FIS

A month has gone by since the last earnings report for Fidelity National Information Services (FIS). Shares have lost about 2.3% in that time frame, underperforming the S&P 500. But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Fidelity National due for a breakout? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for Fidelity National Information Services, Inc. before we dive into how investors and analysts have reacted as of late. FIS Beats Q2 Earnings on Banking Solutions Strength, Cuts 2026 Outlook Fidelity National reported second-quarter 2026 adjusted earnings per share (EPS) of $1.48, which beat the Zacks Consensus Estimate by 0.7%. The bottom line advanced 8.8% year over year. Revenues amounted to $3.4 billion, which improved 29% year over year. The top line missed the consensus mark by 0.2%. The quarterly earnings were driven by strong growth in the Banking Solutions segment and steady performance in the Capital Market Solutions segment, supported by recurring revenue growth, margin expansion and acquisition benefits. However, the upside was partly offset by a higher cost of revenues and increased selling, general and administrative expenses. The cost of revenues increased 32.4% year over year to $2.2 billion in the second quarter. SG&A expenses of $684 million rose 19.6% year over year. Net interest expenses of $200 million increased 81.8% from the prior-year quarter’s figure. Adjusted EBITDA was $1.4 billion, up 35% year over year. Adjusted EBITDA margin increased 193 basis points year over year to 41.7%, primarily driven by acquisitions, a favorable business mix and cost savings initiatives. Revenues from the Banking Solutions segment totaled $2.5 billion, increasing 44% year over year and matching the Zacks Consensus Estimate. The segmental results benefited from solid margin expansion. Adjusted EBITDA margin improved 179 bps year over year to 45.8%, supported by cost management and a favorable revenue mix. The Capital Market Solutions segment’s revenues advanced 3.5% year over year to $810 million, marginally missing the Zacks Consensus Estimate by 0.2%. Strong recurring revenue growth benefited the metric. Adjusted EBITDA margin of 51.9% contracted 32 bps year over year. The Corporate and Other segment recorded revenues of $84 million, down 26% year over year. Adjusted EBITDA loss was $147 million. Fidelity National exited the second quarter of 2026 with cash and cash equivalents of $744 million, up from $599 million as of 2025-end. Total assets of $44.1 billion increased from $33.5 billion at the end of 2025. Long-term debt, excluding the current portion, amounted to $15.4 billion, up from $9.1 billion as of Dec. 31, 2025. The current portion of long-term debt totaled $1.5 billion. Short-term borrowings totaled $4.2 billion at the end of the reported quarter. Total equity of $16 billion increased from $13.9 billion at 2025-end. Fidelity National generated $493 million in net cash from operations, representing a 29.1% year-over-year increase. Adjusted free cash flow totaled $525 million, up 220% year over year. The company returned $270 million to shareholders, including $42 million through share repurchases and $228 million in dividend payments. Management forecasts revenues between $3.415 billion and $3.445 billion. Adjusted EBITDA is projected to be in the range of $1,460-$1,480 million. Adjusted EPS is estimated to be between $1.58 and $1.62. Revenues are now expected to be $13.63-$13.70 billion, down from the prior guidance of $13.77-$13.85 billion, implying 29-30% adjusted revenue growth. Adjusted EBITDA is projected to be $5.73-$5.79 billion compared to the earlier outlook of $5.80-$5.86 billion. Adjusted EBITDA margin is anticipated to be in the range of 41.8-42.4% (previously 42.1-42.3%). Adjusted EPS is forecast in the range of $6.15-$6.24, lowered from the prior guidance of $6.22-$6.32. The midpoint implies about 7.7% year-over-year growth from $5.75 reported in 2025. Free cash flow guidance has been raised to $2.15-$2.25 billion from the previous $2.05-$2.15 billion. The company now expects free cash flow growth of 33-39% year over year. In the past month, investors have witnessed a downward trend in estimates review. Currently, Fidelity National has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy. Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Fidelity National has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months. Fidelity National belongs to the Zacks Financial Transaction Services industry. Another stock from the same industry, Visa (V), has gained 2.7% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026. Visa reported revenues of $11.63 billion in the last reported quarter, representing a year-over-year change of +14.4%. EPS of $3.32 for the same period compares with $2.98 a year ago. Visa is expected to post earnings of $3.43 per share for the current quarter, representing a year-over-year change of +15.1%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.1%. The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Visa. Also, the stock has a VGM Score of F. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Fidelity National Information Services, Inc. (FIS) : Free Stock Analysis Report Visa Inc. (V) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Global Payments Inc. GPN reported second-quarter 2026 adjusted earnings per share (EPS) of $3.46, which beat the Zacks Consensus Estimate of $3.45. The bottom line rose 12% year over year. Adjusted net revenues improved 33.8% year over year to $3.2 billion. The top line missed the consensus mark by 0.4%. The quarterly earnings benefited from continued adoption of the Genius platform and the company's strategic transformation into a focused commerce solutions provider. However, higher operating expenses partly offset these gains. Global Payments Inc. price-consensus-eps-surprise-chart | Global Payments Inc. Quote Adjusted operating income of $1.3 billion increased 25.9% year over year in the second quarter. Adjusted operating margin expanded 70 basis points (bps) year over year on a normalized basis to 42%. Total operating expenses of $3 billion increased 89.3% year over year in the second quarter. The increase was due to higher selling, general and administrative expenses, and cost of service. Interest and other expenses rose 81.9% year over year to $277.5 million. Global Payments exited the second quarter with cash and cash equivalents of $5.4 billion, which decreased from $8.3 billion at 2025-end. Total assets of $63.6 billion rose from $53.3 billion at 2025-end. Long-term debt amounted to $21.5 billion compared with $19.5 billion at 2025-end. The current portion of long-term debt totaled $925 million at the second-quarter end. Total equity of $23.8 billion rose from $23.6 billion at 2025-end. Operating activities used $373.8 million of cash in the first six months of 2026 compared with $1.4 billion provided by operating activities in the prior-year period. GPN repurchased shares worth $1.2 billion in the first half of 2026. The company declared a quarterly dividend of 25 cents per share, which will be paid out on Sept. 25, 2026, to its shareholders of record as of Sept. 11, 2026. Constant-currency adjusted net revenue growth, excluding dispositions, is expected to be 4-5% in 2026. Constant-currency adjusted EPS growth is expected to be 11-13% in 2026. GPN expects to convert approximately 90% of adjusted net income into adjusted free cash flow. Annual adjusted operating margin is expected to expand by approximately 150 basis points in 2026. GPN currently has a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. How Did Peers Perform? Several companies in the business services space, including Fidelity National Information Services, Inc. FIS, Visa Inc. V and Mastercard Incorporated MA, have reported their financial results for the June quarter of 2026. Here’s how they have performed: Fidelity National reported second-quarter 2026 adjusted EPS of $1.48, which beat the Zacks Consensus Estimate by 0.7%. The bottom line advanced 8.8% year over year. Revenues amounted to $3.4 billion, which improved 29% year over year. The top line missed the consensus mark by 0.2%. FIS’ quarterly earnings were driven by strong growth in the Banking Solutions segment and steady performance in the Capital Market Solutions segment, along with recurring revenue growth. However, the upside was partly offset by a higher expenses. Visa delivered third-quarter fiscal 2026 adjusted earnings of $3.32 per share, which rose 11% year over year and beat the Zacks Consensus Estimate by 2.8%. Net revenues were $11.63 billion, rising 14% year over year. Visa’s quarterly results reflected resilient spending trends, higher cross-border volumes and solid network activity, including a 10% year-over-year increase in payments volume on a constant-dollar basis. The upside was partly offset by increased operating expenses. Mastercard reported second-quarter 2026 adjusted EPS of $5.04, which topped the Zacks Consensus Estimate by 5.7%. The bottom line improved 21.4% year over year. Net revenues advanced 14.1% year over year to $9.3 billion. The top line beat the consensus mark by 2.4%. Mastercard’s quarterly results benefited from strong cross-border volume growth, increased switched transactions and robust demand for value-added services. The upside was partly offset by higher payment network rebates from renewed deals and an escalating operating expense level. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Global Payments Inc. (GPN) : Free Stock Analysis Report Mastercard Incorporated (MA) : Free Stock Analysis Report Visa Inc. (V) : Free Stock Analysis Report Fidelity National Information Services, Inc. (FIS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

