| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 92 | 5.9x | 17.8x | Top tier | |
Growth | 83 | 18.3% | 7.1% | Top tier | |
Quality | 59 | 5.0% | 4.5% | Around median | |
Safety | 49 | 4.3x | 2.6x | Around median | |
Capital Return | 45 | 4.40% | 2.12% | Around median | |
Momentum | 6 | -37.8% | 2.9% | Bottom tier | |
Sentiment | 89 | 16 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Fidelity National Information Services provides technology services to financial institutions through three interconnected systems: Banking, Payments, and Capital Markets. The company typically enters a client relationship through a core ledger platform, such as core banking systems, commercial lending, or trading systems, and then expands the relationship by cross-selling payment services and value-added solutions; a client using all three systems generates nearly twice the revenue of a client using a single solution. Following the acquisition of Total Issuing Solutions, the addressable market expanded by approximately $28 billion, and 72 of the top 100 clients now use capabilities distributed across Banking, Payments, and Capital Markets.
In fiscal Q2 2026, FIS reported revenue of $3.4 billion, up 5.3% on a reported basis, gross profit of $1.2 billion, equivalent to a calculated gross margin of approximately 35.3%, net income of $231 million, and earnings per share of $0.45. Banking Solutions revenue grew 6.1%, split between 5.6% growth in Banking and 6.4% growth in Payments, while the Capital Markets segment grew 3.2%. Adjusted earnings before interest, taxes, depreciation, and amortization increased 7.4%, with the margin expanding by 113 basis points, while adjusted earnings per share increased 8.8%.
The revenue mix relies heavily on recurring contracts; recurring revenue grew 5% across both segments in fiscal Q2 2026, while recurring sales increased 14%. Capital Markets generated revenue of $1.6 billion in the first half of fiscal 2026, 74% of which was recurring, with an adjusted earnings before interest, taxes, depreciation, and amortization margin of 51.7%. Free cash flow also reached $525 million in the quarter, exceeded $1 billion in the first half, and reached $2.2 billion during the twelve months ended fiscal Q2 2026.
The stock carries a consensus “Buy” recommendation, with an average price target of $49 and a target range of $43 to $57; the average falls within the 52-week range of $37.42–$70.38 and is approximately 30% below the high end of that range. No reliable price-to-earnings ratio is available in the data, while the stock's decline of more than 10% on August 4, 2026 reflects a reassessment related to the reduced revenue and earnings outlook and weakness in Capital Markets; the positive consensus should therefore be weighed against the wide target range and execution uncertainty.
Figures in the text are as of 2026-08-29; the live price is shown at the top of the page.
The strongest driver came from Banking Solutions, whose revenue grew 6.1% on a reported basis, with Banking growing 5.6% and Payments growing 6.4%. Nonrecurring revenue in the segment also increased 21%, supported by licensing activity, while recurring revenue grew 5%. Total Issuing Solutions contributed to the momentum through 35% growth in sales to shared clients in the first half and two new wins with large banks in Latin America and India.
The company lowered its adjusted revenue growth outlook to 4.5%–5% from 5.1%–5.7% because Capital Markets performed below plan. The segment's growth outlook declined to 3%–3.5% from 5.5%, with 120 basis points of impact from weak professional services and the remainder of the reduction from slower recurring revenue. On August 4, 2026, management explained that weak professional services sales and the slow conversion of backlog were internal execution issues, not the result of a broad decline in market demand.
The acquisition expanded FIS's addressable market by approximately $28 billion and brought the company into global card issuance processing at greater scale. As of fiscal Q2 2026, 72% of portfolio revenue was contracted through 2029 and beyond, and the company had renewed approximately one-third of its revenue since the beginning of 2025. FIS is targeting more than $150 million in earnings before interest, taxes, depreciation, and amortization benefits by 2028, including $125 million in cost savings and $45 million in revenue synergies.
Automated analysis for informational purposes only — not investment advice.
As of August 4, 2026, FIS had ten artificial intelligence products used by 200 clients, along with a sales pipeline exceeding 500 opportunities. Artificial intelligence tools increased engineering team productivity to 1.5–2 times and reduced defects by 30%, while agentic programs reduced manual tickets by 70% and triage time by approximately 75%. The company is working with Anthropic on anti-money laundering and agentic fraud prevention capabilities, leveraging connected data across Banking, Payments, and Capital Markets.
Cash flow showed strong improvement in fiscal Q2 2026, exceeding $525 million and more than tripling compared with the corresponding period. Free cash flow reached approximately $1 billion in the first half and $2.2 billion over the twelve-month period, prompting the company to raise its fiscal 2026 outlook to $2.15–$2.25 billion. However, this improvement does not eliminate execution risk in Capital Markets, where professional services declined 17% and the segment's growth outlook was lowered to 3%–3.5%.
Capital Markets growth, expected at 2.5%–3% in fiscal Q3 2026, should be monitored, along with whether recurring revenue accelerates during Q4 as management expects. In Banking Solutions, important indicators include maintaining Payments growth near the mid-single-digit range and preserving the win rate exceeding 85% in opportunities involving one million accounts or more. At the group level, achieving free cash flow of $2.15–$2.25 billion and margin expansion of 85–105 basis points will test FIS's ability to offset revenue weakness through execution and cost management.
