Fidelity National Information Services (FIS) Increased Its Stock Repurchase Plan. Here's Why

Longleaf Partners, managed by Southeastern Asset Management, released its “Partners Fund” third-quarter 2025 investor letter. The letter can be downloaded here. The fund returned -0.33% in the third quarter, compared to the S&P 500’s 8.12 % return and the Russell 1000 Value’s 5.33% return. The firm is not happy with the flat performance of the portfolio, emphasizing its investments in real assets and brands that generate growing free cash flow (FCF) per share. Despite facing market pressures from speculation and government uncertainty, it anticipates that the Fund's ~10x FCF multiple could rise to the mid-teens as management implements strategies to improve margins and increase share repurchases. For more information on the fund’s best picks in 2025, please check its top five holdings.

In its third-quarter 2025 investor letter, Longleaf Partners Fund highlighted stocks such as Fidelity National Information Services Inc. (NYSE:FIS). Fidelity National Information Services, Inc. (NYSE:FIS) is a leading provider of financial technology solutions for financial institutions, businesses, and developers. The one-month return of Fidelity National Information Services, Inc. (NYSE:FIS) was 7.20%, and its shares lost 23.24% of their value over the last 52 weeks. On October 23, 2025, Fidelity National Information Services, Inc. (NYSE:FIS) stock closed at $67.53 per share, with a market capitalization of $35.788 billion.

Longleaf Partners Fund stated the following regarding Fidelity National Information Services, Inc. (NYSE:FIS) in its third quarter 2025 investor letter:

"Fidelity National Information Services, Inc. (NYSE:FIS) - Financial software provider FIS was a detractor for the quarter. The Capital Markets segment grew 5%, which was less than expectations. Management cited volumes rebounding in Q3, but the market is skeptical. Margins were also slightly lower than expected due to an acquisition with lower margins that should revert to higher margins as it is integrated. We believe FIS’ underlying fundamentals remain on-track, and the upcoming purchase of Global Payment’s Issuer Solutions business and sale of FIS’ remaining Worldpay stake will further improve FIS’ economic predictability and increase FCF conversion. In the interim, management continues to repurchase stock and recently increased the 2025 repurchase plan by $100 million to $1.3 billion citing “the share price is just too low. So, we see it as a value.”

Fidelity National Information Services, Inc. (NYSE:FIS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 49 hedge fund portfolios held Fidelity National Information Services, Inc. (NYSE:FIS) at the end of the second quarter, compared to 56 in the previous quarter. While we acknowledge the potential of Fidelity National Information Services, Inc. (NYSE:FIS) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Fidelity National Information Services, Inc. (NYSE:FIS) and shared the list of bank stocks to buy according to Goldman Sachs. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.