For the quarter ended June 2026, Fidelity National Information Services (FIS) reported revenue of $3.38 billion, up 29.1% over the same period last year. EPS came in at $1.48, compared to $1.36 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $3.38 billion, representing a surprise of -0.23%. The company delivered an EPS surprise of +0.68%, with the consensus EPS estimate being $1.47. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Fidelity National performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Revenue- Banking Solutions: $2.48 billion versus $2.48 billion estimated by six analysts on average. Compared to the year-ago quarter, this number represents a +37.3% change. Revenue- Corporate and Other: $84 million compared to the $90.36 million average estimate based on six analysts. The reported number represents a change of +95.4% year over year. Revenue- Capital Market Solutions: $810 million versus the six-analyst average estimate of $811.73 million. The reported number represents a year-over-year change of +5.9%. Adjusted EBITDA- Banking Solutions: $1.1 billion versus $1.12 billion estimated by three analysts on average. Adjusted EBITDA- Corporate and other: $-147 million compared to the $-138.87 million average estimate based on three analysts. Adjusted EBITDA- Capital Market Solutions: $420 million compared to the $424.52 million average estimate based on three analysts. View all Key Company Metrics for Fidelity National here>>> Shares of Fidelity National have returned +8.5% over the past month versus the Zacks S&P 500 composite's +1.7% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Fidelity National Information Services, Inc. (FIS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Banking segment performance reached the high end of outlook ranges, driven by sustained momentum in both core banking and payments ecosystems. The Total Issuing Solutions acquisition is playing out as expected and performing well., evidenced by a 35% year-over-year increase in enterprise-wide ACV sold to joint clients. Capital Markets underperformed due to a combination of known client attrition from the UBS/Credit Suisse merger and internal execution misses in professional services conversion. Management attributed the Capital Markets weakness to 'self-inflicted' operational delays in converting backlog rather than broader market demand shifts. The company is shifting its commercial focus from lower-margin products to higher-margin solutions, resulting in double-digit enterprise-wide sales growth over the last 12 months. AI adoption is being integrated across four layers—engineering, servicing, workforce, and products—to drive both internal productivity and client-facing differentiation. A strategic review of the Capital Markets portfolio is underway to identify and potentially divest products that do not align with the core focus on large financial institutions. Full-year free cash flow guidance was raised by $100 million to a midpoint of $2.2 billion, driven by faster-than-expected reductions in one-time cash expenses. Capital Markets revenue growth expectations were lowered to 3%-3.5%, reflecting a slow start to sales in the first half and delayed professional services implementation. Management anticipates a modest reacceleration in Capital Markets during Q4 2026 as the impact of specific client attrition begins to normalize. The 2027 framework assumes recurring revenue acceleration in Capital Markets as lower attrition and improved backlog conversion offset the absence of M&A contributions. Long-term free cash flow targets remain set at greater than $3 billion by 2028, supported by disciplined capital deployment and the phase-out of integration costs. UBS's acquisition of Credit Suisse created a 1 percentage point headwind for Capital Markets revenue growth in 2026 due to resulting client attrition. Interest rate pressures have tempered growth in the lending business, which was previously expected to contribute 1 point of organic growth to the Capital Markets segment. One-time cash expenses for legacy FIS operations were reduced by 17% compared to the original guide, reflecting aggressive cost rationalization. Management addressed competitive concerns regarding Visa Pismo, stating their focus remains on large-scale financial institutions where Visa has indicated it is not prioritizing. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management clarified the miss was primarily due to lower-than-planned ACV sales in the first half, which typically converts to revenue at a 75% rate within the same year. Secondary factors included overly aggressive internal assumptions regarding the timing of backlog and pipeline conversion. FIS maintains an 85% win rate for large financial institutions with over 1 million accounts, emphasizing that scale and complexity are their primary moats. Management noted that Visa's own commentary suggests Pismo is targeting small-to-mid-sized banks and fintechs, not the large-scale clients FIS serves. The review focuses on products that do not serve the core large financial institution base or fall outside the primary solution ecosystems of trading, lending, and treasury. Management acknowledged that while divestitures are being evaluated, these products are often highly integrated into core infrastructure, making separation complex. FIS is utilizing a recent acq-hire to build orchestration layers that allow banks to modernize from the 'inside out' without a full core replacement. The strategy aims to provide a 'safer bet' for large banks by offering both modern banking platforms and the ability to hollow out existing legacy cores.

