Fidelity National Information Services, Inc. FIS 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 and Jack Henry & Associates, Inc. JKHY.
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 & Estimates
Shares of FIS have declined 36.8% in the year-to-date period compared with the industry’s fall of 11.4%.
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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.
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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.
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FIS stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Fidelity National Information Services, Inc. (FIS): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).