Track market-moving stories before they get noisy

Fidelity National Information Services, Inc. (FIS) Presents at Goldman Sachs Communacopia + Technology Conference 2026 Transcript

Key Takeaways FIS launched an embedded banking platform that integrates banking services into business software.FIS initially rolls out the platform with pilot banks, with accounts and payments planned for Q4 2026.FIS aims to deepen bank relationships by expanding access to accounts, payments and other services. Fidelity National Information Services, Inc. (FIS - Free Report) is expanding its banking technology portfolio with the launch of the Embedded Banking Platform, designed to help U.S. banks deliver accounts, payments, card issuing and other financial capabilities within business software. The move positions the company to capitalize on demand for banking experiences that fit directly into corporate workflows rather than banking portals.

The platform allows banks to embed their services through APIs, software development kits, widgets or white-labeled applications while software providers control the customer interface. Importantly, accounts remain on the bank’s balance sheet, allowing financial institutions to retain customer ownership and regulatory control. This structure could make embedded banking more attractive to banks seeking digital reach without giving up the relationship.

FIS is initially rolling out the offering with pilot banks, including Cogent Bank, Commercial Bank of California and M&T Bank, with accounts and payments planned for the fourth quarter of 2026. The broader product also supports accounts receivable and payable, expense management and card issuing, creating opportunities for FIS to deepen its role across business banking workflows.

The launch complements FIS’ broader efforts to modernize banking infrastructure and expand embedded financial services. By enabling banks to reach business customers through software they already use, the platform could help FIS deepen relationships with financial institutions and create additional opportunities across accounts, payments and other banking services as adoption builds.

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 is expanding its embedded finance capabilities across banking, payments and card issuing, while its Stuut partnership brings agentic AI to enterprise receivables. The collaboration combines FISV’s Commerce Hub and SnapPay with Stuut’s automation, supporting a platform that has processed over $2 billion in B2B invoices.

Jack Henry is strengthening its embedded finance capabilities through API-first payment infrastructure that enables fintechs and businesses to integrate ACH, wires, RTP, FedNow, deposits and virtual accounts. JKHY’s expanding embedded fintech ecosystem also helps financial institutions reach new markets and revenue opportunities.

Fidelity National’s Price Performance, Valuation & EstimatesShares of FIS have risen 3.2% over the past three months compared with the industry’s growth of 17.2%.

Image Source: Zacks Investment Research

From a valuation standpoint, Fidelity National trades at a forward price-to-earnings ratio of 6.45, significantly below the industry average of 19.20. 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 $6.19 per share, implying 7.7% growth from the year-ago period.

Image Source: Zacks Investment Research

FIS stock currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

A month has gone by since the last earnings report for Fidelity National Information Services (FIS - Free Report) . Shares have lost about 2.3% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Fidelity National due for a breakout? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for Fidelity National Information Services, Inc. before we dive into how investors and analysts have reacted as of late.

FIS Beats Q2 Earnings on Banking Solutions Strength, Cuts 2026 Outlook

Fidelity National reported second-quarter 2026 adjusted earnings per share (EPS) of $1.48, which beat the Zacks Consensus Estimate by 0.7%. The bottom line advanced 8.8% year over year.

Revenues amounted to $3.4 billion, which improved 29% year over year. The top line missed the consensus mark by 0.2%.

The quarterly earnings were driven by strong growth in the Banking Solutions segment and steady performance in the Capital Market Solutions segment, supported by recurring revenue growth, margin expansion and acquisition benefits. However, the upside was partly offset by a higher cost of revenues and increased selling, general and administrative expenses.

FIS’ Q2 PerformanceThe cost of revenues increased 32.4% year over year to $2.2 billion in the second quarter. SG&A expenses of $684 million rose 19.6% year over year. Net interest expenses of $200 million increased 81.8% from the prior-year quarter’s figure.

Adjusted EBITDA was $1.4 billion, up 35% year over year. Adjusted EBITDA margin increased 193 basis points year over year to 41.7%, primarily driven by acquisitions, a favorable business mix and cost savings initiatives.

Q2 Segmental Update of Fidelity NationalRevenues from the Banking Solutions segment totaled $2.5 billion, increasing 44% year over year and matching the Zacks Consensus Estimate. The segmental results benefited from solid margin expansion. Adjusted EBITDA margin improved 179 bps year over year to 45.8%, supported by cost management and a favorable revenue mix.

The Capital Market Solutions segment’s revenues advanced 3.5% year over year to $810 million, marginally missing the Zacks Consensus Estimate by 0.2%. Strong recurring revenue growth benefited the metric. Adjusted EBITDA margin of 51.9% contracted 32 bps year over year.

The Corporate and Other segment recorded revenues of $84 million, down 26% year over year. Adjusted EBITDA loss was $147 million.

FIS’ Q2 Financial UpdateFidelity National exited the second quarter of 2026 with cash and cash equivalents of $744 million, up from $599 million as of 2025-end. Total assets of $44.1 billion increased from $33.5 billion at the end of 2025.

Long-term debt, excluding the current portion, amounted to $15.4 billion, up from $9.1 billion as of Dec. 31, 2025. The current portion of long-term debt totaled $1.5 billion. Short-term borrowings totaled $4.2 billion at the end of the reported quarter.

Total equity of $16 billion increased from $13.9 billion at 2025-end.

Fidelity National generated $493 million in net cash from operations, representing a 29.1% year-over-year increase. Adjusted free cash flow totaled $525 million, up 220% year over year.

FIS’ Share Repurchase & Dividend UpdateThe company returned $270 million to shareholders, including $42 million through share repurchases and $228 million in dividend payments.

FIS’ Key Expectations for Q3’26Management forecasts revenues between $3.415 billion and $3.445 billion. Adjusted EBITDA is projected to be in the range of $1,460-$1,480 million. Adjusted EPS is estimated to be between $1.58 and $1.62.

FIS Updates 2026 GuidanceRevenues are now expected to be $13.63-$13.70 billion, down from the prior guidance of $13.77-$13.85 billion, implying 29-30% adjusted revenue growth.

Adjusted EBITDA is projected to be $5.73-$5.79 billion compared to the earlier outlook of $5.80-$5.86 billion. Adjusted EBITDA margin is anticipated to be in the range of 41.8-42.4% (previously 42.1-42.3%).

Adjusted EPS is forecast in the range of $6.15-$6.24, lowered from the prior guidance of $6.22-$6.32. The midpoint implies about 7.7% year-over-year growth from $5.75 reported in 2025.

Free cash flow guidance has been raised to $2.15-$2.25 billion from the previous $2.05-$2.15 billion. The company now expects free cash flow growth of 33-39% year over year.

How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in estimates review.

VGM ScoresCurrently, Fidelity National has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Fidelity National has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.

Performance of an Industry PlayerFidelity National belongs to the Zacks Financial Transaction Services industry. Another stock from the same industry, Visa (V - Free Report) , has gained 2.7% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.

Visa reported revenues of $11.63 billion in the last reported quarter, representing a year-over-year change of +14.4%. EPS of $3.32 for the same period compares with $2.98 a year ago.

Visa is expected to post earnings of $3.43 per share for the current quarter, representing a year-over-year change of +15.1%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.1%.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Visa. Also, the stock has a VGM Score of F.

JACKSONVILLE, Fla.--(BUSINESS WIRE)--FIS® (NYSE: FIS) today announced that it is working with Ericsson on a collaboration designed to help organizations launch wallet-led financial services faster and with less integration complexity. The collaboration would integrate FIS payments and issuing capabilities and the Ericsson Fintech Platform, to give clients a pre-integrated foundation to deploy digital wallet experiences at scale and give consumers a more direct path to their money.The biggest cha.

Key Takeaways FIS and Ericsson will combine payments, issuing tools, wallet infrastructure and open APIs in one platform.The platform could shorten wallet launches, lower integration costs and reduce execution risk for clients.FIS could gain recurring revenue from transactions, accounts, cards and service usage as wallet volumes rise. Fidelity National Information Services, Inc. (FIS - Free Report) recently announced a partnership with Ericsson to simplify how organizations launch digital wallet services. The partners plan to combine FIS payments and issuing tools with Ericsson’s wallet infrastructure and open APIs in one connected platform.

Today, businesses have to link several systems to move, store, secure and manage money, making launches slow and expensive. FIS and Ericsson want to remove that burden by offering technology designed to work together from the start. The setup could help telecom operators, retailers, healthcare organizations and government agencies turn wallet plans into live services faster, while giving consumers a direct, easier path to their money.

Ericsson’s platform has more than 15 years of experience, supports at least 131 million users who transacted during the past 90 days and processes roughly $80 billion each month across 24 countries. That scale suggests the technology can handle payment activity across markets.

Adding FIS’ payments and issuing tools could lower execution risk for clients and make new services easier to expand. It also gives FIS an entry point into different sectors, where digital identity, connectivity and payments are increasingly coming together.

The initiative could generate payment processing and issuing revenue for FIS as clients launch wallets and volumes rise. A combined platform may shorten implementation cycles, reduce client integration costs and help FIS win businesses that might otherwise avoid complex wallet projects. The longer-term opportunity is recurring revenue tied to transactions, accounts, cards or service usage.

FIS’ Price PerformanceShares of Fidelity National have declined 39% year to date, underperforming the 3.7% fall of the industry.

Image Source: Zacks Investment Research

Zacks Rank & Key PicksFIS currently has a Zacks Rank #4 (Sell).

