDA margin of 39.5% improved 200 basis points (bps) year over year in the first quarter. Segmental Update Revenues from the Banking Solutions unit increased 2% year over year to $1.68 billion, higher than the Zacks Consensus Estimate and our estimate of $1.67 billion. Improved adjusted recurring revenues and adjusted non-recurring revenues shaped the segment's quarterly performance. Adjusted EBITDA was $745 million in the quarter under review, which surpassed the consensus mark of $697 million and our estimate of $726.3 million. Adjusted EBITDA margin of 44.3% improved 350 bps year over year, attributable to cost efficiencies. The Capital Market Solutions segment recorded revenues of $706 million, which grew 7% year over year in the first quarter and beat the Zacks Consensus Estimate of $705 million. The metric improved as a result of strong recurring revenue growth. Adjusted EBITDA of $335 million missed the consensus mark of $342 million. Adjusted EBITDA margin deteriorated 80 bps year over year to 47.4% due to a less favorable revenue mix. The Corporate and Other segment's revenues amounted to $77 million, which declined 12% year ...