Track market-moving stories before they get noisy

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.

Fidelity National’s Price Performance, Valuation & EstimatesShares 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.

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Stock to Watch: Fidelity National Information Services (FIS - Free Report) Headquartered in Jacksonville, FL, Fidelity National Information Services, Inc. provides banking and payments technology solutions, processing services and information-based services to the financial services industry. The company came into existence, following the merger with Certegy Inc., a provider of credit cards, debit cards, other transaction processing and check risk management services to financial institutions in 2006.

FIS is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.

It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 6.29; value investors should take notice.

For fiscal 2026, six analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.01 to $6.28 per share. FIS boasts an average earnings surprise of +1.9%.

With a solid Zacks Rank and top-tier Value and VGM Style Scores, FIS should be on investors' short list.

Key Takeaways Fidelity National signed First Commerce Bank to deploy its HORIZON core banking platform.FIS will provide AI-ready infrastructure, connectivity and access to modern banking tools.Banking Solutions revenues rose 10.3% in Q1 2026, aided by modernization demand. Fidelity National Information Services, Inc. (FIS - Free Report) recently announced that First Commerce Bank, a New Jersey-based community bank with approximately $1.8 billion in assets, has selected its HORIZON core banking platform to support future growth and digital transformation. The platform will provide the bank with AI-ready infrastructure, stronger connectivity and access to modern banking facilities through FIS' integrated technology ecosystem.

This deal reflects a broader shift across the banking industry. Financial institutions are increasingly moving away from legacy systems and investing in modern platforms that can support artificial intelligence, automation and digital banking services. By helping banks modernize their technology infrastructure, FIS is positioning itself to benefit from the growing demand for next-generation banking solutions. This also reinforces the scalability of FIS' core banking offerings, which already support a diverse client base spanning community, regional and large financial institutions.

Community banks represent a large and often underserved segment of the U.S. banking market. As these institutions accelerate technology upgrades to remain competitive, FIS has an opportunity to expand its client base and deepen its presence in the core banking market. The win also shows the strength of FIS' Banking Solutions business. In the first quarter of 2026, Banking Solutions revenues rose 10.3% year over year, supported by strong demand for modernization and digital transformation offerings.

The financial impact from this single contract is unlikely to be significant in the near term. However, the announcement highlights FIS' ability to win new business, broaden its reach and capitalize on the banking industry's push toward AI-driven modernization. If demand for these solutions remains strong, it could support long-term revenue growth and strengthen FIS' competitive position.

FIS’ Stock Price PerformanceShares of Fidelity National have lost 42% year to date compared with the industry’s decline of 15.5%.

Image Source: Zacks Investment Research

Zacks Rank & Key PicksFIS currently has a Zacks Rank #3 (Hold).

Some better-ranked stocks in the business services space are Dave Inc. (DAVE - Free Report) and Sezzle Inc. (SEZL - Free Report) , both sporting a Zacks Rank #1 (Strong Buy) at present, and Klarna Group plc (KLAR - Free Report) , carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Dave’s 2026 earnings of $16.17 per share indicates a 22.7% year-over-year increase. DAVE beat earnings estimates in each of the trailing four quarters, with the average surprise being 45.8%. The consensus estimate for current-year revenues is pegged at $713.7 million, implying 28.8% year-over-year growth.

The Zacks Consensus Estimate for Sezzle’s 2026 earnings is pinned at $5.09 per share, which has witnessed four upward revisions in the past 60 days against no movement in the opposite direction. Sezzle beat earnings estimates in each of the trailing four quarters, with the average surprise being 17.4%. The consensus estimate for 2026 revenues is pegged at $592.59 million, implying 31.6% year-over-year growth.

The Zacks Consensus Estimate for Klarna’s 2026 earnings indicates a 105.1% year-over-year improvement. KLAR has witnessed four upward estimate revisions over the past 60 days against no movement in the opposite direction. The consensus estimate for 2026 revenues is pegged at $4.44 billion, indicating 26.5% year-over-year growth.