Some better-ranked stocks from the broader Business Services space are FirstCash Holdings, Inc. (FCFS - Free Report) , Paymentus Holdings, Inc. (PAY - Free Report) and Usio, Inc. (USIO - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for FirstCash’s current-year earnings is pegged at $11.85 per share, indicating a 35.3% year-over-year growth. FCFS has witnessed one upward earnings estimate revision over the past 60 days against no movement in the opposite direction.

The Zacks Consensus Estimate for Paymentus’ current-year earnings indicates a 39.4% year-over-year jump. PAY beat earnings estimates in each of the trailing four quarters, with the average surprise being 16.5%. The consensus estimate for current-year revenues implies 20.4% year-over-year growth.

The consensus estimate for USIO’s current-year earnings indicates an 88.9% year-over-year improvement. It has witnessed one upward estimate revision and no downward movement over the past 30 days. The consensus estimate for USIO’s current-year revenues implies 13.9% year-over-year growth.

Bank of New York Mellon Corp acquired a new position in Fidelity National Information Services, Inc. (NYSE:FIS – Free Report) during the second quarter, according to the company in its most recent disclosure with the SEC. The firm acquired 2,538,024 shares of the information technology services provider’s stock, valued at approximately $98,678,000. Bank of New York Mellon Corp owned 0.49% of Fidelity National Information Services as of its most recent SEC filing.

Other hedge funds have also recently bought and sold shares of the company. Dodge & Cox grew its holdings in Fidelity National Information Services by 13.9% in the 4th quarter. Dodge & Cox now owns 49,113,297 shares of the information technology services provider’s stock worth $3,264,070,000 after buying an additional 6,008,090 shares in the last quarter. Capital Research Global Investors raised its stake in Fidelity National Information Services by 0.6% during the 4th quarter. Capital Research Global Investors now owns 28,129,710 shares of the information technology services provider’s stock valued at $1,869,507,000 after acquiring an additional 172,356 shares in the last quarter. Charles Schwab Investment Management Inc. raised its stake in Fidelity National Information Services by 4.8% during the 4th quarter. Charles Schwab Investment Management Inc. now owns 11,196,718 shares of the information technology services provider’s stock valued at $744,134,000 after acquiring an additional 514,490 shares in the last quarter. Invesco Ltd. boosted its position in Fidelity National Information Services by 5.6% during the 3rd quarter. Invesco Ltd. now owns 8,515,321 shares of the information technology services provider’s stock worth $561,500,000 after acquiring an additional 448,712 shares during the period. Finally, Norges Bank acquired a new position in Fidelity National Information Services during the 4th quarter worth $495,956,000. 96.23% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth FIS has been the topic of a number of recent analyst reports. Deutsche Bank Aktiengesellschaft cut their price objective on shares of Fidelity National Information Services from $55.00 to $50.00 in a research note on Monday, May 11th. Citigroup decreased their target price on shares of Fidelity National Information Services from $48.00 to $45.00 and set a “neutral” rating for the company in a research report on Wednesday, August 5th. Royal Bank Of Canada dropped their price target on shares of Fidelity National Information Services from $57.00 to $53.00 and set an “outperform” rating on the stock in a research report on Wednesday, August 5th. Stephens reaffirmed an “equal weight” rating and issued a $50.00 price target on shares of Fidelity National Information Services in a research note on Tuesday, August 11th. Finally, The Goldman Sachs Group decreased their price objective on shares of Fidelity National Information Services from $65.00 to $57.00 and set a “buy” rating for the company in a report on Monday, May 11th. Eleven analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat.com, Fidelity National Information Services presently has a consensus rating of “Hold” and a consensus price target of $55.39.

Check Out Our Latest Stock Report on Fidelity National Information Services Fidelity National Information Services Trading Up 0.2% Shares of FIS opened at $41.42 on Tuesday. The company has a current ratio of 0.53, a quick ratio of 0.53 and a debt-to-equity ratio of 0.96. The stock has a market capitalization of $21.41 billion, a P/E ratio of 6.36, a P/E/G ratio of 0.42 and a beta of 0.77. Fidelity National Information Services, Inc. has a 1-year low of $37.42 and a 1-year high of $71.67. The business’s 50-day moving average price is $41.47 and its 200 day moving average price is $44.65.

Fidelity National Information Services (NYSE:FIS – Get Free Report) last announced its quarterly earnings data on Tuesday, August 4th. The information technology services provider reported $1.48 EPS for the quarter, topping analysts’ consensus estimates of $1.47 by $0.01. The firm had revenue of $3.38 billion during the quarter, compared to analyst estimates of $3.38 billion. Fidelity National Information Services had a return on equity of 20.95% and a net margin of 27.64%.The business’s quarterly revenue was up 29.1% compared to the same quarter last year. During the same period last year, the company posted $1.36 EPS. Fidelity National Information Services has set its FY 2026 guidance at 6.150-6.240 EPS and its Q3 2026 guidance at 1.580-1.620 EPS. Analysts expect that Fidelity National Information Services, Inc. will post 6.19 earnings per share for the current year.

Fidelity National Information Services Announces Dividend The company also recently declared a quarterly dividend, which will be paid on Friday, September 25th. Stockholders of record on Friday, September 11th will be given a $0.44 dividend. The ex-dividend date of this dividend is Friday, September 11th. This represents a $1.76 dividend on an annualized basis and a dividend yield of 4.2%. Fidelity National Information Services’s dividend payout ratio (DPR) is currently 27.04%.

(Free Report)

Fidelity National Information Services (NYSE: FIS) is a global provider of financial technology solutions and services for banks, capital markets firms, merchants and corporations. The company develops and delivers software, processing, and outsourcing services that support core banking, payments and merchant acquiring, wealth and retirement platforms, risk and compliance, and trading and capital markets operations. Its offerings include cloud-based and on-premises core banking systems, card processing and gateway services, e-commerce and point-of-sale payment solutions, and a range of back-office and advisory services designed to automate and modernize financial operations.

FIS serves a broad international client base across North America, Europe, Latin America, and the Asia-Pacific region through a combination of direct clients and partner channels.

Featured Articles Five stocks we like better than Fidelity National Information Services Visa Just Put Hims & Hers in the Penalty Box—Here’s Why It Matters Treasury Yields Are Surging Again: 3 Stocks That Could Feel the Pain Snowflake Could Be Headed for New Highs Despite Insider Selling MongoDB Is Surging—And the Next Catalyst Is Almost Here Want to see what other hedge funds are holding FIS? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Fidelity National Information Services, Inc. (NYSE:FIS – Free Report).

Receive News & Ratings for Fidelity National Information Services Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Fidelity National Information Services and related companies with MarketBeat.com's FREE daily email newsletter.

Watch more: What's Next in Payments With Jakob Harrison of FIS Jakob Harrison said he does not buy the idea that payments executives should spend their days looking over their shoulders. There are too many things to look at.

BlackRock Inc. bought a new position in shares of Fidelity National Information Services, Inc. (NYSE:FIS – Free Report) during the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm bought 44,501,041 shares of the information technology services provider’s stock, valued at approximately $1,730,200,000. BlackRock Inc. owned about 8.61% of Fidelity National Information Services at the end of the most recent quarter.

Other institutional investors have also modified their holdings of the company. Salomon & Ludwin LLC boosted its stake in Fidelity National Information Services by 100.5% during the 4th quarter. Salomon & Ludwin LLC now owns 387 shares of the information technology services provider’s stock worth $26,000 after purchasing an additional 194 shares during the period. Reflection Asset Management acquired a new stake in shares of Fidelity National Information Services during the fourth quarter worth about $34,000. Kemnay Advisory Services Inc. acquired a new stake in shares of Fidelity National Information Services during the fourth quarter worth about $42,000. MBM Wealth Consultants LLC purchased a new position in shares of Fidelity National Information Services during the first quarter worth about $33,000. Finally, DV Equities LLC purchased a new position in shares of Fidelity National Information Services during the fourth quarter worth about $48,000. 96.23% of the stock is owned by institutional investors and hedge funds.

Analyst Ratings Changes Several research firms have recently commented on FIS. Morgan Stanley assumed coverage on Fidelity National Information Services in a research note on Tuesday, July 7th. They set an “equal weight” rating and a $47.00 price target for the company. Truist Financial lowered their price target on Fidelity National Information Services from $45.00 to $43.00 and set a “hold” rating on the stock in a report on Friday, July 24th. Weiss Ratings downgraded Fidelity National Information Services from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Tuesday, August 11th. Wall Street Zen cut Fidelity National Information Services from a “buy” rating to a “hold” rating in a report on Sunday, May 17th. Finally, TD Cowen decreased their target price on Fidelity National Information Services from $62.00 to $58.00 and set a “buy” rating on the stock in a research report on Wednesday, August 5th. Eleven equities research analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, the company currently has an average rating of “Hold” and an average target price of $55.39.

View Our Latest Report on Fidelity National Information Services Fidelity National Information Services Price Performance FIS stock opened at $40.65 on Thursday. The stock’s 50 day moving average price is $41.33 and its 200 day moving average price is $44.92. The firm has a market cap of $21.01 billion, a P/E ratio of 6.24, a PEG ratio of 0.42 and a beta of 0.77. The company has a debt-to-equity ratio of 0.96, a quick ratio of 0.53 and a current ratio of 0.53. Fidelity National Information Services, Inc. has a 1 year low of $37.42 and a 1 year high of $71.90.

