Fidelity National Information Services, Inc. (FIS) | Investment Case

1. Company Snapshot

1.a. Company Description

Fidelity National Information Services, Inc.provides technology solutions for merchants, banks, and capital markets firms worldwide.It operates through Merchant Solutions, Banking Solutions, and Capital Market Solutions segments.

The Merchant Solutions segment offers enterprise acquiring, software-led small- to medium-sized businesses acquiring, and global e-commerce solutions.The Banking Solutions segment provides core processing and ancillary applications; digital solutions, including Internet, mobile, and e-banking; fraud, risk management, and compliance solutions; electronic funds transfer and network services; card and retail payment solutions; wealth and retirement solutions; and item processing and output services.The Capital Market Solutions segment offers securities processing and finance, global trading, asset management and insurance, and corporate liquidity solutions.

Fidelity National Information Services, Inc.was founded in 1968 and is headquartered in Jacksonville, Florida.

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1.b. Last Insights on FIS

Fidelity National Information Services, Inc. faces negative drivers, including a likely earnings miss in its upcoming report, according to Wall Street expectations. Institutional investors, such as QRG Capital Management Inc., have sold shares, reducing their holdings by 38.7%. Additionally, the company's average rating has been assigned as "Hold" by 22 analysts, with two sell ratings. Despite a 10% increase in quarterly dividend, investors' sentiment remains cautious. Several firms, including Mirae Asset Global Investments Co. Ltd., have also lessened their stakes in the company.

1.c. Company Highlights

Last Price	50.53
Change Percentage	-1.27%
Open	51.02
Previous Close	51.18
Market Cap ( Millions)	26167
Volume	5199220
Year High	82.74
Year Low	46.16
M A 50	56.65
M A 200	67.75

FCF Yield	10.73%
Dividend Yield	3.25%
ROE	2.68%
Debt / Equity	28.87%
Net Debt / EBIDTA	95.07%
Price To Book	1.88
Price Earnings Ratio	68.39
Price To FCF	9.32
Price To sales	2.4
EV / EBITDA	8.24

2. FIS Delivers Strong 2025 Results, Sets Stage for Continued Growth in 2026

FIS reported adjusted revenue of $10.7 billion, a 5.8% increase, with EBITDA growing 4.7% and adjusted EPS rising 10.2% to $5.75. The company's robust financial performance was driven by durable recurring revenue growth, strong free cash flow generation of $1.6 billion, and a successful acquisition strategy, including the recent purchase of Total Issuing Solutions. Notably, the actual EPS came in at $0.667, falling short of estimates at $1.69.

Publication Date: Feb -25

                                    📋 Highlights
                                    2025 Financial Performance::
                                                Adjusted revenue rose 5.8% to $10.7B, EBITDA grew 4.7%, and adjusted EPS increased 10.2% to $5.75, alongside $1.6B free cash flow and $1.3B shareholder returns.
2026 Growth Projections::
                                                Revenue growth of 30-31% (adjusted) and 5.1-5.7% (pro forma), with EBITDA rising 34-35% (adjusted) and 7.2-8.4% (pro forma), while adjusted EPS targets $6.22-$6.32 (8-10% growth).
Free Cash Flow Expansion::
                                                Projects $2B+ free cash flow in 2026 (27-33% YoY growth) and $3B by 2028 (25% CAGR), driven by reduced capital intensity and AI/operational efficiencies.
Margin Expansion::
                                                Anticipates 155-175 bps EBITDA margin growth in 2026, exceeding 2025’s 90 bps, with pro forma margin expansion of 95-100 bps and FIS core margins surpassing prior projections.
AI and Data Leadership::
                                                Quadrupled AI/Data investment, deploying agents for client outcomes, enhancing fraud models with Total Issuing Solutions data, and pioneering Agentic Commerce to drive 40%+ banking revenue growth in 2026.

                                

Segment Performance and Growth Drivers

The Banking segment is growing faster than its medium-term range, with organic growth outpacing by 150 bps, driven by demand across all products, particularly core and payments, digital, and lending. Worldpay revenue also grew significantly, driven by the use of FIS' loyalty and premium payback products, network routing capabilities, and strong payment growth.

AI Adoption and Agentic Commerce

FIS is seeing significant engagement from bank clients as they rapidly adopt AI to tackle costs and redeploy savings into growth areas. The company is focused on Agentic commerce, ensuring that banks can identify and authorize Agentic transactions and protect against Agentic fraud, and is working with financial institutions to update fraud models for new ways of fraud using Agentic commerce.

Outlook and Guidance

FIS expects to deliver strong growth across revenue, margins, and free cash flow in 2026, with projected revenue growth of 30-31% on an adjusted basis and 5.1-5.7% on a pro forma basis. The company guides for organic growth consistent with 2025, around 4.5%, with legacy FIS business growing faster. FIS targets free cash flow of over $2 billion in 2026, growing 27-33% year-on-year.

Valuation and Metrics

With a P/E Ratio of 114.62 and EV/EBITDA of 174.86, FIS' valuation suggests a premium for its growth prospects. The company's ROE of 1.52% and ROIC of 3.04% indicate room for improvement in returns. FIS' Net Debt / EBITDA ratio of 21.07 may raise concerns about leverage, but the company's focus on repaying debt before considering buybacks is a positive sign.

