Fidelity National Information Services, Inc. (FIS) stock declined 11.5% after the fintech company issued weaker-than-expected 2025 guidance, making it the S&P 500’s worst performer on Tuesday. For 2025, Fidelity forecasted revenue between $10.44 billion and $10.50 billion, falling short of analysts’ $10.6 billion estimate, according to FactSet. Meanwhile, the company’s Q4 revenue also missed estimates, which management attributed to challenging year-over-year comparisons.
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FIS Delivers Mixed Q4 Results
In Q4, the company reported a 3% year-over-year increase in adjusted revenue, reaching $2.6 billion, just below analysts’ $2.63 billion estimate. On the plus side, net income in the fourth quarter surged nearly fivefold to $304 million, compared to $62 million in the same quarter last year. This was primarily driven by the company’s cost-saving initiatives.
During the earnings call, FIS CEO Stephanie Ferris blamed the 2024 growth shortfall on one-time factors. Looking ahead, she expressed confidence in 2025, citing stronger sales and improved client relationships as key growth drivers.
Analysts Weigh In on FIS Results
Following the results, RBC Capital reiterated its Buy rating on FIS stock but lowered the price target from $104 to $95, estimating a potential growth of around 30%. RBC stated that FIS will witness slow growth early in the year before improving in Q2 and the latter half of 2025, reducing expected clarity for FY25. RBC also highlights FIS’ Capital Markets segment as the key growth driver for FY25. Overall, RBC considers the stock’s recent decline an overreaction and sees it as a buying opportunity.
Similarly, Raymond James lowered the price target for FIS to $78 from $101, projecting a more modest upside of 6%.
Is FIS a Buy Right Now?
According to TipRanks, FIS stock has received a Moderate Buy consensus rating, with four Buys, six Holds, and 1 Sell assigned in the last three months. The average price target for FIS stock is $92.90, suggesting a potential upside of 27% from the current level.