Fidelity National Information Services (NYSE:FIS – Get Free Report) last released its quarterly earnings results on Tuesday, August 4th. The information technology services provider reported $1.48 earnings per share for the quarter, topping the consensus estimate of $1.47 by $0.01. Fidelity National Information Services had a return on equity of 20.95% and a net margin of 27.64%.The company had revenue of $3.38 billion during the quarter, compared to the consensus estimate of $3.38 billion. During the same quarter last year, the business posted $1.36 earnings per share. Fidelity National Information Services’s revenue was up 29.1% compared to the same quarter last year. Fidelity National Information Services has set its FY 2026 guidance at 6.150-6.240 EPS and its Q3 2026 guidance at 1.580-1.620 EPS. On average, sell-side analysts expect that Fidelity National Information Services, Inc. will post 6.19 earnings per share for the current fiscal year.

Fidelity National Information Services Announces Dividend The company also recently disclosed a quarterly dividend, which will be paid on Friday, September 25th. Investors of record on Friday, September 11th will be paid a dividend of $0.44 per share. The ex-dividend date of this dividend is Friday, September 11th. This represents a $1.76 annualized dividend and a dividend yield of 4.3%. Fidelity National Information Services’s dividend payout ratio is presently 27.04%.

Fidelity National Information Services Company Profile (Free Report)

Fidelity National Information Services (NYSE: FIS) is a global provider of financial technology solutions and services for banks, capital markets firms, merchants and corporations. The company develops and delivers software, processing, and outsourcing services that support core banking, payments and merchant acquiring, wealth and retirement platforms, risk and compliance, and trading and capital markets operations. Its offerings include cloud-based and on-premises core banking systems, card processing and gateway services, e-commerce and point-of-sale payment solutions, and a range of back-office and advisory services designed to automate and modernize financial operations.

FIS serves a broad international client base across North America, Europe, Latin America, and the Asia-Pacific region through a combination of direct clients and partner channels.

Featured Stories Five stocks we like better than Fidelity National Information Services Bloom Energy’s AI Surge Meets a Valuation Reality Check Target Is Winning Shoppers Back—Can the Rally Reach $180? IonQ’s Space Contract Points to a New Frontier for Quantum Investors Is Apple’s AI Strategy Smarter Than Skeptics Think? Want to see what other hedge funds are holding FIS? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Fidelity National Information Services, Inc. (NYSE:FIS – Free Report).

Receive News & Ratings for Fidelity National Information Services Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Fidelity National Information Services and related companies with MarketBeat.com's FREE daily email newsletter.

For Immediate ReleaseChicago, IL – August 7, 2026 – Today, Zacks Equity Visa Inc. (V - Free Report) , Mastercard Inc. (MA - Free Report) , PayPal Holdings, Inc. (PYPL - Free Report) , Fidelity National Information Services, Inc. (FIS - Free Report) and WEX Inc. (WEX - Free Report)

Industry: Financial Services

Link: https://www.zacks.com/commentary/2968768/5-financial-transaction-stocks-in-focus-despite-rising-tech-costs

The Financial Transaction Services industry is likely to benefit from growth in cross-border transactions and strategic mergers and acquisitions (M&A). Expanding global trade, international travel and e-commerce increase transaction volumes, foreign exchange revenues and demand for value-added services, while acquisitions broaden product portfolios, diversify revenue streams, create cross-selling opportunities, improve operating scale and strengthen competitive positioning. 

However, rising technology expenditures to modernize payment infrastructure, enhance cybersecurity, expand cloud capabilities and invest in AI, fraud detection, and compliance continue to pressure operating margins. Additionally, persistent inflation and lower savings rates may restrain discretionary consumer spending, potentially slowing transaction volumes despite continued support from a resilient labor market and steady wage growth. Companies like Visa Inc., Mastercard Inc., PayPal Holdings, Inc., Fidelity National Information Services, Inc. and WEX Inc. are well-positioned to benefit from the industry's promising growth prospects.

About the IndustryThe Zacks Financial Transaction Services industry is part of the Financial Technology or the FinTech space, including companies with diverse natures of businesses. The industry comprises card and payment processing and other solutions providers, ATM services and money remittance service providers, as well as providers of investment solutions to financial advisors. 

The players in this segment operate their unique and proprietary global payments network that links issuers and acquirers around the globe to facilitate the switching of transactions, permitting account holders to use their products at millions of acceptance locations. Monetary transactions are done through these networks, offering a convenient, quick and secure payment method in several currencies across the globe. The industry is benefiting from the ongoing digitization movement triggered by the pandemic.

4 Key Factors That Drive Financial Transaction Services SpaceRising Technology Expenditures:Financial transaction service providers continue to face rising technology expenses as they invest in modernizing payment infrastructure, enhancing cybersecurity capabilities, expanding cloud-based platforms and developing advanced digital payment solutions. Ongoing spending on AI, fraud detection systems, regulatory compliance technologies and real-time payment processing is becoming increasingly essential to meet evolving customer expectations and industry standards. Additionally, companies incur significant costs related to software development, system integration, platform maintenance and technology talent acquisition. While these investments support long-term growth and operational efficiency, they can pressure operating margins and profitability.

Consumer Spending Pressures:Healthy consumer spending remains a key driver of financial transaction volumes, supporting revenue growth for financial transaction service stocks. Although the continued expansion of e-commerce is expected to provide a favorable backdrop, persistent inflationary pressures and lower savings rates may constrain household purchasing power and encourage more cautious spending patterns. As essential expenses, including housing, healthcare and groceries, account for a larger share of disposable income, discretionary spending could soften. Nevertheless, a resilient labor market and steady wage growth are expected to provide some stability to consumer spending and help sustain transaction activity in the near term.

Growth in Cross-Border Transactions:The continued expansion of cross-border transactions presents a significant growth opportunity for financial transaction service providers as global trade, international travel and e-commerce become increasingly interconnected. Higher cross-border payment volumes generate greater transaction fees and foreign exchange-related revenues while increasing demand for value-added services such as currency conversion, fraud prevention, compliance and settlement solutions. Providers with extensive global payment networks and multi-currency capabilities are well-positioned to expand customer relationships, increase transaction volumes, strengthen market share and drive sustainable long-term revenue growth.

Strategic Expansion Through M&A:To strengthen their digital ecosystems and enhance long-term competitive positioning, financial transaction service providers increasingly complement internal technology investments with strategic M&As. Such transactions enable companies to broaden their product portfolios, diversify revenue streams, expand customer relationships and strengthen their global presence. Additionally, M&A activity creates cross-selling opportunities, enhances operational scale through cost synergies and improves competitive positioning. 

Zacks Industry Rank Indicates Bearish OutlookThe group’s  Zacks Industry Rank, which is the average of the Zacks Rank of all member stocks, indicates tepid near-term prospects. The Zacks Financial Transaction Services industry is housed within the broader Zacks Business Services sector. It currently carries a Zacks Industry Rank #156, which places it in the bottom 36% of 245 Zacks industries.

Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one. The industry’s positioning in the bottom 50% of the Zacks-ranked industries is a result of the negative earnings outlook for the constituent companies in aggregate. 

Despite the dismal scenario, we will present a few stocks that one can retain, given their solid growth endeavors. But before that, it is worth looking at the industry’s recent stock-market performance and the valuation picture.

Industry Outperforms Sector, Underperforms S&P 500The Zacks Financial Transaction Services industry outperformed its sector but underperformed the Zacks S&P 500 composite in the past year.

In the said time frame, the industry has declined 10.6% compared with the Business Services sector’s decline of 14%. The S&P 500 has rallied 22.9% in the same time frame.

Industry's Current ValuationOn the basis of the forward 12-month price/earnings ratio, commonly used for valuing financial transaction services stocks, the industry is currently trading at 18.94X compared with the S&P 500’s 20.59X and the sector’s 18.11X.

In the past five years, the industry traded as high as 33.83X, as low as 16.12X and at the median of 21.73X. 

5 Stocks to Keep a Close Eye OnWe are presenting five stocks from the Financial Transaction Services industry that currently carry a Zacks Rank #3 (Hold). Considering the current industry scenario, it might be prudent for investors to buy or retain these stocks in their portfolio as these are well-placed to generate growth in the long term. 

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Visa: Visa’s, based in San Francisco, competitive strength stems from its unmatched global payments network, processing transactions across more than 200 countries and territories. Its trusted VisaNet platform delivers secure, reliable and scalable transaction processing, reinforced by advanced AI-driven fraud prevention, tokenization and cybersecurity capabilities. The company also benefits from its network-of-networks strategy and Visa as a Service platform, enabling seamless money movement across cards, bank accounts, digital wallets and real-time payment networks. 

The Zacks Consensus Estimate for Visa’s fiscal 2026 earnings is pegged at $13.13 per share, indicating an 14.5% rise from the year-ago figure. The consensus mark for revenues implies a 14.1% improvement from the year-ago actual. V’s earnings beat estimates in each of the last four quarters, the average surprise being 2.80%. 

Mastercard: Headquartered in New York, Mastercard boasts a globally integrated payments network, which enables secure, scalable and interoperable transactions across diverse participants and payment rails worldwide. Its franchise model establishes common rules and standards while supporting settlement integrity, reinforcing trust across the ecosystem. The company further differentiates itself through globally recognized brands, advanced data and AI capabilities, leading-edge technology, a strong innovation culture and deep local market presence, allowing it to expand payment solutions, strengthen customer relationships and engage effectively with governments worldwide.

