We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
How FIS Is Positioning Itself for the Next Wave of Digital Banking
Read MoreHide Full Article
Key Takeaways
FIS' Q1 2026 pro forma revenues grew 6.5% as recurring annual contract value rose 24% YoY.
FIS is developing AI banking agents and expects first customer deployments in 2H 2026.
FIS launched Project Keystone and Lyriq to support tokenized deposits, digital assets and compliant payments.
Fidelity National Information Services, Inc. (FIS - Free Report) is strengthening its position in digital banking by expanding its capabilities in AI, digital payments and modern banking infrastructure. As financial institutions accelerate digital transformation, the company is introducing technologies that help banks improve efficiency, automate operations and enhance customer experiences. Its strong first-quarter 2026 results, including 6.5% pro forma revenue growth and 24% year-over-year rise in recurring annual contract value, highlight strong demand for its banking solutions.
AI is becoming a central pillar of FIS' strategy. Through its partnership with Anthropic, the company is developing AI agents that automate financial crime investigations and other banking workflows. FIS combines AI with banking data, compliance controls and core systems, enabling financial institutions to deploy these solutions in regulated environments. It expects the first AI agents to reach customers in the second half of 2026.
FIS is also preparing banks for the evolution of digital assets and payments. It launched Project Keystone, a tokenized deposit network involving six U.S. financial institutions, alongside its Lyriq digital asset platform. These initiatives help banks explore tokenized deposits and digital currencies while maintaining regulatory compliance. Also, products such as Money Movement Hub continue to generate healthy customer demand.
Beyond new products, FIS is prioritizing recurring revenues, strategic partnerships and investments in high-growth businesses. An increasing mix of subscription and cloud based contracts, coupled with strong commercial momentum, could support long term revenue visibility and earnings growth. As banks modernize their technology infrastructure, FIS could be well positioned to play a meaningful role in shaping the next generation of digital banking.
How Are Competitors Faring?
Some of FIS’ competitors in the digital banking technology solutions space are Fiserv, Inc. (FISV - Free Report) and Jack Henry & Associates, Inc. (JKHY - Free Report) .
Fiserv continues to strengthen its digital banking franchise through cloud-native core banking, embedded finance and AI-enabled solutions. Its Finxact platform is helping banks modernize legacy infrastructure, while investments in digital payments and financial technology position FISV as a key competitor to FIS.
Jack Henry is expanding its digital banking ecosystem by enhancing cloud capabilities, payment technologies and AI-driven banking tools. JKHY remains well positioned among community and regional banks, where its integrated banking platform and customer-focused approach continue to support steady technology adoption.
Shares of FIS have declined 36.8% in the year-to-date period compared with the industry’s fall of 11.4%.
Image Source: Zacks Investment Research
From a valuation standpoint, Fidelity National trades at a forward price-to-earnings ratio of 6.37, significantly below the industry average of 16.77. FIS carries a Value Score of A.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Fidelity National’s 2026 earnings is pegged at $6.28 per share, implying 9.2% growth from the year-ago period.
View the Zacks #1 Rank List
Image: Bigstock
How FIS Is Positioning Itself for the Next Wave of Digital Banking
Key Takeaways
Fidelity National Information Services, Inc. (FIS - Free Report) is strengthening its position in digital banking by expanding its capabilities in AI, digital payments and modern banking infrastructure. As financial institutions accelerate digital transformation, the company is introducing technologies that help banks improve efficiency, automate operations and enhance customer experiences. Its strong first-quarter 2026 results, including 6.5% pro forma revenue growth and 24% year-over-year rise in recurring annual contract value, highlight strong demand for its banking solutions.
AI is becoming a central pillar of FIS' strategy. Through its partnership with Anthropic, the company is developing AI agents that automate financial crime investigations and other banking workflows. FIS combines AI with banking data, compliance controls and core systems, enabling financial institutions to deploy these solutions in regulated environments. It expects the first AI agents to reach customers in the second half of 2026.
FIS is also preparing banks for the evolution of digital assets and payments. It launched Project Keystone, a tokenized deposit network involving six U.S. financial institutions, alongside its Lyriq digital asset platform. These initiatives help banks explore tokenized deposits and digital currencies while maintaining regulatory compliance. Also, products such as Money Movement Hub continue to generate healthy customer demand.
Beyond new products, FIS is prioritizing recurring revenues, strategic partnerships and investments in high-growth businesses. An increasing mix of subscription and cloud based contracts, coupled with strong commercial momentum, could support long term revenue visibility and earnings growth. As banks modernize their technology infrastructure, FIS could be well positioned to play a meaningful role in shaping the next generation of digital banking.
How Are Competitors Faring?
Some of FIS’ competitors in the digital banking technology solutions space are Fiserv, Inc. (FISV - Free Report) and Jack Henry & Associates, Inc. (JKHY - Free Report) .
Fiserv continues to strengthen its digital banking franchise through cloud-native core banking, embedded finance and AI-enabled solutions. Its Finxact platform is helping banks modernize legacy infrastructure, while investments in digital payments and financial technology position FISV as a key competitor to FIS.
Jack Henry is expanding its digital banking ecosystem by enhancing cloud capabilities, payment technologies and AI-driven banking tools. JKHY remains well positioned among community and regional banks, where its integrated banking platform and customer-focused approach continue to support steady technology adoption.
Fidelity National’s Price Performance, Valuation & Estimates
Shares of FIS have declined 36.8% in the year-to-date period compared with the industry’s fall of 11.4%.
Image Source: Zacks Investment Research
From a valuation standpoint, Fidelity National trades at a forward price-to-earnings ratio of 6.37, significantly below the industry average of 16.77. FIS carries a Value Score of A.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Fidelity National’s 2026 earnings is pegged at $6.28 per share, implying 9.2% growth from the year-ago period.
Image Source: Zacks Investment Research
FIS stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.