Is FIS Underperforming the Technology Sector?

Fidelity National Information Services Inc. (FIS) provides financial technology solutions including banking software, money processing, and capital markets services to institutions worldwide. Headquartered in Jacksonville, Florida, it supports core processing, transaction systems, risk management, and digital channels for seamless operations. The company has a market capitalization of $26.49 billion, making it a “large-cap” stock.

FIS shares hit a 52-week low of $46.16 on Feb. 12, but are up 11.8% from that level. Due to broader market volatility and sector challenges in financial services technology, the stock came under pressure. Over the past three months, FIS stock has declined 20.8%. The broader technology sector, as indexed by the State Street Technology Select Sector SPDR ETF ( XLK ), is down 5.6% over the same period. Therefore, the company’s stock is currently underperforming its sector.

The stock is down 27.6% over the past 52 weeks and down 22.3% year-to-date (YTD). On the other hand, the Technology Select Sector ETF has gained 27.9% over the past 52 weeks but is down 2.9% YTD. The stock has been trading below its 50-day moving average since mid-January 2026 and below its 200-day moving average since late July 2025.

In January, FIS completed the acquisition of a global payments issuer solutions business for an enterprise value of $13.5 billion ($12 billion net purchase price and $1.5 billion net present value of tax assets). Business offerings are integrated into FIS’ entire issuance solutions portfolio brand. It expands the company’s product offerings by adding credit processing, fraud detection, and some banking services. At the same time, FIS sold its remaining minority stake in Global Payments to Global Payments.

Last year, FIS’ consolidated revenue grew 5% year-over-year (YOY) to $10.68 billion, while adjusted EBITDA also rose 5% to $4.33 billion from the prior year. For the current year, Wall Street analysts expect the company’s EPS to grow weakly at 9% YOY to $6.27, followed by 11% growth to $6.96 in 2027.

We compare FIS’s performance to another IT services stock, Broadridge Financial Solutions, Inc. (BR) which is down 21.6% over the past 52 weeks and down 15.3% YTD. Therefore, FIS has performed less than BR in these periods.

Wall Street analysts are moderately bullish on FIS stock. The stock has a consensus rating of “moderate buy” from the 27 analysts that cover it. An average price target of $66.73 implies a 29.3% upside from current levels. Furthermore, a high street price target of $85 indicates a 64.7% upside.

As of the date of publication, Anushka Dutta had no position (either directly or indirectly) in any of the secrets mentioned in this article. All information and data in this article are for informational purposes only. This article was originally published on Barchart.com