The Zacks Consensus Estimate for Mastercard’s 2026 earnings is pegged at $19.78 per share, indicating a 16.3% rise from the year-ago figure. The consensus mark for revenues implies a 13.4% improvement from the year-ago actual. MA’s earnings beat estimates in each of the last four quarters, the average surprise being 6.29%.

PayPal: Based in California, PayPal operates a scaled two-sided payments ecosystem connecting 439 million active accounts across nearly 200 markets, enabling data-driven innovation that improves consumer and merchant experiences. Its trusted PayPal and Venmo brands, platform-agnostic payment infrastructure, broad funding options and omnichannel capabilities enhance customer flexibility and merchant adoption. The company further strengthens its competitive position by building and expanding strategic partnerships that improve customer experiences, broaden payment choices and attract new users. 

The Zacks Consensus Estimate for PayPal’s 2026 earnings is pegged at $5.36 per share, indicating a 0.9% rise from the year-ago figure. The consensus mark for revenues implies a 4.2% improvement from the year-ago actual. Its earnings beat estimates in three of the last four quarters and missed the mark once, the average surprise being 5.32%. 

Fidelity National: Based in Jacksonville, FL, Fidelity National is delivering solid revenue growth, fueled by robust performance in its Banking Solutions and Capital Markets Solutions segments. The Banking division is gaining traction through new client wins, while the Capital Market business is capitalizing on strong sales activity, driving higher levels of recurring revenues. Although the majority of its revenues are derived from U.S. clients, the company also has a strategic footprint in key international markets, including the United Kingdom, Germany, Australia, Brazil and Canada. The company supports its long-term growth through a combination of organic initiatives and selective acquisitions. 

The Zacks Consensus Estimate for Fidelity National’s 2026 earnings is pegged at $6.27 per share, indicating an improvement of 9% from the 2025 figure. The consensus mark for revenues implies a 4.2% improvement from the year-ago actual. FIS’ earnings beat estimates in three of the last four quarters and matched the mark once, the average surprise being 2.09%. 

WEX: Headquartered in Portland, ME, WEX boasts a diversified global commerce platform, combining proprietary payment networks, scalable SaaS solutions and deep industry expertise across Mobility, Benefits and Corporate Payments. Its owned technology, embedded payment capabilities, rich data analytics and AI-driven tools enhance workflow efficiency, fraud prevention and customer insights. The company also benefits from WEX Bank’s low-cost funding model, broad partner ecosystem, global reach and long-standing customer relationships, enabling differentiated solutions, operational scale and sustained innovation across multiple end markets.

The Zacks Consensus Estimate for WEX’s 2026 earnings is pegged at $19.88 per share, indicating an 23.5% rise from the year-ago figure. The consensus mark for revenues implies a 7.9% improvement from the year-ago actual. WEX’s earnings beat estimates in each of the last four quarters, the average surprise being 4.33%.

Why Haven't You Looked at Zacks' Top Stocks?Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.

Today you can access their live picks without cost or obligation.

See Stocks Free >>

Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch/

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

[email protected]

https://www.zacks.com

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance  for information about the performance numbers displayed in this press release.

For Immediate ReleaseChicago, IL – August 6, 2026 – Today, Zacks Equity Visa Inc. (V - Free Report) , Mastercard Inc. (MA - Free Report) , PayPal Holdings, Inc. (PYPL - Free Report) , Fidelity National Information Services, Inc. (FIS - Free Report) and WEX Inc. (WEX - Free Report) .

Industry: Financial Transaction Services

Link: https://www.zacks.com/commentary/2968768/5-financial-transaction-stocks-in-focus-despite-rising-tech-costs

The Financial Transaction Services industry is likely to benefit from growth in cross-border transactions and strategic mergers and acquisitions (M&A). Expanding global trade, international travel and e-commerce increase transaction volumes, foreign exchange revenues and demand for value-added services, while acquisitions broaden product portfolios, diversify revenue streams, create cross-selling opportunities, improve operating scale and strengthen competitive positioning. 

However, rising technology expenditures to modernize payment infrastructure, enhance cybersecurity, expand cloud capabilities and invest in AI, fraud detection, and compliance continue to pressure operating margins. Additionally, persistent inflation and lower savings rates may restrain discretionary consumer spending, potentially slowing transaction volumes despite continued support from a resilient labor market and steady wage growth. Companies like Visa Inc., Mastercard Inc., PayPal Holdings, Inc., Fidelity National Information Services, Inc. and WEX Inc. are well-positioned to benefit from the industry's promising growth prospects.

About the IndustryThe Zacks Financial Transaction Services industry is part of the Financial Technology or the FinTech space, including companies with diverse natures of businesses. The industry comprises card and payment processing and other solutions providers, ATM services and money remittance service providers, as well as providers of investment solutions to financial advisors. 

The players in this segment operate their unique and proprietary global payments network that links issuers and acquirers around the globe to facilitate the switching of transactions, permitting account holders to use their products at millions of acceptance locations. Monetary transactions are done through these networks, offering a convenient, quick and secure payment method in several currencies across the globe. The industry is benefiting from the ongoing digitization movement triggered by the pandemic.

4 Key Factors That Drive Financial Transaction Services SpaceRising Technology Expenditures: Financial transaction service providers continue to face rising technology expenses as they invest in modernizing payment infrastructure, enhancing cybersecurity capabilities, expanding cloud-based platforms and developing advanced digital payment solutions. Ongoing spending on AI, fraud detection systems, regulatory compliance technologies and real-time payment processing is becoming increasingly essential to meet evolving customer expectations and industry standards. 

Additionally, companies incur significant costs related to software development, system integration, platform maintenance and technology talent acquisition. While these investments support long-term growth and operational efficiency, they can pressure operating margins and profitability.

Consumer Spending Pressures: Healthy consumer spending remains a key driver of financial transaction volumes, supporting revenue growth for financial transaction service stocks. Although the continued expansion of e-commerce is expected to provide a favorable backdrop, persistent inflationary pressures and lower savings rates may constrain household purchasing power and encourage more cautious spending patterns. 

As essential expenses, including housing, healthcare and groceries, account for a larger share of disposable income, discretionary spending could soften. Nevertheless, a resilient labor market and steady wage growth are expected to provide some stability to consumer spending and help sustain transaction activity in the near term.

Growth in Cross-Border Transactions: The continued expansion of cross-border transactions presents a significant growth opportunity for financial transaction service providers as global trade, international travel and e-commerce become increasingly interconnected. Higher cross-border payment volumes generate greater transaction fees and foreign exchange-related revenues while increasing demand for value-added services such as currency conversion, fraud prevention, compliance and settlement solutions. Providers with extensive global payment networks and multi-currency capabilities are well-positioned to expand customer relationships, increase transaction volumes, strengthen market share and drive sustainable long-term revenue growth.

Strategic Expansion Through M&A: To strengthen their digital ecosystems and enhance long-term competitive positioning, financial transaction service providers increasingly complement internal technology investments with strategic M&As. Such transactions enable companies to broaden their product portfolios, diversify revenue streams, expand customer relationships and strengthen their global presence. Additionally, M&A activity creates cross-selling opportunities, enhances operational scale through cost synergies and improves competitive positioning. 

Zacks Industry Rank Indicates Bearish OutlookThe group’s  Zacks Industry Rank, which is the average of the Zacks Rank of all member stocks, indicates tepid near-term prospects. The Zacks Financial Transaction Services industry is housed within the broader Zacks Business Services sector. It currently carries a Zacks Industry Rank #156, which places it in the bottom 36% of 245 Zacks industries.

Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one. The industry’s positioning in the bottom 50% of the Zacks-ranked industries is a result of the negative earnings outlook for the constituent companies in aggregate. 

Despite the dismal scenario, we will present a few stocks that one can retain, given their solid growth endeavors. But before that, it is worth looking at the industry’s recent stock-market performance and the valuation picture.

Industry Outperforms Sector, Underperforms S&P 500The Zacks Financial Transaction Services industry outperformed its sector but underperformed the Zacks S&P 500 composite in the past year.

In the said time frame, the industry has declined 10.6% compared with the Business Services sector’s decline of 14%. The S&P 500 has rallied 22.9% in the same time frame.

Industry's Current ValuationOn the basis of the forward 12-month price/earnings ratio, commonly used for valuing financial transaction services stocks, the industry is currently trading at 18.94X compared with the S&P 500’s 20.59X and the sector’s 18.11X.

In the past five years, the industry traded as high as 33.83X, as low as 16.12X and at the median of 21.73X. 

5 Stocks to Keep a Close Eye OnWe are presenting five stocks from the Financial Transaction Services industry that currently carry a Zacks Rank #3 (Hold). Considering the current industry scenario, it might be prudent for investors to buy or retain these stocks in their portfolio as these are well-placed to generate growth in the long term. 

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Visa: Visa’s, based in San Francisco, competitive strength stems from its unmatched global payments network, processing transactions across more than 200 countries and territories. Its trusted VisaNet platform delivers secure, reliable and scalable transaction processing, reinforced by advanced AI-driven fraud prevention, tokenization and cybersecurity capabilities. The company also benefits from its network-of-networks strategy and Visa as a Service platform, enabling seamless money movement across cards, bank accounts, digital wallets and real-time payment networks. 

The Zacks Consensus Estimate for Visa’s fiscal 2026 earnings is pegged at $13.13 per share, indicating an 14.5% rise from the year-ago figure. The consensus mark for revenues implies a 14.1% improvement from the year-ago actual. V’s earnings beat estimates in each of the last four quarters, the average surprise being 2.80%. 

