Fidelity National Information Services, Inc. (FIS Quick QuoteFIS - Free Report) benefits from strong segment performance, international market presence, collaborations and solid cash flow generation abilities.

FIS’ Zacks Rank & Price Rally

Fidelity National currently carries a Zacks Rank #3 (Hold).

The stock has gained 4.9% in the past month against the industry’s 4.7% decline. The Zacks Business Services sector and the S&P 500 composite index fell 3.6% and 3%, respectively, in the same time frame.

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FIS’ Favorable Style Score

FIS is well-poised for progress, as evidenced by its impressive VGM Score of B. Here V stands for Value, G for Growth and M for Momentum, and the score is a weighted combination of all three factors.

Fidelity National’s Robust Growth Prospects

The Zacks Consensus Estimate for FIS’ 2025 earnings is pegged at $5.74 per share, indicating a year-over-year improvement of 10%.  The consensus estimate for revenues is pegged at $10.5 billion, indicating an increase of 3.3% from the 2024 reported figure.

The Zacks Consensus Estimate for FIS’ 2026 earnings is pegged at $6.28 per share, indicating a rise of 9.5% from the 2025 estimate.  The consensus estimate for revenues is pegged at $10.9 billion, indicating an increase of 4.6% from the 2025 estimate.

Fidelity National’s Northbound Estimate Revision

The Zacks Consensus Estimate for 2025 earnings has been revised upward 0.3% in the past 30 days.

FIS’ Impressive Earnings Surprise History

The bottom line of Fidelity National outpaced estimates in each of the trailing four quarters, the average surprise being 9.35%.

Fidelity National’s Business Tailwinds

Fidelity National continues to experience solid revenue growth, driven by strong performances in its Banking Solutions and Capital Market Solutions segments. Revenues advanced 4% year over year on an adjusted basis in 2024. The Banking segment benefits from ongoing client acquisitions, while the Capital Markets business contributes to recurring revenue growth through sustained sales momentum. Although the majority of FIS’ revenues are generated from U.S.-based customers, it maintains a meaningful international presence in markets such as the United Kingdom, Germany, Australia, Brazil and Canada.

FIS employs a combination of organic growth strategies and strategic acquisitions to secure long-term recurring contracts. Its organic initiatives focus on the development of advanced technology solutions and targeted sales and marketing campaigns aimed at attracting new clients and expanding within key addressable markets. In March 2025, FIS introduced Treasury GPT, an AI-powered product support tool aimed at improving efficiency and workflows in treasury management.

Acquisitions serve to broaden FIS’ product portfolio, diversify its customer base, increase geographic reach and support expansion into new markets. The company also engages in strategic partnerships to deliver comprehensive solutions. This February, for example, FIS teamed up with Affirm (AFRM Quick QuoteAFRM - Free Report) , by which the latter will become the integrated pay-over-time provider for the former’s debit issuer clients. The partnership will introduce a new program that allows Fidelity National’s extensive network of banking partners to seamlessly embed Affirm’s leading installment payment solution into their existing debit offerings. 

The accelerating pace of digital transformation presents a major growth opportunity for FIS, which is well-positioned to capitalize on this trend with its broad suite of technology offerings. The company continues to invest in product innovation, process enhancements and infrastructure improvements to drive operational efficiency.

FIS’ strong liquidity and consistent cash flow generation abilities support its investment initiatives and enable it to return value to shareholders through share repurchases and dividend payments. During 2024, it generated $2.2 billion in operating cash flow, representing a 4.7% year-over-year increase. Its dividend yield of 2.2% remains higher than the industry average of 0.7%.

FIS’ Key Risks

Fidelity National faces rising cost pressures, which, in turn, may dampen margins in the days ahead. The ongoing shift from checks to electronic payments also affects its check processing business and heightens fraud risks. A debt-laden balance sheet induces an increase in interest expenses, which can limit financial flexibility. As of Dec. 31, 2024, long-term debt, excluding current portion, amounted to $9.7 billion.

Stocks to Consider

Some better-ranked stocks in the Business Services space are PagSeguro Digital Ltd. (PAGS Quick QuotePAGS - Free Report) and Huron Consulting Group Inc. (HURN Quick QuoteHURN - Free Report) . While PagSeguro Digital currently sports a Zacks Rank #1 (Strong Buy), Huron Consulting carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

PagSeguro Digital’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 9.29%. The Zacks Consensus Estimate for PAGS’ 2025 earnings implies an improvement of 3.3% from the 2024 figure. The consensus mark for revenues indicates a 3.2% rise from the 2024 figure. The consensus mark for PAGS’ 2025 earnings has moved 1.6% north in the past 30 days.

The bottom line of Huron Consulting beat estimates in each of the trailing four quarters, the average surprise being 21.54%. The Zacks Consensus Estimate for HURN’s 2025 earnings implies an improvement of 10.5% from the 2024 figure. The consensus mark for revenues implies a rise of 8.9% from the 2024 figure. The consensus mark for HURN’s 2025 earnings has moved 0.1% north in the past 60 days.

Shares of PagSeguro Digital have gained 6% in the past month. However, Huron Consulting stock has lost 4.7% in the same time frame.