Highlights

  • Basic EPS growth is 3,097.94%, with a P/E of 5.78 and PEG of 0.75.
  • Second quarter revenue was $3,377 million, against $2,616 million a year earlier.
  • Net earnings attributable to the company were $231 million, against a loss of $470 million.
  • Debt outstanding was $21.2 billion; $1.7 billion remained under the repurchase program.

Basic earnings per share growth of 3,097.94% over one year, a trailing twelve-month P/E of 5.78 and a PEG of 0.75 on an expected basis define Fidelity National Information Services (NYSE:FIS) as an undervalued growth stock, with shares trading at USD 35.95 on October 28, 2026, up 0.94%. In its latest disclosures, the financial technology provider closed the Issuer Solutions Acquisition and the sale of its Worldpay minority interest on January 9, received final court approval of a securities class action settlement on July 9, and reported second quarter 2026 revenue of $3,377 million in early August.

Headquartered in Jacksonville, Florida, and incorporated in Georgia, the company describes itself as a financial technology company providing solutions to financial institutions, businesses and developers. It reports three segments: Banking Solutions, which now includes the Issuer Solutions Business, Capital Market Solutions, and Corporate and Other. The company states that it is a member of the Fortune 500 and the S&P 500 Index.

Growth: Second Quarter Earnings, Revenue and Segments

Net earnings attributable to the company were $231 million in the second quarter of 2026 against a loss of $470 million a year earlier, and $2,598 million for the six months against a loss of $393 million. Basic earnings per share were $0.45 against a loss of $0.90 for the quarter, and $5.03 against a loss of $0.75 for the six months.

Revenue rose 29% in the quarter and 30% for the six months, to $6,671 million, which the company attributed primarily to the Issuer Solutions Business. Six-month equity method investment earnings, net of tax, were $2,214 million against a loss of $669 million, including an estimated pre-tax gain of $2.2 billion on the Worldpay minority interest sale.

Banking Solutions revenue was $2,483 million against $1,720 million, up 44%, or 6% excluding the Issuer Solutions Business. Capital Market Solutions revenue was $810 million against $783 million, up 3%.

Valuation: P/E of 5.78, PEG of 0.75 and Cash Flow

The P/E ratio of 5.78 is measured on trailing twelve-month earnings, and the PEG ratio of 0.75 on expected growth. Cash flows from operations were $1,207 million for the six months against $839 million.

On the second quarter earnings call, management said it has a path to free cash flow of more than $3 billion by 2028, from growth in EBITDA dollars and lower one-time expenses.

Capital and Balance Sheet: Debt, Dividends and Repurchases

Debt outstanding totaled $21.2 billion at June 30, 2026, with an effective weighted average interest rate of 3.8%. The company incurred approximately $7.7 billion of new debt for the Issuer Solutions Acquisition and refinanced the cash consideration with senior notes in March 2026. Available liquidity was $3.4 billion, including $744 million of cash and cash equivalents and $2.6 billion of revolving credit capacity.

A regular quarterly dividend of $0.44 per share is payable on September 25, 2026 to holders as of September 11, 2026. Under the $3.0 billion repurchase program approved in August 2024, the company repurchased 1.0 million shares for $42 million in the second quarter and 1.4 million shares for $72 million in the six months, leaving approximately $1.7 billion. It has temporarily curtailed repurchases since the acquisition closed and may resume them at management's discretion, taking its target leverage ratio into account.

Disclosed Risks and Outlook

Net interest expense was $200 million against $110 million, up 82%, on the $7.7 billion increase in borrowings. A 100 basis-point increase in the rate on variable-rate debt would raise annual interest expense by $50 million. The company cited vendor cost increases it cannot fully offset through pricing.

The securities class action concerning the former Merchant Solutions segment received final approval of its settlement on July 9, 2026, and the company expects insurance to pay substantially all of it. The company filed a motion on November 24, 2025 to dismiss two related shareholder derivative actions.

On the call, management said client attrition affects 2026 Capital Markets revenue growth by approximately 1 percentage point and that Capital Markets sales were behind plan in the first half. Its second quarter update for the year gave adjusted revenue growth of 4.5% to 5%, against 5.1% to 5.7% previously, Capital Markets revenue growth reduced to 3% to 3.5%, and free cash flow raised by $100 million to $2.15 billion to $2.25 billion.