Mastercard: Headquartered in New York, Mastercard boasts a globally integrated payments network, which enables secure, scalable and interoperable transactions across diverse participants and payment rails worldwide. Its franchise model establishes common rules and standards while supporting settlement integrity, reinforcing trust across the ecosystem. The company further differentiates itself through globally recognized brands, advanced data and AI capabilities, leading-edge technology, a strong innovation culture and deep local market presence, allowing it to expand payment solutions, strengthen customer relationships and engage effectively with governments worldwide.

The Zacks Consensus Estimate for Mastercard’s 2026 earnings is pegged at $19.78 per share, indicating a 16.3% rise from the year-ago figure. The consensus mark for revenues implies a 13.4% improvement from the year-ago actual. MA’s earnings beat estimates in each of the last four quarters, the average surprise being 6.29%.

PayPal: Based in California, PayPal operates a scaled two-sided payments ecosystem connecting 439 million active accounts across nearly 200 markets, enabling data-driven innovation that improves consumer and merchant experiences. Its trusted PayPal and Venmo brands, platform-agnostic payment infrastructure, broad funding options and omnichannel capabilities enhance customer flexibility and merchant adoption. The company further strengthens its competitive position by building and expanding strategic partnerships that improve customer experiences, broaden payment choices and attract new users. 

The Zacks Consensus Estimate for PayPal’s 2026 earnings is pegged at $5.36 per share, indicating a 0.9% rise from the year-ago figure. The consensus mark for revenues implies a 4.2% improvement from the year-ago actual. Its earnings beat estimates in three of the last four quarters and missed the mark once, the average surprise being 5.32%. 

Fidelity National: Based in Jacksonville, FL, Fidelity National is delivering solid revenue growth, fueled by robust performance in its Banking Solutions and Capital Markets Solutions segments. The Banking division is gaining traction through new client wins, while the Capital Market business is capitalizing on strong sales activity, driving higher levels of recurring revenues. Although the majority of its revenues are derived from U.S. clients, the company also has a strategic footprint in key international markets, including the United Kingdom, Germany, Australia, Brazil and Canada. The company supports its long-term growth through a combination of organic initiatives and selective acquisitions. 

The Zacks Consensus Estimate for Fidelity National’s 2026 earnings is pegged at $6.27 per share, indicating an improvement of 9% from the 2025 figure. The consensus mark for revenues implies a 4.2% improvement from the year-ago actual. FIS’ earnings beat estimates in three of the last four quarters and matched the mark once, the average surprise being 2.09%. 

WEX: Headquartered in Portland, ME, WEX boasts a diversified global commerce platform, combining proprietary payment networks, scalable SaaS solutions and deep industry expertise across Mobility, Benefits and Corporate Payments. Its owned technology, embedded payment capabilities, rich data analytics and AI-driven tools enhance workflow efficiency, fraud prevention and customer insights. The company also benefits from WEX Bank’s low-cost funding model, broad partner ecosystem, global reach and long-standing customer relationships, enabling differentiated solutions, operational scale and sustained innovation across multiple end markets.

The Zacks Consensus Estimate for WEX’s 2026 earnings is pegged at $19.88 per share, indicating a 23.5% rise from the year-ago figure. The consensus mark for revenues implies a 7.9% improvement from the year-ago actual. WEX’s earnings beat estimates in each of the last four quarters, the average surprise being 4.33%.

Why Haven't You Looked at Zacks' Top Stocks?Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.

Today you can access their live picks without cost or obligation.

See Stocks Free >>

Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch/

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

[email protected]

https://www.zacks.com

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance  for information about the performance numbers displayed in this press release.

-

Key facts

FIS has launched Digital One™ Commercial in APAC, a core-agnostic, composable commercial banking platform enabling banks to serve all business segments on a single system without replacing existing core systems. Digital One Commercial supports real-time, multi-rail payments with native multi-language, multi-currency, and cloud-ready capabilities for the region's diverse regulatory environments. The platform’s API-first architecture integrates with accounting systems and ERP platforms, giving APAC banks the flexibility to expand commercial banking services without a full technology overhaul. JACKSONVILLE, Fla.--(BUSINESS WIRE)--FIS® (NYSE: FIS), a global leader in financial technology, today launched Digital One™ Commercial in APAC, completing the platform's global rollout and making it available to financial institutions across the US, EMEA, and APAC. Digital One Commercial gives financial institutions the digital infrastructure to serve all their business customers, from small businesses to big enterprises, across multiple markets from a single, core-agnostic deployment.

The launch comes at a pivotal moment for commercial banking across APAC. According to Celent, corporate banking IT spending in APAC grew by 5.5% in 2025 and accelerated by 6.2% in 2026, as banks prioritize investment in client lifecycle management and corporate digital platforms. Yet many institutions still manage SMB and corporate clients on separate, country-specific systems while navigating market-specific compliance requirements1, data sovereignty mandates requiring flexible cloud deployment, and rising expectations from business customers who demand the real-time, connected digital services now standard in retail banking.

Digital One Commercial is purpose-built to serve business customers across the money lifecycle — from everyday cash management and payments through to trade finance, foreign exchange, and corporate treasury — addressing the commercial banking gaps that most constrain APAC financial institutions today:

Core-agnostic and API-first: Digital One Commercial connects to any existing core banking system and supports real-time, multi-rail payments across leading APAC schemes including PayNow, GIRO, FAST, and SWIFT/ISO, alongside trade finance and multi-entity liquidity management. Single platform for every business segment: A composable architecture enables banks to serve small businesses, mid-corporates, and large enterprise clients on a single system, replacing separate platforms segmented by customer tier or geography, with capabilities adopted incrementally and without a full technology overhaul. Built for APAC’s scale and diversity: Native support for English, Simplified Chinese, Traditional Chinese, Bahasa Indonesia, and Vietnamese, alongside multi-currency and multi-time zone capabilities, allows banks to scale across markets from a single platform instance. ERP connectivity: Direct integration with ERP and accounting platforms embeds banking services into business workflows in real time, removing the need for treasury teams to switch between banking portals and internal systems. A leading APAC bank already runs Digital One Commercial across 15 countries on a single instance, serving approximately 350,000 business customers and over one million end-users, accelerating time-to-market for new products and growing commercial banking revenue without the complexity of managing separate country systems.

“APAC's commercial banking landscape is among the most complex in the world, and too many banks are navigating it with separate systems built for individual markets rather than the region. The opportunity is not incremental improvement — it is helping banks unite their commercial banking operations, serve every business segment from a single platform, and unlock growth across the region,” said Peter Boyer, Co-President, Banking Solutions, FIS.

“In APAC, the shift toward platform-based commercial banking is accelerating, driven by the need to unify client experiences and support cross-border services,” said Colin Kerr, Head of Banking and Payments, Celent. “Banks are increasingly prioritizing flexible, integration-led architectures that can sit alongside existing cores - making solutions such as Digital One Commercial highly relevant to current transformation agendas.”

Digital One Commercial is available globally, designed to serve regional banks scaling into new markets and global institutions looking to modernize their commercial banking infrastructure. For more information, visit https://www.fisglobal.com/products/digital-one-commercial.

About FIS

FIS is a financial technology company providing solutions to financial institutions and businesses. We unlock financial technology to the world across the money lifecycle underpinning the world’s financial system. Our people are dedicated to advancing the way the world pays, banks and invests, by helping our clients to confidently run, grow, and protect their businesses. Our expertise comes from decades of experience helping financial institutions and businesses of all sizes adapt to meet the needs of their customers by harnessing where reliability meets innovation in financial technology. Headquartered in Jacksonville, Florida, FIS is a member of the Fortune 500® and the Standard & Poor’s 500® Index. To learn more, visit FISglobal.com. Follow FIS on LinkedIn, Facebook and X.

More News From Fidelity National Information Services

Back to Newsroom

The Financial Transaction Services industry is likely to benefit from growth in cross-border transactions and strategic mergers and acquisitions (M&A). Expanding global trade, international travel and e-commerce increase transaction volumes, foreign exchange revenues and demand for value-added services, while acquisitions broaden product portfolios, diversify revenue streams, create cross-selling opportunities, improve operating scale and strengthen competitive positioning. However, rising technology expenditures to modernize payment infrastructure, enhance cybersecurity, expand cloud capabilities and invest in AI, fraud detection, and compliance continue to pressure operating margins. Additionally, persistent inflation and lower savings rates may restrain discretionary consumer spending, potentially slowing transaction volumes despite continued support from a resilient labor market and steady wage growth. Companies like Visa Inc. (V - Free Report) , Mastercard Incorporated (MA - Free Report) , PayPal Holdings, Inc. (PYPL - Free Report) , Fidelity National Information Services, Inc. (FIS - Free Report) and WEX Inc. (WEX - Free Report) are well-positioned to benefit from the industry's promising growth prospects.

About the Industry The Zacks Financial Transaction Services industry is part of the Financial Technology or the FinTech space, including companies with diverse natures of businesses. The industry comprises card and payment processing and other solutions providers, ATM services and money remittance service providers, as well as providers of investment solutions to financial advisors. The players in this segment operate their unique and proprietary global payments network that links issuers and acquirers around the globe to facilitate the switching of transactions, permitting account holders to use their products at millions of acceptance locations. Monetary transactions are done through these networks, offering a convenient, quick and secure payment method in several currencies across the globe. The industry is benefiting from the ongoing digitization movement triggered by the pandemic.

