Fidelity National Information Services Target Price Cut 19.8% to $69 After Q4 EPS Miss
RBC Capital cut FIS’s target price by 19.8% to $69 after Q4 adjusted EPS of $1.68 missed the $1.69 consensus despite $2.81 billion revenue. Q1 guidance of $1.26–$1.30 EPS trails the $1.34 estimate, though free cash flow is slated to grow 27%–33% in 2026.
1. Analyst Target Price Reduction
RBC Capital cut its target price for Fidelity National Information Services by 19.8% to $69 from $86 while retaining its Outperform rating, citing a slight fourth-quarter EPS miss and softer 2026 margin projections. The firm highlighted strong free cash flow as the basis for potential total return upside.
2. Q4 2025 Results
Fidelity National Information Services’s fourth quarter 2025 results showed adjusted EPS of $1.68 versus the $1.69 consensus and revenue of $2.81 billion topping the $2.74 billion estimate, suggesting revenue growth but constrained margin expansion.
3. Q1 2026 Guidance
Management forecast first quarter 2026 adjusted EPS of $1.26 to $1.30, below the $1.34 consensus, even as revenue guidance outpaced analyst views, reflecting ongoing margin pressures.
4. Free Cash Flow Outlook
Despite earnings headwinds, the company expects free cash flow to rise 27%–33% in 2026, far outpacing the projected 8%–10% adjusted EPS growth and supporting long-term return prospects.