Fidelity National Information Services Shares Tumble on 1Q, 2025 Outlook

Fidelity National Information Services (FIS), a global leader in financial technology, saw its shares tumble by 9.8% in premarket trading on Tuesday, February 11, 2025, following lower-than-expected guidance for its current quarter and 2025 financial outlook. The company's stock price fell to around $74.25, a significant drop from its previous close of $82.50.

FIS forecasted revenue between $2.49 billion and $2.51 billion for the first quarter of 2025, which missed analysts' expectations of $2.57 billion. Additionally, the company guided for adjusted earnings per share (EPS) between $1.17 and $1.22, below analysts' estimates of $1.28 a share. For the full year 2025, FIS guided for revenue between $10.44 billion and $10.50 billion, as well as adjusted EPS between $5.70 and $5.80. These figures were slightly below analysts' expectations of $10.60 billion in revenue and $5.73 in adjusted EPS.

The company's CEO and President, Stephanie Ferris, attributed the guidance shortfall to "lower-than-expected revenue growth in our Banking Solutions segment, primarily due to slower-than-anticipated adoption of our new digital banking platform." She also noted that the company was "taking steps to address these issues and expects to see improved performance in the coming quarters."

Analysts have reacted to the news, with many maintaining their "Buy" ratings but adjusting their price targets downward. The average price target for FIS stock has been revised to $92.19, down from the previous average of $94.00. Despite the recent setback, many analysts remain optimistic about the company's long-term prospects, citing its strong track record of growth and innovation in the financial technology sector.



In conclusion, FIS' shares tumbled following lower-than-expected guidance for the first quarter of 2025 and the full year 2025. While the company faces short-term challenges, analysts remain optimistic about its long-term prospects. Investors should closely monitor FIS' progress and reassess their positions based on new information and developments. As always, it is essential to maintain a balanced perspective and consider both the risks and opportunities presented by the company's situation.