4 Key Factors That Drive Financial Transaction Services Space Rising Technology Expenditures: Financial transaction service providers continue to face rising technology expenses as they invest in modernizing payment infrastructure, enhancing cybersecurity capabilities, expanding cloud-based platforms and developing advanced digital payment solutions. Ongoing spending on AI, fraud detection systems, regulatory compliance technologies and real-time payment processing is becoming increasingly essential to meet evolving customer expectations and industry standards. Additionally, companies incur significant costs related to software development, system integration, platform maintenance and technology talent acquisition. While these investments support long-term growth and operational efficiency, they can pressure operating margins and profitability.

Consumer Spending Pressures: Healthy consumer spending remains a key driver of financial transaction volumes, supporting revenue growth for financial transaction service stocks. Although the continued expansion of e-commerce is expected to provide a favorable backdrop, persistent inflationary pressures and lower savings rates may constrain household purchasing power and encourage more cautious spending patterns. As essential expenses, including housing, healthcare and groceries, account for a larger share of disposable income, discretionary spending could soften. Nevertheless, a resilient labor market and steady wage growth are expected to provide some stability to consumer spending and help sustain transaction activity in the near term.

Growth in Cross-Border Transactions: The continued expansion of cross-border transactions presents a significant growth opportunity for financial transaction service providers as global trade, international travel and e-commerce become increasingly interconnected. Higher cross-border payment volumes generate greater transaction fees and foreign exchange-related revenues while increasing demand for value-added services such as currency conversion, fraud prevention, compliance and settlement solutions. Providers with extensive global payment networks and multi-currency capabilities are well-positioned to expand customer relationships, increase transaction volumes, strengthen market share and drive sustainable long-term revenue growth.

Strategic Expansion Through M&A: To strengthen their digital ecosystems and enhance long-term competitive positioning, financial transaction service providers increasingly complement internal technology investments with strategic M&As. Such transactions enable companies to broaden their product portfolios, diversify revenue streams, expand customer relationships and strengthen their global presence. Additionally, M&A activity creates cross-selling opportunities, enhances operational scale through cost synergies and improves competitive positioning. 

Zacks Industry Rank Indicates Bearish Outlook The group’s  Zacks Industry Rank, which is the average of the Zacks Rank of all member stocks, indicates tepid near-term prospects. The Zacks Financial Transaction Services industry is housed within the broader Zacks Business Services sector. It currently carries a Zacks Industry Rank #156, which places it in the bottom 36% of 245 Zacks industries.

Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one. The industry’s positioning in the bottom 50% of the Zacks-ranked industries is a result of the negative earnings outlook for the constituent companies in aggregate. 

Despite the dismal scenario, we will present a few stocks that one can retain, given their solid growth endeavors. But before that, it is worth looking at the industry’s recent stock-market performance and the valuation picture.

Industry Outperforms Sector, Underperforms S&P 500 The Zacks Financial Transaction Services industry outperformed its sector but underperformed the Zacks S&P 500 composite in the past year.

In the said time frame, the industry has declined 10.6% compared with the Business Services sector’s decline of 14%. The S&P 500 has rallied 22.9% in the same time frame.

One-Year Price Performance
 
Image Source: Zacks Investment Research

Industry's Current Valuation On the basis of the forward 12-month price/earnings ratio, commonly used for valuing financial transaction services stocks, the industry is currently trading at 18.94X compared with the S&P 500’s 20.59X and the sector’s 18.11X.

In the past five years, the industry traded as high as 33.83X, as low as 16.12X and at the median of 21.73X. 

Forward 12-Month Price/Earnings (P/E) Ratio
 
Image Source: Zacks Investment Research

Image Source: Zacks Investment Research

5 Stocks to Keep a Close Eye on We are presenting five stocks from the Financial Transaction Services industry that currently carry a Zacks Rank #3 (Hold). Considering the current industry scenario, it might be prudent for investors to buy or retain these stocks in their portfolio as these are well-placed to generate growth in the long term. 

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Visa: Visa’s, based in San Francisco, competitive strength stems from its unmatched global payments network, processing transactions across more than 200 countries and territories. Its trusted VisaNet platform delivers secure, reliable and scalable transaction processing, reinforced by advanced AI-driven fraud prevention, tokenization and cybersecurity capabilities. The company also benefits from its network-of-networks strategy and Visa as a Service platform, enabling seamless money movement across cards, bank accounts, digital wallets and real-time payment networks. 

The Zacks Consensus Estimate for Visa’s fiscal 2026 earnings is pegged at $13.13 per share, indicating an 14.5% rise from the year-ago figure. The consensus mark for revenues implies a 14.1% improvement from the year-ago actual. V’s earnings beat estimates in each of the last four quarters, the average surprise being 2.80%. 

Price and Consensus: V
Image Source: Zacks Investment Research

Mastercard: Headquartered in New York, Mastercard boasts a globally integrated payments network, which enables secure, scalable and interoperable transactions across diverse participants and payment rails worldwide. Its franchise model establishes common rules and standards while supporting settlement integrity, reinforcing trust across the ecosystem. The company further differentiates itself through globally recognized brands, advanced data and AI capabilities, leading-edge technology, a strong innovation culture and deep local market presence, allowing it to expand payment solutions, strengthen customer relationships and engage effectively with governments worldwide.

The Zacks Consensus Estimate for Mastercard’s 2026 earnings is pegged at $19.78 per share, indicating a 16.3% rise from the year-ago figure. The consensus mark for revenues implies a 13.4% improvement from the year-ago actual. MA’s earnings beat estimates in each of the last four quarters, the average surprise being 6.29%.

Price and Consensus: MA
Image Source: Zacks Investment Research

PayPal: Based in California, PayPal operates a scaled two-sided payments ecosystem connecting 439 million active accounts across nearly 200 markets, enabling data-driven innovation that improves consumer and merchant experiences. Its trusted PayPal and Venmo brands, platform-agnostic payment infrastructure, broad funding options and omnichannel capabilities enhance customer flexibility and merchant adoption. The company further strengthens its competitive position by building and expanding strategic partnerships that improve customer experiences, broaden payment choices and attract new users. 

The Zacks Consensus Estimate for PayPal’s 2026 earnings is pegged at $5.36 per share, indicating a 0.9% rise from the year-ago figure. The consensus mark for revenues implies a 4.2% improvement from the year-ago actual. Its earnings beat estimates in three of the last four quarters and missed the mark once, the average surprise being 5.32%. 

Price and Consensus: PYPL
Image Source: Zacks Investment Research

Fidelity National: Based in Jacksonville, FL, Fidelity National is delivering solid revenue growth, fueled by robust performance in its Banking Solutions and Capital Markets Solutions segments. The Banking division is gaining traction through new client wins, while the Capital Market business is capitalizing on strong sales activity, driving higher levels of recurring revenues. Although the majority of its revenues are derived from U.S. clients, the company also has a strategic footprint in key international markets, including the United Kingdom, Germany, Australia, Brazil and Canada. The company supports its long-term growth through a combination of organic initiatives and selective acquisitions. 

The Zacks Consensus Estimate for Fidelity National’s 2026 earnings is pegged at $6.27 per share, indicating an improvement of 9% from the 2025 figure. The consensus mark for revenues implies a 4.2% improvement from the year-ago actual. FIS’ earnings beat estimates in three of the last four quarters and matched the mark once, the average surprise being 2.09%. 

Price and Consensus: FIS
Image Source: Zacks Investment Research

WEX: Headquartered in Portland, ME, WEX boasts a diversified global commerce platform, combining proprietary payment networks, scalable SaaS solutions and deep industry expertise across Mobility, Benefits and Corporate Payments. Its owned technology, embedded payment capabilities, rich data analytics and AI-driven tools enhance workflow efficiency, fraud prevention and customer insights. The company also benefits from WEX Bank’s low-cost funding model, broad partner ecosystem, global reach and long-standing customer relationships, enabling differentiated solutions, operational scale and sustained innovation across multiple end markets.

The Zacks Consensus Estimate for WEX’s 2026 earnings is pegged at $19.88 per share, indicating an 23.5% rise from the year-ago figure. The consensus mark for revenues implies a 7.9% improvement from the year-ago actual. WEX’s earnings beat estimates in each of the last four quarters, the average surprise being 4.33%.

Price and Consensus: WEX
Image Source: Zacks Investment Research

Revenue: $3.4 billion, up 5.3% on a pro forma basis.Banking Solutions Revenue: Grew 6.1% on a pro forma basis, with banking up 5.6% and payments growing 6.4%.Ca

Key Takeaways Fidelity National reported Q2 adjusted EPS of $1.48, up 8.8% year over year and above estimates.FIS delivered 44% Banking Solutions revenue growth, supported by margin expansion and cost management.Fidelity National lifted free cash flow guidance despite reducing its 2026 revenues, EBITDA and EPS outlook. Fidelity National Information Services, Inc. (FIS - Free Report) reported second-quarter 2026 adjusted earnings per share (EPS) of $1.48, which beat the Zacks Consensus Estimate by 0.7%. The bottom line advanced 8.8% year over year.

Revenues amounted to $3.4 billion, which improved 29% year over year. The top line missed the consensus mark by 0.2%.

The quarterly earnings were driven by strong growth in the Banking Solutions segment and steady performance in the Capital Market Solutions segment, supported by recurring revenue growth, margin expansion and acquisition benefits. However, the upside was partly offset by a higher cost of revenues and increased selling, general and administrative expenses.