Fidelity National Information Services, Inc. FIS reported second-quarter 2026 adjusted earnings per share (EPS) of $1.48, which beat the Zacks Consensus Estimate by 0.7%. The bottom line advanced 8.8% year over year. Revenues amounted to $3.4 billion, which improved 29% year over year. The top line missed the consensus mark by 0.2%. The quarterly earnings were driven by strong growth in the Banking Solutions segment and steady performance in the Capital Market Solutions segment, supported by recurring revenue growth, margin expansion and acquisition benefits. However, the upside was partly offset by a higher cost of revenues and increased selling, general and administrative expenses. Fidelity National Information Services, Inc. price-consensus-eps-surprise-chart | Fidelity National Information Services, Inc. Quote The cost of revenues increased 32.4% year over year to $2.2 billion in the second quarter. SG&A expenses of $684 million rose 19.6% year over year. Net interest expenses of $200 million increased 81.8% from the prior-year quarter’s figure. Adjusted EBITDA was $1.4 billion, up 35% year over year. Adjusted EBITDA margin increased 193 basis points year over year to 41.7%, primarily driven by acquisitions, a favorable business mix and cost savings initiatives. Revenues from the Banking Solutions segment totaled $2.5 billion, increasing 44% year over year and matching the Zacks Consensus Estimate. The segmental results benefited from solid margin expansion. Adjusted EBITDA margin improved 179 bps year over year to 45.8%, supported by cost management and a favorable revenue mix. The Capital Market Solutions segment’s revenues advanced 3.5% year over year to $810 million, marginally missing the Zacks Consensus Estimate by 0.2%. Strong recurring revenue growth benefited the metric. Adjusted EBITDA margin of 51.9% contracted 32 bps year over year. The Corporate and Other segment recorded revenues of $84 million, down 26% year over year. Adjusted EBITDA loss was $147 million. Fidelity National exited the second quarter of 2026 with cash and cash equivalents of $744 million, up from $599 million as of 2025-end. Total assets of $44.1 billion increased from $33.5 billion at the end of 2025. Long-term debt, excluding the current portion, amounted to $15.4 billion, up from $9.1 billion as of Dec. 31, 2025. The current portion of long-term debt totaled $1.5 billion. Short-term borrowings totaled $4.2 billion at the end of the reported quarter. Total equity of $16 billion increased from $13.9 billion at 2025-end. Fidelity National generated $493 million in net cash from operations, representing a 29.1% year-over-year increase. Adjusted free cash flow totaled $525 million, up 220% year over year. The company returned $270 million to shareholders, including $42 million through share repurchases and $228 million in dividend payments. Management forecasts revenues between $3.415 billion and $3.445 billion. Adjusted EBITDA is projected to be in the range of $1,460-$1,480 million. Adjusted EPS is estimated to be between $1.58 and $1.62. Revenues are now expected to be $13.63-$13.70 billion, down from the prior guidance of $13.77-$13.85 billion, implying 29-30% adjusted revenue growth. Adjusted EBITDA is projected to be $5.73-$5.79 billion compared to the earlier outlook of $5.80-$5.86 billion. Adjusted EBITDA margin is anticipated to be in the range of 41.8-42.4% (previously 42.1-42.3%). Adjusted EPS is forecast in the range of $6.15-$6.24, lowered from the prior guidance of $6.22-$6.32. The midpoint implies about 11.2% year-over-year growth from $5.57 reported in 2025. Free cash flow guidance has been raised to $2.15-$2.25 billion from the previous $2.05-$2.15 billion. The company now expects free cash flow growth of 33-39% year over year. Fidelity National currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Several companies in the business services space, including Marsh & McLennan Companies, Inc. MRSH, Visa Inc. V and Mastercard Incorporated MA, have reported their financial results for the June quarter of 2026. Here’s how they have performed: MRSH reported second-quarter 2026 adjusted earnings per share of $2.96, which surpassed the Zacks Consensus Estimate by 2.8%. The bottom line advanced 8.8% year over year. Consolidated revenues of $7.4 billion improved 6.2% year over year. The figure rose 5% on an underlying basis. The top line beat the consensus mark by 2%. Marsh’s quarterly results benefited from solid growth in the Risk and Insurance Services and Consulting units. However, the upside was partially offset by elevated operating expenses, primarily due to increased compensation and benefits. Visa delivered third-quarter fiscal 2026 adjusted earnings of $3.32 per share, which rose 11% year over year and beat the Zacks Consensus Estimate by 2.8%. Net revenues were $11.63 billion, rising 14% year over year. Visa’s quarterly results reflected resilient spending trends, higher cross-border volumes and solid network activity, including a 10% year-over-year increase in payments volume on a constant-dollar basis. However, the upside was partly offset by increased operating expenses. Mastercard reported second-quarter 2026 adjusted earnings of $5.04 per share, which topped the Zacks Consensus Estimate by 5.7%. The bottom line improved 21.4% year over year. Net revenues advanced 14.1% year over year to $9.3 billion. The top line beat the consensus mark by 2.4%. Mastercard’s quarterly results benefited from strong cross-border volume growth, increased switched transactions and robust demand for value-added services. However, the upside was partly offset by higher payment network rebates from renewed deals and an escalating operating expense level. