Fidelity National Information Services (NYSE:FIS) Posts Quarterly Earnings Results, Beats Expectations By $0.01 EPS

Fidelity National Information Services (NYSE:FIS) released its earnings results on Tuesday. The information technology services provider reported $1.48 EPS for the quarter, topping the consensus estimate of $1.47 by $0.01, Zacks reports. The business had revenue of $3.38 billion during the quarter, compared to analysts’ expectations of $3.38 billion. Fidelity National Information Services had a return on equity of 20.95% and a net margin of 27.64%.The firm’s revenue was up 29.1% on a year-over-year basis. During the same quarter last year, the firm posted $1.36 earnings per share. Fidelity National Information Services updated its FY 2026 guidance to 6.150-6.240 EPS and its Q3 2026 guidance to 1.580-1.620 EPS.

Here are the key takeaways from Fidelity National Information Services’ conference call:

• Strong second-quarter execution: Revenue rose 5.3% pro forma, adjusted EBITDA increased 7.4% with 113 basis points of margin expansion, and adjusted EPS grew 8.8%. Free cash flow more than tripled year over year to $525 million, prompting a $100 million increase to the full-year outlook.
• Banking Solutions remained a key growth driver, with revenue up 6.1% and EBITDA up 10.6%; recurring revenue was steady at 5%. Management cited strong demand for payments, fraud prevention, data, lending, modernization, and cybersecurity solutions.
• TSYS integration is progressing well: FIS reported wins with two large international banks, 72% of Total Issuing revenue is now contracted through 2029 or later, and joint-client ACV sales rose 35% year over year. The company remains on track for more than $150 million of EBITDA benefit from synergies by 2028.
• Capital Markets underperformed expectations: Revenue grew 3.2%, while professional services declined 17% because of weaker sales and slower backlog conversion. FIS cut its full-year Capital Markets growth outlook to 3%–3.5% from 5.5%, citing execution issues, UBS/Credit Suisse-related attrition, and continued pressure in lending.
• FIS is evaluating strategic alternatives for select Capital Markets products that do not fit its long-term profile, though management emphasized that this is not a review of the entire segment. The company expects modest Capital Markets reacceleration in the fourth quarter and recurring growth acceleration in 2027.

Fidelity National Information Services Stock Down 1.2%

Shares of NYSE:FIS traded down $0.52 during midday trading on Thursday, hitting $42.32. 837,429 shares of the company’s stock were exchanged, compared to its average volume of 6,063,596. Fidelity National Information Services has a 12 month low of $37.42 and a 12 month high of $72.91. The company has a market cap of $21.87 billion, a PE ratio of 6.47, a price-to-earnings-growth ratio of 0.44 and a beta of 0.77. The company has a debt-to-equity ratio of 0.96, a current ratio of 0.53 and a quick ratio of 0.59. The stock has a 50 day moving average price of $41.14 and a 200-day moving average price of $46.15.

Fidelity National Information Services Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, September 25th. Stockholders of record on Friday, September 11th will be given a dividend of $0.44 per share. The ex-dividend date of this dividend is Friday, September 11th. This represents a $1.76 annualized dividend and a dividend yield of 4.2%. Fidelity National Information Services’s payout ratio is presently 27.04%.

Analyst Ratings Changes

Several analysts have recently commented on FIS shares. Truist Financial reduced their price objective on shares of Fidelity National Information Services from $45.00 to $43.00 and set a “hold” rating for the company in a research report on Friday, July 24th. BNP Paribas Exane cut their target price on shares of Fidelity National Information Services from $40.00 to $37.00 and set an “underperform” rating on the stock in a research note on Thursday, May 14th. Citigroup reduced their price target on shares of Fidelity National Information Services from $48.00 to $45.00 and set a “neutral” rating for the company in a report on Wednesday. Keefe, Bruyette & Woods decreased their price target on shares of Fidelity National Information Services from $60.00 to $56.00 and set an “outperform” rating for the company in a research note on Wednesday. Finally, TD Cowen cut their price objective on shares of Fidelity National Information Services from $62.00 to $58.00 and set a “buy” rating on the stock in a research report on Wednesday. Twelve analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus target price of $56.55.