Fidelity National Information Services, Inc. Price, Consensus and EPS SurpriseFIS’ Q2 PerformanceThe cost of revenues increased 32.4% year over year to $2.2 billion in the second quarter. SG&A expenses of $684 million rose 19.6% year over year. Net interest expenses of $200 million increased 81.8% from the prior-year quarter’s figure.

Adjusted EBITDA was $1.4 billion, up 35% year over year. Adjusted EBITDA margin increased 193 basis points year over year to 41.7%, primarily driven by acquisitions, a favorable business mix and cost savings initiatives.

Q2 Segmental Update of Fidelity NationalRevenues from the Banking Solutions segment totaled $2.5 billion, increasing 44% year over year and matching the Zacks Consensus Estimate. The segmental results benefited from solid margin expansion. Adjusted EBITDA margin improved 179 bps year over year to 45.8%, supported by cost management and a favorable revenue mix.

The Capital Market Solutions segment’s revenues advanced 3.5% year over year to $810 million, marginally missing the Zacks Consensus Estimate by 0.2%. Strong recurring revenue growth benefited the metric. Adjusted EBITDA margin of 51.9% contracted 32 bps year over year.

The Corporate and Other segment recorded revenues of $84 million, down 26% year over year. Adjusted EBITDA loss was $147 million.

FIS’ Q2 Financial UpdateFidelity National exited the second quarter of 2026 with cash and cash equivalents of $744 million, up from $599 million as of 2025-end. Total assets of $44.1 billion increased from $33.5 billion at the end of 2025.

Long-term debt, excluding the current portion, amounted to $15.4 billion, up from $9.1 billion as of Dec. 31, 2025. The current portion of long-term debt totaled $1.5 billion. Short-term borrowings totaled $4.2 billion at the end of the reported quarter.

Total equity of $16 billion increased from $13.9 billion at 2025-end.

Fidelity National generated $493 million in net cash from operations, representing a 29.1% year-over-year increase. Adjusted free cash flow totaled $525 million, up 220% year over year.

FIS’ Share Repurchase & Dividend UpdateThe company returned $270 million to shareholders, including $42 million through share repurchases and $228 million in dividend payments.

FIS’ Key Expectations for Q3’26Management forecasts revenues between $3.415 billion and $3.445 billion. Adjusted EBITDA is projected to be in the range of $1,460-$1,480 million. Adjusted EPS is estimated to be between $1.58 and $1.62.

FIS Updates 2026 GuidanceRevenues are now expected to be $13.63-$13.70 billion, down from the prior guidance of $13.77-$13.85 billion, implying 29-30% adjusted revenue growth.

Adjusted EBITDA is projected to be $5.73-$5.79 billion compared to the earlier outlook of $5.80-$5.86 billion. Adjusted EBITDA margin is anticipated to be in the range of 41.8-42.4% (previously 42.1-42.3%).

Adjusted EPS is forecast in the range of $6.15-$6.24, lowered from the prior guidance of $6.22-$6.32. The midpoint implies about 11.2% year-over-year growth from $5.57 reported in 2025.

Free cash flow guidance has been raised to $2.15-$2.25 billion from the previous $2.05-$2.15 billion. The company now expects free cash flow growth of 33-39% year over year.

FIS’ Zacks RankFidelity National currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

How Did Peers Perform?Several companies in the business services space, including Marsh & McLennan Companies, Inc. (MRSH - Free Report) , Visa Inc. (V - Free Report) and Mastercard Incorporated (MA - Free Report) , have reported their financial results for the June quarter of 2026. Here’s how they have performed:

MRSH reported second-quarter 2026 adjusted earnings per share of $2.96, which surpassed the Zacks Consensus Estimate by 2.8%. The bottom line advanced 8.8% year over year. Consolidated revenues of $7.4 billion improved 6.2% year over year. The figure rose 5% on an underlying basis. The top line beat the consensus mark by 2%. Marsh’s quarterly results benefited from solid growth in the Risk and Insurance Services and Consulting units. However, the upside was partially offset by elevated operating expenses, primarily due to increased compensation and benefits.

Visa delivered third-quarter fiscal 2026 adjusted earnings of $3.32 per share, which rose 11% year over year and beat the Zacks Consensus Estimate by 2.8%. Net revenues were $11.63 billion, rising 14% year over year. Visa’s quarterly results reflected resilient spending trends, higher cross-border volumes and solid network activity, including a 10% year-over-year increase in payments volume on a constant-dollar basis. However, the upside was partly offset by increased operating expenses.

Mastercard reported second-quarter 2026 adjusted earnings of $5.04 per share, which topped the Zacks Consensus Estimate by 5.7%. The bottom line improved 21.4% year over year. Net revenues advanced 14.1% year over year to $9.3 billion. The top line beat the consensus mark by 2.4%. Mastercard’s quarterly results benefited from strong cross-border volume growth, increased switched transactions and robust demand for value-added services. However, the upside was partly offset by higher payment network rebates from renewed deals and an escalating operating expense level.

FIS (NYSE: FIS), a global leader in financial technology, today reported its second quarter 2026 results.“Our first half reflects the strength of the busine

For the quarter ended June 2026, Fidelity National Information Services (FIS - Free Report) reported revenue of $3.38 billion, up 29.1% over the same period last year. EPS came in at $1.48, compared to $1.36 in the year-ago quarter.

The reported revenue compares to the Zacks Consensus Estimate of $3.38 billion, representing a surprise of -0.23%. The company delivered an EPS surprise of +0.68%, with the consensus EPS estimate being $1.47.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Fidelity National performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Revenue- Banking Solutions: $2.48 billion versus $2.48 billion estimated by six analysts on average. Compared to the year-ago quarter, this number represents a +37.3% change.Revenue- Corporate and Other: $84 million compared to the $90.36 million average estimate based on six analysts. The reported number represents a change of +95.4% year over year.Revenue- Capital Market Solutions: $810 million versus the six-analyst average estimate of $811.73 million. The reported number represents a year-over-year change of +5.9%.Adjusted EBITDA- Banking Solutions: $1.1 billion versus $1.12 billion estimated by three analysts on average.Adjusted EBITDA- Corporate and other: $-147 million compared to the $-138.87 million average estimate based on three analysts.Adjusted EBITDA- Capital Market Solutions: $420 million compared to the $424.52 million average estimate based on three analysts.View all Key Company Metrics for Fidelity National here>>>

Shares of Fidelity National have returned +8.5% over the past month versus the Zacks S&P 500 composite's +1.7% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

JACKSONVILLE, Fla.--(BUSINESS WIRE)--FIS® (NYSE: FIS), a global leader in financial technology, today reported its second quarter 2026 results. “Our first half reflects the strength of the business we have built defined by durable recurring growth, expanding margins, and accelerating cash generation,” said FIS CEO and President Stephanie Ferris. “Banks are investing decisively behind modernization and AI, and they are choosing FIS as their partner. With the Total Issuing Solutions acquisition a.

Key Takeaways FIS is expected to post Q2 revenue growth, led by stronger Banking Solutions performance.Fidelity National projects Q2 adjusted EBITDA of $1.395-$1.415 billion despite higher cost pressures.Capital Market Solutions revenues are projected to rise 6.1% from the prior-year quarter. Fidelity National Information Services, Inc. (FIS - Free Report) is set to report second-quarter 2026 results on Aug. 4, 2026, before the opening bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is currently pegged at $1.47 per share,and the same for revenues is pinned at $3.38 billion.

The second-quarter earnings estimate has witnessed one downward revision against no movement in the opposite direction over the past 60 days. However, the bottom-line prediction indicates an 8.1% year-over-year increase. The Zacks Consensus Estimate for quarterly revenues implies year-over-year growth of 29.4%.

Image Source: Zacks Investment Research

For full-year 2026, the Zacks Consensus Estimate for Fidelity National’s revenues is pegged at $13.80 billion, implying a rise of 29.3% year over year. Meanwhile, the consensus mark for the current year EPS is pegged at $6.27, implying growth of around 9% on a year-over-year basis.

Fidelity National’s earningsbeat the consensus estimate in two of the last four quarters, met once and missed on another occasion, with the average surprise being 1.9%.

Q2 Earnings Whispers for Fidelity NationalOur proven model does not conclusively predict an earnings beat for the company this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. That’s not the case here.

FIS has an Earnings ESP of -0.70% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

You can see the complete list of today’s Zacks #1 Rank stocks here.

What is Shaping Fidelity National’s Q2 Results?The Zacks Consensus Estimate for Banking Solutions revenues indicates a 37.3% year-over-year increase. The acquisition of Global Payments’ Issuer Solutions business, which was closed in January, is likely to boost the performance of the segment. The consensus mark indicates a 6.1% increase in revenues from Capital Market Solutions compared with the same quarter last year.

The Zacks Consensus Estimate for Banking Solutions’ adjusted EBITDA indicates a 41.7% year-over-year increase. The consensus mark for Capital Market Solutions’ adjusted EBITDA indicates 10.3% year-over-year growth.

The factors stated above are likely to have positioned FIS for year-over-year growth. The positives are likely to have been partially offset bythe rising cost of revenues. Also, the consensus estimate for corporate and other adjusted EBITDA signals a 4.4% deterioration from a year ago.

The company earlier stated that it expects second-quarter 2026 consolidated adjusted EBITDA to be in the range of $1.395-$1.415 billion.

