RBC Capital Reduces Target Price on Fidelity National Information Services (FIS) to $69 on Slight Q4 Earnings Miss

Fidelity National Information Services Inc. (NYSE:FIS) is one of the 14 Most Undervalued NYSE Stocks to Buy According to Analysts.

RBC Capital, on February 25, reduced its target price on Fidelity National Information Services by 19.8% to $69 (from $86) but retained the firm’s Outperform call on the stock. The fourth-quarter earnings miss, combined with below-consensus guidance for 2026, was to blame for this price cut. Nonetheless, the firm likes the strong free cash flow generation, which could “lay the groundwork for a cleaner and more powerful total return story.”

FIS released its 4th-quarter 2025 earnings on February 24. The release showed a slight miss in diluted adjusted earnings per share ($1.68 actual vs. $1.69 street consensus vs. $1.40 prior year), despite exceeding revenue expectations ($2.81 billion actual vs. $2.74 billion street consensus). This phenomenon implies that profit margins did not expand as much as analysts were expecting.

Management also provided its guidance for Q1 2026. The guidance included an adjusted EPS forecast of $1.26 to $1.30, which is lower than consensus estimates of $1.34. The guidance miss, again, can be attributed to lower margins than expected, given that revenue guidance exceeded analyst estimates.

Despite the earnings and guidance disappointments, cash flow generation remained strong (with free cash flow growth outpacing earnings growth). Management expects this trend to continue. They expect free cash flows in 2026 to grow 27% to 33% YoY (vs. 8% to 10% adjusted EPS growth).

Fidelity National Information Services Inc. (NYSE:FIS) provides banking and capital markets solutions for financial institutions and businesses. The company is based in Jacksonville, Florida, and was founded in 1968.

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