Fidelity National Info (FIS) AI Stock Analysis

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Fidelity National Info

(NYSE:FIS)

Rating:58Neutral

Price Target:

$73.00

▲(3.06% Upside)

Fidelity National Info's stock score is primarily influenced by its strong cash flow generation and strategic earnings call highlights. However, technical indicators suggest bearish momentum, and the high P/E ratio indicates potential overvaluation. The company's financial performance shows moderate growth but faces profitability challenges.

Positive Factors

Business Strategy

FIS has developed and acquired more competitive products, driving improved customer retention and new business pipeline growth.

Financial Performance

Over 80% of FIS's revenue is recurring, providing strong visibility into future earnings.

Mergers and Acquisitions

The pending deal with TSYS is seen as favorable, offering an attractive narrative for the company with durable earnings and cash flow growth.

Negative Factors

Capital Markets Performance

Weaker Capital Markets performance and underwhelming future growth guidance have put pressure on the company's shares in a demanding market.

Guidance and Forecasts

September-quarter guidance calls for a 100-basis-point slowdown in adjusted revenue growth and adjusted EPS below the Street’s estimate.

Market Expectations

Near-term dynamics and a mismatch with Street expectations have raised doubts due to the need for clarification on growth and margin.

Fidelity National Info (FIS) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$37.39B

Dividend Yield2.12%

Average Volume (3M)2.95M

Price to Earnings (P/E)268.0

Beta (1Y)0.57

Revenue Growth3.64%

EPS Growth102.21%

CountryUS

Employees50,000

SectorTechnology

Sector Strength94

IndustryConsumer Electronics

Share Statistics

EPS (TTM)1.36

Shares Outstanding522,378,600

10 Day Avg. Volume4,808,391

30 Day Avg. Volume2,952,785

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap1.47

Enterprise Value/Revenue5.34

Enterprise Value/Gross Profit14.57

Enterprise Value/Ebitda16.32

Forecast

1Y Price Target

$85.27

Price Target Upside20.39% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering14

Fidelity National Info Business Overview & Revenue Model

Company DescriptionFidelity National Information Services, Inc. provides technology solutions for merchants, banks, and capital markets firms worldwide. It operates through Merchant Solutions, Banking Solutions, and Capital Market Solutions segments. The Merchant Solutions segment offers enterprise acquiring, software-led small- to medium-sized businesses acquiring, and global e-commerce solutions. The Banking Solutions segment provides core processing and ancillary applications; digital solutions, including Internet, mobile, and e-banking; fraud, risk management, and compliance solutions; electronic funds transfer and network services; card and retail payment solutions; wealth and retirement solutions; and item processing and output services. The Capital Market Solutions segment offers securities processing and finance, global trading, asset management and insurance, and corporate liquidity solutions. Fidelity National Information Services, Inc. was founded in 1968 and is headquartered in Jacksonville, Florida.

How the Company Makes MoneyFIS generates revenue through multiple streams, primarily by offering software solutions, processing services, and technology consulting to financial institutions. Its key revenue streams include transaction processing fees, subscription fees for software services, and professional services related to software implementation and maintenance. Additionally, FIS benefits from partnerships with major financial institutions and technology providers, which help expand its market reach and enhance its service offerings. The company's strong position in the payments sector, along with its focus on innovation and digital transformation, further contributes to its earnings by attracting new clients and retaining existing ones.

Fidelity National Info Key Performance Indicators (KPIs)

Any

Total Recurring Revenue

Total Recurring Revenue
Indicates the stability and predictability of the company's income, highlighting the strength of its customer relationships and the potential for sustained growth.

Chart InsightsFidelity National Info's recurring revenue has seen a notable decline since late 2023, reflecting strategic shifts and market challenges. Despite this, the recent earnings call highlights a 5% overall revenue growth, driven by the Banking segment's strong performance. The strategic acquisition of Global Payments Issuer business is expected to enhance operational efficiency and boost cash flow. However, slower growth in Capital Markets and a bad debt charge present ongoing challenges. The company remains optimistic, raising its full-year outlook and emphasizing shareholder returns through dividends and buybacks.

