Here's Why Investors Should Retain Fidelity National Stock for Now

Fidelity National Information Services, Inc. FIS is well-poised for growth, driven by strong segment performances, digital transformation and innovations, international market presence, collaborations and solid cash flow generation abilities. In the past three months, shares of FIS have grown 1.9%, outperforming the industry’s 1% fall.

Fidelity National — with a market capitalization of $34.8 billion — provides banking and payments technology solutions, processing services and information-based services to the financial services industry. Its forward P/E of 10.63X is lower than the industry average of 21.13X. The company has a Value Score of B.

Courtesy of solid prospects, FIS currently carries a Zacks Rank #3 (Hold).

Where Do Estimates for FIS Stand?

The Zacks Consensus Estimate for Fidelity National’s 2025 earnings is pegged at $5.77 per share, indicating a 10.5% year-over-year rise. In the past 60 days, it has witnessed six upward estimate revisions against none in the opposite direction. Furthermore, the consensus mark for revenues is pegged at $10.6 billion for 2025, implying a 4.6% year-over-year rise. FIS beat earnings estimates in three of the past four quarters and met once, with an average surprise of 1.6%.

Fidelity National Information Services, Inc. Price, Consensus and EPS Surprise

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

FIS’ Growth Drivers

FIS continues to witness solid revenue growth, thanks to the robust performances from its Banking Solutions and Capital Market Solutions segments. Adjusted revenues from Banking Solutions and Capital Market Solutions businesses increased 6% year over year each in the third quarter of 2025. The company's diverse customer base, high recurring revenues, ongoing digital strategy, market strength and core business resilience contribute to sustained revenue growth.

FIS is making artificial intelligence a key part of its growth strategy. By leveraging AI alongside its extensive access to transaction and account-level data, the company is paving the way for automation, predictive insights and cutting-edge fraud detection. AI is also being used internally to enhance sales effectiveness and client support, reinforcing both growth and margin expansion.

FIS is strategically expanding its reach through targeted acquisitions and partnerships to enhance its digital and payments capabilities. Investing in areas like digital onboarding, credit processing and cutting-edge payment infrastructure is broadening its addressable market and deepening client relationships. Its early efforts in asset tokenization, stablecoin payments and tokenized deposits indicate a forward-thinking approach as financial systems continue to evolve, paving the way for sustainable, innovation-driven growth. FIS has partnered with Circle to enable U.S. financial institutions to offer USDC-based domestic and cross-border payments through its Money Movement Hub.

In the third quarter, the company rewarded its shareholders $509 million, to the tune of share buybacks worth $301 million and dividends of $208 million. It also raised its target of conducting share buybacks to around $1.3 billion from $1.2 billion in 2025. It intends to maintain quarterly dividend payments such that the dividend per share increases in line with the growth in adjusted EPS.

FIS’ Key Risks

There are some factors, however, that investors should keep a careful eye on.

Fidelity National faces rising cost pressures, which, in turn, may dampen margins in the days ahead. A debt-laden balance sheet induces an increase in interest expenses, which can limit financial flexibility. As of Sept. 30, 2025, long-term debt, excluding the current portion, amounted to $8.9 billion. Net interest expenses of $90 million increased 40.6% year over year in the third quarter of 2025. Its net debt-to-capital of 45.5% is well above the industry average of 15%.

Key Picks

Some better-ranked stocks in the business services space are OppFi Inc. OPFI, Dave Inc. DAVE and FirstCash Holdings, Inc. FCFS, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for OppFi’s current-year earnings of $1.57 per share has witnessed two upward revisions in the past 60 days against no movement in the opposite direction. OppFi beat earnings estimates in each of the trailing four quarters, with the average surprise being 52.2%. The consensus estimate for current-year revenues is pegged at $597.6 million, implying 13.6% year-over-year growth.

The Zacks Consensus Estimate for Dave’s current-year earnings of $12.96 per share has witnessed two upward revisions in the past 60 days against no movement in the opposite direction. Dave beat earnings estimates in each of the trailing four quarters, with the average surprise being 74.7%. The consensus estimate for current-year revenues is pegged at $546.1 million, implying 57.3% year-over-year growth.

The Zacks Consensus Estimate for FirstCash’s current-year earnings of $8.66 per share has witnessed two upward revisions in the past 60 days against no movement in the opposite direction. FirstCash beat earnings estimates in each of the trailing four quarters, with the average surprise being 12.4%. The consensus estimate for current-year revenues is pegged at $3.6 billion, suggesting 5.3% year-over-year growth.

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

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