With a market capitalization of approximately $22.1 billion, Fidelity National Information Services, Inc. (FIS) is a global financial technology company that provides software and technology solutions to banks, businesses, and financial institutions. Headquartered in Jacksonville, Florida, its services support banking, payments, investments, risk management, and other financial operations, helping clients process transactions and manage financial assets.
Shares of this leading financial technology company have significantly underperformed the broader market over the past year. FIS has declined 38.8% over this period, while the broader S&P 500 Index ($SPX) has rallied 21.5%. The underperformance has continued in 2026, with the stock down 35.6%, compared with the index’s 12.6% gain over the same period.
Compared with the Global X FinTech ETF (FINX), FIS has also underperformed, with the ETF declining 21.8% over the past year and 11.4% on a year-to-date basis.
On August 4, FIS reported its Q2 FY2026 earnings, with shares declining 1.2% as investors weighed the company’s lowered full-year outlook. Revenue increased 29.1% on a GAAP basis to $3.4 billion, while operating segment revenue rose 31.2% on an adjusted basis, driven in part by 44% growth in Banking Solutions following the acquisition of the Total Issuing Solutions business. Adjusted EPS rose 8.8% to $1.48.
FIS updated its full-year 2026 outlook, projecting adjusted revenue growth of 29% to 30%, adjusted EBITDA growth of 32% to 34%, and adjusted EPS growth of 7.0% to 8.5%. On a pro forma basis, the company lowered its revenue growth outlook to 4.5% to 5.0%, from 5.1% to 5.7%, and adjusted EBITDA growth to 5.9% to 6.9%, from 7.2% to 8.4%. Free cash flow guidance was raised by $100 million to $2.15 billion to $2.25 billion.
For the current fiscal year, ending in December 2026, analysts expect FIS’s diluted EPS to increase 7.8% to $6.20. The company has beaten the consensus EPS estimate in three of the past four quarters while missing estimates in the remaining quarter.
Among the 28 analysts covering FIS stock, the consensus rating is a "Moderate Buy." The rating is based on 11 "Strong Buy" ratings, three "Moderate Buy" ratings, 13 "Hold" ratings, and one "Strong Sell" rating.
This configuration is more bearish than it was a month ago, when the stock had 12 "Strong Buy" recommendations.
On August 5, Morgan Stanley analyst James Faucette maintained a Hold rating on Fidelity National Information Services while lowering the price target from $47 to $46.
Based on analysts' estimates, the mean price target of $54.04 implies a 26.2% upside from FIS's current share price. The Street-high price target of $73 suggests an upside potential of 70.5%.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.