Data provided by:

Main Street Data

Fidelity National Info Earnings Call Summary

Earnings Call Date:Aug 05, 2025

(Q2-2025)

% Change Since: -10.30%|

Next Earnings Date:Oct 30, 2025

Earnings Call Sentiment Positive

The earnings call highlighted strong financial performance, strategic acquisitions, and increased shareholder returns. However, there were challenges such as technical difficulties, a bad debt charge, and slower growth in the Capital Markets segment. Overall, the positive aspects of the call, such as strong revenue growth and improved margins, outweighed the lowlights.

Q2-2025 Updates

Positive Updates

Strong Revenue Growth

Revenue grew by 5% to $2.6 billion, exceeding the outlook, driven by outperformance in the Banking business.

Improved EBITDA Margins

Adjusted EBITDA margins improved by 200 basis points sequentially, surpassing expectations.

Strategic Acquisitions

Announced the strategic acquisition of the Global Payments Issuer business and Everlink, enhancing international expansion and simplifying operations.

Shareholder Returns

Returned $460 million to shareholders through share repurchases and dividends in the second quarter, on track to meet the $1.2 billion target for the year.

Raising Full-Year Outlook

Increased full-year revenue, adjusted EBITDA, and EPS outlook due to strong quarterly performance and currency impacts.

Strong Banking Segment

Banking revenue grew by 6%, driven by improved commercial excellence and strong client retention.

Negative Updates

Technical Difficulties During Call

There was a brief technical difficulty during the call, causing a temporary interruption in the presentation.

Bad Debt Charge

A bad debt charge of approximately $8 million impacted Banking's EBITDA margin, contracting by 70 basis points.

Slower Capital Markets Growth

Capital Markets growth came in slightly below expectations due to a temporary slowdown in lending business and macroeconomic uncertainty.

Increased Cash Tax Payments

Higher cash tax payments resulted in a 23-point headwind on free cash flow.

Company Guidance

During the FIS Second Quarter 2025 Earnings Conference Call, the company highlighted several metrics showcasing their financial performance and strategic advancements. Revenue saw a 5% growth, reaching $2.6 billion, driven primarily by their Banking business, which alone grew by 6%. Adjusted EBITDA also increased by 5%, with EBITDA margins improving sequentially by 200 basis points. The adjusted earnings per share stood at $1.36. In terms of shareholder value, FIS returned $460 million through share repurchases and dividends, aiming to reach a $1.2 billion target for the year. The company's free cash flow was reported at $292 million, with a cash conversion rate of 52% for the quarter but is expected to reach 82% to 85% for the full year. The strategic acquisition of Global Payments Issuer business and the sale of their minority Worldpay stake were highlighted as key moves enhancing FIS’s operational simplification, boosting their financial profile, and improving free cash flow generation.

Fidelity National Info Financial Statement Overview

Summary

Fidelity National Info shows moderate revenue growth and improved leverage, but faces challenges in profitability and operational efficiency. Cash flow generation remains strong, providing a solid foundation for future investments and debt management.

Income Statement

Positive

Fidelity National Info shows moderate revenue growth with a TTM increase of 1.25%. Gross profit margins are stable around 36-37%, but net profit margins have declined significantly in the TTM to 6.89% from 14.32% in the previous year. EBIT and EBITDA margins have also decreased, indicating pressure on operational efficiency.

Balance Sheet

Neutral

The company's debt-to-equity ratio has improved to 0.28 in the TTM from 0.74 the previous year, reflecting reduced leverage. However, return on equity has decreased to 4.62% from 9.24%, indicating lower profitability on shareholder investments. The equity ratio remains stable, suggesting a balanced asset structure.

