FIS Shares Plunge 9.33% to 2023 Low as Earnings Doubts Overshadow Strong Q3 Performance

Fidelity National Information Services (FIS) fell to its lowest level since November 2023 on Feb. 4, with a 9.33% intraday drop, as investor sentiment wavered ahead of its Q4 2025 earnings report. The decline comes despite strong third-quarter results and management’s optimistic guidance for margin expansion in 2026.

The stock’s selloff reflects mixed signals from the company. While FIS exceeded Q3 2025 earnings and revenue forecasts, driving a pre-market rally, analysts noted a marginal 0.06% downward revision in the consensus EPS estimate over the past 30 days. This, coupled with a negative Zacks Earnings ESP model reading, has raised concerns about the likelihood of a Q4 2025 earnings surprise. Management’s updated full-year revenue growth guidance of 5.4–5.7% and projected 60-basis-point margin expansion in 2026 remain positive, but investors appear cautious ahead of the critical earnings release.

Strategic moves, including AI-driven fraud prevention and credit issuer solutions acquisitions, highlight FIS’s efforts to solidify its fintech leadership. However, the sector’s competitive landscape and regulatory risks—such as cybersecurity threats—loom large. The stock’s recent volatility, including an 11.47% drop in Q2 2025 following a modest revenue beat, underscores the market’s sensitivity to earnings trends. With a Zacks Rank of #3 (Hold), FIS’s ability to meet or exceed expectations in Q4 will be pivotal in determining whether its trajectory stabilizes or continues to face headwinds.