FIS Stock Forecast & Price Target

Fidelity National Info is supported by resilient free cash flow that is expected to remain solid and outpace earnings in FY27, aided by working-capital initiatives and further non-GAAP cash expense reductions that can offset deleveraging pressure. Commercial execution also appears to be improving, with ACV renewal rates in the high 90s%, up about 100 bps y/y, cross-selling with large FIs up 76% YTD, and Capital Markets posting 3.0% pro forma revenue growth to $823M alongside 6.5% adj. EBITDA growth to $444M and 54.0% margins, up 180 bps. Even with the $50M–$75M license headwind and weaker professional services, the shift toward recurring revenue, improving pricing on renewals, and margin inflection in Capital Markets point to a healthier, more durable earnings profile.

Fidelity National Info is facing a deteriorating fundamental setup as management cut FY26 guidance due to delayed client conversions, bank consolidation, lower non-recurring revenue assumptions, and higher cybersecurity investment that will continue into FY27. The reset implies a HSD-LDD decline in adjusted EPS, while FY27 preliminary guidance shows pro forma revenue growth of (0.5%)–1.0%, flat to down 100 bps margins, and share repurchases delayed as leverage progress toward 2.8x is pushed out. Added execution risk from the CFO’s unexpected departure and decelerating recurring revenue in Banking Solutions and Capital Markets Solutions reinforces a bearish view on earnings quality, growth durability, and capital allocation.