3. NewsRoom

Blair William & Co. IL Reduces Stake in Fidelity National Information Services, Inc. $FIS

Mar -09

Source: defenseworld.net

Barclays PLC Has $109.71 Million Stock Holdings in Fidelity National Information Services, Inc. $FIS

Mar -08

Source: defenseworld.net

Fidelity National Information Services (NYSE:FIS) versus OppFi (NYSE:OPFI) Head-To-Head Comparison

Mar -08

Source: defenseworld.net

Why the Integrity Viking Funds Deal Is a Win for Fidelity National

Mar -05

Source: zacks.com

FIS to Present at Upcoming Conference

Mar -04

Source: businesswire.com

Integrity Viking Funds Modernizes Investment Accounting Infrastructure with FIS Investment Accounting Manager

Mar -04

Source: businesswire.com

Reviewing Fidelity National Information Services (NYSE:FIS) & Freightos (NASDAQ:CRGO)

Mar -04

Source: defenseworld.net

This industry has A LOT of M&A in it: FIS CEO

Mar -01

Source: youtube.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.48%)

6. Segments

Banking Solutions

Expected Growth: 6.5%

Fidelity National Information Services’ technology and outsourcing solutions drive growth, with increasing adoption by financial institutions seeking operational efficiency and cost reduction.

Corporate and Other

Expected Growth: 5.8%

Fidelity National Information Services' growth is driven by increasing adoption of digital payment solutions, strategic acquisitions, and cost savings initiatives, which are expected to offset the impact of rising interest rates and intense competition.

Capital Market Solutions

Expected Growth: 6.5%

Fidelity National Information Services' comprehensive suite of solutions drives adoption in capital markets, fueling growth through trading, investment management, and risk management capabilities.

7. Detailed Products

Merchant Solutions

Provides payment processing and merchant acquiring services to businesses of all sizes

Banking and Payments

Offers a range of banking and payment solutions, including core banking, digital channels, and payment processing

Capital Markets

Provides trading, risk management, and compliance solutions to capital markets firms

Wealth and Retirement

Offers wealth management and retirement solutions to financial institutions and advisors

Risk and Compliance

Provides risk management and compliance solutions to financial institutions

Digital Enablement

Offers digital transformation solutions to financial institutions, including digital channels and APIs

8. Fidelity National Information Services, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Fidelity National Information Services, Inc. operates in a highly competitive industry, but the threat of substitutes is mitigated by the company's strong brand recognition and customer loyalty.

Bargaining Power Of Customers

Fidelity National Information Services, Inc. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's products and services are often customized to meet specific customer needs, making it difficult for customers to switch to alternative providers.

Bargaining Power Of Suppliers

Fidelity National Information Services, Inc. has a diversified supplier base, which reduces the bargaining power of individual suppliers. The company's large scale of operations also gives it negotiating power with suppliers.

Threat Of New Entrants

The financial technology industry has high barriers to entry, including significant capital requirements and regulatory hurdles. This makes it difficult for new entrants to compete with established players like Fidelity National Information Services, Inc.

Intensity Of Rivalry

The financial technology industry is highly competitive, with many established players competing for market share. Fidelity National Information Services, Inc. faces intense competition from rivals such as Fiserv, Inc. and Global Payments Inc.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	50.09%
Debt Cost	4.21%
Equity Weight	49.91%
Equity Cost	8.88%
WACC	6.54%
Leverage	100.37%

11. Quality Control: Fidelity National Information Services, Inc. passed 4 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Broadridge Financial Solutions

A-Score: 5.9/10

Value: 2.0

Growth: 7.0

Quality: 6.4

Yield: 4.0

Momentum: 6.0

Volatility: 10.0

1-Year Total Return ->

Cognizant

A-Score: 5.7/10

Value: 4.9

Growth: 4.7

Quality: 7.6

Yield: 3.0

Momentum: 5.0

Volatility: 9.0

1-Year Total Return ->

IBM

A-Score: 5.7/10

Value: 1.8

Growth: 3.0

Quality: 6.0

Yield: 6.0

Momentum: 9.0

Volatility: 8.3

1-Year Total Return ->

FIS

A-Score: 4.4/10

Value: 2.8

Growth: 3.6

Quality: 4.4

Yield: 5.0

Momentum: 2.5

Volatility: 8.0

1-Year Total Return ->

Fiserv

A-Score: 4.3/10

Value: 7.5

Growth: 8.1

Quality: 6.4

Yield: 0.0

Momentum: 0.0

Volatility: 3.7

1-Year Total Return ->

Gartner

A-Score: 4.2/10

Value: 3.5

Growth: 8.1

Quality: 8.0

Yield: 0.0

Momentum: 0.5

Volatility: 5.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-5.90%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

6.54%

Fidelity National Information Services, Inc. - US31620M1062

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on FIS

1.c. Company Highlights

Higher Yield

Less Volatile

Lower Growth

Earnings Beats

Strong Momentum

Revenues Miss

Fairly Valued

Revenues Beats

Stable Momentum

Weak Momentum

2. FIS Delivers Strong 2025 Results, Sets Stage for Continued Growth in 2026

Segment Performance and Growth Drivers

AI Adoption and Agentic Commerce

Outlook and Guidance

Valuation and Metrics

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.48%)

6. Segments

Banking Solutions

Expected Growth: 6.5%

Corporate and Other

Expected Growth: 5.8%

Capital Market Solutions

Expected Growth: 6.5%

7. Detailed Products

Merchant Solutions

Banking and Payments

Capital Markets

Wealth and Retirement

Risk and Compliance

Digital Enablement

8. Fidelity National Information Services, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Fidelity National Information Services, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

50.53$

Current Price

50.53$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA