Here's Why Investors Should Hold Fidelity National Stock for Now

Fidelity National Information Services, Inc. FIS provides banking and payments technology solutions, processing services and information-based services to the financial services industry. Its forward P/E of 7.69X is lower than the industry average of 17.58X. The company has a Value Score of A.

Fidelity National — with a market capitalization of $25.3 billion — is well positioned for growth, supported by robust performance across its key segments, ongoing digital transformation initiatives and innovation, an expansive international footprint and strategic collaborations.

Courtesy of solid prospects, FIS currently carries a Zacks Rank #3 (Hold). Over the past year, shares of FIS have lost 30.5% compared with the industry’s 20.4% decline.

Let’s delve deeper.

Where Do Estimates for FIS Stand?

The Zacks Consensus Estimate for Fidelity National’s 2026 earnings is pegged at $6.27 per share, which has remained stable over the past seven days. The consensus mark for revenues is pinned at $13.7 billion for 2026, implying a 28.6% year-over-year rise. FIS beat earnings estimates in two of the trailing four quarters, met once and missed once, with an average surprise of 0.6%.

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

FIS’ Growth Drivers

FIS is benefiting from strong banking technology demand as financial institutions increase spending on digital infrastructure. Rising bank mergers and acquisitions, higher fintech investments and growing demand for payments, digital banking and lending platforms are driving growth opportunities for the company. Adjusted revenues from the Banking Solutions and Capital Market Solutions businesses rose 6% year over year each in 2025.

It is steadily building capabilities across the digital assets ecosystem to meet rising demand for alternative payment rails. The company divested its merchant-focused business and acquired Total Issuing Solutions to strengthen its credit issuing capabilities and deepen relationships with large financial institutions. This move enables cross-selling opportunities and improved revenue synergies across its banking technology ecosystem.

FIS is accelerating investments in data and artificial intelligence. By leveraging data from more than one billion accounts and billions of transactions, the company is developing AI-powered solutions for fraud detection, credit decisioning and operational automation. These initiatives support innovation and long-term recurring revenue growth.

Its cash generation abilities enable it to continue elevating shareholder value through share buybacks and dividend payouts. In 2025, the company rewarded its shareholders with share buybacks worth $1.3 billion and paid dividends of $847 million.

FIS’ Key Risks

There are some factors that investors should keep a careful eye on.

Fidelity National faces rising cost pressures, which, in turn, may dampen margins in the days ahead. A debt-laden balance sheet is inducing an increase in interest expenses, which can limit financial flexibility. As of Dec. 31, 2025, long-term debt, excluding the current portion, amounted to $9.1 billion. Net interest expenses increased 46.8% year over year in 2025. Its net debt-to-capital ratio of 42.5% is well above the industry average of 15%.

Key Picks

Some better-ranked stocks in the business services space are Remitly Global, Inc. RELY, Dave Inc. DAVE and Sezzle Inc. SEZL, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Remitly Global’s current-year earnings is pinned at 50 cents per share and has witnessed two upward revisions in the past 30 days, against no movement in the opposite direction. Remitly Global beat earnings estimates in three of the trailing four quarters. The consensus estimate for current-year revenues is pegged at $2 billion, implying 19.4% year-over-year growth.

The Zacks Consensus Estimate for Dave’s current-year earnings is pinned at $14.72 per share and has witnessed two upward revisions in the past 30 days against one movement in the opposite direction. Dave beat earnings estimates in each of the trailing four quarters, with the average surprise being 54.2%. The consensus estimate for current-year revenues is pegged at $693.5 million, implying 25.1% year-over-year growth.

The Zacks Consensus Estimate for Sezzle’s current-year earnings is pinned at $4.69 per share and has witnessed four upward revisions in the past 30 days against no movement in the opposite direction. Sezzle beat earnings estimates in each of the trailing four quarters, with the average surprise being 66.7%. The consensus estimate for current-year revenues is pegged at $576.9 million, implying 28.1% year-over-year growth.

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Fidelity National Information Services, Inc. (FIS): Free Stock Analysis Report

Dave Inc. (DAVE): Free Stock Analysis Report

Remitly Global, Inc. (RELY): Free Stock Analysis Report

Sezzle Inc. (SEZL): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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