Is Fidelity National Information Services Stock Underperforming the Nasdaq?

Core Viewpoint - Fidelity National Information Services, Inc. (FIS) is a financial services technology provider with a market cap of $35.9 billion, offering a range of services including payment processing and banking software, but has faced significant stock price declines recently [1][2]. Financial Performance - FIS reported Q2 2025 earnings with revenue of $2.6 billion, a 5.1% increase year-over-year, exceeding consensus estimates by 1.6% [5]. - The adjusted EPS for FIS improved by 1.5% year-over-year to $1.36, meeting analyst expectations [5]. - FIS raised its fiscal 2025 guidance, projecting revenue between $10.5 billion and $10.6 billion, and adjusted EPS between $5.72 and $5.80 [5]. Stock Performance - FIS shares have declined 25.4% from their 52-week high of $91.98 and are down 16% over the past three months, underperforming the Nasdaq Composite's 11.7% increase [3][4]. - Over the past 52 weeks, FIS stock has decreased by 16.7%, significantly lagging behind the Nasdaq's 29.6% gain [4]. - Year-to-date, FIS shares are down 15%, compared to the Nasdaq's 13.3% return [4]. Market Position - FIS is classified as a large-cap stock due to its market valuation and is positioned to support financial institutions and businesses through innovation and cloud-based solutions [2]. - Despite its challenges, FIS has outperformed its competitor Fiserv, Inc., which has seen a 20.9% decline over the past 52 weeks and a 33.6% drop year-to-date [6]. Cash Flow Concerns - A notable concern for investors is the 42.1% annual decline in FIS's free cash flow, which contributed to an 8.5% drop in share price following the earnings release [6].