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Fidelity National Information Services, Inc. (FIS) : Free Stock Analysis Report Mastercard Incorporated (MA) : Free Stock Analysis Report Visa Inc. (V) : Free Stock Analysis Report Marsh (MRSH) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Revenue: $3.4 billion, up 5.3% on a pro forma basis. Banking Solutions Revenue: Grew 6.1% on a pro forma basis, with banking up 5.6% and payments growing 6.4%. Capital Markets Revenue: Increased 3.2%, with recurring revenue growth accelerating to 5.3%. Recurring Revenue Growth: Grew 5% across both segments. Adjusted EBITDA: Grew 7.4% on a pro forma basis. Adjusted EBITDA Margin: Expanded 113 basis points. Adjusted EPS: Increased 8.8%. Free Cash Flow: More than tripled to $525 million in the quarter; full-year outlook raised by $100 million to $2.2 billion. Capital Markets Adjusted EBITDA Margin: 51.7% for the first half of the year. Banking Solutions Adjusted EBITDA: Advanced 10.6% with margins expanding 178 basis points. Leverage Ratio: Decreased to 3.5 times. Shareholder Returns: Returned $270 million to shareholders, primarily through dividends. Warning! GuruFocus has detected 3 Warning Signs with FIS. Is FIS fairly valued? Test your thesis with our free DCF calculator. Release Date: August 04, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Banking Solutions revenue grew 6.1% in Q2, at the high end of the outlook, with strong performance in both banking and payments. Adjusted EBITDA margins expanded by 113 basis points, driven by favorable product mix and cost savings. Free cash flow more than tripled year-over-year to $525 million, leading to a raised full-year free cash flow outlook of $2.2 billion. Total Issuing Solutions acquisition thesis is playing out as expected, with new client wins (top 10 banks in Latin America and India) and 72% of the portfolio under contract through 2029 and beyond. AI initiatives are gaining traction, with 10 AI products in market, 200 customers live, and a pipeline of over 500 opportunities, contributing to productivity gains and client outcomes. Recurring revenue grew 5% across both segments, and recurring sales grew 14%, indicating a durable revenue base. The company is on track to deliver over $150 million in EBITDA synergies by 2028 from the Total Issuing Solutions acquisition. Leverage ratio decreased to 3.5 times, and the company returned $270 million to shareholders through dividends. Capital Markets revenue growth was at the low end of the outlook at 3.2%, with professional services declining 17% due to lower sales and slower backlog conversion. The company reduced its full-year Capital Markets revenue growth outlook to 3% to 3.5%, a 225 basis point reduction from prior guidance. Capital Markets recurring revenue growth is now expected to be mid-single-digit, down from the prior mid-to-high single-digit expectation, due to lower sales and slower conversion. The UBS-Credit Suisse attrition is impacting 2026 Capital Markets revenue growth by approximately 1 percentage point, concentrated in trading and asset services. Lending business organic growth did not materialize as expected, creating a modest drag on Capital Markets recurring revenue growth. The company is evaluating strategic alternatives for select Capital Markets products that may not fit its strategic profile, indicating potential portfolio rationalization. Professional services sales in Capital Markets missed expectations in the first half, with a disproportionate impact on the P&L due to the timing of revenue conversion. The company expects Capital Markets license and professional services revenue to decline as it transitions to a recurring revenue model, which may pressure near-term growth. Q: Can you provide more detail on the strategic review of select products within Capital Markets? Are these stand-alone products, and when should investors expect clarity on the outcome?A: Stephanie Ferris (CEO): The review is focused on specific products within the Capital Markets segment that do not strategically fit the company's overall profile, such as certain risk management and data analysis solutions. It is not a sale of the entire segment. We are not providing parameters on the size of these assets at this time and will provide updates as the review progresses. Q: What drove the weakness in Capital Markets professional services, and is this a market trend or a company-specific issue?A: Stephanie Ferris (CEO) and James Kehoe (CFO): The miss is on us, not a market condition. The primary issue was lower-than-expected ACV sales in the first half, which has a disproportionate impact on the current year's P&L. Additionally, the conversion of the existing backlog was slower than anticipated. We do not expect professional services to be a growth driver going forward as we focus on recurring revenue. Q: How is the Total Issuing Solutions (TSYS) business performing, and how should we think about the competitive landscape, particularly regarding Visa Pismo?A: Stephanie Ferris (CEO): The business is performing in line with overall payments growth and the acquisition thesis is playing out as expected. We are winning new large clients, including a top 10 Latin American bank and a top 10 Indian bank. Our win rate for large financial institutions with over 1 million accounts is above 85%. Visa's CEO has stated they are targeting small to mid-sized banks and fintechs, not the large institutions where we operate, confirming our competitive position. Q: Can you unpack the drivers of the 21% nonrecurring revenue