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FIS · Analysis updated Nov 4, 2026, 11:46 AM ET
Why is Fidelity National Information Services, Inc. (FIS) stock moving?
FIS reported Q3 results that were roughly in line with or slightly above estimates. Adjusted EPS was $1.61 and revenue was about $3.5B. Pro forma revenue growth was only 3.7%, and free cash flow rose 8% to $862M. The market reacted to the guidance reset. Management lowered the 2026 outlook, with adjusted EPS growth now 1.2-2.4% and pro forma revenue growth 3.1-3.6%. It cited weaker banking recurring growth, delayed client implementations and bank M&A. It also said headwinds will carry into Q4 and 2027 before fading in 2028. Shares ran up to $40.15 on Nov 2 and closed at $38.99 on Nov 3. They then fell roughly 20-24% on Nov 4 to about $30, a new 52-week low near $29.89. Volume was elevated. Valuation is very low at about 6x earnings, with a dividend yield above 4%. Analyst targets averaged about $47 before the report and are likely to be cut. The portfolio-wide strategic review, with an update at year-end results, could be a catalyst. Near-term sentiment is damaged by the guidance cut and uncertainty about 2027.
News behind the analysis
- FIS Reports Third Quarter 2026 ResultsQ3 adjusted EPS was $1.61, up 6.6%. Revenue rose 27% on a GAAP basis to $3.5B and 3.7% on a pro forma basis. Full-year 2026 outlook was lowered, and the strategic portfolio review is ongoing.
- FIS Form 8-K: Q3 2026 earnings releaseThe filing shows updated 2026 guidance. Adjusted EPS growth is now 1.2-2.4%, and pro forma revenue growth is 3.1-3.6%. Free cash flow is guided to $2.15-2.25B.
- Fidelity National Info Q3 2026 Earnings Call TranscriptManagement cited a shift toward recurring revenue models and a 42.9% adjusted EBITDA margin. It said some headwinds will weigh on Q4 and 2027 and largely fade in 2028.
- FIS Q3 2026 earnings call transcript and summaryBanking recurring growth was weaker than expected. The outlook was cut for client-led implementation delays and select bank M&A. A strategic review now covers the whole portfolio, with an update due alongside year-end results.
- FIS Q3 2026 results: revenue rose 27% to about $3.5BGAAP net earnings attributable to common stockholders were $356M, or $0.69 per diluted share. Pro forma growth was 3.7%.
- FIS stock quote (Google Finance)Shares fell about 18% in early trading on Nov 4 after the report. Q3 EPS of $1.61 and revenue of $3.45B slightly beat estimates.
- FIS stock quote (Morningstar)Shares traded near $30 on Nov 4, down about 23% from the $38.99 prior close. The 52-week low is $29.89.
- FIS stock overview (Robinhood)The stock hit a 52-week low of $29.89 on Nov 4. A quarterly dividend of $0.44 was declared. Simply Wall St highlighted an AI fintech push with analysts split on the outlook.
- FIS price and analyst data (StockAnalysis)Before earnings, TD Cowen cut its price target to $47 from $53 with a Buy rating. Baird cut its target to $45 from $48 with a Neutral rating. The consensus rating was Buy.