Cash Flow

Positive

Free cash flow growth is strong at 11.15% in the TTM, and the free cash flow to net income ratio is healthy at 0.78. However, the operating cash flow to net income ratio has decreased, indicating potential challenges in converting income into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.32B	10.13B	9.82B	9.72B	9.34B	12.55B
Gross Profit	3.79B	3.80B	3.68B	3.50B	3.35B	4.20B
EBITDA	3.38B	3.38B	2.91B	2.88B	5.02B	4.32B
Net Income	112.00M	1.45B	-6.65B	-16.72B	417.00M	158.00M
Balance Sheet
Total Assets	33.37B	33.78B	54.97B	63.28B	82.93B	83.84B
Cash, Cash Equivalents and Short-Term Investments	581.00M	834.00M	440.00M	456.00M	2.01B	1.96B
Total Debt	12.97B	11.54B	19.34B	20.41B	20.88B	20.62B
Total Liabilities	19.20B	18.08B	35.92B	35.87B	35.40B	34.35B
Stockholders Equity	14.17B	15.70B	19.05B	27.22B	47.35B	49.30B
Cash Flow
Free Cash Flow	1.59B	1.97B	4.22B	3.67B	3.56B	3.31B
Operating Cash Flow	1.72B	2.07B	4.33B	3.94B	4.81B	4.44B
Investing Cash Flow	-3.22B	8.14B	-1.52B	-373.00M	-1.77B	-914.00M
Financing Cash Flow	-2.12B	-12.62B	-3.32B	-2.57B	-2.54B	-2.75B

Fidelity National Info Technical Analysis

Technical Analysis Sentiment

Negative

Last Price70.83

Price Trends

50DMA

78.85

Negative

100DMA

77.46

Negative

200DMA

78.22

Negative

Market Momentum

MACD

-2.51

Positive

RSI

34.08

Neutral

STOCH

27.11

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FIS, the sentiment is Negative. The current price of 70.83 is below the 20-day moving average (MA) of 76.33, below the 50-day MA of 78.85, and below the 200-day MA of 78.22, indicating a bearish trend. The MACD of -2.51 indicates Positive momentum. The RSI at 34.08 is Neutral, neither overbought nor oversold. The STOCH value of 27.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FIS.

Fidelity National Info Risk Analysis

Fidelity National Info disclosed 33 risk factors in its most recent earnings report. Fidelity National Info reported the most risks in the "Tech & Innovation" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Fidelity National Info Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BR	76 Outperform	$30.36B	36.53	34.81%	1.35%	5.88%	20.69%
INFY	75 Outperform	$68.59B	21.16	30.46%	3.07%	4.52%	-0.22%
CTSH	74 Outperform	$33.88B	14.09	16.69%	1.74%	6.34%	12.16%
ACN	70 Outperform	$153.32B	19.59	27.27%	2.40%	6.21%	14.87%
FI	66 Neutral	$73.18B	22.50	12.66%	―	6.73%	3.93%
Sector *	61 Neutral	$36.30B	7.26	-7.27%	1.97%	7.74%	-7.92%
FIS	58 Neutral	$37.39B	267.99	1.01%	2.12%	3.64%	102.21%

* Technology Sector Average

Performance Comparison

FIS

Fidelity National Info

70.83

-6.67

-8.61%

ACN

Accenture

247.01

-74.00

-23.05%

Broadridge Financial Solutions

260.60

55.10

26.81%

CTSH

Cognizant

70.00

-4.72

-6.32%

Fiserv

136.70

-30.62

-18.30%

INFY

Infosys

16.56

-4.98

-23.12%

Fidelity National Info Corporate Events

M&A TransactionsRegulatory Filings and Compliance

Fidelity National Info Awaits Regulatory Approvals for Deal

Neutral

Jul 21, 2025

On April 17, 2025, FIS entered into an agreement to purchase the Issuer Solutions business from Global Payments Inc. and sell its equity interests in Worldpay Holdco, LLC to Global Payments. The Hart-Scott-Rodino Antitrust Improvements Act waiting period expired on July 18, 2025, but the transaction still requires additional regulatory clearances and approvals.

The most recent analyst rating on (FIS) stock is a Buy with a $85.00 price target. To see the full list of analyst forecasts on Fidelity National Info stock, see the FIS Stock Forecast page.

Executive/Board ChangesShareholder Meetings

Fidelity National Info Holds Annual Shareholder Meeting

Neutral

Jun 13, 2025

On June 12, 2025, Fidelity National Information Services, Inc. held its Annual Meeting of Shareholders where all nominated directors were elected to serve until the 2026 meeting. Additionally, shareholders approved the executive compensation on an advisory basis and ratified KPMG LLP as the independent registered public accounting firm for 2025.

The most recent analyst rating on (FIS) stock is a Buy with a $85.00 price target. To see the full list of analyst forecasts on Fidelity National Info stock, see the FIS Stock Forecast page.

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 07, 2025