growth in Banking and how this impacts the outlook for 2027?A: James Kehoe (CFO): The growth was driven by term fees from known clients (Huntington, Cadence, Genius Bank) and large strategic license deals signed in Q1 that will drive recurring revenue over a five-year horizon. We expect nonrecurring revenue to normalize in the second half. For 2027, we will provide formal guidance later, but we expect banking core and digital to be a lower single-digit grower and payments to be a mid-single-digit grower. Q: What is the level of confidence in the Capital Markets recurring revenue acceleration into 2027, and what are the key assumptions?A: Stephanie Ferris (CEO) and James Kehoe (CFO): Confidence is high. The 2026 headwind from UBS/Credit Suisse attrition (approximately 1 point) will disappear in 2027, providing a natural tailwind. We are also not banking on a rebound in the lending business. The acceleration will come from improved conversion of the existing backlog and a return to more normalized attrition rates, with Q4 2026 expected to show modest reacceleration. Q: Is the 6% growth rate in the Payments business sustainable in the second half, and what is the long-term outlook?A: Stephanie Ferris (CEO) and James Kehoe (CFO): We expect payments to continue at similar levels and outpace the banking segment. It is expected to remain in the mid-single-digit range. The Total Issuing Solutions business is a key contributor to this growth, and we are happy with its performance and the account conversion progress. Q: Are you seeing any delays in client decision-making due to AI uncertainty, and what are the top areas of demand in the Banking segment?A: Stephanie Ferris (CEO): We are not seeing delayed decision-making. Demand is strong in payments (debit/credit, digital currencies), fraud and data capabilities, and lending. Clients are focused on modernization and leveraging data for AI. We are also a critical partner for cyber resilience, which remains a top priority for our clients. Q: Can you provide more color on the AI productivity gains and how they are impacting the business?A: Stephanie Ferris (CEO): We are seeing significant early results. In engineering, AI is driving 1.5x to 2x throughput and 30% fewer defects. In servicing, we have launched 5 agentic programs, reducing manual tickets by 70% and triage time by nearly 75%. These gains are improving both productivity and client experience, and we expect this to be a major unlock for margins and growth into 2027 and 2028. Q: How are you thinking about the feasibility of divesting Capital Markets products given the highly integrated nature of the infrastructure?A: James Kehoe (CFO): It is challenging because the businesses are highly integrated, and divesting them will not result in a proportionate reduction in fixed costs, leading to some cost leakage. However, we need to make portfolio decisions to drive the segment back to sustainable mid-single-digit growth. We will work through the leakage and cost structure implications as part of the review. Q: What is the outlook for the Capital Markets segment in Q3 and the second half of 2026?A: James Kehoe (CFO): We expect Q3 recurring revenue growth to be in the mid-single digits with some acceleration in Q4. The acceleration is driven by lapping the UBS attrition and a greater contribution from sales made earlier in the year. We have good line of sight to this improvement. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Fidelity National Information Services, Inc. FIS is set to report second-quarter 2026 results on Aug. 4, 2026, before the opening bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is currently pegged at $1.47 per share,and the same for revenues is pinned at $3.38 billion. The second-quarter earnings estimate has witnessed one downward revision against no movement in the opposite direction over the past 60 days. However, the bottom-line prediction indicates an 8.1% year-over-year increase. The Zacks Consensus Estimate for quarterly revenues implies year-over-year growth of 29.4%. Image Source: Zacks Investment Research For full-year 2026, the Zacks Consensus Estimate for Fidelity National’s revenues is pegged at $13.80 billion, implying a rise of 29.3% year over year. Meanwhile, the consensus mark for the current year EPS is pegged at $6.27, implying growth of around 9% on a year-over-year basis. Fidelity National’s earningsbeat the consensus estimate in two of the last four quarters, met once and missed on another occasion, with the average surprise being 1.9%. Fidelity National Information Services, Inc. price-eps-surprise | Fidelity National Information Services, Inc. Quote Our proven model does not conclusively predict an earnings beat for the company this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. That’s not the case here. FIS has an Earnings ESP of -0.70% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. You can see the complete list of today’s Zacks #1 Rank stocks here. The Zacks Consensus Estimate for Banking Solutions revenues indicates a 37.3% year-over-year increase. The acquisition of Global Payments’ Issuer Solutions business, which was closed in January, is likely to boost the performance of the segment. The consensus mark indicates a 6.1% increase in revenues from Capital Market Solutions compared with the same quarter last year. The Zacks Consensus Estimate for Banking Solutions’ adjusted EBITDA indicates a 41.7% year-over-year increase. The consensus mark for Capital Market Solutions’ adjusted EBITDA indicates 10.3% year-over-year growth. The factors stated above are likely to have positioned FIS for year-over-year