Fidelity National Information Services (FIS) has joined Anthropic’s Project Glasswing, using the Mythos 5 frontier AI model to probe its own critical software infrastructure as an added layer within its security program.

Against this security focused announcement, Fidelity National Information Services’ share price has been volatile, with a 1 day share price return of 3.67% and a 30 day share price return of 7.62%. However, a year to date share price return down 36.74% and a 1 year total shareholder return down 47.63% indicate that longer term momentum has been weak.

If this kind of AI led security work interests you, it can be worth widening the lens and checking out 55 AI infrastructure stocks

After the share price jump on the Project Glasswing news, the question is whether Fidelity National Information Services already reflects this renewed focus on security or if waiting for a cleaner entry still makes more sense on valuation grounds.

Most Popular Narrative: 29% Undervalued

The most followed narrative on Fidelity National Information Services pegs fair value at $58.45 versus the last close of $41.51, pointing to a sizeable gap that hinges on how its payments and banking software evolve over time.

Increasing client demand for cloud-based and AI-powered fintech solutions, such as the launch of TreasuryGPT and Banker Assist, is allowing FIS to upsell higher-value, "stickier" products to financial institutions modernizing their operations, which should support long-term revenue expansion and improved net margins.

Want to see what kind of revenue path and profit profile needs to hold up for that fair value to make sense? The narrative leans on steady top line growth, pressure on margins, and a very specific earnings multiple that has to do a lot of heavy lifting.

Result: Fair Value of $58.45 (UNDERVALUED)

However, this hinges on Fidelity National Information Services holding its ground against faster moving fintech competitors, while also avoiding further integration missteps that drag on margins and returns.

Next Steps

Seeing mixed signals around Fidelity National Information Services and unsure which side you lean toward? Take a closer look at the full picture, including 3 key rewards and 4 important warning signs

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.