Can Fidelity National Beat Q2 Earnings on Capital Market Strength?

Financial services technology solutions provider Fidelity National Information Services, Inc. FIS is set to report second-quarter 2025 results on Aug. 5, 2025, before the opening bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is currently pegged at $1.36 per share and the same for revenues is pinned at $2.58 billion.

The second-quarter earnings estimate remained stable over the past 60 days. The bottom-line prediction is in line with the year-ago figure. The Zacks Consensus Estimate for quarterly revenues implies year-over-year growth of 3.5%.

For full-year 2025, the Zacks Consensus Estimate for Fidelity National’s revenues is pegged at $10.47 billion, implying a rise of 3.4% year over year. Meanwhile, the consensus mark for current year EPS is pegged at $5.75, implying growth of around 10.2% on a year-over-year basis.

Fidelity National’s earningsbeat the consensus estimate in each of the last four quarters, with the average surprise being negative 5.9%.

Fidelity National Information Services, Inc. Price and EPS Surprise

Fidelity National Information Services, Inc. price-eps-surprise | Fidelity National Information Services, Inc. Quote

Q2 Earnings Whispers for Fidelity National

Our proven model predicts a likely earnings beat for the company this time around as well. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is precisely the case here.

FIS has an Earnings ESP of +0.67% and a Zacks Rank #2 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

You can see the complete list of today’s Zacks #1 Rank stocks here.

What Is Shaping Fidelity National’s Q2 Results?

The Zacks Consensus Estimate for Banking Solutions revenues indicates a 3.8% year-over-year increase. Similarly, both the consensus mark and our model estimate indicate around a 6% increase in revenues from Capital Market Solutions compared with the same quarter last year.

Both the consensus estimate and our model estimate for Total Recurring revenues indicate around a 3% increase in the to-be-reported quarter. Looking at the geographical breakdown, both the consensus mark and our model estimate signal 2.8% and 5.4% year-over-year growth in North America and All Other revenues, respectively.

The Zacks Consensus Estimate for Capital Market Solutions’ adjusted EBITDA indicates a 4.9% year-over-year increase, whereas our model estimate predicts 3.1% growth from the year-ago period. The consensus mark for Banking Solutions’ adjusted EBITDA indicates a 1.9% year-over-year growth.

The company earlier stated that it expects adjusted EBITDA to be in the range of $1.020-$1.035 billion. Also, adjusted EBITDA margin is anticipated to be in the range of 39.8-40%.

The factors stated above are likely to have positioned FIS for an earnings beat. The positives are likely to have been partially offset by a more than 9% decline in adjusted equity method investment earnings. We expect total operating expenses to increase only 0.6% year over year.

How Did Other Stocks Perform?

Here are some stocks in the broader payments space that have already reported earnings for this quarter: The Western Union Company WU, Mastercard Incorporated MA and Visa Inc. V.

Western Union reported second-quarter 2025 adjusted EPS of 42 cents, which missed the Zacks Consensus Estimate by 4.6% due to weaker performance in the CMT segment, lower revenues from Iraq and a decline in the North America retail business. However, improvements in Western Union’s consumer services unit and branded digital business, as well as lower operating expenses, partially offset the negatives.

Mastercard reported second-quarter 2025 adjusted earnings of $4.15 per share, which beat the Zacks Consensus Estimate by 2.5% thanks to increased gross dollar volume, cross-border volumes, strong demand for value-added services and growth in transactions due to robust consumer spending on travel and leisure. However, the upside was partly offset by Mastercard’s escalating operating expenses and higher rebates and incentives.

Visa reported third-quarter fiscal 2025 EPS of $2.98, which beat the Zacks Consensus Estimate of $2.86 by 4.2% on higher processed transactions, payment and cross-border volumes. However, the upside was partly offset by Visa’s increased operating expenses.

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

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