growth. The positives are likely to have been partially offset bythe rising cost of revenues. Also, the consensus estimate for corporate and other adjusted EBITDA signals a 4.4% deterioration from a year ago. The company earlier stated that it expects second-quarter 2026 consolidated adjusted EBITDA to be in the range of $1.395-$1.415 billion. Here are some companies in the broader payments space that have already reported earnings for the June quarter: Synchrony Financial SYF, American Express Company AXP and Visa Inc. V. Synchrony Financial reported second-quarter 2026 adjusted EPS of $2.59, which surpassed the Zacks Consensus Estimate by 24.5%, and the bottom line increased 3.6% year over year. The quarterly results were driven by record purchase volume, accelerated growth in ending loan receivables despite elevated payment behavior, continued credit strength and an expansion in net interest margin. However, SYF’s higher operating expenses and an increase in the provision for credit losses partly offset these positives. American Express reported second-quarter 2026 EPS of $4.53, which surpassed the Zacks Consensus Estimate by 2.7%. The bottom line advanced 11% year over year. The strong quarterly results were driven by increased Card Member spending, higher net interest income and improved card fee growth. However, the upside was partly offset by AXP’s elevated operating expenses. Visa delivered third-quarter fiscal 2026 adjusted earnings of $3.32 per share, up 11% year over year and beating the Zacks Consensus Estimate by 2.8%. The strong quarterly results reflected resilient spending trends, higher cross-border volumes and solid network activity, including a 10% year-over-year increase in payments volume on a constant-dollar basis. However, the upside was partly offset by Visa’s increased operating expenses. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Fidelity National Information Services, Inc. (FIS) : Free Stock Analysis Report Visa Inc. (V) : Free Stock Analysis Report American Express Company (AXP) : Free Stock Analysis Report Synchrony Financial (SYF) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Global Payments (GPN) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The earnings report, which is expected to be released on August 5, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. This electronics payment processing company is expected to post quarterly earnings of $3.46 per share in its upcoming report, which represents a year-over-year change of +11.6%. Revenues are expected to be $3.17 billion, up 34.4% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 0.42% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction). The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Global Payments, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -0.63%. On the other hand, the stock currently carries a Zacks Rank of #4. So, this combination makes it difficult to conclusively predict that Global Payments will beat the consensus EPS estimate. Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Global Payments would post earnings of $2.82 per share when it actually produced earnings of $2.96, delivering a surprise of +4.96%. Over the last four quarters, the company has beaten consensus EPS estimates three times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Global Payments doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Among the stocks in the Zacks Financial Transaction Services industry, Fidelity National Information Services (FIS), is soon expected to post earnings of $1.47 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of +8.1%. This quarter's revenue is expected to be $3.38 billion, up 29.4% from the year-ago quarter. Over the last 30 days, the consensus EPS estimate for Fidelity National has been revised 0.3% down to the current level. Nevertheless, the company now has an Earnings ESP of -0.70%, reflecting a lower Most Accurate Estimate. This Earnings ESP, combined with its Zacks Rank #3 (Hold), makes it difficult to conclusively predict that Fidelity National will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates two times. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Global Payments Inc. (GPN) : Free Stock Analysis Report Fidelity National Information Services, Inc. (FIS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

PayPal Holdings, Inc. PYPL reported second-quarter 2026 non-GAAP earnings per share (EPS) of $1.38, which beat the Zacks Consensus Estimate of $1.28 by 7.81%. The metric declined 1% year over year. Revenues of $8.68 billion surpassed the consensus mark of $8.51 billion by 2.02% and increased 5% year over year. The quarter benefited from solid growth in total payment volume (TPV), along with continued momentum in Venmo and Braintree. TPV increased 10% to $486.45 billion, or 9% on a currency-neutral basis. Transaction revenues increased 5% year over year to $7.83 billion, supported by Braintree, Venmo and favorable foreign exchange. Revenues from other value-added services were flat at $850 million, as higher credit revenues were offset by lower interest earned on customer balances. U.S. revenues rose 7% to $5.05 billion, while international revenues increased 2% to $3.63 billion. On a currency-neutral basis, international revenues declined 3%, indicating that domestic growth remained the stronger contributor. The company processed 6.75 billion payment transactions in the second quarter, up 8% year over year. Excluding payment service provider (PSP) transactions, payment transactions increased 7%, reflecting growth across the portfolio. Transactions per active account rose 3% to 60.0 on