Fidelity National Information Services Stock: Buy, Sell, or Hold in 2026?

• Fidelity National Information Services' banal has had a unsmooth past fewer years.

• The banal terms plummeted to a 52-week debased this week.

• It has immoderate affirmative momentum, but is it capable to warrant a buy?

• 10 stocks we similar amended than Fidelity National Information Services ›

Fidelity National Information Services (NYSE: FIS) banal plummeted to a 52-week debased connected Tuesday, dropping immoderate 4% connected the time to astir $60.60 per share.

For a institution that is 1 of the fewer ascendant players successful its superior concern -- providing the exertion to assistance banks determination wealth -- specified a driblet mightiness beryllium considered a buying opportunity.

But Fidelity National has been trending little for respective years now, with a three-year mean annualized instrumentality of antagonistic 5% and a five-year mean annualized instrumentality of antagonistic 14%.

A batch of its problems stem from its acquisition of Worldpay successful 2019 for astir $43 billion, to grow into the merchant acquirer/payment processing businesses. Fidelity rapidly realized it wasn't a acceptable and sold disconnected astir 55% of it to a backstage equity steadfast successful 2023 for conscionable $11.7 billion.

The nonaccomplishment connected that investment, among different factors, created nett losses done 2023 and into 2024, and it lone began to make net again successful the 2nd 4th of 2024.

But it remained priced mode excessively precocious for its sluggish earnings, and the valuation skyrocketed to a existent price-to-earnings ratio of astir 200, exacerbating the sell-off.

As we caput into 2026, is Fidelity National banal a buy, oregon should investors enactment away?

Fidelity National heads into 2026 with immoderate momentum. In the past quarter, net accrued 8%, gross climbed 6%, and (perhaps much importantly) its escaped currency travel surged 101% to astir $800 million.

The deficiency of currency flow, oregon much specifically, concern dollars, has wounded Fidelity National successful caller years, arsenic it has not been capable to put arsenic overmuch successful caller technologies to clasp disconnected caller competitors similar Stripe, among others.

The different affirmative improvement is that it sold disconnected the remainder of its involvement successful Worldpay to Global Payments for astir $24 billion. In exchange, it acquired Global Payments' issuer solutions concern for astir $13 billion, utilizing immoderate of the proceeds from the Worldpay sale.

With this move, expected to adjacent this quarter, Fidelity National exits the merchant acquirer space, serving merchants, and bolsters its halfway concern of serving banks, arsenic issuer solutions provides recognition processing exertion for fiscal companies.

Fidelity raised its gross guidance for fiscal 2025, calling for maturation of 5.4% to 5.7% and reiterated its adjusted earnings-per-share maturation forecast of 10% to 11%. It besides accrued its people for adjusted free-cash-flow conversion -- which gauges however it turns profits into currency -- to greater than 85%, up from 82% to 85%. This speaks to its accrued efficiency.