Fidelity National Information Services, Inc. (FIS)

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AI: Undervalued

Price checkThe shares look undervalued if the company’s new cash target proves repeatable.

At $42.92, the August 14 close, 515.71 million shares imply a market value near $22.13 billion. FIS forecasts $6.15-$6.24 of adjusted 2026 earnings per share, putting the price near 6.9 times that range. Its $2.15-$2.25 billion free cash flow target—cash left after running and investing in the business—equals roughly 10% of market value. A 10% required return with no future growth approximately supports today’s price, so even modest durable growth suggests undervaluation. However, that cash target excludes Worldpay transaction taxes.

Big pictureRecurring growth and rising cash support the case, but past accounting losses still matter.

Revenue increased from $9.34 billion in 2021 to $10.68 billion in 2025, while operating income rose from $1.04 billion to $1.74 billion. In 2025, operating cash flow reached $2.61 billion against only $154 million of capital spending. First-half 2026 operating cash flow minus capital spending was about $1.13 billion. Those figures indicate durable cash generation. Still, reported losses of $16.75 billion in 2022 and $6.66 billion in 2023 reflected enormous acquisition-related write-downs, and business sales and purchases make long-period comparisons imperfect.

Business strengthSticky bank systems produce durable cash, while heavy debt limits the safety cushion.

Second-quarter pro forma figures, which treat the acquired issuer business as owned in both periods, showed 5.3% revenue growth, including 5.1% recurring growth. Banking grew 6.1%, while Capital Markets grew 3.2%. However, June debt was $21.17 billion against $744 million of cash, and quarterly interest expense nearly doubled to $200 million. Debt equals about 3.7 times management’s adjusted profit before interest, taxes, depreciation and amortization target, above its 2.8-times goal. Buybacks reduced diluted shares from 525 million to 517 million, but meaningful repurchases are now paused; the annual dividend yields about 4.1%.

What could change the storyDebt reduction and steady growth could unlock value; another integration miss would erase it.

The bull case requires free cash flow near the $2.20 billion midpoint, successful issuer integration and debt moving toward roughly $16 billion, based on the current earnings target and management’s leverage goal. The bear case strengthened when Capital Markets growth guidance fell from 5.5% to 3%-3.5%, reflecting weaker project work, slower backlog conversion, UBS-related customer losses and softer lending volumes. If cash falls below about $2 billion or net debt stays near $20 billion, today’s discount is justified. Progress toward the leverage target is the clearest observable test.

$42.92 price considered

AI: News

Cash raised, growth cutFIS raised its cash forecast but cut growth expectations, prompting a volatile earnings-day reaction.

On August 4, FIS reported $3.38 billion of quarterly revenue and $1.48 of adjusted earnings per share. It lowered full-year revenue guidance to $13.63-$13.70 billion and adjusted earnings to $6.15-$6.24 per share, while raising free cash flow guidance by $100 million to $2.15-$2.25 billion. The shares opened at $40.20, versus the prior $44.78 close, but recovered to $44.26. The timing indicates a response to the release, although it cannot isolate every cause of the intraday move.

First-quarter forecast disappointmentA quarterly earnings beat was overshadowed by a softer next-quarter profit forecast.

On May 8, FIS reported first-quarter adjusted earnings of $1.36 per share, above the $1.29 analyst estimate cited by Reuters, and reaffirmed its full-year outlook. However, its second-quarter forecast of $1.45-$1.49 was below the $1.50 consensus. Reuters reported that shares fell about 7% to $43.92 in early trading. The reaction reflected concern that acquisition benefits and banking growth were not yet producing the near-term earnings acceleration investors expected.

Issuer deal reshapes FISFIS exchanged its Worldpay stake for a larger issuer-processing business and substantially more debt.

FIS completed the transaction on January 9 and announced it on January 12. It acquired Global Payments’ issuer-processing operation for a $13.5 billion enterprise value, or $12 billion net purchase price, while selling its remaining 45% Worldpay stake. The acquired operation processes more than 40 billion transactions annually, and management expected $500 million of additional adjusted free cash flow in 2026. The opportunity is meaningful, but debt climbed from $13.08 billion in December to $21.17 billion by June, shifting investor attention toward integration and repayment.

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014	2013	2012	2011	2010	2009	2008	2007
Revenue	$10.68B	$10.13B	$9.83B	$9.72B	$9.34B	$12.55B	$10.33B	$8.42B	$8.67B	$8.83B	—	—	—	—	—	—	—	—	—
Gross profit	$3.94B	$3.80B	$3.66B	$3.46B	$3.35B	$4.20B	$3.72B	$2.85B	$2.87B	$2.94B	$2.20B	$2.09B	$1.97B	$1.84B	$1.71B	$1.59B	$969.6M	$743.4M	$577.6M
Operating income	$1.74B	$1.71B	$1.45B	$1.18B	$1.04B	$552.0M	$969.0M	$1.46B	$1.43B	$1.23B	$1.10B	$1.27B	$1.06B	$1.08B	$1.05B	$783.0M	$285.6M	$336.4M	$261.6M
EBITDAderived	$3.62B	$3.45B	$3.19B	$3.05B	$5.05B	$4.27B	$3.41B	$2.88B	$2.80B	$2.38B	$1.77B	$1.90B	$1.68B	$1.71B	$1.69B	$1.40B	$719.6M	$424.8M	$744.9M
Net income	$382.0M	$1.45B	−$6.66B	−$16.75B	$417.0M	$158.0M	$298.0M	$846.0M	$1.26B	$525.0M	$632.0M	$679.0M	$493.1M	$461.2M	$469.6M	$404.5M	$105.9M	$214.8M	$561.2M
Basic EPSper diluted share	$0.73	$2.62	-$11.26	-$27.74	$0.68	$0.26	$0.67	$2.58	$3.82	$1.61	$2.22	$2.38	$1.70	$1.58	$1.56	$1.17	$0.45	$1.12	$2.91
Diluted EPSper diluted share	$0.73	$2.61	-$11.26	-$27.74	$0.67	$0.25	$0.66	$2.55	$3.75	$1.59	$2.19	$2.35	$1.68	$1.55	$1.53	$1.15	$0.44	$1.11	$2.86

Review source filings at SEC.gov ↗

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys9$1.46M disclosed value

Sells (SEC code S)2$1.12M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Apr 15, 2026Form 4 · 10b5-1	Goldstein Jeffrey ADirector	BuyCommon Stock	1.2K	$47.39	$56.7K	15.7K
Mar 5, 2026Form 4	Ferris StephanieCEO and President	BuyCommon Stock	19.8K	$50.39	$1.00M	281.5K
Jan 15, 2026Form 4	Goldstein Jeffrey ADirector	BuyCommon Stock	941	$64.11	$60.3K	14.5K
Oct 15, 2025Form 4 · 10b5-1	Goldstein Jeffrey ADirector	BuyCommon Stock	889	$67.66	$60.1K	13.6K
Sep 9, 2025Form 4 · 10b5-1	Tsai CarolineEVP CLO and Corp Affairs	SellCommon Stock	1.8K	$70.00	$125.0K	37.3K

Review ownership filings at SEC.gov ↗

Fidelity National Information Services, Inc. (FIS)

Financial charts

Financial statements

Insider buys & sells