Fidelity National Information Services News Roundup

Here are the key news stories impacting Fidelity National Information Services this week:

• Positive Sentiment: FIS reported second-quarter adjusted earnings of $1.48 per share, ahead of the $1.47 consensus estimate, with revenue of $3.38 billion in line with expectations. Revenue increased 29.1% year over year, and Banking Solutions contributed to stronger growth and margins. FIS Tops Q2 Earnings Estimates
• Positive Sentiment: The company launched its Digital One Commercial platform in the Asia-Pacific region, giving banks a core-agnostic, composable platform to expand commercial banking services. The rollout supports FIS’s strategy to deepen its banking, payments and issuing businesses. FIS Launches Digital One Commercial
• Positive Sentiment: Unusually heavy call-option activity indicates some traders are positioning for a recovery; reported call purchases were roughly double typical volume. This is a market signal rather than a change to FIS’s fundamentals.
• Neutral Sentiment: TD Cowen, Wells Fargo, KBW and RBC maintained bullish ratings, with revised targets ranging from $53 to $58. TD Cowen’s $58 target still implies substantial potential upside from the recent trading level. TD Cowen Lowers FIS Price Target
• Negative Sentiment: FIS lowered its 2026 revenue and earnings outlook, overshadowing the quarterly earnings beat and prompting reports that the shares slumped. The company’s current full-year EPS guidance is $6.15–$6.24, while third-quarter guidance is $1.58–$1.62.
• Negative Sentiment: Several firms cut their targets: UBS to $49, Citi to $45, Barclays to $43, KBW to $56, RBC to $53, Wells Fargo to $58 and TD Cowen to $58. Ratings range from neutral/equal weight to outperform or buy, reflecting reduced estimates but continued confidence in longer-term upside.
• Negative Sentiment: Industry commentary highlights rising technology costs and pressure on consumer spending, which could weigh on margins across payment and transaction-processing companies, including FIS. Zacks Industry Outlook

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of FIS. Compound Planning Inc. raised its position in Fidelity National Information Services by 29.4% in the 4th quarter. Compound Planning Inc. now owns 6,935 shares of the information technology services provider’s stock valued at $461,000 after buying an additional 1,574 shares during the last quarter. Alberta Investment Management Corp raised its holdings in shares of Fidelity National Information Services by 59.6% in the fourth quarter. Alberta Investment Management Corp now owns 21,700 shares of the information technology services provider’s stock valued at $1,442,000 after purchasing an additional 8,100 shares during the last quarter. Mercer Global Advisors Inc. ADV lifted its position in shares of Fidelity National Information Services by 2.1% during the fourth quarter. Mercer Global Advisors Inc. ADV now owns 52,625 shares of the information technology services provider’s stock valued at $3,497,000 after purchasing an additional 1,092 shares in the last quarter. Vident Advisory LLC boosted its holdings in Fidelity National Information Services by 19.8% during the fourth quarter. Vident Advisory LLC now owns 116,507 shares of the information technology services provider’s stock worth $7,743,000 after purchasing an additional 19,274 shares during the last quarter. Finally, EP Wealth Advisors LLC purchased a new stake in Fidelity National Information Services in the 4th quarter valued at about $526,000. Institutional investors own 96.23% of the company’s stock.

Fidelity National Information Services Company Profile

Fidelity National Information Services (NYSE: FIS) is a global provider of financial technology solutions and services for banks, capital markets firms, merchants and corporations. The company develops and delivers software, processing, and outsourcing services that support core banking, payments and merchant acquiring, wealth and retirement platforms, risk and compliance, and trading and capital markets operations. Its offerings include cloud-based and on-premises core banking systems, card processing and gateway services, e-commerce and point-of-sale payment solutions, and a range of back-office and advisory services designed to automate and modernize financial operations.

FIS serves a broad international client base across North America, Europe, Latin America, and the Asia-Pacific region through a combination of direct clients and partner channels.