Fidelity National Information Services (NYSE:FIS) Issues Earnings Results

Key Points

• FIS narrowly beat quarterly expectations, reporting adjusted EPS of $1.61 versus $1.60 consensus and revenue of $3.45 billion versus $3.43 billion.
• The company reduced its outlook, citing delayed client implementations, bank consolidation and weaker demand; its preliminary 2027 forecast calls for revenue ranging from a 0.5% decline to 1% growth and an adjusted EPS decline in the high-single- to low-double-digit range.
• Shares fell sharply after the results, while CFO James Kehoe announced he would step down; Alexandra Brooks was named interim CFO.

Fidelity National Information Services (NYSE:FIS - Get Free Report) released its earnings results on Wednesday. The information technology services provider reported $1.61 earnings per share for the quarter, beating analysts' consensus estimates of $1.60 by $0.01, FiscalAI reports. Fidelity National Information Services had a net margin of 27.64% and a return on equity of 20.95%. The firm had revenue of $3.45 billion for the quarter, compared to analysts' expectations of $3.43 billion. During the same period in the previous year, the company earned $1.51 earnings per share. The company's quarterly revenue was up 27.1% on a year-over-year basis.

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

• FIS reported third-quarter pro forma revenue growth of 3.7%, adjusted EPS growth of 6.6%, and 94 basis points of margin expansion. Year-to-date free cash flow rose 57% to $1.9 billion, and the company reaffirmed its full-year outlook of approximately $2.2 billion.
• FIS cut its 2026 revenue and earnings outlook, citing delayed client implementations, bank consolidation, lower demand for traditional licenses, and the prepaid-business divestiture. Full-year margin expansion is now expected at 20–30 basis points, and adjusted EPS growth at 1.2%–2.4%.
• The preliminary 2027 outlook points to revenue growth ranging from down 0.5% to up 1.0%, flat-to-down margins, and an adjusted EPS decline in the high-single- to low-double-digit range. Management attributed much of the pressure to lapping partnership revenue and unusually high bank termination fees, and expects these headwinds to largely fade in 2028.
• Management said demand remains strong, recurring ACV renewals are in the high 90s, and nearly all delayed client conversions are contractually secured and replanned. FIS is prioritizing subscription and SaaS sales, which it expects to support more durable recurring revenue over time.
• FIS plans continued investment in cybersecurity and resiliency, which management said will weigh on margins; it also expects higher-than-usual security spending and depreciation. CFO James Kehoe is leaving, with Alex Brooks serving as interim CFO while the board searches for a permanent successor.

Fidelity National Information Services Price Performance

NYSE FIS traded down $9.04 during trading hours on Wednesday, hitting $29.95. The company had a trading volume of 28,132,822 shares, compared to its average volume of 6,154,454. Fidelity National Information Services has a 52 week low of $29.15 and a 52 week high of $68.37. The firm has a 50 day simple moving average of $36.91 and a 200 day simple moving average of $43.64. The company has a debt-to-equity ratio of 0.96, a quick ratio of 0.53 and a current ratio of 0.53. The firm has a market capitalization of $15.48 billion, a price-to-earnings ratio of 4.55, a PEG ratio of 0.47 and a beta of 0.84.

Fidelity National Information Services Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Monday, December 28th. Shareholders of record on Monday, December 14th will be paid a $0.44 dividend. The ex-dividend date is Monday, December 14th. This represents a $1.76 annualized dividend and a yield of 5.9%. Fidelity National Information Services's dividend payout ratio (DPR) is currently 27.04%.

Wall Street Analysts Forecast Growth

FIS has been the subject of a number of recent research reports. Citigroup decreased their target price on Fidelity National Information Services from $45.00 to $39.00 and set a "neutral" rating for the company in a research report on Friday, October 16th. National Bank Financial set a $45.00 price target on Fidelity National Information Services in a research report on Friday, October 16th. Piper Sandler initiated coverage on Fidelity National Information Services in a research note on Friday, September 11th. They set a "neutral" rating and a $42.00 price target for the company. Morgan Stanley initiated coverage on Fidelity National Information Services in a report on Tuesday, July 7th. They issued an "equal weight" rating and a $47.00 price objective for the company. Finally, Barclays dropped their price objective on shares of Fidelity National Information Services from $43.00 to $38.00 and set an "equal weight" rating on the stock in a report on Friday, October 9th. Ten research analysts have rated the stock with a Buy rating, fourteen have given a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus price target of $47.96.

Fidelity National Information Services News Roundup

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

• Positive Sentiment: FIS reported Q3 adjusted earnings of $1.61 per share, slightly above the $1.60 consensus, while revenue of $3.45 billion also topped expectations of $3.43 billion. Earnings increased from $1.51 per share a year earlier. FIS Reports Third Quarter 2026 Results
• Negative Sentiment: FIS lowered its 2026 pro forma Banking Solutions revenue-growth outlook to 3.5%–4%, from 5%–5.5%. Delayed client conversions and bank consolidations are pushing out the timing of revenue, raising concerns about near-term growth. FIS Cuts Banking Growth Outlook Amid Project Delays
• Negative Sentiment: Several firms cut their ratings: William Blair and Oppenheimer moved from “outperform” to “market perform,” while JPMorgan downgraded FIS from “overweight” to “neutral.” JPMorgan set a $38 price target, above the cited share price, but the broadening downgrades may weigh on confidence.
• Negative Sentiment: CFO James Kehoe will step down effective November 5, with Executive Vice President Alexandra Brooks named interim CFO. Kehoe will remain as an adviser through March 2027; the leadership transition adds uncertainty as investors assess the revised outlook. FIS Announces CFO Transition

Insider Buying and Selling at Fidelity National Information Services

In other news, Director Jeffrey Goldstein purchased 1,585 shares of the stock in a transaction dated Thursday, October 15th. The shares were purchased at an average cost of $36.40 per share, with a total value of $57,694.00. Following the completion of the acquisition, the director owned 18,697 shares in the company, valued at $680,570.80. This represents a 9.26% increase in their position. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.28% of the stock is currently owned by corporate insiders.

Fidelity National Information Services Company Profile

Fidelity National Information Services, Inc NYSE: FIS is a global financial technology company that provides software, services and technology infrastructure to banks, financial institutions, merchants and other businesses. Its solutions are designed to support transaction processing, digital banking, payments, risk management and other essential financial operations.

FIS offers core banking and digital banking platforms, card and payment processing services, fraud and financial crime prevention tools, and technologies that help financial institutions manage accounts, lending and other banking activities.

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