Here’s Why It Makes Sense for Investors to Retain Fidelity National Shares at This Time

Overview of Fidelity National Information Services (FIS)

Fidelity National Information Services, Inc. (FIS) specializes in delivering technology solutions for banking and payments, as well as processing and information services tailored to the financial sector. The company’s forward price-to-earnings ratio stands at 7.69, which is significantly below the industry average of 17.58. FIS has also earned a top-tier Value Score of A.

With a market value of $25.3 billion, FIS is well-positioned for future expansion. Its growth is fueled by strong results across core business segments, ongoing digital innovation, a broad international presence, and strategic partnerships.

Despite these strengths, FIS shares have declined by 30.5% over the past year, underperforming the industry’s 20.4% drop. The stock currently holds a Zacks Rank #3 (Hold).

Current Analyst Estimates for FIS

Analysts project that FIS will earn $6.27 per share in 2026, a figure that has remained unchanged over the last week. Revenue estimates for 2026 are set at $13.7 billion, suggesting a 28.6% increase from the previous year. Over the last four quarters, FIS exceeded earnings expectations twice, matched once, and missed once, resulting in an average earnings surprise of 0.6%.

Key Growth Catalysts for FIS

• Increasing demand for advanced banking technology as financial institutions invest more in digital infrastructure.
• Growth opportunities driven by a rise in bank mergers, greater fintech investment, and expanding needs for payment, digital banking, and lending platforms. In 2025, both the Banking Solutions and Capital Market Solutions divisions saw adjusted revenues climb 6% year-over-year.
• Expansion into digital assets to address the growing need for alternative payment solutions. FIS has sold its merchant-focused division and acquired Total Issuing Solutions, enhancing its credit issuing capabilities and strengthening relationships with major financial institutions. This move supports cross-selling and revenue synergies within its technology ecosystem.
• Accelerated investment in data analytics and artificial intelligence, leveraging data from over a billion accounts and billions of transactions to develop AI-driven tools for fraud prevention, credit assessment, and operational efficiency. These efforts are expected to drive innovation and support recurring revenue growth.
• Strong cash flow allows FIS to return value to shareholders through buybacks and dividends. In 2025, the company repurchased $1.3 billion in shares and distributed $847 million in dividends.

Potential Risks Facing FIS

Investors should be aware of several challenges:

• Rising operational costs could put pressure on profit margins.
• High levels of debt are leading to increased interest expenses, which may restrict financial flexibility. As of December 31, 2025, FIS reported $9.1 billion in long-term debt (excluding current portions), and net interest expenses rose 46.8% year-over-year. The company’s net debt-to-capital ratio is 42.5%, notably higher than the industry average of 15%.

Top Alternatives in Business Services

Other business services companies with stronger Zacks rankings include:

• Remitly Global, Inc. (RELY)
• Dave Inc. (DAVE)
• Sezzle Inc. (SEZL)

All three currently hold a Zacks Rank #1 (Strong Buy).

Performance Highlights for Key Picks

• Remitly Global (RELY): The consensus estimate for this year’s earnings is $0.50 per share, with two upward revisions in the last month and no downward changes. Remitly surpassed earnings forecasts in three of the last four quarters. Revenue for the current year is projected at $2 billion, representing 19.4% annual growth.
• Dave Inc. (DAVE): Analysts expect earnings of $14.72 per share this year, with two upward and one downward revision in the past 30 days. Dave exceeded earnings expectations in all four recent quarters, with an average surprise of 54.2%. Revenue is forecasted at $693.5 million, a 25.1% year-over-year increase.
• Sezzle Inc. (SEZL): The current-year earnings estimate is $4.69 per share, with four upward revisions in the last month and no downward changes. Sezzle beat earnings estimates in each of the last four quarters, averaging a 66.7% surprise. Revenue is expected to reach $576.9 million, up 28.1% from the previous year.

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