How Did Other Stocks Perform?Here are some companies in the broader payments space that have already reported earnings for the June quarter: Synchrony Financial (SYF - Free Report) , American Express Company (AXP - Free Report) and Visa Inc. (V - Free Report) .

Synchrony Financial reported second-quarter 2026 adjusted EPS of $2.59, which surpassed the Zacks Consensus Estimate by 24.5%, and the bottom line increased 3.6% year over year. The quarterly results were driven by record purchase volume, accelerated growth in ending loan receivables despite elevated payment behavior, continued credit strength and an expansion in net interest margin. However, SYF’s higher operating expenses and an increase in the provision for credit losses partly offset these positives.

American Express reported second-quarter 2026 EPS of $4.53, which surpassed the Zacks Consensus Estimate by 2.7%. The bottom line advanced 11% year over year. The strong quarterly results were driven by increased Card Member spending, higher net interest income and improved card fee growth. However, the upside was partly offset by AXP’s elevated operating expenses.

Visa delivered third-quarter fiscal 2026 adjusted earnings of $3.32 per share, up 11% year over year and beating the Zacks Consensus Estimate by 2.8%. The strong quarterly results reflected resilient spending trends, higher cross-border volumes and solid network activity, including a 10% year-over-year increase in payments volume on a constant-dollar basis. However, the upside was partly offset by Visa’s increased operating expenses.

Among the challenges confronting digital payments is deciding which forms of digital money belong inside the banking system, which belong alongside it, and how those pieces connect without creating new operational or regulatory blind spots.

During a “What’s Next in Payments” interview with David Trecker, vice president and head of strategy, digital assets at FIS, the executive described an ecosystem where several forms of digital money will coexist, each serving different business needs.

“You have to cover the waterfront because so much of the value of digital assets is the interoperability between the different types,” Trecker said. “How much focus you put on one versus the other really depends primarily on two things: what geographies you’re focused on and the customer segments you’re focused on.”

While central bank digital currencies have little momentum in the United States, Trecker said banks operating in Europe cannot ignore initiatives such as the digital euro. Financial institutions therefore face a planning exercise that is less about selecting one technology than preparing for several.

Banks also confront another balancing act. Stablecoins have established legitimate payment and settlement use cases, particularly for moving money and holding U.S. dollars outside the United States. At the same time, banks remain focused on protecting deposits, which remain the foundation of their funding model.

“Stablecoins can do things that commercial bank money can’t,” Trecker said. “Banks are now faced with a choice.”

They can either adopt stablecoins to deliver those outcomes for their customers, or they can find a viable alternative that can still deliver those things, but works with their business model, he told PYMNTS.

That thinking underpins the Keystone Network, a bank-owned initiative built around tokenized deposits while recognizing that community and regional institutions require a different roadmap than the nation’s largest financial institutions. Trecker argued that those banks need practical business enablement as much as they need blockchain infrastructure.

Network Design May Matter More Than Technology Much of today’s digital asset discussion centers on cross-border payments, wholesale settlement and multinational treasury operations. Trecker suggested that focus overlooks where many banks can generate value sooner.

Large global institutions already have natural applications for digital assets because they manage liquidity across jurisdictions and time zones. Continuous settlement and programmable treasury operations solve existing operational problems.

Regional and community banks operate under different conditions.

Rather than beginning with multinational treasury management, Trecker pointed to smart deposits, programmable commercial banking services, intra-bank liquidity management and tokenized real-world assets as examples where digital assets can produce measurable benefits without requiring a massive external network. Those projects allow institutions to gain operational experience before tackling broader interoperability across the industry.

He described that progression as moving from “single-player games” toward hub-and-spoke models before reaching broader network participation. Interbank settlement, correspondent banking and foreign exchange become more practical as banks establish trusted relationships among smaller groups of participants that share common objectives.

Trecker also said banks should pay close attention to customer behavior rather than waiting for perfect return-on-investment models before acting. He compared today’s environment with the early years of online banking, when customer expectations shifted before many institutions could produce traditional financial justifications for digital investment.

“The banking leaders of today all have seen a version of this movie before,” Trecker said. “The customers wanted it, and those who did not have it moved.”

That lesson carries particular weight for regional institutions accustomed to following larger competitors. Trecker questioned whether digital assets represent another cycle where banks can safely wait or whether customer demand will require some institutions to lead rather than follow.

Trecker noted that banks require clear accountability, consistent know-your-customer  and Bank Secrecy Act controls, defined liability frameworks and complete transaction visibility before connecting with outside networks.

His broader advice for the industry centered on collaboration. Banks, particularly community and regional institutions, should view one another as natural partners rather than approaching digital assets solely through competitive positioning. Building larger banking networks around common standards, he said, offers a stronger long-term foundation than fragmented initiatives pursuing isolated use cases.

Watch the full interview with David Trecker to learn more about:

Why banks should recognize different forms of digital money as complementary rather than competing technologies. How customer behavior may become a stronger adoption signal than traditional ROI calculations. Why community banks and regional institutions could shape digital asset adoption through shared networks focused on domestic banking needs.

JACKSONVILLE, Fla.--(BUSINESS WIRE)--FIS® (NYSE: FIS), a global financial technology leader, is using Mythos 5 through Project Glasswing, Anthropic’s controlled-access initiative that applies frontier AI to help strengthen the security of software supporting critical infrastructure, to secure its own systems.

FIS operates systems that clear payments, move money and run core banking for thousands of institutions worldwide. Protecting that code is critical to the stability of global financial infrastructure. At that scale, FIS applies the same standard to its own infrastructure security that it expects from the technology it delivers to clients.

Through Project Glasswing, FIS is putting Mythos 5, Anthropic’s most advanced frontier model, to work as an additional layer within its security program. Project Glasswing brings together organizations that build or maintain foundational software. Participants use Anthropic’s most advanced AI models for defensive security work. This reinforces FIS’ commitment to proactive security and being a supportive partner to the broader security community and financial services sector.

Project Glasswing brings together organizations that build or maintain foundational software. Participants use Anthropic’s most advanced AI models for defensive security work.

In addition to FIS’ participation in Project Glasswing, its overall security posture is shaped by active engagement with FS-ISAC and the Financial Services Sector Coordinating Council, ongoing regulatory collaboration and industry intelligence-sharing. The initiative is separate from FIS’ commercial deployment of Anthropic AI agents but reflects the same disciplined approach to applying advanced AI in financial systems where security, reliability and trust are essential.

About FIS

FIS is a financial technology company providing solutions to financial institutions and businesses. We unlock financial technology to the world across the money lifecycle underpinning the world’s financial system. Our people are dedicated to advancing the way the world pays, banks and invests, by helping our clients to confidently run, grow, and protect their businesses. Our expertise comes from decades of experience helping financial institutions and businesses of all sizes adapt to meet the needs of their customers by harnessing where reliability meets innovation in financial technology. Headquartered in Jacksonville, Florida, FIS is a member of the Fortune 500® and the Standard & Poor’s 500® Index. To learn more, visit FISglobal.com. Follow FIS on LinkedIn, Facebook and X.

Global financial technology leader [url="]FIS[/url]Â (NYSE: FIS) has received two major industry awards recognizing innovation in risk technology. FIS was nam

HomeStock IdeasLong IdeasFinancials 

SummaryFidelity National Information Services is rated a 'BUY' with a $90/share price target, reflecting a 15% annualized upside at 15x P/E.Despite slow revenue growth and Worldpay divestiture, FIS demonstrates resilient fundamentals, 10% AEPS growth in 2025, and a 4.2% well-covered dividend yield.FIS trades at less than 7x P/E, a deep discount to historical multiples, with market pessimism disconnected from its robust earnings and sticky, mission-critical client base.I plan to average down and build a full position, as restructuring costs fade and client budgets stabilize, expecting significant re-rating potential.Looking for more investing ideas like this one? Get them exclusively at Wolf of Value. Learn More » Morsa Images/DigitalVision via Getty Images

In this article, I'll be reviewing Fidelity National Information Services (FIS).It's been about 2 years since I last covered this business, and the business has not done well for itself in terms

35.31K Followers

Analyst’s Disclosure: I/we have a beneficial long position in the shares of FIS either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

While this article may sound like financial advice, please observe that the author is not a CFA or in any way licensed to give financial advice. It may be structured as such, but it is not financial advice. Investors are required and expected to do their own due diligence and research prior to any investment. Short-term trading, options trading/investment and futures trading are potentially extremely risky investment styles. They generally are not appropriate for someone with limited capital, limited investment experience, or a lack of understanding for the necessary risk tolerance involved. I own the European/Scandinavian tickers (not the ADRs) of all European/Scandinavian companies listed in my articles. I own the Canadian tickers of all Canadian stocks I write about. Please note that investing in European/Non-US stocks comes with withholding tax risks specific to the company's domicile as well as your personal situation. Investors should always consult a tax professional as to the overall impact of dividend withholding taxes and ways to mitigate these.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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.

JACKSONVILLE, Fla.--(BUSINESS WIRE)--Global financial technology leader FIS® has been selected by Frankfurt International Bank AG (FIB), a newly licensed German bank, to power its treasury and risk operations. The bank has selected FIS Treasury & Risk Manager – Quantum Cloud Edition, which will deliver fully integrated front-to-back treasury coverage from day one, enabling the bank to build on modern infrastructure from inception, without inheriting or modernizing aging on-premise systems.

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.

Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.

It also includes access to the Zacks Style Scores.

What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.

Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.

Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.

Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.

VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.

It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +24% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.

That's where the Style Scores come in.

To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.

The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.

Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

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.