a trailing 12-month basis. Excluding PSP, the metric increased 7% to 37.9, marking a second straight quarter of acceleration and highlighting stronger Venmo engagement. Venmo TPV advanced 14% year over year to $93.81 billion and represented 19% of total payment volume. Management noted that Venmo delivered a second consecutive quarter of mid-teens growth. Branded checkout volume grew 2% on a currency-neutral basis, remaining stable with the first quarter. PSP volume increased 13% on a currency-neutral basis, with Braintree growing in the mid-teens, while peer-to-peer and other consumer volume rose 10%. Transaction margin dollars (TM$) increased 1% year over year to $3.90 billion. Excluding interest on customer balances, TM$ rose 3% to $3.62 billion, supported by Venmo, credit and Braintree, along with favorable foreign exchange and lower losses. Non-transaction-related expenses increased 9% to $2.39 billion. Non-GAAP operating income declined 8% to $1.51 billion, while non-GAAP operating margin contracted 248 basis points to 17.4%, reflecting continued investment in growth and platform initiatives. Active accounts were 439 million at quarter-end, up 0.3% year over year. Monthly active accounts (MAA) increased 1% to 228 million, with Venmo driving much of the growth. Management also highlighted stronger adoption across newer financial services products. Buy now, pay later TPV increased 26%, while MAA for the offering rose more than 20%. Venmo Debit Card MAA grew more than 50%, and Pay with Venmo MAA increased approximately 30%. Net cash provided by operating activities surged 121% year over year to $1.98 billion. Free cash flow soared 157% to $1.78 billion, while adjusted free cash flow climbed 179% to $1.83 billion. PayPal repurchased approximately 33 million shares for $1.5 billion during the reported quarter. The company also paid $122 million in dividends and declared a cash dividend of 14 cents per share, payable Sept. 25, 2026. For 2026, PayPal now expects non-GAAP EPS of about $5.38, up from $5.31 in 2025. The Zacks Consensus Estimate for the same is pegged at $5.32. The company also raised its TM$ outlook to approximately $15.6 billion and expects TM$, excluding interest on customer balances, of about $14.5 billion. Management reiterated adjusted free cash flow of more than $6 billion and share repurchases of roughly $6 billion. For the third quarter, PayPal expects non-GAAP EPS to decline at a low-single-digit rate from the year-ago levels of $1.34. The Zacks Consensus Estimate for the same is pegged at $1.34. Currently, PayPal carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. PayPal Holdings, Inc. price-consensus-eps-surprise-chart | PayPal Holdings, Inc. Quote We now look forward to the earnings release of other stocks in the Financial Transaction Services industry, Fidelity National Information Services, Inc. FIS and Sezzle, Inc. SEZL. While Fidelity National Information Services is scheduled to report on Aug. 4, Sezzle is slated to report on Aug. 6. The consensus mark for Fidelity National Information Services’ second-quarter 2026 EPS is pegged at $1.47, implying a 8.1% increase year over year. The Zacks Consensus Estimate for Sezzle’s second-quarter 2026 EPS is pinned at 95 cents, indicating a 37.7% increase year over year. FIS has a Zacks Rank #3, SEZL carries a Zacks Rank #2 (Buy). Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report Fidelity National Information Services, Inc. (FIS) : Free Stock Analysis Report Sezzle Inc. (SEZL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Fidelity National Information Services (FIS) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The earnings report, which is expected to be released on August 4, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. This banking and payment technologies company is expected to post quarterly earnings of $1.47 per share in its upcoming report, which represents a year-over-year change of +8.1%. Revenues are expected to be $3.38 billion, up 29.4% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 0.33% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction). The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Fidelity National, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -0.70%. On the other hand, the stock currently carries a Zacks Rank of #3. So, this combination makes it difficult to conclusively predict that Fidelity National will beat the consensus EPS estimate. Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Fidelity National would post earnings of $1.28 per share when it actually produced earnings of $1.36, delivering a surprise of +6.25%. Over the last four quarters, the company has beaten consensus EPS estimates two times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Fidelity National doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Among the stocks in the Zacks Financial Transaction Services industry, MasterCard (MA), is soon expected to post earnings of $4.77 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of +14.9%. This quarter's revenue is expected to be $9.06 billion, up 11.4% from the year-ago quarter. Over the last 30 days, the consensus EPS estimate for MasterCard has remained unchanged. Nevertheless, the company now has an Earnings ESP of +0.39%, reflecting a higher Most Accurate Estimate. This Earnings ESP, combined with its Zacks Rank #3 (Hold), suggests that MasterCard will most likely beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Fidelity National Information Services, Inc. (FIS) : Free Stock Analysis Report Mastercard Incorporated (MA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research