Fidelity National Information Services (NYSE:FIS) Posts Earnings Results, Beats Expectations By $0.01 EPS

Fidelity National Information Services (NYSE:FIS) announced its quarterly earnings results on Tuesday. The information technology services provider reported $1.48 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.47 by $0.01, Zacks reports. Fidelity National Information Services had a net margin of 23.35% and a return on equity of 21.30%. The firm’s revenue was up 29.1% on a year-over-year basis. During the same quarter in the prior year, the company posted $1.36 earnings per share. Fidelity National Information Services updated its FY 2026 guidance to 6.150-6.240 EPS and its Q3 2026 guidance to 1.580-1.620 EPS.

Here are the key takeaways from Fidelity National Information Services’ conference call:

• Strong second-quarter execution: Revenue rose 5.3% pro forma, adjusted EBITDA increased 7.4% with 113 basis points of margin expansion, and adjusted EPS grew 8.8%. Free cash flow more than tripled year over year to $525 million, prompting a $100 million increase to the full-year outlook.
• Banking Solutions remained a key growth driver, with revenue up 6.1% and EBITDA up 10.6%; recurring revenue was steady at 5%. Management cited strong demand for payments, fraud prevention, data, lending, modernization, and cybersecurity solutions.
• TSYS integration is progressing well: FIS reported wins with two large international banks, 72% of Total Issuing revenue is now contracted through 2029 or later, and joint-client ACV sales rose 35% year over year. The company remains on track for more than $150 million of EBITDA benefit from synergies by 2028.
• Capital Markets underperformed expectations: Revenue grew 3.2%, while professional services declined 17% because of weaker sales and slower backlog conversion. FIS cut its full-year Capital Markets growth outlook to 3%–3.5% from 5.5%, citing execution issues, UBS/Credit Suisse-related attrition, and continued pressure in lending.
• FIS is evaluating strategic alternatives for select Capital Markets products that do not fit its long-term profile, though management emphasized that this is not a review of the entire segment. The company expects modest Capital Markets reacceleration in the fourth quarter and recurring growth acceleration in 2027.

Fidelity National Information Services Trading Down 5.5%

Shares of FIS stock traded down $2.46 on Tuesday, reaching $42.32. 6,158,445 shares of the stock were exchanged, compared to its average volume of 6,005,006. The company has a debt-to-equity ratio of 1.05, a current ratio of 0.59 and a quick ratio of 0.59. Fidelity National Information Services has a one year low of $37.42 and a one year high of $76.49. The stock has a market cap of $21.88 billion, a PE ratio of 8.21, a P/E/G ratio of 0.44 and a beta of 0.77. The stock has a 50 day moving average price of $41.08 and a 200 day moving average price of $46.44.

Fidelity National Information Services Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, September 25th. Stockholders of record on Friday, September 11th will be given a dividend of $0.44 per share. The ex-dividend date is Friday, September 11th. This represents a $1.76 dividend on an annualized basis and a dividend yield of 4.2%. Fidelity National Information Services’s payout ratio is presently 34.11%.

Key Fidelity National Information Services News

Here are the key news stories impacting Fidelity National Information Services this week:

• Positive Sentiment: FIS reported second-quarter adjusted earnings of $1.48 per share, slightly above the $1.47 consensus estimate and up from $1.36 a year earlier. Quarterly revenue increased 29.1% year over year, while management highlighted recurring growth, margin expansion and stronger cash generation. FIS Reports Second Quarter 2026 Results
• Positive Sentiment: Options activity was unusually bullish, with traders purchasing 4,004 call options—105% above the average daily call volume of 1,949 contracts. This may indicate increased speculative interest in a potential recovery for FIS, although options activity does not guarantee future stock performance.
• Neutral Sentiment: Analysts are also examining key operating metrics from the June 2026 quarter to determine whether the earnings beat reflects sustainable business improvement beyond the headline EPS result. Key Metrics for FIS Q2 Earnings
• Negative Sentiment: FIS lowered its outlook relative to consensus expectations. Third-quarter EPS guidance of $1.58–$1.62 is below the $1.65 estimate, while revenue guidance of approximately $3.4 billion trails the $3.5 billion consensus.
• Negative Sentiment: Full-year 2026 EPS guidance of $6.15–$6.24 is below the $6.28 consensus, and projected revenue of $13.6–$13.7 billion is below the $13.8 billion estimate. The guidance shortfall appears to outweigh the modest second-quarter earnings beat. FIS Tops Q2 Earnings Estimates

Institutional Trading of Fidelity National Information Services

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in FIS. Compound Planning Inc. grew its position in shares of Fidelity National Information Services by 29.4% during the 4th quarter. Compound Planning Inc. now owns 6,935 shares of the information technology services provider’s stock worth $461,000 after buying an additional 1,574 shares during the period. Alberta Investment Management Corp boosted its stake in Fidelity National Information Services by 59.6% in the fourth quarter. Alberta Investment Management Corp now owns 21,700 shares of the information technology services provider’s stock valued at $1,442,000 after acquiring an additional 8,100 shares during the last quarter. Mercer Global Advisors Inc. ADV boosted its stake in Fidelity National Information Services by 2.1% in the fourth quarter. Mercer Global Advisors Inc. ADV now owns 52,625 shares of the information technology services provider’s stock valued at $3,497,000 after acquiring an additional 1,092 shares during the last quarter. Vident Advisory LLC grew its holdings in Fidelity National Information Services by 19.8% during the 4th quarter. Vident Advisory LLC now owns 116,507 shares of the information technology services provider’s stock worth $7,743,000 after acquiring an additional 19,274 shares during the period. Finally, EP Wealth Advisors LLC acquired a new stake in Fidelity National Information Services during the 4th quarter worth $526,000. 96.23% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

Several analysts have recently weighed in on FIS shares. The Goldman Sachs Group dropped their price objective on shares of Fidelity National Information Services from $65.00 to $57.00 and set a “buy” rating for the company in a report on Monday, May 11th. Keefe, Bruyette & Woods reduced their target price on Fidelity National Information Services from $72.00 to $68.00 and set an “outperform” rating on the stock in a report on Tuesday, April 7th. Stephens decreased their price target on Fidelity National Information Services from $85.00 to $65.00 and set an “overweight” rating on the stock in a research report on Friday, May 8th. UBS Group dropped their price target on Fidelity National Information Services from $73.00 to $63.00 and set a “buy” rating for the company in a report on Monday, May 11th. Finally, Oppenheimer cut their price objective on Fidelity National Information Services from $69.00 to $62.00 in a research report on Friday, May 8th. Thirteen investment analysts have rated the stock with a Buy rating, nine have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $58.68.

Fidelity National Information Services Company Profile

Fidelity National Information Services (NYSE: FIS) is a global provider of financial technology solutions and services for banks, capital markets firms, merchants and corporations. The company develops and delivers software, processing, and outsourcing services that support core banking, payments and merchant acquiring, wealth and retirement platforms, risk and compliance, and trading and capital markets operations. Its offerings include cloud-based and on-premises core banking systems, card processing and gateway services, e-commerce and point-of-sale payment solutions, and a range of back-office and advisory services designed to automate and modernize financial operations.

FIS serves a broad international client base across North America, Europe, Latin America, and the Asia-Pacific region through a combination of direct clients and partner channels.